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CALIFORNIA HOUSING MARKET OUTLOOK
August 21,20152015 California GAD Institute
Joel Singer, Chief Executive Officer
OVERVIEW
• Economic Outlook
• California Housing Market Outlook
• Membership Survey
• Legislative and Industry Issues
• Consumer Behavior
ECONOMIC OUTLOOK
2005
2007
2009
2011
2013
Q2-10
Q4-10
Q2-11
Q4-11
Q2-12
Q4-12
Q2-13
Q4-13
Q2-14
Q4-14
Q2-15
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
GDP BOUNCED BACK AFTER A SLOW START
2014: 2.4%; 2015 Q2: 2.3% ANNUAL PERCENT CHANGE, CHAIN-TYPE (2005) $
ANNUALLY QUARTERLY
2009 Largest Annual Drop since 1938 (-3.4%)
SERIES: GDPSOURCE: US Dept. of Commerce, Bureau of Economic Analysis
UNEMPLOYMENT RATES AT 7-YEAR LOWS
June 2015: US 5.3% & CA 6.3%
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
15-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14% US-CA CA US
SERIES: Unemployment RateSOURCE: US Bureau of Labor Statistics, CA Employment Development Division
EMPLOYMENT GROWTH, CALIFORNIA VS. U.S.
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
15-8
-6
-4
-2
0
2
4
6 California USANNUAL PERCENT CHANGE
SERIES: Total Nonfarm EmploymentSOURCE: US Bureau of Labor Statistics, CA Employment Development Division
JOB TRENDS BY CALIFORNIA METRO AREA
Ventura
Modesto
Sacramento
Stockton MSA
Orange County
San Francisco
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
1.2%
1.6%
1.7%
1.9%
2.2%
2.5%
2.8%
2.8%
3.0%
3.2%
4.2%
5.5%
SERIES: Total Nonfarm Employment SOURCE: CA Employment Development Division
ANNUAL PERCENT CHANGE
June 2015: CA +2.9%, +461,800
CONSUMER CONFIDENCE INDEX
June 2015: 101.4
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
150
20
40
60
80
100
120INDEX, 100=1985
SERIES: Consumer ConfidenceSOURCE: The Conference Board
U.S. ECONOMIC OUTLOOK
2010 2011 2012 2013 20142015p 2016f
US GDP 2.4% 1.8% 2.3% 2.2% 2.4% 2.5% 2.8%
Nonfarm Job Growth -0.7% 1.2% 1.7% 1.7% 1.9% 2.2% 1.9%
Unemployment 9.6% 8.9% 8.1% 7.4% 6.2% 5.4% 5.1%
CPI 1.6% 3.1% 2.1% 1.5% 1.6% 0.6% 2.4%Real Disposable Income, % Change 1.0% 2.5% 3.0% -0.2% 2.5% 3.3% 2.8%
30-Yr FRM 4.7% 4.5% 3.7% 4.0% 4.3% 4.1% 4.5%
SERIES: U.S. Economic OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
CALIFORNIA ECONOMIC OUTLOOK
2010 2011 2012 2013 20142015p2016f
Nonfarm Job Growth -1.1% 1.1% 2.4% 3.0% 2.2% 2.4% 2.3%
Unemployment Rate 12.3% 11.8% 10.4% 8.9% 7.5% 6.6% 5.8%
Population Growth 0.7% 0.7% 0.7% 0.9% 0.9% 1.0% 1.0%Real Disposable Income, % Change 0.9% 3.4% 4.7% 0.2% 3.0% 4.3% 4.5%
SERIES: CA Economic OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
CALIFORNIA HOUSING MARKET OUTLOOK
SALES OF EXISTING DETACHED HOMES
California, Jul 2015 Sales: 449,530 Units, +7.1% YTD, +12.7% YTY
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
15
Jul-1
5 -
100,000
200,000
300,000
400,000
500,000
600,000
700,000
*Sales are seasonally adjusted and annualized SERIES: Sales of Existing Single Family HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Jul-15: 449,53
0
Jul-14: 398,98
0
MEDIAN PRICE OF EXISTING DETACHED HOMES
California, Jul 2015: $488,260, -0.3% MTM, +5.4% YTY
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
15
Jul-1
5 $-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000 P: May-07$594,530
T: Feb-09$245,230-59% frompeak
SERIES: Median Price of Existing Single Family HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Jul-15: $488,26
0
Jul-15: $463,33
0
INVENTORY CONTINUED TO DECLINE FROM LAST YEAR
Jul 2014: 3.8 Months; Jul 2015: 3.3 Months
Note: “Unsold Inventory Index” represents the number of months it would take to sell the remaining inventory for the month in question. The remaining inventory for the month is defined as the number of properties that were “Active”, “Pending”, and “Contingent” (when available) and divide the sum by the number of “Sold” properties for the month in question.
