Two out of every three California home sellers in the past year decided to sell because they couldn’t meet their monthly mortgage obligations, according to a survey of sellers released Thursday by the California Association of Realtors.
These distressed sales usually resulted from changes in employment status. By comparison, in 2008, one in five sellers cited the ability to meet their mortgage payment obligation as a reason for selling.
“Tighter underwriting standards and a decline in equity continued to impact the market in 2009,” said Steve Goddard, the association’s president, in a news release. “Many homeowners chose to sell last year because their adjustable-rate mortgage reset at the same time home prices were experiencing an unprecedented decline.”
The survey also showed that homes sold on average for $20,958 less than original asking prices, though the difference was significantly larger for first-time sellers, at about $30,000 below list price, and smaller for sellers who had previously sold a home, at about $8,000 below list price.
Two-thirds of Calif. home sellers couldn’t make payments
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