Propelled by double-digit price appreciation that was twice that of the nation, California homesellers reaped a record median gain of $150,000 in 2003, according to C.A.R.'s "State of the Housing Market 2003" report. "Net cash to sellers has never been higher since C.A.R. began conducting our annual survey of the California housing market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Sellers in 2003 realized an 8 percent annualized rate of return, far exceeding the returns on many other investment options." C.A.R. has conducted its annual housing market survey since 1981.
For buyers, robust price appreciation impacted the home financing component of the purchase transaction, according to the report. "As the median home price soared to historic highs, the median downpayment rose by 20 percent in 2003 to $59,000," Appleton-Young said. "There also was a $60,000 gap between the median downpayment of a repeat buyer ($86,950) and that of a first-time buyer ($25,500)."
The "State of the Housing Market 2003" report also revealed that nearly one out of four transactions in 2003 involved a second mortgage, an 18 percent increase compared to 2002 and well above the 20-year record low of 4.4 percent in 1988, but below that of the 1980 when their use exceeded 40 percent.