2005 Survey of California Home Sellers - Survey Highlights

With improved economic conditions, lower than expected interest rates, and higher inventory levels compared to a year ago, the California housing market continued on its impressive record-setting run in the first half of the year. Sales of existing detached homes in California through the first half of 2005 were 3.3 percent ahead of the record level of 2004, and the median price pushed past $500,000 for the first time ever, reaching $543,100 in June 2005.

Households have reacted to current market conditions, but their experience in the buying and selling homes has also evolved because of the growing presence of technology in the form of the Internet as well as communications in general. The 2005 Survey of California Home Sellers, which was conducted in the second quarter of 2005, provides insights at the individual consumer level on the experiences of recent sellers during the home selling process.

Of particular significance to REALTORS are findings that show the link between effective communications, a satisfactory home selling experience, and client loyalty. Most importantly, the survey results suggest that there is a need for real estate agents to provide faster and better service to satisfy their clients as consumer expectations continue to grow.

KEY FINDINGS:

-The share of sellers using the Internet surpassed 50 percent for the first time ever, rising from 47 percent in 2004 to 57 percent in 2005.

-Sellers used the Internet mainly to research comparable prices, get current information on the neighborhood, and to find an agent. However, 97 percent of all sellers used an agent to assist them in the home selling process.

-Sellers sold their home primarily because they wanted a larger home or a better location. However, market conditions influenced their decision to sell, especially low interest rates.

-While sellers increasingly obtained information about the market from the Internet, they continued to rely on the experience and expertise of real estate agents who guided them through the home transaction.

-Sellers primarily selected their agent because he/she was the best prepared (31 percent) or most qualified (30 percent), or offered the lowest commission (27 percent). Agents were also chosen because the seller expected the agent to work most aggressively on their behalf, or because they appeared to be most responsive.

-Seller concerns regarding the home selling process focused on the pricing of their home and the time it would take to sell.

-Sellers generally gave above average satisfaction ratings to the home selling process and to their agent. Reasons for satisfaction with their agent generally reflected the sentiment that the agent handled the seller's concerns adequately. However, seller satisfaction fell compared to 2004.

-Seller dissatisfaction with agents typically resulted from communications problems between the seller and agent.

-Seventy-seven percent of home sellers indicated that they would use the same agent again in a future transaction.

Article provided by California Association of Realtors.