California Real estate finishes 2003 with a bang!
Real estate and housing in California is probably going to finish 2003 by setting new records for the second consecutive year, according to the recently released California Association of REALTORS® (C.A.R.) "State of the Housing Market 2003" report.
The Report states low interest rates and demand outpacing supply have contributed to this strong market. The population of California continues to grow by 600,000 people per year, and new home production is not keeping up.
70% of home sales were to repeat homebuyers and 30% of home sales were to first-time homebuyers. (In the mid-1990s, repeat homebuyers and first-time homebuyers were equal at 50% of the real estate market.)
We can attribute this growth in repeat homebuyers to rising real estate values, and people wanting to sell, then use their gain to buy a more expensive piece of real estate - or maybe more than one.
The median home purchase for first-time buyers is $307,500 compared to $375,000 for repeat homebuyers. Approximately 44% of condominium purchases are made by first-time buyers.