Financial Troubles Motivate Majority of 2009 California Sales
According to a survey by the California Association of Realtors (C.A.R.) of 2009 home sales in the state, “nearly three-quarters…sold as a result of financial difficulties.” These included “trouble making mortgage payments, job losses and increases in monthly mortgage payments.”
Interestingly, almost half of all sellers owned their homes for two years or less, up from one-third in the 2008 C.A.R. survey. Fifty-nine per cent of these were first time sellers.
Not surprising was the fact that over 92 per cent of 2009 sellers had an adjustable rate or short term, fixed rate loan. Some of these included negative amortization.
A statistic sure to catch Realtors’ attention is the fact that 64 per cent of all sellers were represented by an agent other than the one who sold them the home. To me, this is startling, perhaps suggesting that many sellers felt they did not receive adequate service or advice on the buying end.