Markets & Economy

4 out of every 10 California homebuyers are first-timers

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Distressed sales volume is at a record low in California, helping the state to return to a “more normal” housing market. According to a California Association of Realtors (CAR) homebuyer survey, 22 percent of homebuyers who purchased a home spanning February 2014 to February 2015 were previously involved with a distressed sale and are now returning to the market. Another encouraging sign for California is that 40 percent of recent homebuyers have been first timers. This apparent increase in first-time homebuying has had a direct effect on average and median home prices. According to CAR, 74 percent of homes were purchased for less than $500,000 and 60 percent were bought for under $400,000. The median sales price of a home dropped from $375,000 to $350,000. The survey found that 28 percent of the time the final purchase price was higher than the initial listing price. On the flip side, 44 percent of the time the listing price was higher than the purchase price. When pu...