In a sign of an improving housing market, California home buyers are more optimistic about the housing market now than they were three years ago, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2012 Survey of California Home Buyers.”
More home buyers this year believe that home prices will rise, with 25 percent saying prices will rise in one year; 41 percent saying they will rise in five years; and nearly three-fourths of California home buyers (73 percent) believing home prices will rise in 10 years.
The survey also found that the mortgage interest deduction is extremely important to California home buyers across all income levels and age groups, with 79 percent of all home buyers saying that the mortgage interest and property tax deductions are “extremely important” in their decision to purchase a home.
“It’s clear that home buyers at all income levels and ages value the tax deductions associated with purchasing a home,” said C.A.R. President Don Faught. “The mortgage interest deduction plays an important role in buyers’ monthly budgeting.
The 2012 C.A.R. Home buyer survey was conducted by telephone to 800 people statewide to measure their perceptions of the home buying process. Eligible respondents all closed escrow on their new homes within the six months prior to August 2012.