Post on 15-Jul-2020
ContentsIndustry Facts Page 2
Mortgage Stats Page 3
Price Information Page 4
Buyer Facts, Trends & Demographics Page 5
First-Time Home Buyer Facts Page 6
Consumer Stats, Trends & Demographics Page 7
Today’s Real Estate Professional Page 8
Why Working by Referral Works Page 9
© 2012 Buffini & Company • All rights reserved
I hope you enjoy the latest edition of Brian Buffini’s Real Estate Report. The goal of this piece is to help you stay educated on today’s market and position yourself as a true professional and your clients’ trusted advisor. We hope you’ll put this comprehensive report to use in your business.
n Learn where the market is headed and how it affects your clients
n Find out more about today’s buyers and how to nudge them off the fence
n Get perspective on today’s consumer and ecourage them to take action
n Further communicate why you work by referral in this industry
It’s a good life!
84% of people feel that real estate is
a good long-term investment
81% feel that mortgages
are a good debt
2011 EXISTING HOME SALES BY REGION (COMPARED TO Q3 2010):
industry faCts
SourceS: TD economicS, creA, cBc newS, FinAnciAl PoST, The GloBe AnD mAil,
nATionAl PoST, ScoTiABAnk GrouP, cAAmP, rBc, re/mAX
Detached bungalow 42.7%
Standard two-storey home
48.8%Standard condo
29.0%
AFFORDABILITY MEASURE BY HOUSE TYPE (Q3 2011):
Brian Buffini’s Real Estate Report Page 2
In 2012, home sales are projected to rise in
alberta saskatchewan ManitobaQuebec
In December 2011, housing inventory stood at
5.8 months
Canadians purchased $5 billion in
property in Florida in 2010, comprising
39% of foreign non-resident
transactions
90% of Canadian buyers of U.S. property paid cash
In 2012, projected housing starts will range from
161,650 to 206,350
In October, the national sales-to-new listings ratio stood at 53.4%
From 2000 to 2010, average home values grew
48.4% (from $163,951 to $339,030)
156,200 The average number of direct and indirect jobs generated each year by home sales and purchases through MLS
153% The average household debt to income, with mortgages comprising the biggest share
Homeowners have roughly
68% equity in their homes, compared to 39% in the U.S.
National sales activity is projected to drop
0.5 %
456,749 homes were sold in 2011, up from 2.2% in 2010
Demand for recreational properties rose in
78% of markets
In 2011, Saskatchewan saw the largest net immigration, both interprovincial and international on record since 1971
The homeownership rate in Canada is approaching
70%
Mortgage stats
SourceS: monTreAl GAzeT Te, The GloBe AnD mAil, rBc, FinAnciAl PoST, cAAmP, creA
MORTGAGE ORIGINATION BY PROVIDER TYPE:
27% Mortgage Broker
55%Bank
18%Credit Unions & Others
Brian Buffini’s Real Estate Report Page 3
1.35 million homeowners renewed or refinanced their mortgages in the last year,
saving $2.7 billion
31%
of homeowners have variable rate mortgages
FEWER CONSUMERS ARE TAkING OUT EQUITY IN THEIR HOMES:
TOP 5 FACTORS INFLUENCING MORTGAGE CHOICE:
10% 2011
40% 2010
Low interest rate 34.4%
Lender credibility 9.0%
Allowance for accelerated payments
8.4%
Customer service 7.9%
Previous lender 7.4%
60%
of mortgages issued in the past year were fixed-rate mortgages
78% of those who renewed their mortgage in the past 12 months saw their interest rate reduced
72% of homeowners with mortgages
aspire to be mortgage-free by 65 years of age
33% of those over age 55 have
16 or more years left on their mortgage
Due to new mortgage rules, refinancings are
down 31% from 2010
38% of mortgage holders
considered refinancing early to take advantage of low rates in the past year
PERCENT WHO CLASSIFY MORTGAGE AS GOOD DEBT:
7 years The average amount of time a mortgage is paid off before the original amortization period has ended
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
Atlantic
43% of Canadians 18-34 are paying off their mortgage faster than they expected
PriCe inforMation
Brian Buffini’s Real Estate Report Page 4
Detached bungalow $349,000
Standard two-storey home $396,100
