According to a new report released by the California Association of Realtors in the middle of last week, almost half (49.5%) of all buyers pay above list price. Â This is almost double (25.9%) the rate in 2012 and close to triple from 2011 (16.6%). Â This was the data released by CAR in its Annual Housing Report. Â Tight inventory and multiple offers on well-priced listings appear to be the root cause. Â In fact, according to the survey, over 70% of homes featured multiple offers in 2013.
Other items of interest include investors comprising almost 20% of all buyers. Â This may have helped to drive the continued upward trend of all cash purchases for properties. One negative effect this trend of all cash and investors is that first time home buyers dropped to 28% of total sales.Â The good news, however, is that it appears that they shadow inventory (foreclosures) that has been rumored to hit the market at any time does is no longer there, according to theÂ Pacific Union BlogÂ last week.