Gains in California home sales in June and a rise in June pending sales show despite concerns about the economy, buyers are realizing there are deals to be had and are taking advantage of today's prices and low mortgage rates. Findings from the California Association of REALTORS® 2011 Survey of California Home Buyers indicate buyers are primarily motivated by improved affordability, lower prices, historic low interest rates, as well as property tax deductions.
The C.A.R. survey of 1,400 homebuyers in California who closed escrow in the first three months of 2011 finds higher affordability, driven by low prices and interest rates, as the primary reason nearly four in 10 buyers made their purchase. Other reasons included the desire for a better location or a larger home. Additionally, 76 percent indicated they didn't close escrow on time and 49 percent were repeat buyers.
According to C.A.R. analyst Carmen Hirciag, buyers also appear to be doing their homework before making their purchase. Buyers spent more than four months doing research. It took buyers two and a half months before contacting an agent. Buyers looked at an average of 12 homes in a period of eight weeks.
The Internet is the primary tool buyers used for research on the market and neighborhoods, finding homes and agents. According to Hirciag, more than half Googled their agent, which is about double the percentage of buyers from last year. Realtor.com remains the most visited and most useful website for buyers, followed by Zillow, Google and Yahoo! Real Estate. Buyers also used agent and real estate company websites, Trulia, YouTube, Facebook and Craigslist to find agents. While the Internet offered much information and resources, 80 percent of buyers indicated they found the home they purchased through an agent.
The use of social media is becoming more prominent among today's buyers. Over half of buyers surveyed said they use social media for agent referrals, to view home videos and agents' Facebook pages, get home buying tips, and review neighborhood information.
Asked to rate the importance of certain website features in their online home viewing, buyers indicated multiple pictures, virtual tours, statistics on comparable homes, neighborhood profile, new listing notifications and analysis of housing market conditions were most important to include in those listings.
"The results of the survey show the growing importance of the Internet and technology in real estate," said Gene Lentz, president of the Silicon Valley Association of REALTORS®. "Our members are aware that it's essential they keep abreast with the changes in technology, in addition to having a good website and investing in a social medial profile. Our members recently held a REALTOR® Tech Fair Trilogy touching on all facets of emerging technology ideas, including software applications and gadgets specific to real estate."
Lentz added that this month, REALTOR® members of the local trade association are exchanging their lockboxes with Bluetooth iBoxes. They were also given the option to upgrade to an eKEY, which enables them to use their smartphone as their key, so they carry just one device."
"It's a sign of the times, and with tools such as these, we believe we will be able to better serve our clients," said Lentz.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.