The California Association of Realtors 2018 State of the California Consumer Survey found 44 percent of buyers bought a more expensive home than they wanted. Thirty-three percent purchased a smaller home than desired, 36 percent purchased a home farther from school/work than wished, and 30 percent purchased in an area where schools were of lesser quality.
“In a competitive housing market, if you are comfortable with your choice of home and financing, it is all right to settle for fewer preferences or amenities than you’d like. It is important to be flexible and willing to make some compromises to get into your new home,” said Alan Barbic, 2019 president of the Silicon Valley Association of Realtors.
Buyers typically spent eight weeks on their home search. In the hyper-competitive, supply-constrained San Francisco Bay Area, which had the highest incidence of multiple offers, buyers spent a median of 10 weeks in their home search. Buyers made a median of three offers on other homes before having an offer accepted, but nearly one-fourth made more than 10 offers. Those who purchased a home for more than $1 million made five offers on other homes.
“We are seeing some added inventory, but it is not enough to meet the demand for homes here due to the enormous job growth,” said Barbic, who will be officially installed as president of the local trade association on Jan. 17.
The survey found a typical first-time buyer purchased a three-bedroom, 1,500-square-foot, single-family home. Nearly half of those surveyed purchased a home in the suburbs. First-time buyers selected their neighborhood primarily based on their budget (53 percent), safety (51 percent), and proximity to jobs/school (38 percent).
Repeat buyers typically purchased a larger three-bedroom home with a median 1,700 square feet. Three in four purchased a single-family home.
Millennials tended to buy homes with a median of 1,500 square feet and a median price of $350,000. Most millennials were more likely to purchase a condominium or townhome in a suburb (43 percent) and selected the neighborhood on budget (52 percent), safety (49 percent), proximity to jobs/schools (40 percent) and family/friends (33 percent).
Most Gen Xers selected a home in the suburbs with a median of 300 square feet greater than their previous home. Most purchased a single-family home, and nearly 20 percent purchased a townhouse/condo.
Boomers purchased a single-family home in the suburbs without stairs, or a home in rural area, since many of them are approaching retirement age and planning to age in their home and seek a quieter lifestyle.
The online survey was conducted between May 9 and July 9, 2018, with 6,144 participants. For the buyers section, respondents were 1,441 buyers who purchased a California home within the previous 18 months.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org.