0
2
4
6
8
10
12
14
16
18
SERIES: Unsold Inventory Index of Existing Single Family HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
DEMAND OUTPACING SUPPLY
San Francisco Bay Area Southern California Central Valley-20%
-10%
0%
10%
20%
30%
5%
18%
14%
-13%
-4%
2%
Sales Active ListingsYear-to-Year % Chg
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
July 2015
CA PERMITS UP BUT MORE UNITS NEEDED
2014: 85,065 Units, Up 3.4% from 20132015f: 91,750 Units
SERIES: New Housing PermitsSOURCE: Construction Industry Research Board
19801982
19841986
19881990
19921994
19961998
20002002
20042006
20082010
20122014
0
50000
100000
150000
200000
250000
300000
350000 Single Family Multi-Family
Household Growth: 165,000/yr
POPULATION AND HOUSEHOLDS WILL CONTINUE TO GROW
California 1970-2020
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
2018
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
SOURCE: Moody’s Analytics
• Housing market is improving given fundamentals – Low mortgage rates– Job & Income growth are back
• And yet…– Supply is significantly below long-run
average– Share of first-time buyers LOW– Affordability key concern for renters
2015 - WHERE ARE WE TODAY?
SHARE OF FIRST-TIME BUYERS UP IN ’14 BUT STILL BELOW LONG-RUN AVERAGE
2005 2006 2007 2008 2009 2010 2011 2012 2013 20140%
10%
20%
30%
40%
50%
28.1%30.5%
% First-Time Home Buyers Long Run Average
Long Run Average = 38%
QUESTION: Was the buyer a first-time buyer?SERIES: 2014 Housing Market SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
HOUSING AFFORDABILITY DOWN SHARPLY SINCE Q1 2012
California vs. U.S. – 1984-2014% OF HOUSEHOLDS THAT CAN BUY A MEDIAN-PRICED HOME
SERIES: Housing Affordability Index of Traditional BuyersSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
19841986
19881990
19921994
19961998
20002002
20042006
20082010
2012
Q2 2012
Q4 2012
Q2 2013
Q4 2013
Q2 2014
Q4 20140%
10%
20%
30%
40%
50%
60%
70%
80% CA USAnnual Quarterly
CALIFORNIA’S MAJOR METROS ARE LESS AFFORDABLE THAN THE AVERAGE U.S.
METRO
SOURCE: Legislative Analyst’s Office
STATE’S LOW-INCOME HH’S SPEND MUCH MORE!
