Leslie Appleton Young, CAR Chief Economist, spoke at the Real Living Lifestyles New Year, New You Real Estate Symposium on January 31, 2012. She shared her economic forecast for the coming year, and all of the latest charts and stats on the California economy.

1. Real Estate Market Update/
2012 FORECAST
Integrated Real Estate Services - San diego
January 31, 2012
Leslie Appleton-Young, Chief Economist

2. Overview
US and California Economies
California Housing Market
Regional & Local Markets
2011 Annual Market Survey
2012 Housing Market Forecast
CA Buyers & Sellers in Today’s Housing Market

3. U.S. Economic Outlook

4. Economy Slowly Gaining
Post-Stimulus Momentum
GDP 2010: 2.8% 2011:1.8% 2012: 2.6%
8%
7%
6%
ANNUAL QTRLY
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
2009 Largest Annual Drop since 1938 (-3.4%)
-4%
-5%
-6%
-7%
-8%
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Q3-10
Q1-11
Q3-11

5. Performance Targets for National Economy
Current This Year -
Target Projected
Unemployment 6% 9.0%
US GDP 3% or higher 1.8%
Nonfarm Job 3%+ or
1.0%
Growth 400K+/mo
CPI 2.5% 3.2%
SOURCE: California Association of REALTORS®

6. Consumer Spending Rebounding
Holiday and Auto Sales
Consumer Spending 2011 Q3: 2.4%
8%
QUARTERLY PERCENT CHANGE
6%
4%
2%
0%
-2%
-4%
1Q-2000
1Q-2001
1Q-2002
1Q-2003
1Q-2004
1Q-2005
1Q-2006
1Q-2007
1Q-2008
1Q-2009
1Q-2010
1Q-2011
SOURCE: US Dept of Commerce, Bureau of Economic Analysis

7. Consumer Confidence: Nov/Dec Rebound
Income Concerns Trump Job Gains
January 2012: 61.1
INDEX, 100=1985

8. CA Underwater Mortgages:
Reverse Wealth Effect
Negative Equity Share in CA Near Negative Equity Share in CA
40%
35%
30.2%
30%
25%
20%
15%
10%
0.046
5%
0%
Q4-2009
Q1-2010
Q2-2010
Q3-2010
Q4-2010
Q1-2011
Q2-2011
SOURCE: CoreLogic

9. Unemployment: Heading Lower
U.S. at 3 year low
December 2011
California (11.1%) vs. United States (8.5%)
14%
CA US
12%
10%
8%
6%
4%
2%
0%
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
SOURCE: CA Employment Development Division

10. U.S. Non-farm Job Growth: Gaining!
Month-to-MonthChanges
Recession Job Losses: 8.8 million
Since Jan 2010: +2.4 million
Created 1.6 million jobs in 2011
600,000
400,000
200,000
0
-200,000
-400,000
-600,000
-800,000
-1,000,000
Jul-08
Oct-08
Jul-09
Oct-09
Jul-10
Oct-10
Jul-11
Oct-11
Apr-08
Apr-09
Apr-10
Apr-11
Jan-08
Jan-09
Jan-10
Jan-11
SOURCE: US Dept of Labor, Bureau of Labor Statistics

11. California Non-farm Job Growth
Month-to-Month Changes
Recession Job Losses: 1.3 million
Since Jan’10: +282,000
100000
80000
60000
40000
20000
0
-20000
-40000
-60000
-80000
-100000
-120000
-140000
-160000
Nov-08
Nov-09
Nov-10
Nov-11
Jul-08
Jul-09
Jul-10
Jul-11
Jan-08
Sep-08
Jan-09
Sep-09
Jan-10
Sep-10
Jan-11
Sep-11
May-08
May-09
May-10
May-11
Mar-08
Mar-09
Mar-10
Mar-11
SOURCE: CA Employment Development Division

12. Nonfarm Employment
San Diego County, December 2011: Up 2.2% YTY
Y-T-Y PERCENT CHANGE
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
SOURCE: CA Employment Development Division

13. 2%
4%
6%
8%
10%
12%
Jan-90
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
SOURCE: CA Employment Development Division
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Unemployment Rate
Jan-06
Jan-07
Jan-08
San Diego County, December 2011: 8.9%
Jan-09
Jan-10
Jan-11

