Post on 02-Jun-2018
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John L. Scott
Convention
Jessica Lautz
National Association of REALTORS
October 30, 2014
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Methodology
Survey conducted with recent home buyers who purchased a homebetween July 2013June 2014
Survey consists of 127 questions
Seller information gathered from those home buyers who sold a home
Mailed 72,206 questionnaires- response rate of 9.4%
Names obtained from Experian
Data in the presentation is based on medians or the typical buyer in thecategory and is not all encompassing
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Share of Home Sales
2014 Investment and Vacation Home Buyers Survey
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Buyer Demographic Changes
Profile of Home Buyers and Sellers
2010 Profile 2011 Profile 2012 Profile 2013 Profile 2014 Profile
Median Age 39 45 42 42 44
Gross HHIncome
$72,200 $80,900 $78,600 $83,300 $84,500
HouseholdComposition
58% marriedcouples,20% singlefemales, 12%single males,8% unmarriedcouples
64% marriedcouples,18% singlefemales,10% singlemales,7% unmarriedcouples
65% marriedcouples,16% singlefemales,9% singlemales,8% unmarriedcouples
66% marriedcouples,16% singlefemales,9% singlemales,7% unmarriedcouples
65% marriedcouples, 16%singlefemales, 9%single males,8%unmarriedcouples
Children inHome
35% 36% 41% 40% 35%
Own a 2ndHome
14% 19% 19% 19% 21%
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Shift in Household Composition
2014 Profile of Home Buyers and Sellers
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2014 Profile of Home Buyers and Sellers
Rise in Household Income
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First-time Buyer Share Remains Under Historical Norm
Profile of Home Buyers and Sellers
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Young Adult Homeownership RateHome Prices Outpacing Incomes
(under 35 years old)
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Desire of Gen Y to Buy is Still Present
59 percent of young renters (18 to 39) believe owning a homemakes more sense, but 73 percent of young renters also believeit would be difficult to get a mortgage today
75% believe home ownership is an important long-term goal
73% believe ownership is an excellent investment
24% already own their home and an additional 60% plan to buya home in the future.
Fannie Mae, 2013 Demand Institute Housing and Community Survey
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Primary Reasons for Buying a Home
All Buyers
First-time
Buyers
Repeat
BuyersDesire to own a home of my own 24% 53% 9%
ob-related relocation or move 9 4 12
Desire for a home in a better area 8 2 11
Change in family situation 8 5 9
Desire for larger home 7 1 10
Affordability of homes 5 8 3
Desire to be closer tofamily/friends/relatives 3 1 4
Retirement 3 * 5Establish a household 3 7 1
Desire for smaller home 3 * 4
Financial security 3 6 1
2014 Profile of Home Buyers and Sellers
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BuyersView of Homes as a Financial Investment
AllBuyers Marriedcouple Singlefemale Singlemale Unmarriedcouple
Good financial investment 79% 79% 78% 81% 83%
Better than stocks 40 39 46 40 37
About as good as stocks 27 27 25 24 33
Not as good as stocks 12 13 7 17 13
Not a good financialinvestment 7 7 6 8 6
Don't know 14 14 15 12 12
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Expenses that Delayed Saving for Downpaymentor Saving for Home Purchase
2014 Profile of Home Buyers and Sellers
All
Buyers
First-time
Buyers
Repeat
Buyers
Share Saving for Downpayment was Most
Difficult Task in Buying Process:
12% 23% 7%
Debt that Delayed Saving:Credit card debt 50% 45% 58%
Student Loans 46 57 28
Car loan 38 42 32
Child care expenses 17 13 24Health care costs 12 8 17
Other 8 5 14
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Where to go?
