Californians are back in the home purchase market and forming households again thanks to an improving economy and an increase in job growth, according to a recent survey conducted by the California Association of Realtors.
The share of buyers who previously lived with their parents rose 2% from last year to 12% in 2015; the share of buyers who previously rented dipped 1% from last year to 39%. Meanwhile the share of buyers who previously owned their own home fell 12% from last year to 47%.
There is also a return to the market of previous owners who had problems during the downturn, as 22% of homebuyers said they had experienced a distressed sale — most of which occurred in 2007.
The survey also found that 23% of buyers were underwater on their previous home, an increase 4% from 2014.
But don't expect the home-for-sale inventory shortage to be resolved soon. On average, buyers in 2015 indicated they intend to keep their home for about 20 years — compared to the six years home buyers indicated in the same survey in 2013.
The 2015