14. Where are California’s Jobs?
Employment Trends:
Construction & Financial Sectors Biggest Losers
Year to
Industry 2005 Jul-11
Date
Mining and Logging 23,600 27,600 4,000
Construction 905,300 567,300 -338,000
Manufacturing 1,502,600 1,257,600 -245,000
Trade, Transportation & Utilities 2,822,100 2,641,500 -180,600
Information 473,600 455,400 -18,200
Financial Activities 920,300 755,800 -164,500
Professional & Business Services 2,160,700 2,136,200 -24,500
Educational & Health Services 1,593,400 1,837,000 243,600
Leisure & Hospitality 1,475,200 1,531,600 56,400
Other Services 505,500 484,500 -21,000
Government 2,420,200 2,380,200 -40,000
TOTAL 14,802,500 14,074,700 -727,800
SOURCE: California Association of REALTORS®

15. CA New Housing Permits
2011: 47,015 units, Up 5.0% from 2010
300,000
Single Family Multi-Family
250,000
Household Growth: 220,000-250,000/yr
200,000
150,000
100,000
50,000
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
SOURCE: CBIA

16. Classic Liquidity Trap: Consumers Deleveraging
Low Rates and Tight Credit
Fed easing through 2014
10%
9%
8%
7%
6%
5%
4%
3%
2% FRM
ARM
1%
Federal Funds
0%
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
SOURCE: Federal Home Loan Mortgage Corporation

17. US Deficit Highest in Decades
2010: 11% of GDP (Revenues – Expenses)
4.0%
Deficit as a % of GDP
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
-10.0%
-12.0%
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Source: US Treasury, BEA, compiled by C.A.R.
Note: Positive = Surplus

18. Federal Issues – Critical Concerns
for the REALTOR Party
Future of Fannie and Freddie? FHA?
Tax Reform on the horizon – Mortgage Interest
Deduction?
QRM (Qualified Residential Mortgage)
20% Down requirement -- Is the future of the
30 year mortgage in doubt?

19. U.S. Economic Outlook
2005 2006 2007 2008 2009 2010 2011f 2012f
US GDP 3.1% 2.7% 2.0% 0.0% -2.6% 2.9% 1.8% 2.6%
Nonfarm Job
1.7% 1.8% 1.1% -0.6% -4.4% -0.7% 1.0% 0.9%
Growth
Unemployment 5.1% 4.6% 4.6% 5.8% 9.3% 9.6% 9.0% 8.9%
CPI 3.4% 3.2% 2.8% 3.8% -0.4% 1.6% 3.2% 2.3%
Real Disposable
Income, % 1.3% 4.0% 2.2% 0.5% 0.9% 1.4% 1.7% 1.5%
Change
Forecast Date: January 2012
SOURCE: California Association of REALTORS®

20. California Economic Outlook
2005 2006 2007 2008 2009 2010 2011f 2012f
Nonfarm Job
1.8% 1.7% 0.8% -1.3% -6.0% -1.4% 1.5% 2.1%
Growth
Unemployment
5.4% 4.9% 5.4% 7.2% 11.4% 12.4% 12.0% 11.2%
Rate
Population
1.2% 1.1% 1.1% 1.2% 1.1% 0.9% 0.9% 0.9%
Growth
Real Disposable
Income, % 1.3% 3.4% 1.5% 0.1% -2.2% 1.6% 1.5% 2.0%
Change
Forecast Date: January 2012
SOURCE: California Association of REALTORS®

21. California Housing Market

22. Sales Hit Bottom 4 Years Ago
Median Price 2011 = 2002
UNITS/MEDIAN PRICE $
“Lost Decade”
Sales of Existing Detached Homes Median Price
700,000
-44%
600,000
500,000
-61% -25%
400,000
300,000
200,000
100,000
0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
SOURCE: California Association of REALTORS®

23. Sales of Existing Detached Homes and Pacific West Consumer Confidence
• California, December 2011 Sales: 520,940 Units, Up 1.1% YTD, Up 0.1% YTY
UNITS Sales Consumer Confidence INDEX
700,000 160
600,000 140
120
500,000
100
400,000
80
300,000
60
200,000
40
100,000 20
0 0
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
SOURCE: California Association of REALTORS®; The Conference Board
*Sales are seasonally adjusted and annualized

