California: Many Homeowners Head to Retirement

The largest share of Californians who sold their homes in 2004—fortunately for them during one of the hottest real estate markets in the country—cashed out and headed off to retirement. The CALIFORNIA ASSOCIATION OF REALTORS® annual “Profile of Homebuyers and Sellers” reports that 18.4 percent of all sellers said they were retiring or moving to a retirement facility. In addition to retirees, the association says 15 percent of sellers sold because they wanted a larger home, while 13 percent desired a better location. Three out of every four sellers was a baby boomer—the huge generation of graying Americans who are approximately 40 to 60 years old—and the typical seller was 50 years old. Last year’s sellers fared well. The association profile says that sellers received record net gains of $204,386 last year, a 36.3 percent jump from $150,000 in 2003. Seventy-five percent of the state’s sellers planned to purchase another property, the profile indicates. Six out of 10 said they intend to buy a new home outside the county in which they previously lived, and an increasing number of baby boomers said they want to move to Arizona.
The association says the typical seller earned $100,000 annually. More than half were married—54.7 percent—and 31.3 percent were singles. Another 8.9 percent of sellers included two or more related or unrelated individuals while “others” constituted the remainder of sellers.