Morning Briefing: Improving economy boosts housing market in California

by Steve Randall07 Jul 2015
Improving economy boosts housing market in California
Realtors in California say that the improving economy and jobs growth is bringing buyers back to the housing market. The California Association of Realtors says that many former homeowners who lost their homes during the financial crisis are now in a position to buy a home again which is further boosting the market. In 2015, more households were formed as the share of buyers who previously lived with their parents increased to 12 per cent – the highest in the CAR home buyers survey’s history, up from 2 per cent in 2014. Additionally, the share of those who previously rented dipped from 40 per cent in 2014 to 39 per cent in 2015, and those who previously owned fell from 59 per cent in 2014 to 47 per cent in 2015.

The survey revealed some interesting shifts in buyers’ plans with more saying they plan to keep their home for an average of 20 years compared to the 2013 average of just 6 years. Mortgage downpayments averaged 24 per cent this year, down from 28 per cent last year but still above the traditional average of 20 per cent. First-time buyers are funding their downpayment with savings (49 per cent) or a gift/borrowing (33 per cent).
 
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