Two out of three Californians who sold a home last year said they did so because they had trouble paying their mortgages.
A survey released Thursday by the California Association of Realtors reports that 67 percent of those surveyed sold because they had problems meeting their “mortgage obligation.” The reasons included job losses and hikes in mortgage payments.
“Tighter underwriting standards and a decline in equity continued to impact the market in 2009,” said Steve Goddard, the association’s president. “Many homeowners chose to sell last year because their adjustable-rate mortgage reset at the same time home prices were experiencing an unprecedented decline, leaving them with little equity and difficulty in qualifying for a refinance.”
On average, homes sold for $20,958 less than the original asking price in 2009.
First-time sellers made up 44 percent of all sales last year. That compares with 15 percent in 2007.
The details come from the association’s “2009-2010 Survey of California Home Sellers.”
– Robert Digitale