The Buyers of ’99

Orange County and Los Angeles were the second and third most expensive housing markets in the United States in 1999, respectively, according to Chicago Title Corp.’s 24th annual Who’s Buying Homes in America survey.

San Francisco was the most costly market, according to the telephone survey of 3,000 buyers in the nation’s 20 biggest metropolitan areas.

The median price in San Francisco was $348,100, Orange County was $246,700 and Los Angeles, $223,000.

Among the survey highlights:

In Orange County, first-time home buyers increased sharply--to 43.3% of the market in 1999 from 35.5% in 1998--defying the trend nationwide, where first-timers declined.

First-time buyers in Orange County saved for an average of 3.7 years before purchasing, the longest time in the 20 markets surveyed. The national average is 2.2 years.

In Los Angeles, single buyers rose to 18.7% of the market in 1999, up from 13% in 1998. This shift was against the national trend, which showed single buyers falling slightly.

First-time buyers in L.A. dropped, from 48.5% of the market in 1998 to 43.6% last year.

Other findings from the survey:

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Median price of Los Angeles Orange homes purchased County $223,000 $246,700 First-time buyers 173,700 181,500 Repeat buyers 261,800 295,400 Average monthly payment $1,618 $1,691 First-time buyers 1,401 1,302 Repeat buyers 1,770 1,984 Ave. household income $80,800 $89,300 First-time buyers 62,600 77,300 Repeat buyers 99,000 85,000 Ave. monthly payment by household income: less than $30,000 $ 971 $1,075 $30,000-$49,999 1,141 1,143 $50,000-$69,999 1,237 1,311 $70,000-$89,999 1,763 1,696 $90,000 or more 2,087 2,164 Average monthly payment as % of after-tax income 34.4% 36.3% First-time buyers 36.4% 37.9% Repeat buyers 32.8% 34.6% Buying for the first time 43.6% 43.3% Previously owned a home 56.4% 56.7% Average age: first-timers 33.6 33.4 repeat buyers 42.8 42.9 Married 71.9% 75.9% Widowed 2.7% 1.7% Divorced/Separated 6.7% 8.7% Single 18.7% 13.7% Average family size 3.2 3 First-time buyers 3.1 2.8 Repeat buyers 3.2 3.1 Average number of homes looked at 15 15.7 Bought new homes 10.9% 21.8% Bought used homes 89.1% 78.2% Bought homes 82.2% 72.8% multifamily homes 1.4% 1.7% condominiums 16.4% 25.5% Down payment as % of sales price 17.9% 18.7% First-time buyers 13.9% 13.1% Repeat buyers 21% 22.6% Type of financing Conventional fixed rate 80.8% 71.3% Adjustable or variable rate 14.1% 22.3% Seller financed 0.2% 0.4% Other 4.9% 6% Average time to save down payment (years) First-time buyers 2.9 3.7

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