SOURCE: Legislative Analyst’s Office
HOUSING AFFORDABILITY DOWN SHARPLY SINCE Q1 2012
California vs. U.S. – 1984-2014% OF HOUSEHOLDS THAT CAN BUY A MEDIAN-PRICED HOME
SERIES: Housing Affordability Index of Traditional BuyersSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
19841986
19881990
19921994
19961998
20002002
20042006
20082010
2012
Q2 2012
Q4 2012
Q2 2013
Q4 2013
Q2 2014
Q4 20140%
10%
20%
30%
40%
50%
60%
70%
80% CA USAnnual Quarterly
HOUSING AFFORDABILITY IN CA: BY COUNTY
SERIES: Housing Affordability IndexSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
HAI
0
10
20
30
40
50
60
7062 61 60 58 57
51 51 49 48 4643 42
3934 34
31 31 30 29 28 2823 22 22 22 21 19 18
14 12
% able to purchase median priced home2015 Q1
AFFORDABLE INVENTORY AVAILABLE TO MEDIAN-INCOME HOUSEHOLDS
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
0%
10%
20%
30%
40%
50%
60%
70%
80%
68.9%
31.2%
11.6%10.1%
1.7%
2015 Q1
Retail Sales-
persons
Chefs and Head
Cooks
Elemen-tary
School Teachers
Fire-fighters
Police and
Sherriff's Patrol Of-
ficers
Com-puter Pro-
grammers
Regis-tered
Nurses
Software Devel-opers
(Applica-tions)
Min. Inc Required to Buy a
Med. Home
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$27,010
$45,340
$69,990$71,630
$87,520$89,250
$98,400
$119,970
$87,698
HOW WAGES MEASURED AGAINST INCOME REQUIRED TO BUY A HOME
(2014)
SOURCE: Bureau of Labor Statistics, C.A.R.
Annual Mean Wage
California
MILLENNIAL “TRUE” HOMEOWNERSHIP FALLING …
SHARE OF FIRST-TIME BUYERS UP IN ’14 BUT STILL BELOW LONG-RUN AVERAGE
2005 2006 2007 2008 2009 2010 2011 2012 2013 20140%
10%
20%
30%
40%
50%
28.1%30.5%
% First-Time Home Buyers Long Run Average
Long Run Average = 38%
QUESTION: Was the buyer a first-time buyer?SERIES: 2014 Housing Market SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
MILLENIALS – DIFFERENT HOUSING ASPIRATIONS –
OR LACK OF MEANS?
AN INCREASING NUMBER OF THEM STILL LIVE WITH THEIR PARENTS
SOURCE: U.S. Dept. of Commerce, Wells Fargo Securities LLC
MAJORITY RENT BECAUSE THEY CAN’T AFFORD TO BUY
Why do you rent instead of buying?
Other
Believe housing market will decline in the near future
No interest in buying
Don't want the responsibility of owning
Don't have a job
Enjoy the flexibility/freedom of renting
Too costly to maintain property as owner
Can't qualify for a mortgage
Don't have a down payment
It's easier to rent
Not ready to buy
Can't afford to buy
0% 20% 40% 60% 80%
2%4%
7%9%
10%
15%
16%
17%
20%
24%
37%
67%
SERIES: 2014 Millennials SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
MILLENNIALS’ BIGGEST CONCERNS
What are your biggest concerns about home ownership?
Price/Affordability (45%)
Problems with Credit, Mortgages, or Taxes (19%)
Maintenance/Upkeep (14%)
Satisfaction with Home/Location (7%)
Responsibility (4%)
SERIES: 2014 Millennials SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
STUDENT DEBT: DRAGS ON HOME SALES
MOST MILLENNIALS IN CALIFORNIA UNCERTAIN /DOUBTFUL THAT THEY COULD OBTAIN A MORTGAGE NOW?AMILLENNIAL
ETHNICITY
SOURCE: C.A.R. 2014 Millennial SurveyQ: Could you obtain a mortgage if you applied now ?
Yes 22%
No 33%
Don't know 45%
MANY OF THEM, HOWEVER, PLAN TO LEAVE THE NEST BY 2018
SOURCE: 2013 Demand Institute Housing & Community Survey; 2013 Demand Institute Housing Forecasts
WHAT FACTORS WILL ENCOURAGE MILLENNIALS TO BUY A HOME IN THE
FUTURE
Source: Carrington Mortgage Services, LLC and One Poll
HOMEOWNERS DO NOT MOVE AS OFTEN AS THEY USED TO
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
0
5
10
15
20
25
30
18.9
CA Long Run Average
Long Run Average = 15.9
SERIES: Percent of existing single-family homes being sold SOURCE: Census Bureau, American Community Survey, Moody’s Analytics, C.A.R.
