1

MARKET PULSE
January 2015

Survey Methodology
Monthly online survey of 300+ CA REALTORS
Respondents are asked about their last closed

transaction, and business activity in their market area

for the previous month and the last year.

LastTransaction
Market Pulse

%Who Closed aTransaction Steady

70%
60%
50% 49%
40%
30%
20%
10%
0%

Q: How many real estate transactions did you close last month?

65%

60%

Median Sale Price up 16%YTY

Median
$600,000
$500,000

$387,000

$400,000
$300,000

$200,000
$100,000
$0

Q: What was the sale price of your last closed transaction?

$511,000
$450,000
$450,000 $436,458

MajorityTransactionsClosing BelowAsking Price

Over

Below

At

60%

51%

50%

55%

40%
30%

27%

20%
10%
0%

Q: Did your last closed transaction sell over, at or below asking price?

24%

29%
16%

Premium Paid OverAsking Price Rising

Average
14.0%
12.0%
10.0%
8.0%
6.0% 5.7%
4.0%
2.0%
0.0%

Q: At what percentage was your last closed transaction sold over asking price?

11%

12%

12.0%

8.0%

Discount on Asking Price Higher

Average
14.0%
12%

12.0%

13%
11%

10.0%
8.0%
6.0%

11.0%
8.0%

5.8% 5.6% 5.8% 6.3%

4.0%
2.0%
0.0%
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

Q: At what percentage was your last closed transaction sold below asking price?

2014

2015
YTD

Fewer Properties Receiving MultipleOffers

80%
70%

64%

60%
50%
40%
30%
20%
10%
0%

Q: How many offers did your last closed transaction receive?

61% 58%

10

Number of Offers Down

3.5

3.1

Average

3.0
2.5
2.0
1.5
1.0
0.5
0.0

Q: How many offers did your last closed transaction receive?

2.6

2.5

2.7

2.5

11

Listing Price Reductions Steady

35%

33%

30%
25%
20%

25%

26%

Jul-14

Aug-14

29%

28%

31%

31%

Dec-14

Jan-15

20%

15%
10%
5%
0%
Jun-14

Sep-14

Oct-14

Nov-14

Q: Were there any listing price reductions before escrow opened in your last closed transaction?

12

% of Previous Renters Fluctuates

60%
50%
40%

46%
40%

30%
20%
10%
0%

Q: Was the buyer of your last closed transaction a renter immediately prior to purchasing the property?

32%

13

Fewer Sellers Became Renters

30%
25%

22%

21%

20%
15%
10%
5%
0%

Q: Did the seller of your last closed transaction become a renter immediately after selling the property?

13%

14

% of First -Time Buyers Fluctuating

45%
40%

36%

35%
30%

26%

25%
20%
15%
10%
5%
0%

Q: Was the buyer of your last closed transaction a first-time buyer?

27%

15

Majority Purchases are Primary Residences

Primary residence
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Investment

Vacation home

Other

22%

18% 19%

72%

76% 73%

Q: What was the intended use of the property?

16

Market Conditions
Market Pulse

17

Floor Calls from Potential Clients Down

Last Month
60%
50%

Down

Flat

Up

43% 43%

40%
30%
20%

35% 34%
22%

23%

10%
0%

Q: Compared to the month of November, the number of floor calls from potential clients in December in your
market area was

18

ListingAppointments/Presentations toClients
Declining
Last Month

Down

Flat

Up

60%
50%

44% 45%

40%
30%
20%
10%

36%

33%

20% 22%

0%

Q: Compared the month of November, the number of listing appointments and presentations to clients in
December in your market area was

19

Open HouseTraffic Up from LastYear

LastYear

Last Month
60%

60%

50%

50%

40%

40%

30%

30%

20%

20%

10%

10%

0%

0%

Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Jan-14

Apr-14

Jul-14

Q: Compared to last month/year, open house traffic in your market area in December was

Oct-14

Jan-15

20

Off MLS/Pocket Listings Fluctuating

Last Month
70%

60%

60%

50%

50%

LastYear

40%

40%
30%
30%
20%

20%

10%

10%

0%

0%
Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Q: Compared to last month/year, the number of off MLS/pocket listings in your market area in December was

21

Auctions Declined

Q: Compared to last month/year, the number of auctions in your market area in December was

Jan-15

0%
Dec-14

0%

Nov-14

10%
Oct-14

10%

Sep-14

20%

Aug-14

20%

Jul-14

30%

Jun-14

30%

Jan-15

40%

Dec-14

40%

Nov-14

50%

Oct-14

50%

Sep-14

60%

Aug-14

60%

Jul-14

70%

Jun-14

70%

May-14

80%

Apr-14

80%

May-14

LastYear

Apr-14

Last Month

22

MultipleOffers Stabilizing
Last Month

LastYear

70%

80%

60%

70%
60%

50%

50%

40%

40%
30%

30%

20%

20%

10%

10%

0%

0%
Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Jan-14

Apr-14

Jul-14

Oct-14

Q: Compared to last month/year, the number of multiple offers in your market area in December was

Jan-15

23

All Cash Purchases Down

Last Month

LastYear

50%

70%

45%

60%

40%
35%

50%

30%

40%

25%
30%

20%
15%

20%

10%

10%

5%

0%

0%
Jun-14

Aug-14

Oct-14

Dec-14

Jun-14

Aug-14

Oct-14

Dec-14

Q: Compared to last month/year, the number of all cash purchases in your market area in December was

24

REALTORS Expect Mostly Better Market

ConditionsOver the NextYear
Worsen

Same

Improve

70%
60%
50%
40%
30%
20%
10%
0%

Q: What are your expectations for market conditions over the next year?

25

Why REALTORS Expect MarketConditions to

Worsen
Interest rates will go up.
No inventory, buyer burnout, lack of affordability
Lending is still difficult and economy is uncertain.
Prices have peaked, no first time buyers because they cant get loans.
Uncertainties with 2016 election.
No inventory, prices are too high

Q: Why do you expect real estate market conditions to worsen over the next year?

26

What are REALTORS Saying?

Inventory is still very low.
Hoping/expecting market to improve in lower price ranges
tendency to move up is lagging.
More employment opportunities are needed in my market area.
Have gotten more buyer activity due to lower interest rates
The political climate is stagnating this country for jobs and the ability to get a loan
Luxury short sales in SoCal is setting a trend for investors to flip luxury estates.
High end inventory has picked up considerably.
The market needs more stated income mortgage for self employed and wealthier buyers.

Q: Do you have any specific comments, professional observations, or information that you would like to share
with us--such as information on multiple bidding, changing buyer preferences, mortgage credit issues, or
other topics?

27

Top 10 Counties
December 2014

January 2015

L.A.

L.A.

Orange

Orange

San Diego

San Diego

Riverside

Riverside

Santa Clara

Sacramento

Alameda

Santa Clara

Contra Costa

Placer

Ventura

San Bernardino

San Bernardino

San Francisco

10

Sacramento

Contra Costa/Ventura/San
Mateo/Alameda

Q: In which county do you live?