JANUARY 2017
Patricia LayaBloomberg News
“Consumer confidence jumped to the highest level since 2004, extending a surge in Americans’ optimism for their finances and the U.S. economy following Donald Trump’s election victory.The University of Michigan said that its final index of sentiment rose to 98.2 from 93.8.”
“The National Federation of Independent Businesses' Small Business Optimism Index jumped to 98.4 from 94.9 - its sharpest surge since 2009 - with all of the increase in sentiment coming after the U.S. elections.‘The November index was basically unchanged from October's reading up to the point of the election and then rose dramatically after the results of the election were known,’ explained Chief Economist Bill Dunkelberg.”
Luke KawaBloomberg News
“The CNBC All-America Economic Survey for the fourth quarter found that the percentage of Americans who believe the economy will get better in the next year jumped an unprecedented 17 points to 42%, compared with before the election.
‘We're looking at America moving into a more positive era with regard to economic expectations,’ said Micah Roberts, vice president at Public Opinion Strategies.”
Steve LiesmanCNBC
“Consumer confidence climbed in December to the highest level since August 2001 as Americans were more upbeat about the outlook than at any time in the last 13 years, according to the New York-based Conference Board.American households are expecting a Donald Trump administration to deliver. They are more upbeat about the prospects for the economy, labor market and their incomes.”
Michelle JamriskoBloomberg News
TheConsumerConfidenceIndex
TheConferenceBoardConsumerConfidence
2001 2009 2017
BUSHelected
OBAMAelected
TRUMPelected
-0.4%
-2.4%
-1.0% -1.3%
5.7%PENDINGHome SalesYear-Over-Year By Region
U.S. Midwest West South Northeast
NAR 1/2017
HOUSING SUPPLYYear-Over-Year
-3.8%
-2.2%
-1.1%-1.5%
-3.6%
-9.6%
-5.8% -5.8%
-10.1%
-6.8%
-4.3%
-9.3%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Last 12 MonthsNAR 1/2017
333K 325K
630K
293K 283K
594K
Starter Homes Trade-Up Homes Premium Homes
2015 4Q 2016 4Q
Housing Inventory by Category
Trulia
% Change in Inventory by Category
Trulia
-9.1%
-12.1% -12.9%
-5.6%
Total Homes Starter Homes Trade-Up Homes Premium Homes
2016 4th Quarter compared to 2015 4th Quarter
3.974.20
3.39
3.49
3.59
3.69
3.79
3.89
3.99
4.09
4.19
4.29 30 Year FixedRate Mortgages
from Freddie Mac
Freddie Mac 1/2016
Quarter Fannie Mae
Freddie Mac MBA NAR Average
of All Four
2017 2Q 4.1 4.2 4.4 4.3 4.25
2017 3Q 4.1 4.2 4.6 4.4 4.33
2017 4Q 4.2 4.2 4.7 4.6 4.43
2018 1Q 4.2 ? 4.7 ? ?
Mortgage Rate Projections
1/2017
“We think that conforming 30-year fixed rates probably make it into the 4.625 percent to 4.75 percent range at some point during 2017 as a peak” - HSH
“I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent.” - Svenja Gudell, Zillow’s Chief Economist
“[I see] mortgage rates getting much closer to 5 percent at the end of next year.” - Mark Fleming, the Chief Economist at First American
“Our forecast is saying we expect mortgage rates to hit 4.5 percent.” - Jonathan Smoke, Chief Economist at realtor.com
“By this time next year, expect the 30-year fixed rate to likely be in the4.5 percent to 5 percent range.” - Lawrence Yun, NAR Chief Economist
“Despite the recent jump in mortgage rates since the election, the annual average for the 30-year fixed-rate mortgage was 3.65 percent in 2016, the lowest annual average ever recorded by Freddie Mac going back to 1971.”
Freddie Mac
“Mortgage rates would have to be a lot higher before they really crimp a buyers’ ability to afford a home -Trulia chief economist Ralph McLaughlin estimates between 7% and 10% for many metros.”
MarketWatch.com
“Though mortgage rates moved higher again this week, borrowers should still appreciate how low they are - because they're likely to increase further.”
Realtor Magazine
300
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1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Median Asking
RENTsince 1988
Census
“Renters paid a cumulative $478.5 billion in 2016, a 3.8 percent increase from 2015.”
Zillow
“Somewould-besellersmaybereluctanttomoveuportradedown- especiallyifthey'verefinancedinrecentyears.”
- LawrenceYun
MarketWatch.com
“But higher mortgage rates have secondary effects, as well. Consider homeowners who bought their homes in the past few years, or who’ve enjoyed a refinance as rates hovered closer to 3%.Unless a move is absolutely necessary, those owners are likely to balk at having to sell their home and then borrow at higher rates for a new one. ‘Interest rate lock matters,’ says Mark Zandi, chief economist for Moody’s Analytics.”
