Profile of Home Buyers and Sellers• Survey conducted with recenthome buyers who purchased ahome between July 2011– June2012• Seller information gatheredfrom those home buyers whosold a home• Mailed 93,502 questionnaires• Received 8,501 responses• Response rate of 9.1%• Names obtained fromExperian
Demographic Changes Since 20102010 Profile 2011 Profile 2012 ProfileMedian Age 39 45 42Gross HH Income $72,200 $80,900 $78,600HouseholdComposition58% marriedcouples,20% single females,12% single males,8% unmarriedcouples64% marriedcouples,18% single females,10% single males,7% unmarriedcouples65% marriedcouples,16% single females,9% single males,8% unmarriedcouplesChildren in Home 35% 36% 41%Own a 2nd Home 14% 19% 19%
First-time vs. Repeat BuyersFirst-time Buyer: Repeat Buyer:31-years-old 51-years-old$61,800 $93,10055% married 72% married19% single females 14% single females11% single males 8% single males14% unmarried couples 5% unmarried couples42% have children 41% have children
Desire to Own Home Remains Top Reason to BuyAll BuyersFirst-time BuyersRepeatBuyersDesire to own a home of my own 30% 60% 11%Desire for larger home 11 3 16Job-related relocation or move 9 3 13Change in family situation 8 9 8Affordability of homes 7 11 5Desire to be closer tofamily/friends/relatives 6 1 9Desire for a home in a better area 6 3 7Retirement 4 1 7Desire for smaller home 4 0 6Desire to be closer tojob/school/transit 4 2 5
Timing of Buyers Recent Home PurchaseAll Buyers First-time Buyers Repeat BuyersIt was just the right time, thebuyer was ready to buy ahome37% 43% 34%It was the best time becauseof affordability of homes19 22 17Did not have much choice,had to purchase14 9 18It was the best time becauseof mortgage financingoptions available12 16 10It was the best time becauseof availability of homes forsale7 5 8
What homes are being sold?Typical Home:• Detached single-family home• 3 beds/2 baths• 1,900 square feet• $100/square foot• Built in 1992• Suburban-51%, Small town-18%, Urban/Centralcity-17%, Rural-12%• 11 miles from previous homeCheck out: Profile of Buyer’s Home Feature Preferences
• While more than three-fourths – 78 percent – ofall buyers purchased a home with a garage,garages were more popular among new-homebuyers, Midwesterners, and suburbanites.• Forty-one percent of homes purchased had abasement, but this feature was more popularamong buyers in the Midwest and Northeast.• Among all 33 home features in the survey,central air conditioning was the most importantto the most buyers; 65 percent of buyersconsidered this feature very important.2013 Profile of Buyers’ Home FeaturesPreferences
Location, Location, Location• Quality of the neighborhood• Convenient to job• Overall affordability of homes• Convenient to friends/family• Design of neighborhood• Convenient to shopping• Quality of school district
Compromises on Home PurchaseFirst-time Buyers Repeat BuyersPrice of Home 19% 16%Size of Home 20 14Condition of Home 16 16Lot Size 14 12Style of Home 14 12Distance from Job 16 10
Increased Purchases in Senior-related HousingAll buyers over 50Share who purchased a home in senior-related housing 14%Among buyers over 50 who purchased senior related housingType of home purchased:Detached single-family home 63%Townhouse/row house 8Apartment/condo in building with 5 or more units 12Duplex/apartment/condo in 2 to 4 unit building 7Other 11Location:Suburb/ Subdivision 45%Small town 21Urban/ Central city 10Rural area 7Resort/ Recreation area 17
Expected Tenure Remains HighAGE OF HOME BUYERAll Buyers 18 to 24 25 to 44 45 to 64 65 or older1 year or less 1% 2 1% 1% 2%2 to 3 years 2 2 2 1 24 to 5 years 7 14 10 4 26 to 7 years 2 1 4 1 08 to 10 years 13 17 15 12 911 to 15 years 6 8 5 5 716 or moreyears 26 18 27 32 18Dont Know 43 39 37 43 61Median 15 10 12 20 15
Tightened Inventory Affecting Home Search• Buyers saw 10 homes before buying-drop from 12 homes• Typically look for 12 weeks total and 3 weeks before contactingan agent• 51% of buyers reported hardest task is in process was finding theright home
Agent Use By Buyers & Sellers Remains High• 89% of buyers purchased their home through a real estate agent orbroker-up from 69% in 2001– Most want help finding right home– Benefited from help understanding the process– High importance on honesty and integrity• 88% of sellers were assisted by an agent-up from 77% in 1991– Sell w/in specific timeframe– Help market home– Find a buyer for the home– Reputation and honesty and integrity important
Reasons Behind Selling as FSBO• Among the 9% of FSBOs– One-third knew the buyer– Two-thirds did not know the buyer• For FSBO sellers who did not know the buyer– 20% were contacted by a buyer they did not know asking to buyhome increase from 15 percent in 2010
Referrals Matter• Both buying and selling side:– More than 50% found agent through a referral or had used agentbefore– 2/3’s only contact 1 agent during buying/selling process– More than 8 in 10 would use agent again or recommend to others
Seller Demographics• Typical seller looks like:– 53 years old– Median HH income of $95,400– 76% are married, 19% single– 40% have children in the home– 93% are white/Caucasian– 66% are repeat sellers
Seller Change• Moving motivations:– Job relocation– Home too small– Closer tofriends/family– Neighborhoodless desirable– Change in familysituation– Home too large
Search Engines Play a Critical Role• Shoppers will perform an average of 11 searches prior to takingaction on a real estate site• Home shoppers using search engines are 9% more likely to take anaction on a real estate brand website than those who do not search• 69% of home shoppers who take action on a real estate brand websitebegin their research with a local term, i.e. “Houston homes for sale”on a search engine• 78% of new home shoppers visit 3 + sites prior to taking action on areal estate site
• Educational achievement• Civic participation• Health benefits• Crime• Public assistance• Property maintenance andimprovementSocial Benefits of Homeownership and StableHousing
REALTORS® Confidence Index• The REALTORS® ConfidenceIndex is a key indicator ofhousing market strength basedon a monthly survey sent to over50,000 real estate practitioners.• Practitioners are asked abouttheir expectations for home sales,prices and market conditions.• In addition, the "Questions ofthe Month," feature results ofthe most current issue facing thehousing market.
