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