Tenure of Homeowners (Years)
HOMEOWNERS DO NOT MOVE AS OFTEN AS THEY USED TO
Reasons for longer tenure:
• Mortgage Lock-in effects
• “Underwater” homeowners
• Lack of “affordable” trade-up/down properties
• More costly to move than to remodel
• Investors using properties as rental
• Prop. 13?
NET MIGRATION – CA TO OTHER STATES
NET MIGRATION BY ANNUAL INCOME, 2007-2013
CA PERMITS UP BUT MORE UNITS NEEDED
2014: 85,065 Units, Up 3.4% from 20132015f: 91,750 Units
SERIES: New Housing PermitsSOURCE: Construction Industry Research Board
19801982
19841986
19881990
19921994
19961998
20002002
20042006
20082010
20122014
0
50000
100000
150000
200000
250000
300000
350000 Single Family Multi-Family
Household Growth: 165,000/yr
2009 2010 2011 2012 2009 - 2012-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
-5,485165,105
223,058
575,156
957,834
Households not formed
# OF HOUSEHOLDS LOST IN THE GREAT RECESSION
SOURCE: California Dept. of Finance; compiled by C.A.R.
WHAT IS OUR FUTURE?
“…If current trends continue, California will build less than 60 percent of the new housing needed over the next 20 years.”
Little Hoover Commission Report on Housing in California
SOLVING CALIFORNIA’S HOUSING PROBLEM
SOLUTIONS
• Production Gap is Primary Source of CA’s Housing Problems
• Solutions must include:– Increase in Production
• Infill and brownfield opportunities in urban areas where shortage is critical
– Revitalization of Neighborhoods– Change Incentive Structure Facing Cities
• Fiscal• Housing & Zoning Requirements• Enforce housing elements of general plans, create
incentives to comply
– Improve Business & Legal Climate for Developers – CEQA Reform
SOLUTIONS
• Attitude Shift is Essential to Moving Toward Solutions…
– By Households as Residents– By Households as Taxpayers– By Local Elected Officials– By State Officials
• … and an Attitude Shift Requires Education and Heightened Awareness of Problems, Implications, and Solutions!
• Solutions will take time
2015 MEMBERSHIP SURVEY
UNAIDED AWARENESS OF REAL ESTATE ASSOCIATIONS IN 2015
Q: What industry (real estate) associations or other organizations are you aware of?
California Association of REALTORS®
Local Real Estate Board/Association of REALTORS®
National Association of REALTORS®
California Bureau of Real Estate (CalBRE formerly DRE)
Women's Council of REALTORS®
Asian Real Estate Association of America (AREAA)
National Association of Hispanic Real Estate Professionals (NAHREP)
National Association of Real Estate Brokers (NAREB)
95%
93%
79%
29%
18%
14%
10%
7%
AWARENESS OF ASSOCIATIONS SLIGHTLY UP FOR C.A.R./NAR
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% 95%0.93
0.79
0.18
0.29
C.A.R. Local AOR N.A.R.W.C.R. CalBRE (DRE)
• Q: What industry (real estate) associations or other organizations are you aware of?
84% FIND C.A.R HELPFUL IN THEIR REAL ESTATE BUSINESS
2012 2013 2014 20150%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
86% 84% 80% 84%
11% 16%16%
16%2% 0% 4% 0%
UnsureNoYes
• Q: Do you feel that organized real estate, such as C.A.R, helps you in your real estate business?
HOW C.A.R HELPS REALTORS®
Helps promote professional
image of REALTORS®
23%
zipForm® 6 and standard forms
31%
Education and Training
38%
Legal advice, Legal Hotline
43%
CRE Magazine and Other
Publications 40%
Code of Ethics60%
Economic & Market
Information65%
Lobbying & Government Advocacy
69%
• Q: Why do you feel that organized real estate does help you in your real estate business?
OVER THE YEARS LEGAL HOTLINE REMAINS TOP BENEFIT, ZIPFORM® “BIGGEST GAINER”
0%20%40%60%80%
58%73% 74% 74% 77%
2011 2012 2013 2014 2015
• Q: What benefits, information, events, services or products does the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) offer REALTORS® like you?