REALTOR Confidence Index: DistressedProperties• The share of distressedproperties on the marketcontinued to decline. About21 percent of REALTORS®reporting on their last sale inMarch sold distressedproperties, compared toapproximately 40 percent inMarch 2011.• Distressed sales are mostlysold for cash. Distressed salesaccounted for 35 percent ofcash sales compared to 21percent of mortgage sales.
REALTORS® Confidence Index: Home PriceExpectations• With strong buyer demand and tightinventory, REALTORS® were generallyupbeat about price trends in the comingmonths. Approximately 94 percent ofREALTORS® who responded tothe March REALTORS® ConfidenceIndex (RCI) Survey expected constant orincreasing prices in the next 12 months.• The graph shows by state the medianexpected price changes within the next 12months based on responses to the March2013 Survey. Price expectations are mostupbeat in the West region where inventoryis very low, in Texas, Florida, and Georgiawhere prices are recovering, and in stronggrowth states such as Virginia.
REALTORS® Confidence Index: PriceDiscount by Property Type• Distressed property sold at adiscount of between 12 to 35percent of the market valuedepending on property conditionsover the past year, based oninformation from the MarchREALTORS® Confidence IndexSurvey.• Not surprisingly, the price discountis affected by the property condition:properties in the poorest conditionare discounted at twice the rate ofthose with above average condition.• Currently, about 21 percent ofExisting Home Sales are distressedproperties.
REALTORS® Confidence Index: Time onMarket• Multiple bidding in a low inventoryenvironment continues to lead toshorter days on the market.• About 37 percent of REALTORS®reported that in March recently soldproperties were on the market forless than a month when soldcompared to 27 percent in the samemonth last year.• The percentage of REALTORS®reporting that the house sold hadbeen on the market for 6 months ormore is down to 20 percent from 28percent a year ago.
REALTORS® Confidence Index: Median Dayson Market• Tight inventory has led toshorter time on the market.• The median days on themarket fell to 62 days inMarch (74 in February).Short sales had the longestdays on market at 81 days(101 days in February),while foreclosures were onthe market for 46 days (52days in February).• The median days on themarket for non-distressedproperties was 66 days (77days in February).
Where to find NAR Research• Jessica Lautz: firstname.lastname@example.org, 202-383-1155• NAR Research www.realtor.org/research-and-statistics• Economists’ Outlook Blog:economistsoutlook.blogs.realtor.org• FaceBook: facebook.com/narresearchgroup• Twitter: twitter.com/NAR_Research
• Rise in number of transaction sides to 12 from10 in 2011.• Sales volume among members rose from $1.3million to $1.5 million.• Eight in 10 members expect to remain active inreal estate for the next two years, indicatingincreased optimism in real estate.• For the 3rd year in a row, difficulty in obtainingmortgage financing was most cited reason forpotential clients being limited.Positive Changes for Members in 2013Member Profile
Cash Purchases Still High AmongInvestment/Vacation Buyers• 24 percent of buyers purchased aninvestment property and 11 percent ofbuyers purchased a vacation home.• The share of vacation buyers who did notuse a mortgage was 46 percent.• Half of investment buyers paid cash in2012.• Vacation buyers expect to own theirvacation home for 10 years.
International Clients:They Come To Buy• In 2012 there was a total of $82 billioninternationally oriented sales, up from$66 billion reported in 2010.• Twenty-eight percent of REALTORS® reportedexperience with an international client.• Approximately 61 percent of internationalpurchasers bought single family detachedhomes
Local Market ReportsReal Estate is Local!• These Local Market Reports (LMRs) reflectdata available through the first quarter of2013 and are for members only.• Provide insights into the fundamentals anddirection of the nations 155 largestmetropolitan housing markets.• Free, downloadable reports that evaluatea number of factors affecting home prices,including:• The health of the local job market• Foreclosure rates• Inventory• And much more!
Relocation ReportsOn the Move• NAR Research has produced a totalof 3,147 Relocation Reports for U.S.counties.• The report for each county presentsinformation for that county on: County‐to‐county migration flowswithin the United States Average incomes of households moving between the specificcounty and other counties Demographic summaries of homeownership rates, and typesof home mortgages (e.g., Conventional, FHA, VA, andFSA/RHS)
• Commercial members typically have beenin real estate for 25 years, in commercialreal estate for 15 years, and members ofNAR for 17 years.• Investment sales are the most cited primaryspecialty of commercial members and is thetop ranked secondary specialty area.• Commercial members completed a medianof eight transactions in 2012.Commercial Members: Expertise in Varietyof Transactions Across Many Property Types
• NAR’s flagship commercial real estatepublication• Available quarterly• Looks at multi-family, office, retail, andindustrial sectors• Available at www.realtor.org/research-- go to Reports by Topic and Click onCommercialCommercial Real Estate Outlook