24. Mortgage Loan Applications for Purchase
January 20, 2012: 184.8
600
INDEX, 100 = 03/16/90
500
400
300
200
100
0
Jan-90
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Source: Mortgage Bankers Association

25. Mortgage Applications/
Total Purchase Loans
(Weekly % Chg.)
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
Aug-11
Nov-11
Jan-11
Feb-11
Apr-11
Jun-11
Jul-11
Sep-11
Oct-11
Dec-11
Jan-12
May-11
Mar-11
Source: Mortgage Bankers Association

26. Statewide Median Price Stalled
California, December 2011: $285,920, Down 6.2% YTY
$700,000 P: May-07
$594,530
$600,000
$500,000 T: Feb-09
$245,230
-59% from
$400,000
peak
$300,000
$200,000
$100,000
$0
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
SOURCE: California Association of REALTORS®

27. Median Prices Bottomed Almost 3 Years Ago
Trough vs. Current Price – December 2011
Southern California
Trough Trough Dec-11 % Chg From
Region
Month Price Median Trough
San Bernardino County May-09 $120,410 $128,450 6.7%
Ventura Couty Feb-09 $359,630 $391,060 8.7%
Orange County Jan-09 $442,170 $484,630 9.6%
San Diego County Mar-09 $326,830 $359,930 10.1%
Palm Springs/Lower Desert Apr-09 $150,140 $165,960 10.5%
Inland Empire Apr-09 $150,860 $172,430 14.3%
CALIFORNIA Feb-09 $245,230 $285,920 16.6%
Southern California Apr-09 $246,063 $286,950 16.6%
Los Angeles Metro Apr-09 $227,370 $265,830 16.9%
Riverside County Apr-09 $171,480 $203,650 18.8%
Los Angeles County May-09 $248,850 $306,950 23.3%
SOURCE: California Association of REALTORS®

28. Housing Affordability: Historic High’s
California Vs. U.S.
% OF HOUSEHOLDS THAT CAN BUY
75%
US - CA CA US Monthly QTRLY
65%
55%
45%
35%
25%
15%
5%
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2009
-5%
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

29. 0
2
4
6
8
10
12
14
16
18
20
MONTHS
Jan-88
Jan-89
Jan-90
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Unsold Inventory Index
Jan-06
Jan-07
Jan-08
Jan-09
California, December 2011: 4.2 Months
Jan-10
Jan-11

30. Tight Supply of Inventory for REO Sales
2011
Unsold
Inventory Index 8.9
(Months)
9
6.7
8
7
6
5
2.7
4
3
2
1
0
Equity Sales REO Sales Short Sales
SOURCE: California Association of REALTORS®

31. Higher Price = Higher Inventory
Unsold Inventory Index
(Months of Supply)
Price Range (Thousand) Dec-10 Nov-11 Dec-11
$1,000K+ 8.2 9.6 8.3
$750-1000K 5.7 7.0 5.9
$500-750K 4.7 6.0 4.5
$300-500K 4.9 5.3 4.4
$0-300K 4.9 4.7 3.9
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

32. California’s Million-Dollar Home Sales
Year
1988 2,718
1989 4,271
1990 3,773
1991 3,362
1992 2,890
1993 2,298
1994 2,522
1995 2,017
1996 2,651
1997 3,762
1998 5,366
1999 8,906
2000 13,101
2001 10,658
2002 15,703
2003 20,595
2004 36,990
2005 54,773
2006 50,010
2007 42,506
2008 24,436
2009 18,621
2010 22529
0
10000
20000
30000
40000
50000
60000
Number of Homes
Source: DataQuick Information Systems

33. Market Breakdown:
Equity v. Distressed
Sales

34. Share of Distressed Sales to Total Sales
Dec-11
REOs, 24.6%
Equity Sales, Short Sales,
52.7% 22.2%
Other Distressed
Sales (Not
Specified), 0.5%
SOURCE: California Association of REALTORS®

35. REO & Short Sales: Southern California
(Percent of Total Sales)
100% Dec 2011
80% Short Sales
REO Sales
60%
19%
31%
40% 27%
26%
20%
21% 47%
31% 10%
15%
0%
18%
Los Angeles
Orange
Riverside
SOURCE: California Association of REALTORS® San
Bernardino San Diego