WHEN I HEAR C.A.R., I THINK… (UNAIDED RESPONSES)
• Q: When you hear CALIFORNIA ASSOCIATION OF REALTORS®, what is the first thing that comes to mind? [Single response only.] (Selected listing of highest frequency responses)
2012 2013 2014 2015
Industry advocate (41%)
Keepings member on top of key issues (41%)
Keepings member on top of key issues (28%)
Lobbying(24%)
Essential (18%)
Lobbying (25%)
Lobbying (24%)
Code of Ethics (23%)
Protects interests of REALTORS® (13%)
Essential (21%)
Code of ethics (17%)
Keepings member on top of key issues (22%)
Supportive (9%)
Legal services (9%)
Legal services (13%)
zipForm® (16%)
Keepings member on top of key issues (6%)
Education, training (5%)
zipForm® (11%)
Legal Services (15%)
2015 TOP 5 BENEFITS MENTIONED
• Q: What benefits, information, events, services or products does the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) offer REALTORS® like you?
5.Develop, introduce, and advocate CAR- sponsored legislation
4. California Real Estate Magazine
3. zipForm® Plus
2. Government Advocacy (Lobbying)
2. Helping you stay current on trends in real estate
1. Legal Hotline
0% 20% 40% 60% 80% 100%
43%
58%
73%
74%
74%
77%
• Q: Please rate C.A.R on a series of programs on a scale of 1 to 10, with 10 being extremely satisfied and 1 being extremely dissatisfied.
CRE
RE Mkt Analysis/Stats
Lobbying
Staff Services
Legal Services
zipForm® Plus
Value of your membership compared to what you pay
Overall Satisfaction
8.4
8.4
8.4
8.1
8.3
8.0
8.2
8.2
SATISFACTION OF SERVICES AND PROGRAMS
LEGISLATIVE & INDUSTRY ISSUES
• Q: Please rate the following legislative issues on a 10pt. Scale in order of their importance, with 10 being extremely important and 1 being extremely unimportant.
FINANCE AMONG THE MOST IMPORTANT LEGISLATIVE ISSUES IN 2015IN 2015
(AVERAGE SCORE)
1031 Exchange
Business license taxes
Point-of-Sale regulations
Mortgage Reform/Housing Finance Reform
Vacant property maintenance requirements
Restoring FHA Loan Limits
Mortgage loan availability
Mortgage Interest Deduction
1 2 3 4 5 6 7 8 9 10
6.1
6.5
7.1
7.9
8.2
8.4
9.1
9.5
• Q: Please rate the following industry issues on a 10pt. Scale in order of their importance, with 10 being extremely important and 1 being extremely unimportant.
ETHICS AND PROFESSIONALISM MOST IMPORTANT INDUSTRY ISSUES IN 2015
Pocket Listing/Off-MLS Listings
Agent rating websites (such as Yelp, RatedAgent, etc)
The growing dominance of Real Estate Teams*
CalBRE licensing requirements and rules
The geographic comprehensiveness/reach data share of your MLS*
Placement of listings on online portals such as Zillow/Trulia
The value of using a "REALTOR®"
Ethics and professionalism in the industry
1 2 3 4 5 6 7 8 9 10
5.9
6.3
6.7
8.1
8.2
8.3
8.4
8.5
INVENTORY & FINANCING GREATEST CHALLENGES IN 2015
• Q: What do you anticipate will be the greatest challenge in your real estate business over the next year?
Lenders tracking credit changes, purchases hits right up to closing (reduces certainty of mortgage)
Especially difficult to qualify investors for financing
Mortgage financing is very difficult
Lack of inventory, listings
0% 10% 20% 30% 40% 50% 60%
8%
14%
30%
48%
CONSUMER BEHAVIOR
TOP 5 REASONS FOR BUYING
Desired better/other location
Changed jobs/relocated
Desired larger home
To have a place to live
Tired of renting
8%
11%
12%
14%
15%
Q. What were your main reasons for buying your home?
REASONS FOR NOT BUYING SOONERFIRST-TIME BUYERS VS. REPEAT BUYERS
Q. Why didn’t you buy a home sooner?
Needed to save for down payment
Waited until finances improved
Couldn't afford
Waited to see when prices would stabilize
No real buying urgency
No need
24%
18%
12%
18%
14%
2%
3.3%
5.4%
8.1%
8.1%
9.4%
9.5%
Repeat buyers First-time buyers
TOP REASONS FOR SELLING
Q: What was your primary reason for selling your home?
