• For the 37% of properties selling below asking price, the average percentage paid below asking price decreased to 12% from 13% last month, but flat from last year.
• For the 31% of properties selling above asking price, the average premium paid over asking increased to 12% from 9% last month and 10% last year.
• The share of properties that received multiple offers was 60%, down from 64% last month and 62% last year. Also, the proportion of properties with three or more offers decreased to 38%. The average number of offers per property was 2.7 offers. Read more
• The California investor market is still active and bounce back from two years of declines to 31 percent of the transactions and a majority of REALTORS® were working with individuals.
• Investors who purchased single family homes increased 6 percent from last year to 76 percent, which made a bulk of the transactions. Multifamily complexes made up 17 percent of the transactions.
• A majority of investors bought their property to rent out, down from 62 percent last year to 57 percent. Flippers increased 4 percent from last year to 30 percent. Read more
• Across all demographics, there has been an increase in renters and in California there are 6.2 million households renting.
• 4 out of 5 renters see the importance of homeownership and of those 33 percent plan to purchase a home within the next few years.
• However, if they were to get a new job/an increase in pay or get married that would spur them to buy sooner creating potential for more business opportunities. Read more
Get a quick, round up of the weekly economic and housing market news that matters to your real estate business all in one place. Read more
The Housing Matters Podcast is your housing hub for the latest market analysis, economic trends, and housing news. Listen now
To Share with Your Clients:
California’s housing crisis is caused by a historic divergence between the demand for homes in California and the supply of available apartments and homes. We are still far from building enough units to satisfy general demand and it may take a long time for the state to build enough housing to reduce rental prices. In the mean-time there is something that regular homeowners can do to supplement their incomes, increase the value of their homes, provide housing to neighbors, prepare for their own retirements, and partially relieve the housing pressure on their communities: the ADU! Read more
Gain insights on California’s housing market through interactive dashboards. Learn more on home price sustainability, market competition, and the luxury market. Select your metrics and see where the data takes you. Read more