37. Mortgage Foreclosure & Delinquency Rates
California: Q3-2011
Delinquency Rate Foreclosure Rate
12%
10%
7.6%
8% Delinquencies: Long Run Average: 4.4%
6%
4% 3.6%
Foreclosure Rate: Long Run Average: 1.2%
2%
0%
Q1/74
Q2/75
Q3/76
Q4/77
Q1/79
Q2/80
Q3/81
Q4/82
Q1/84
Q2/85
Q3/86
Q4/87
Q1/89
Q2/90
Q3/91
Q4/92
Q1/94
Q2/95
Q3/96
Q4/97
Q1/99
Q2/00
Q3/01
Q4/02
Q1/04
Q2/05
Q3/06
Q4/07
Q1/09
Q2/10
Q3/11
SOURCE: Mortgage Bankers Association

38. 1000
2000
3000
4000
5000
6000
7000
0
Q1/89
Q1/90
Q1/91
Q1/92
Q1/93
Q1/94
SOURCE: Real Estate Research Council
Q1/95
Q1/96
Q1/97
Q1/98
Q1/99
Q1/00
Q1/01
Q1/02
Foreclosures
Q1/03
San Diego County
Q1/04
Q1/05
Q1/06
Q1/07
Q1/08
Q1/09
Q1/10
Q1/11

40. Carlsbad
Preforeclosure: 199 • Auction: 212 • Bank Owned: 66
Source: ForeclosureRadar.com as of 01/30/2012.

41. Del Mar
Preforeclosure: 13 • Auction: 20 • Bank Owned: 7
Source: ForeclosureRadar.com as of 01/30/2012.

42. Rancho Bernardo
Preforeclosure: 87 • Auction: 85 • Bank Owned: 29
Source: ForeclosureRadar.com as of 01/30/2012.

43. Sacramento
Preforeclosure: 2,216 • Auction: 1,905 • Bank Owned: 1,560
Source: ForeclosureRadar.com as of 08/19/11

44. Sacramento
Preforeclosure: 2,216 • Auction: 1,905 • Bank Owned: 1,560
Source: ForeclosureRadar.com as of 08/19/11

45. Sacramento
Preforeclosure: 2,216 • Auction: 1,905 • Bank Owned: 1,560
Source: ForeclosureRadar.com as of 08/19/11

46. Sacramento
Preforeclosure: 2,216 • Auction: 1,905 • Bank Owned: 1,560
Source: ForeclosureRadar.com as of 08/19/11

47. Local Market
Conditions

48. Carlsbad

49. Sales of Residential Homes
Carlsbad, December 2011: 112 Units Up 6.7% MTM, Down 3.4% YTY
SOURCE: Clarus Market Metrics

50. Median Price of Residential Homes
Carlsbad, December 2011: $502,500, Down 3.4% MTM, Down 15.2% YTY
SOURCE: Clarus Market Metrics

51. For Sale Properties
Carlsbad, December 2011: 829 Units, Down 11.8% MTM, Down 9.1% YTY
SOURCE: Clarus Market Metrics

52. Months Supply of Inventory
Carlsbad, December 2011: 5.7 Months
SOURCE: Clarus Market Metrics

53. Del Mar

54. Sales of Residential Homes
Del Mar, December 2011: 13 Units
Up 18.2% MTM, Even 0% YTY
SOURCE: Clarus Market Metrics

55. Median Price of Residential Homes
Del Mar, December 2011: $962,500
Up 23.4% MTM, Down 3.7% YTY
SOURCE: Clarus Market Metrics

56. For Sale Properties
Del Mar, Dec. 2011: 182 Units
Down 9.5% MTM, Down 29.2% YTY
SOURCE: Clarus Market Metrics

57. Months Supply of Inventory
Del Mar, December 2011: 9.9 Months
SOURCE: Clarus Market Metrics

58. Rancho Bernardo

59. Sales of Residential Homes
Rancho Bernardo, December 2011: 64 Units
Up 3.2% MTM, Even 0% YTY
SOURCE: Clarus Market Metrics

60. Median Price of Residential Homes
Rancho Bernardo, Dec. 2011: $277,500
Down 21.3% MTM, Down 25.5% YTY
SOURCE: Clarus Market Metrics

61. For Sale Properties
Rancho Bernardo, Dec. 2011: 413 Units
Down 7.01% MTM, Down 13.8% YTY
SOURCE: Clarus Market Metrics