Standard condo$232,800
AVERAGE PRICE BY HOUSE TYPE (Q3 2011):
In 2012, the average price is forecast to range from
$315,800 to $418,700
In 2011, the national average price increased
7% from 2010
The average residential home nationwide costs
$364,000
PRICE FORECAST FOR 2012:
British Columbia down 1.8%
Alberta up 2.2%
Saskatchewan up 0.5%
Manitoba up 4.9%
Ontario up 0.1%
Quebec up 3.3%
New Brunswick 0%
Nova Scotia up 0.5%
Prince Edward Island
up 0.3%
Newfoundland & Labrador
up 1.7%
British Columbia $513,583
Alberta$351,350
Saskatchewan$259,641
Manitoba$259,453
Ontario $356,338
New Brunswick $153,089
Quebec $264,806
Nova Scotia$224,508
Prince Edward Island
$128,106
Newfoundland & Labrador$258,750
AVERAGE PRICE BY REGION (DEC 2011):
SourceS: cmhc, rBc, creA, TD economicS, The GloBe AnD mAil
Home prices in Vancouver have climbed 159% over the past 10 years, more than 50% higher than the national average
Buyer faCts, trends & deMograPhiCs
SourceS: The Globe and Mail, cMhc, rbc
CONSUMERS LOOkING TO BUY IN THE NEXT 2 YEARS (BY REGION):
29% British Columbia
33% Alberta
29% Saskatchewan
29% Manitoba
28% Ontario
76% Quebec
24% Atlantic Canada
DEMAND FOR HOMES BY TYPE:
66.0%
13.3%
7.7%
7.3%
Detached house
Condo/loft
Semi-detached
Townhouse
Brian Buffini’s Real Estate Report Page 5
86% of recent buyers agree
that homeownership is a good long-term investment
75% of recent buyers feel it
is very important to pay off their mortgage as soon as possible
29% Nationwide interest in purchasing a home in the next 2 years
43% of those aged 18-34 are looking to buy in the next 2 years
39% of buyers who plan to retire in the next 3 years still have a mortgage on
their home and many plan to move as part of their retirement strategy
39% of recent buyers have their mortgage payments set higher than the
minimum required
55% of young canadians believe now’s the time to buy
20% of recent buyers have made a lump sum
payment since taking out their mortgage
Time it took buyers to plan their purchase on average
Time it took recent buyers to choose a mortgage
Time it took first-time buyers to choose a mortgage
first-tiMe hoMe Buyer faCts
COMPROMISES FIRST TIME BUYERS WILL NOT MAkE:
SourceS: rBc, re/mAX, TD cAnADA TruST
50% Price
43% Number of bedrooms
41% Size of backyard/garden
39% Proximity to work
Brian Buffini’s Real Estate Report Page 6
First-time home buyers are resetting their expectations and are willing to sacrifice location, quality or home size to make their homeownership dream a reality
Homeownership, up from 44% in 2010
Save for retirement,up from 26% in 2010
Eliminate debt,down from 56% in 2010
Save for a rainy day,down from 45% in 2010
FINANCIAL PRIORITIES OF PEOPLE AGED 18-34:
MONTHLY INCOME THEY EXPECT RENTAL UNITS TO GENERATE:
49%
35%
48%
39%
33% of first-time buyers purchased or plan to buy a
home with a rental unit
71% will use the income from the rental unit to pay off their mortgage faster
15% will use the money to live more comfortably
14% will put the extra money towards savings
A greater percentage of first-time buyers are dual-income, college or university-educated couples with solid earnings
45% of first-time buyers purchased a home on their own
57% of men buy independently
33% of women buy independently
76% of first-time buyers got pre-approved
for a mortgage in 2011, down from 91% in 2010
85% learned about their mortgage
options, down from 93% in 2010
77% calculated closing costs, down from 88% in 2010
51% $500-$75032%
$750-$1000
7% over $1000
11% less than $500
ConsuMer stats, trends & deMograPhiCs
Brian Buffini’s Real Estate Report Page 7
CONSUMERS’ DESIRED HOME FEATURES:
Cost-efficient heat 93%
Energy efficient 92%
Cleaner air 83%
No bulkheads in their basement
72%
Heated floors 70%
Ductwork that doesn’t get in the way
53%
email and phone are the top two preferred communication methods for consumers
Over the next year,
31% of consumers plan to focus
on reducing debt and spending less
22% plan to save or invest more
23% intend to do both
93% see paying down debt as