57 million Americans or 18.1% of thepopulation live in a multi-generationalfamily household in 2012,
double the number who lived insuch households in 1980
Of those who are 25-34:
20% of the unemployed live with
parents 12% of employed live with parents
Pew Research, Federal Reserve Bank of New York
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Multi-generational Home
All
Buyers
Married
couple
Single
female Single male
Unmarried
coupleMulti-generationalhousehold 13% 13% 13% 16% 7%
Reasons for purchase:
Cost Savings 24% 21% 24% 31% 36%
Children over 18 movingback into the house 23 26 23 17 3
Health/Caretaking of agingparents 18 19 18 14 22
To spend more time with
aging parents 10 12 8 6 14Other 24 22 26 32 25
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Pent Up Demand
2000 2013
Existing Home Sales 5.2 m 5.1 m
New Home Sales 880 K 430 K
Mortgage Rates 8.0% 4.0%
Payroll Jobs 132.0 m 136.4 m
Population 282 m 316 m
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Seller Wanted to Sell Earlier But Waited or StalledBecause the Home Was Worth Less than the Mortgage
2014 Profile of Home Buyers and Sellers
0%
10%
20%
30%
40%50%
60%
70%
80%
90%
100%
All Sellers 1 year orless
2 to 3years
4 to 5years
6 to 7years
8 to 10years
11 to 15years
16 to 20years
21 yearsor more
16%3%
2%
12%19%
26% 22%12% 8%
8397 97
8678
72 7787 91
No, sold home when I wanted to sell Yes, but rented home to others and lived elsewhere
Yes, and lived in home
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Actual Tenure Among Sellers Remains High
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Expected Tenure Remains High
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Force Buyer to Move Again
Married
couple
Single
female
Single
male
Unmarried
coupleMove with life changes (addition to family,marriage, children move out, retirement, etc.) 40% 55% 49% 44%
Never moving-forever home 24 24 15 16
Move with job or career change 20 9 13 20
May desire better area/neighborhood 9 7 12 13May outgrow home 7 4 7 14
Will flip home 1 1 3 3
Other 6 5 7 4
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Home Type and Location
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Home Type Bought
84% previously owned homes
Even if new home58% used an agent to buy!
79% detached single-family home
Where?
50% suburb
20% small town
16% urban
11% rural area
3 bedrooms/2 baths
1,870 square feet
Built in 1993
12 miles from past residence for buyers
2014 Profile of Home Buyers and Sellers
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Location, Location, Location
Quality of the neighborhood
Convenient to job
Overall affordability of homes
Convenient to friends/family
Convenient to shopping
Quality of school district
Design of neighborhood
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Commuting Costs
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Environmentally Friendly FeaturesGood for Earth andWanted by clients
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Compromises on Home Purchase
All
Buyers
First-time
Buyers
Repeat
BuyersPrice of home 23% 25% 21%
Size of home 20 27 17
Condition of home 18 19 17
Lot size 16 18 15Style of home 16 18 14
Distance from job 14 18 11
Distance from friends or family 7 9 6
Quality of the neighborhood 5 6 5
Quality of the schools 4 7 2
Distance from school 2 3 1
None - Made no compromises 33 25 36
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Inventory Still Tight
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Tightened Inventory Affects Home Search and Selling
Buying Side:
Buyers saw 10 homes before buying
Typically look for 10 weeks total and 2 weeks before contactingan agent
53% of buyers reported hardest task is in process was finding
the right home Selling Side:
Typically received 97% of final asking price
Median time on market 4 weeks 11 weeks in 2012
For FSBO sellers who did not know the buyer
15% were contacted by a buyer they did not know asking tobuy home
2014 Profile of Home Buyers and Sellers
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Most Important Factor Limiting Clients
ALL REALTORS
Difficulty in finding the right property 33%
Difficulty in obtaining mortgage finance 25
No factors are limiting potential clients 16
Ability to sell existing home 7
Expectation that prices might fall further 6
Low consumer confidence 6
Concern about losing job 1
2014 Member Profile
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Agent Use By Buyers & Sellers Remains High
88% of buyers purchased their home through a real estate agentor broker
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
Help market home
Sell w/in specific timeframe
Help price home competitively
Reputation and honesty and integrity important
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Agent Assisted Sales High
19 17 15 18 16 13 14 14 13 12 12 13 11 9 10 9 9 9
77 82 81 80 77 7983 82 85 84 85 84 85 88 87 88 88 88
4 1 4 4 7 84 4 2 3 3 3 4 3 3 2 3 2
0
10
20
30
4050
60
70
80
90
100
All FSBO (For-sale-by-owner) Agent-assisted Other
Profile of Home Buyers and Sellers
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Buyer Use of Online Agent Recommendations
Used onlinerecommendations
and it influencedchoice of agent10%
Used online
recommendationsand it did not affect
my agent choice9%
Did not use online
recommendationsbut would considerdoing so next time
38%
Did not use onlinerecommendations
and would notconsider using
43%
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Personal Recommendations are Key!