62. Months Supply of Inventory
Rancho Bernardo, December 2011: 7.0 Months
SOURCE: Clarus Market Metrics

63. 2011 Annual Housing
Market Survey

64. Equity vs. REO vs. Short Sales
Equity Sales REO Sales Short Sales
Share of Total Sales 58.7% 19.7% 20.2%
Median Home Price $431,000 $240,000 $287,000
Square Footage 1,783 1,500 1,600
Price / SF $250 $112 $175
Sales-to-List Price Ratio 95.9% 98.0% 95.9%
% of Sales With Multiple Offers 35.2% 58.3% 57.5%
Avg. Number of Offers 3.0 3.0 3.6
% of All Cash Sales 25.5% 34.0% 23.3%
Days on MLS 67 50 141
Days in Escrow 35 35 45

65. Proportion of Sellers Planning to
Repurchase
80%
70%
60%
50%
40%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Q. Is the seller planning on purchasing another home?

66. Reasons Sellers Not Planning to
Buy Another Home
Seller is a lender/bank 19.8%
Seller prefers to have less financial obligation 11.4%
Poor credit background 10.9%
Lack of cash for down payment 5.7%
Out of work/unemployment 4.9%
Decide to live with family/friends 4.7%
Waiting for market to bottom 2.7%
0% 10% 20% 30% 40% 50%
Q. Why is the seller not planning to purchase another home?

67. Reasons For Selling
All Home Sellers
Foreclosure/Short
Sale/Default
Change in Family Status
Retirement/Move to
Retirement Community
Investment/ Tax
Consderations
Desired Better Location
Desired Smaller Home
Changed Jobs
Desired Larger Home
Other
0% 5% 10% 15% 20% 25% 30% 35%
Q. What was the single most important reason for selling/buying the property?

68. Investments & Second/
Vacation Homes
Investment/Rental Property Vacation/Second Home
25%
20% 7%
15%
10%
17%
5%
0%

69. Foreign Buyers
10%
% of Foreign Buyers
8%
8%
6% 6%
6% 5%
4%
2%
0%
2008 2009 2010 2011
Q. Was the buyer a foreign buyer?

70. California Housing
Market Forecast

71. Forecast Progress Report
2010 2011
Projected Forecast 2011
2010 Actual
October October Projected
2010 2010
SFH Resales
492.0 491.5 502.0 491.1
(000s)
% Change -10.0% -10.1% 2.0% -0.1%
Median Price
$306.5 $303.1 $312.5 $291.0
($000s)
% Change 11.5% 10.2% 2.0% -4.0%
Forecast Date: September 2011 vs October 2010
Source: CALIFORNIA ASSOCIATION OF REALTORS®

72. California Housing Market Outlook
2005 2006 2007 2008 2009 2010 2011f 2012f
SFH Resales
625.0 477.5 346.9 441.8 546.9 491.5 491.1 496.2
(000s)
% Change 0.03% -23.6% -27.3% 27.3% 23.8% -10.1% -0.1% 1.0%
Median
Price $522.7 $556.4 $560.3 $348.5 $275.0 $303.1 $291.0 $296.0
($000s)
% Change 16.0% 6.5% 0.7% -37.8% -21.1% 10.2% -4.0% 1.7%
30-Yr FRM 5.9% 6.4% 6.3% 6.0% 5.1% 4.7% 4.5% 4.7%
1-Yr ARM 4.5% 5.5% 5.6% 5.2% 4.7% 3.5% 3.0% 3.1%
Forecast Date: September 2011
Source: CALIFORNIA ASSOCIATION OF REALTORS®

73. Buyers in Today’s
Market: 2011 Survey
of California Home
Buyers

74. Age
Median Age: 35
Q. What is your age?

75. Buyers Are Getting Younger

76. Buyers Are Highly Educated
7%
12%
20%
High school
Some college
Vocation/technical school
College graduate
Post graduate
14%
47%
Q. What is the highest level of education you have completed?

77. Percentage of First-time Buyers
50% Remains High 43%
40%
30%
20%
10%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Q. Was this your first home purchase?

78. The Buying Experience
 Considered buying for over 4 months & investigated
homes/neighborhoods for 2.5 months, on average, before
contacting an agent
 Viewed 12 homes in 8 weeks with agent
 76% didn’t close escrow on time
 49% owned previous home
 Motivated by price decreases & mortgage interest and
property tax deductions
 80% found home through agent

79. Living Arrangement Before Purchase
Q. What was your living arrangement immediately before your recent
home purchase?

80. Buyers Spend More Time Considering
Purchases Before Contacting Agent
Q. How many weeks did you consider buying a home before
contacting a real estate agent?