more or just as important as saving for the future
41% of homeowners are mortgage free
Canadians with children were
4% more likely to delay the purchase of a home compared to the national average
90% of consumers are confident about real estate in Canada as an investment
26% of homeowners say rising home prices is their #1 concern about purchasing a home, followed by rising mortgage rates
69% say the value of their home has increased in the last 2 years
americans in Canada are cashing out, especially in Ontario and Atlantic Canada, as these sellers are taking advantage of price appreciation and the currency exchange
88% of households said they use at
least 1 type of energy efficient lights
89% of current owners and prospective buyers believe recreational properties are a good long–term investment
50% say recreational properties provide a larger return than the stock market
39% of Canadians say they have cancelled or delayed plans of some kind because of
concerns about finances
24% have postponed a vacation
20%are holding off on big-ticket purchases
8%have delayed buying a home
SourceS: caaMP, rbc, re/MaX, rlP, iPSoS, STaiSTicScanada
AT&T 12:34 PM
today’s reaL estate ProfessionaL
In 2011, Buffini & Company’s Canadian One2One Coaching™ Members earned an average gross commission of $219,540
Almost 70% are not usingapps for business
use a smart phone daily78%
SourceS: ProPerTy wire, royAl lePAGe, BuFFini & comPAny
Brian Buffini’s Real Estate Report Page 8
The majority of agents are between
40 & 60 years old
32% complete between 20-39 transactions per year
29% complete between 10-19 transactions per year
42% of agents take additional training & further education outside of what’s required for licensing
only 23% integrate QR codes into listing presentations
44% of agents have a personal website
7% The amount of gross commission agents spend on an annual marketing budget 46% of agents
use a combination of traditional marketing with social media
27% are only using social media tools for their marketing
44% of agents charge 2.5% commission on average
over 41% of agents feel that unusual weather patterns over the past five years have affected Canadian housing markets
almost 51% claim they never reduce commissions
30% of agents counsel clients against listing their homes at certain times of the year due to weather
Why Working By referraL Works
SourceS: cAAmP, creA, ProPerT y wire, worD oF mouTh mArkeTinG ASSociATion, cmhc
Brian Buffini’s Real Estate Report Page 9
21% of Canadians who renewed
their mortgage in the past 12 months changed lenders
Staying in consistent contact with your clients keeps you at the forefront of their minds!
$42,350 The average amount of ancillary spending generated by a housing transaction
55% of agents provide
2 referrals per month to contacts within their network
Expanding your business network and establishing reciprocal, referring relationships with service providers will help you better serve your clients and earn you referrals as well!
96% of homeowners say they would like to receive post-sales
communications from their mortgage provider
Lenders and brokers who follow up with their clients after the deal are more likely to maintain and increase their business
Providing useful information like Items of Value demonstrates your professionalism and positions you as your clients’ trusted advisor.
9 in 10 word of mouth conversations about brands occur offline
55% of consumers recommend a company because of its customer service
20% The average amount of repeat or
referral business received by agents
82%of consumers found out about
their mortgage professional through a referral
over 66% of consumers who have been contacted by their lender or broker since their most recent transaction would contact the same professional in the future or recommend them to family or friends, compared to less than 50% of those who had not been contacted
69% of repeat buyers did not change lenders when obtaining their most recent mortgage, up from 58% last year