Who’s Selling and Why
By Carmen Hirciag, Membership Development Manager

According to results of the 2009 Survey of California Home Sellers, trouble making mortgage payments, job losses and increases in monthly mortgage payments played significant roles in sellers’ decisions to sell their homes.  Nearly three-quarters of all sellers in California sold as a result of financial difficulties, a significant change of events from two years ago when most sellers entered the market for a larger home or better location. The vast majority (92.5 percent) had a 2/28, 3/27 or other mortgage that has caused so many problems in the past few years.

First time sellers constituted nearly half of the seller population (44 percent) in 2009, a 33 percent increase from 2008.  Sellers owned their homes an average of 2.4 years, with 45 percent owning their home for two years or less.  Of those owning their home for two years or less before selling, nearly half (45 percent) had trouble making mortgage payments; totaling about one in five sellers.

The seller’s struggle and current market conditions have affected real estate agents, with sellers far more inclined to use a REALTOR® in 2009 than in prior years.

For questions about Real Estate 411, please contact the Research & Economics Department atresearch@car.org or (213) 739-8352