81. Time Spent Less Time Investigating Options
Before Contacting Agent
Q. How many weeks did you spend investigating homes and
neighborhoods before contacting a real estate agent?

82. Buyers Viewed Fewer Homes With Agent
* Reflects only buyers who used an agent
Q. About how many different homes did you preview and visit with
him/her [agent] prior to your purchase?

83. What Got Buyers Off the Fence?
Q. What got you off the fence and motivated you to buy your home when you did?

84. How Buyers Found Home: 80% Agent
- 2011 -
Q. How did you find the home your purcahsed?

85. How Buyers Found Home: 90% Agent
- 2007 -
Q. How did you find the home your purcahsed?

86. Top 10 Websites Used
Real estate agent website
Q. Which websites did you use as part of your home buying process?

87. Most Useful Websites
Real estate company website
Real estate agent website
Q. What was the most useful website that you visited during your home buying process?

88. Quick Facts
 92% of buyers obtained financing, but 72% found it
difficult
 42% of buyers put 20% down
 Over 84% obtained a 30-year, fixed rate loan
Q. For which of the following did you use the internet as a part of your home
buying process?

89. Buyers Continue to Have
Difficulties Obtaining Financing
2009: Mean = 8.1 Median = 9
2010: Mean = 8.5, Median = 9
2011: Mean = 8.0, Median = 9
Q. Please rate how easy of difficult it was to obtain financing on a scale of 1 to
10, with 1 being very easy and 10 being very difficult.

90. Quick Facts About Homebuyers
 94% of buyers used an agent
 58% of buyers found their agent online
 56% of buyers interviewed at least 2 agents
 51% Googled their agent
 93% are receptive to receiving information via social media
 54% would work with same agent again
 80% would find agent ratings beneficial

91. # of Agents Interviewed
8
19%
3
12%
1
44%
2
36%
Q. How many agents did you interview prior to selecting the agent
you used in your recent home purchase?

92. Why Buyers Chose their Agent
1. Most responsive (28%)
2. Worked with agent before (18%)
3. First to respond (17%)
4. Most aggressive (16%)
5. Most knowledgeable (6%)
Q. What was the single most important reason for selecting the agent that you
used in your recent home purchase?

93. Agent Response Time Is Very Important
- Rating on 1 to 5 Scale -
Q. Please rate the importance of the agent’s response time in the decision on your final selection on a scale of
one to five, with five being extremely important and one being not at all important.

94. Agents Need to Improve Response Time
- Rating on 1 to 5 Scale -
Q. Did your real estate agent meet your expectations on response time? Please rate your
agent’s response time on a scale of one to five, with five being agent exceedingly surpassed
expectations and one being agent fell way below expectations.

95. Over 1/3 of Buyers Expect
Instant Response from Agent
- Up 50% in Recent Years -
Q. What was the typical response time you expected from
your agent to return any form of communication to you?

96. Closing Thoughts

97. Direction of Home Prices: Sellers
Skeptical; Buyers Hopeful
Down Flat Unsure Up
100%
80%
60%
40%
20%
0%
Sellers Buyers
Q: Do you think home prices in your neighborhood will go up, down or stay flat in one year, five years and 10 years?

98. Real Estate: It’s Time To Buy Again
“Forget stocks. Don't bet on gold.
After four years of plunging home
prices, the most attractive asset
class in America is housing.”
SOURCE: “Real estate: It’s time to buy again” Fortune Magazine’s 3/28/11 article written by Shawn Tully

99. 8 in 10 Americans Agree Buying a Home is
the Best Investment One Can Make
SOURCE: Pew Research Center’s “Home Sweet Home. Still. Five Years After the Bubble Burst”

100. 8 in 10 Renters Would Like to
Buy in the Future
“…renters are hardly
immune to the allure of
homeownership, even in
the face of the five-year
decline in prices. Asked if
they rent out of choice or
because they cannot afford
to buy a home, just24%
say they rent out
of choice.”
SOURCE: Pew Research Center’s “Home Sweet Home. Still. Five Years After the Bubble Burst”

103. Thank You
www.car.org.marketdata
lesliea@car.org