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The Real Deal
Sellers had big bucks left over after sales
By Jean Newton
The year 2000 proved to be a boon for home sellers, who were able to reap the rewards of the state's robust real estate market and corresponding surge in home prices last year. The fourth quarter 2000 California housing finance survey, released by the California Association of Realtors, found that home sellers pocketed big bucks after the sale of their homes in the fourth quarter of 2000.
"The amount of cash that sellers retained after the close of escrow hit $100,000 in the fourth quarter of 2000, its highest level ever and nearly three times the amount registered in 1997," said California Association of Realtors. President Gary Thomas. "Home buyers on the other hand, had a tougher time of it, with 49.1 percent making one or more offers before finally closing escrow," he said.
The survey also stated that 47.4 percent of statewide sales were "as-is" sales. In Northern California, 61.8 percent of homes were sold "as-is," compared to 49.2 percent in Southern California.
"Even though California home prices reached record highs last year, 19.3 percent--nearly one-fifth--of all homes were sold above asking price," said Leslie Appleton-Young, vice president and chief economist for the California Association of Realtors. "The underlying strength of the market also was reflected in the pace at which homes were sold in the fourth quarter of 2000. Homes were listed on the multiple listing service for just three weeks prior to sale, a far cry from 1995 when time on the market peaked at 11.5 weeks."
As the economy showed signs of slowing and the volatility of the stock market increased, a slightly lower number of Californians were influenced by the stock market in the decision to buy or sell, declining slightly from the third quarter of 2000.
"Especially in Northern California's high-tech center, where the local economy is closely tied to the market, the stock market's role in the decision to buy or sell decreased to 15.2 percent the fourth quarter of 2000, compared to 20.9 percent in the third quarter," Appleton-Young said.
Seven out of 10 Realtors cited high home prices as the primary deterrent in the consumer's decision to buy a house. Lack of inventory, availability of credit and insufficient income were also named as major obstacles to buying a home.
Additional key finds in the survey showed stock market proceeds as a down payment source were down slightly from the third quarter with stock market gains continuing to be more prominently used in Northern California than Southern California.
The Internet played a more prominent role with 20 percent of all home buyers or sellers logging on during the real estate transaction, doubling usage from one year ago. Realtor referrals from the Internet checked in at 3.9 percent.
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Saratoga, California Since 1955
