market pulse, january 2015
DESCRIPTION
C.A.R.’s Market Pulse Survey is a monthly online survey to gather California REALTORS®’ sentiment about their last closed transaction and business activity for the previous month and the last year.TRANSCRIPT
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MARKET PULSEJanuary 2015
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Survey Methodology
• Monthly online survey of 300+ CA REALTORS®
• Respondents are asked about their last closedtransaction, and business activity in their market areafor the previous month and the last year.
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LastTransactionMarket Pulse
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%Who Closed aTransaction Steady
49%
65%60%
0%
10%
20%
30%
40%
50%
60%
70%
Q: How many real estate transactions did you close last month?
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Median Sale Price up 16%YTY
Q: What was the sale price of your last closed transaction?
$387,000
$511,000
$450,000$436,458$450,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Median
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MajorityTransactionsClosing BelowAsking Price
Q: Did your last closed transaction sell over, at or below asking price?
27%
16%
51%55%
24%29%
0%
10%
20%
30%
40%
50%
60%
Over Below At
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Premium Paid OverAsking Price Rising
Q: At what percentage was your last closed transaction sold over asking price?
5.7%
11%12%
8.0%
12.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Average
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Discount on Asking Price Higher
Q: At what percentage was your last closed transaction sold below asking price?
5.8% 5.6% 5.8% 6.3%
12%13%
11%
8.0%
11.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 2014 2015YTD
Average
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Fewer Properties Receiving MultipleOffers
Q: How many offers did your last closed transaction receive?
64%61% 58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
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Number of Offers Down
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.53.1
2.62.5
2.72.5
Average
Q: How many offers did your last closed transaction receive?
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Listing Price Reductions Steady
Q: Were there any listing price reductions before escrow opened in your last closed transaction?
20%
25% 26%28%
33%
29%31% 31%
0%
5%
10%
15%
20%
25%
30%
35%
Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15
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% of Previous Renters Fluctuates
Q: Was the buyer of your last closed transaction a renter immediately prior to purchasing the property?
40%
46%
32%
0%
10%
20%
30%
40%
50%
60%
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Fewer Sellers Became Renters
Q: Did the seller of your last closed transaction become a renter immediately after selling the property?
22%21%
13%
0%
5%
10%
15%
20%
25%
30%
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% of First -Time Buyers Fluctuating
Q: Was the buyer of your last closed transaction a first-time buyer?
26%
36%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
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Majority Purchases are Primary Residences
Q: What was the intended use of the property?
72% 76% 73%
22% 18% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Primary residence Investment Vacation home Other
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Market ConditionsMarket Pulse
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Floor Calls from Potential Clients Down
Q: Compared to the month of November, the number of floor calls from potential clients in December in yourmarket area was …
43% 43%
35% 34%
22% 23%
0%
10%
20%
30%
40%
50%
60%
Last Month
Down Flat Up
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ListingAppointments/Presentations toClientsDeclining
Q: Compared the month of November, the number of listing appointments and presentations to clients inDecember in your market area was …
44% 45%
36%33%
20% 22%
0%
10%
20%
30%
40%
50%
60%
Last Month
Down Flat Up
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Open HouseTraffic Up from LastYear
Q: Compared to last month/year, open house traffic in your market area in December was …
0%
10%
20%
30%
40%
50%
60%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
Last Month
0%
10%
20%
30%
40%
50%
60%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
LastYear
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Off MLS/Pocket Listings Fluctuating
Q: Compared to last month/year, the number of off MLS/pocket listings in your market area in December was …
0%
10%
20%
30%
40%
50%
60%
70%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
Last Month
0%
10%
20%
30%
40%
50%
60%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
LastYear
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Auctions Declined
Q: Compared to last month/year, the number of auctions in your market area in December was …
0%
10%
20%
30%
40%
50%
60%
70%
80%A
pr-
14
May
-14
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-14
Dec
-14
Jan
-15
Last Month
0%
10%
20%
30%
40%
50%
60%
70%
80%
Ap
r-14
May
-14
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-14
Dec
-14
Jan
-15
LastYear
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MultipleOffers Stabilizing
Q: Compared to last month/year, the number of multiple offers in your market area in December was …
0%
10%
20%
30%
40%
50%
60%
70%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
Last Month
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
LastYear
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All Cash Purchases Down
Q: Compared to last month/year, the number of all cash purchases in your market area in December was …
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Jun-14 Aug-14 Oct-14 Dec-14
Last Month
0%
10%
20%
30%
40%
50%
60%
70%
Jun-14 Aug-14 Oct-14 Dec-14
LastYear
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REALTORS® Expect Mostly Better MarketConditionsOver the NextYear
Q: What are your expectations for market conditions over the next year?
0%
10%
20%
30%
40%
50%
60%
70%
Worsen Same Improve
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Why REALTORS® Expect MarketConditions toWorsen
Interest rates will go up.
No inventory, buyer burnout, lack of affordability…
Lending is still difficult and economy is uncertain.
Prices have peaked, no first time buyers because they can’t get loans.
Uncertainties with 2016 election.
No inventory, prices are too high…
Q: Why do you expect real estate market conditions to worsen over the next year?
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What are REALTORS® Saying?
“Inventory is still very low.”
“Hoping/expecting market to improve in lower price ranges…”
“…tendency to move up is lagging.”
“More employment opportunities are needed in my market area.”
“Have gotten more buyer activity due to lower interest rates…”
“The political climate is stagnating this country for jobs and the ability to get a loan…”
Luxury short sales in SoCal is setting a trend for investors to flip luxury estates.
“High end inventory has picked up considerably.”
“The market needs more stated income mortgage for self employed and wealthier buyers.”
Q: Do you have any specific comments, professional observations, or information that you would like to sharewith us--such as information on multiple bidding, changing buyer preferences, mortgage credit issues, orother topics?
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Top 10 Counties
Q: In which county do you live?
December 2014 January 2015
1 L.A. L.A.
2 Orange Orange
3 San Diego San Diego
4 Riverside Riverside
5 Santa Clara Sacramento
6 Alameda Santa Clara
7 Contra Costa Placer
8 Ventura San Bernardino
9 San Bernardino San Francisco
10 Sacramento Contra Costa/Ventura/SanMateo/Alameda
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