For the investment advantages
To get the highest price for the home
I had trouble making the mortgage payment
I had to relocate for work
Another reason:
I wanted a larger home
0% 5% 10% 15% 20%
2.3%2.5%2.8%2.9%4.6%
7.9%9.8%10.8%11.8%12.1%
14.1%18.5%
REASONS FOR SELLING DIFFER ACROSS GENERATIONS
Q: What was your primary reason for selling your home?
All Gen Y
Gen X
Boomers
Silent
Desired better location 19% 25% 20% 20% 4.5%
Wanted larger home 13% 25% 24% 3.3% 2.3%
Downsizing 12% 1.6% 6.6% 14% 32%
Change in family status 11% 16% 13% 7.6% 9.1%
Relocating for work 11% 14% 16% 8.1% 0%
I was retiring 8.0%
0% 0.6% 17% 5%
Trouble making mortgage payment
4.3%
4.7% 5.4% 2.9% 7.0%
I am an empty nester 3.3%
0% o% 7.1% 2.3%
I lost my job 2.9%
3.1% 1.8% 4.3% 0%
For the investment advantages
2.1%
1.6% 3.0% 0.5% 6.8%
BEING RESPONSIVE IS IMPORTANT TO BUYERS IN SELECTING AN AGENT
Knowledgeable/experienced
Negotiating ability
Trustworthy
Previously used agent
Seemed most reponsive
7%
8%
8%
10%
20%
Q. What was the single most important reason for selecting the agent that you used in your recent home purchase?.
REASON SELLER SELECTED AGENT
Trustworthy (18%)
Worked with agent on previous transaction (17%)
Recommended (17%)
Friend / acquaintance (17%)
Good reputation/successful (16%)
Fastest to respond (6%)
Q: What was the single most important reason for selecting the agent you used in your recent home sale?
TOP 5 REASONS FOR SATISFACTION WITH AGENT
Responded fast (26%)
Listened to needs (24%)
Helped find best home (22%)
Worked hard (22%)
Did a good job facilitating transaction (18%)
Q. Why do you have that level of satisfaction with your agent?
SELLER SATISFACTION WITH AGENT IS CORRELATED TO FACILITATING THE TRANSACTION
1. Stayed on top of process (44%) 2.Good/excellent job (13%) 3. Agent was professional (11%)
1. Didn’t communicate well (5.6%)2. Could have done a better job (5.4%)3. Could have sold for higher price (1.8%)
Q: Please explain why you had that level of satisfaction with your agent.
ADVICE TO AGENTS FROM BUYERS
Communicate better (17%)
Communicate according to client preference (12%)
Negotiate better (9.3%)
Understand market better (9%)
Respond faster (7.6%)
Q. What advice would you give to real estate agents to improve the process or the level of service?
SELLER ADVICE TO AGENTS
47%
• Work hard and stay on top of everything47%
• Be honest and ethical46%
• Keep client informed34%
• Listen to client needs33%
• Be up front with clients30%
• Explain the process
27%
• Set the correct listing price
Q: What advice would you give to real estate agents to improve the process or level of service?
35% OF BUYERS USE SOCIAL MEDIA IN BUYING PROCESS
Agents' YouTube
Agent's Facebook page
Agent referrals
Neighborhood info
Buying tips, suggestions from friends
Home buying info
0% 5% 10% 15% 20% 25% 30% 35% 40%
17%
26%
27%
30%
31%
35%
Q. How did you use social media (such as Facebook, Twitter, YouTube, etc.) in your home buying process?
