We here a lot about the all buyers and absentee buyers but what share of the market do they comprise? According to a recent report by DataQuick, All Cash buyers purchased 24 percent of the homes sold in Southern California in June, down from a high of 30 percent in January of this year. Cash Buyers are up significantly from past trends; based on a 22-year average, they typically comprise 14 percent of the market.
Absentee Buyers comprise an additional 20 percent of the homes sold (based on mailing address for loan payments differing from a home address). Absentee buyers can be buying for latter retirement, a second home or investment.
All Cash buyers and Absentee buyers comprise even more of the buyers in the Inland Empire Counties of Riverside and San Bernardino. In July 34.4 percent of homebuyers were cash buyers compared to 24 percent in the six Southern California Counties and 27.3 percent in the State. Absentee buyers in the Inland Empire accounted for 28.2 percent of all buyers compared to 20 percent in Southern California and 22.6 percent in the State.
With affordable prices first-time buyers have reentered the market in large numbers. Thirty-nine percent of the homes purchased in Southern California were purchased with a FHA Loan, the loan of favor with younger buyers.
Discretionary home purchases are concentrated in the lower price ranges where Banks see government insured (FHA and VA) loans as safe investments, Affordable price ranges are allowing younger buyers with good credit histories and stable employment to purchase homes. In some cases, these buyers can enjoy monthly payments for mortgage and tax below previous rents. An estimated 56 percent of today’s buyers are under the age of 45 and a surprising 30 percent of these young buyers are Single.
The majority of today’s buyers are young and mobile.
- 33% age 25-34
- 23% age 35-44
- 20% single female
- 10 % single male
If you are looking to purchase your first home, we hope to be of service.
Homes priced at over $417,000 requiring Jumbo-Loans, continue to suffer, largely because of restrictive leaning practices. Prior to the credit crisis Jumbo Loans accounted for 40 percent of all loans, now a low 17 percent.
What does this mean to you?
Bargain hunting continues to characterize the market as evidenced by the fact All Cash and Absentee Buyers comprise 44 percent of home purchases. These buyers are even more pervasive in the Inland Empire where they account for 53 percent of all buyers. Great bargains remain available but they are increasingly challenging to find as demand is beginning to exceed supply in the lower price ranges.
Look to information and market trends at Temecula’s Neighborhood Expert, your best source of up-to-date information on Temecula and Southwest Riverside County. We hope to be your Realtor of choice when it comes to buying your next home or selling you existing home.