The California Association of Realtors (C.A.R.) published the summary results of their 2006 Annual Housing Market Survey (“The State of the California Housing Market”) today. A couple of tidbits that caught our attention:
∙ Home buyers with zero-down payments increased significantly from 4.5 percent in 2000 to 21.1 percent in 2006. Two of five first-time buyers (40.9 percent) made a zero-down payment on their home purchase, while just one in 10 repeat buyers (11.3 percent) purchased their home with no down payment.
∙ The share of buyers who used a second mortgage climbed from 38 percent in 2005 to 43 percent in 2006, more than triple the percentage since 2001 and the highest percentage since 1982. The use of alternative loan products also registered a sharp increase.
∙ The typical first-time buyer had a median age of 35, earned an annual household income of $80,000, and purchased a home with a historically high median price of $450,000.
∙ The typical home seller was 50 years old, had a two-member household, earned an annual household income of $100,000, and lived in the home for five years before selling it.