1

MARKET PULSE
July 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

Nearly 2/3 of TransactionsClosed at theAsking Price or

below
Over

Below

At

60%
50%

43%

40%

34%

30%

24%

20%
10%
0%
Jan-14

Apr-14

Jul-14

Oct-14

Q: Did your last closed transaction sell over, at or below asking price?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jan-15

Apr-15

Jul-15

Premium Paid OverAsking Price Flat

Average
12.0%

11% 11%

10.0%
8.0%

7.1%

6.0%
4.0%
2.0%
0.0%
Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Q: At what percentage was your last closed transaction sold over asking price?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Apr-15

Jul-15

Discount on Asking Price Increases

0.0%
-2.0%
-4.0%
-6.0%
-8.0%
-10.0%
-12.0%
-14.0%

Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- JunJul-15
14
14
14
14
14
15
15
15
15
15
15
Average -5.8% -5.6% -5.8% -6.3% -12% -13% -11% -11% -11% -11% -7.0% -11% -9.6%
Jul-14

Q: At what percentage was your last closed transaction sold below asking price?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

67% of Properties Receiving MultipleOffers

80%
75%
70%
66%

65%

65%

60%

67%

55%
50%
45%
40%
Jan-14

Apr-14

Jul-14

Oct-14

Q: How many offers did the seller in your last closed transaction receive?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jan-15

Apr-15

Jul-15

Number of Offers Received Remained Flat

Average

4.0
3.5
3.0

2.9 3.0

2.7

2.5
2.0
1.5
1.0
0.5
0.0
Jan-14

Apr-14

Jul-14

Oct-14

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

SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jan-15

Apr-15

Jul-15

Proportion of Properties with Listing Price

Reductions increased significantly from prior month
35%
30%
25%

28%
25%

20%
15%
10%

Q: Were there any listing price reductions before escrow opened in your last closed transaction?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

21%

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A marginal increase of Previous Renters

55%
50%
45%
40%

37% 38%
32%

35%
30%
25%
20%
Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Apr-15

Q: Was the buyer of your last closed transaction a renter immediately prior to purchasing the property?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jul-15

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Fewer Sellers Becoming Renters

26%
24%
22%
20%
18%
16%

15% 15%

14%
12%
10%
Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Apr-15

Q: Did the seller of your last closed transaction become a renter immediately after selling the property?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jul-15

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Share of First-time Buyers Fluctuating Less in Recent

Months
% First-time Buyers

45%

Long Run Average

40%
35%

32%

32%

30%
30%
25%

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

SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jul-15

Jun-15

May-15

Apr-15

Mar-15

Feb-15

Jan-15

Dec-14

Nov-14

Oct-14

Sep-14

Aug-14

Jul-14

Jun-14

May-14

Apr-14

Mar-14

Feb-14

Jan-14

20%

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Majority Purchases are Primary Residences

Primary residence

Vacation home

Other

Q: What was the intended use of the property?

SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jul-15

Jun-15

May-15

Apr-15

Mar-15

Feb-15

Jan-15

Dec-14

Nov-14

75% 78%

Oct-14

78%

Sep-14

16% 16%

Aug-14

15%

Jul-14

Jun-14

May-14

Apr-14

Mar-14

Feb-14

Jan-14

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

Investment

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International Buyers Fluctuate

% International Buyers

Long Run Average

12%
10%
7.9%

8%

8.0%

6.1%

6%
4%
2%

Q: Was the buyer an international client (one who was not a citizen or permanent resident of the U.S.)?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jul-15

Jun-15

May-15

Apr-15

Mar-15

Feb-15

Jan-15

Dec-14

Nov-14

Oct-14

Sep-14

Aug-14

Jul-14

Jun-14

May-14

Apr-14

Mar-14

Feb-14

Jan-14

0%

15

MARKET CONDITIONS

16

Floor Calls from Potential Clients Declining

Down

70%

Flat

Up

60%
50%
40%
30%
20%
10%
0%
Feb-14

May-14

Aug-14

Nov-14

Feb-15

May-15

Q: Compared to last month, the number of floor calls from potential clients in your market area this month was
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

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ListingAppointments/Presentations toClients
Slowing Down
Down

70%

Flat

Up

60%
50%
40%
30%
20%
10%
0%
Feb-14

May-14

Aug-14

Nov-14

Feb-15

May-15

Q: Compared to last month, the number of listing appointments and presentations to clients in your market area
this month was
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

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Open HouseTraffic Declining

Down

Flat

Up

70%
60%
50%
40%
30%
20%
10%
0%
Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Q: Compared to last month/year, open house traffic in your market area this month was
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Apr-15

Jul-15

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Auctions Steady
80%

Down

Flat

Oct-14

Dec-14

Up

70%
60%
50%
40%
30%
20%
10%
0%
Apr-14

Jun-14

Aug-14

Feb-15

Apr-15

Q: Compared to last month/year, the number of auctions in your market area this month was
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jun-15

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All Cash Purchases FlatteningOut

Down

50%

Flat

Up

46%

45%
40%

34%

35%
30%
25%

19%

20%
15%
10%
5%
0%
Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Q: Compared to last month/year, the number of all cash purchases in your market area this month was
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

21

1 In 4 REALTORSAreConcernedAbout Inventory
30%
25%
20%
15%

26%

16%
12%

10%
5%

4.3%

3.9%

0%

Q: What is your biggest concern about the current real estate market?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

3.5%

3.2%

1.4%

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Majority of REALTORS Expect Better/Similar

MarketConditionsOver the NextYear
Worsen

70%

Same

Improve

60%
47%

50%
40%

36%

30%
20%

17%

10%
0%
Jan-14

Apr-14

Jul-14

Oct-14

Q: What are your expectations for market conditions over the next year?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

Jan-15

Apr-15

Jul-15

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Why REALTORS Expect MarketConditions to

Worsen
Rise in interest rates
Poor economy
Uncertainty in market
Decrease in home affordability
Q: Why do you expect real estate market conditions to worsen over the next year?
SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

24

What are REALTORS Saying?

Market activity is stagnant.
No longer a sellers market
Escrows are closing late
Buyer and seller expectations are not in sync
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?

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Top 10 Counties
June 2015

July 2015

Los Angeles

Los Angeles

San Diego

Orange County

Riverside

Sacramento

Orange

Santa Clara

Alameda

San Diego

Santa Clara

Riverside

Sacramento

Contra Costa

San Luis Obispo

Placer

Marin

Alameda

10

Sonoma

San Mateo

Q: In which county do you live?

SERIES: Market Pulse Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS