Industry News

Interest rate concerns drive real estate market

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Home sellers' concerns about rising interest rates helped drive the residential real estate market to new heights in California in 2004, with the Boomer Generation dominating the market, accounting for 74 percent of all home sales, according to the California Association of Realtors' "Survey of California Sellers," released Thursday. "Because of its size and current life-cycle, the Boomer Generation is likely to play a significant role in the housing market over the next several years," said C.A.R. President Jim Hamilton. "Trading up and the purchase of second homes will continue to put pressure on the housing market. "While most home sellers indicated that they sold because they wanted a larger home or different location, pricing and financing clearly entered the picture," he said. According to the report, a typical California home seller was married, 47 years old, earned nearly $135,000 annually, and had sold a home at least once before. Just over half of all sellers in 2004 fel...