How buyers found agent: 40% referred by or is a friend, neighbor, relative
12% used agent they had previously worked with
Selling side:
38% referred by or is a friend, neighbor, relative
22% used an agent they had previously used to buy/sell ahome
What you tell us:
21% of business from past consumers and clients
21% of business from referrals from past consumers and clients
2014 Profile of Home Buyers and Sellers, 2014 Member Profile
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How and How Many Times Contact Agent
Method
Phone call 56%
E-mail 21
Contacted friend/family 7
Web form on home listing website 5
Text message 3
Through agent's website 3
Social Media (FaceBook, Twitter, LinkedIn, etc.) 2
Other 4Number of Times Contacted (median) 1
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Call Them Back!Number of Agents Buyer Interviewed Before Picking Agent Used
0%
10%
20%
30%
40%
50%
60%
70%
One Two Three Four or more
67%
20
84
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The Search Process
F f U
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Frequency of Use
l f b i
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Value of Website Features
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Make Your Site Mobile Ready
AllBuyers
First-timeBuyers
RepeatBuyers
Searched with an iPhone 52% 54% 51%
Search with an iPad 46 39 50
Searched with an Android 27 33 23
Found my home with a mobile application 27 30 24Search with a different tablet 10 11 9
Searched with a Windows based mobiledevice 6 5 7
Found my agent with a mobile application 4 4 4Used QR Code that lead me to moreinformation on the property 3 3 4
2014 Profile of Home Buyers and Sellers
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Keep in ContactAll
Buyers
First-timeBuyers
RepeatBuyers
Calls personally to inform of activities 79% 75% 80%Sends postings as soon as a property is listed/the
price changes/under contract 69 69 69
Sends emails about specific needs 59 60 58
Can send market reports on recent listings and sales 51 47 54
Sends property info and communicates via textmessage 45 48 44
Has a web page 29 29 30
Has a mobile site to show properties 25 25 25
Sends an email newsletter 10 11 10Advertises in newspapers 6 5 7
Is active on Facebook/Twitter 6 7 5
Has a blog 1 1 1
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Satisfaction
Process: 89% of buyers are satisfied with the buying process
88% of sellers are satisfied with the selling process
With the agent:
88% of buyers would use agent or recommend to others Since buying typically have 1 time28% have recommended
3+ times
83% of sellers would use agent again or recommend to others
Since selling typically have 1 times28% have recommended3+times
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Where to find NAR Research
Jessica Lautz:jlautz@realtors.org, 202-383-1155
NAR Researchwww.realtor.org/research-and-statistics
Economists
Outlook Blog:economistsoutlook.blogs.realtor.org
Facebook: facebook.com/narresearchgroup
Twitter: twitter.com/NAR_Research
mailto:jlautz@realtors.orghttp://www.realtor.org/research-and-statisticshttp://economistsoutlook.blogs.realtor.org/http://www.facebook.com/narresearchgrouphttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttp://www.facebook.com/narresearchgrouphttp://economistsoutlook.blogs.realtor.org/http://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticsmailto:jlautz@realtors.org