MarketWatch.com
“Zandi cautioned that he doesn’t think ‘rate lock’ kicks in until rates are well over 5%, however. He calculates that a one percentage point increase in rates will increase the tenure of a typical American homeowners by just over six months - also not helpful in a market starved for activity.”
Bob WaltersQuicken Loans Chief Economist
“Home values pushedhigher throughout 2016,largely driven by lack ofsupply in the hottest markets. It’s yet to be seen if these increases will continue or wane as homebuilding grows, boosting inventory.”
Actual Year-Over-Year % Change in Price by State
CoreLogic
Month-Over-Month % Change in Price by State
CoreLogic
“For most adults near traditional retirement age, a home is their most valuable asset — dwarfing retirement accounts, other financial assets, and other nonfinancial assets. Although relatively few retirees tap into their home equity, having it provides financial security.In fact, many retirement security experts argue that the conventional three-legged stool of retirement resources - Social Security, pensions, and savings - is incomplete because it ignores the home.”
Fannie Maereporting on recent Urban Institute study
Anand NallathambiPresident and CEO of CoreLogic
“Price appreciation is the main Ingredient for home equity wealth creation, and home prices rose 5.8% according to the CoreLogic Price Index.Pay down of principal is the second key component of equity building. Many homeowners have refinanced into shorter-term loans and by doing so, they have significantly fewer mortgage payments and are able to build equity wealth faster.”
CoreLogic
By State
% of Homes with Positive Equity
% of Homes with Significant Equity (> 20%)By State
CoreLogic
FannieMae&CoreLogic
37%
79.1%
% who believe they have > than 20% equity % who actually have > 20% equity
SignificantEquity (>20%)
Perceived/Actual
“The HPPI compares the perceivedgap between the homeowner and theappraiser’s opinion of a home’s valueAnd has provided an intriguing look intothe psychographics of our housing market.The most recent HPPI indicates homeownersand appraisers are closer to agreeing at the endof 2016 than they were at the start of the new year. It’s our hope that with this information the only surprises this holiday season are the ones wrapped under the tree.”
Bob WaltersQuicken Loans Chief Economist
Quicken Loans
-1.8 -1.75
-1.99-2.17
-1.95 -1.89 -1.93
-1.69-1.56
-1.26-1.15
-1.00
Jan-16 Feb Mar April May Jun Jul Aug Sep Oct Nov Dec% -1.8 -1.75 -1.99 -2.17 -1.95 -1.89 -1.93 -1.69 -1.56 -1.26 -1.15 -1.00
Appraiser Home Value Opinions Compared to Homeowner Estimates
Last 12 Months
Average Days on the MarketBy State
NAR
4000000
4500000
5000000
5500000
Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016
EXISTINGHome Sales
Since January 2012
NAR 1/2017
4,300,000
4,400,000
4,500,000
4,600,000
4,700,000
4,800,000
4,900,000
5,000,000
5,100,000
5,200,000
5,300,000
5,400,000
5,500,000
5,600,000
5,700,000
Jan 2014 Jan 2015 Jan 2016
EXISTINGHome Sales
Since January 2014
NAR 1/2017
15.4% 15.7%
11.6%
18.8% 19.0%
U.S. Northeast South Midwest West
Y-O-Y by region
EXISTINGHome Sales
NAR 1/2017
January February March April May June July August September October November December
2015 2016
Existing Home Sales in thousands
Freddie Mac
January February March April May June July August September October November December
2015 2016
New Home Sales in thousands
Freddie Mac
New Home Sales Annualizedin thousands
Census
3%
11%
35%
25%
11% 12%
4%
Under $150K $150-$199K $200-$299K $300-$399K $400-$499K $500-$749K Over $750K
% of sales by price range
New Home Sales
Census
3.0
3.23.3
3.8
4.03.9
4.0
3.5 3.5
3.2
2.93.0
2.9
3.3
3.7
4.04.1
3.8
4.0
3.6
3.23.1 3.1
3.2
New Homes Selling Fast(median months from completion to sold)
Census
320340
451
497
542
616594
547
507483
387
341359
471
525
578
632
568586
530
490
456
January February March April May June July August September October November
2015 2016
Total Home Salesin thousands
Freddie Mac
January February March April May June July August September October November December
Pending Home Sales
2014
2015
2016
NAR 1/2017
90
95
100
105
110
115
Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016
100 = Historically Healthy Level
PENDING Home Salessince 2012
NAR 1/2017
90
92
94
96
98
100
102
104
106
108
110
112
114
January 2014 January 2015 January 2016
100 = Historically Healthy Level
PENDING Home Salessince 2014
NAR 1/2017
-0.4%
-2.4%
-1.0% -1.3%
5.7%PENDINGHome SalesYear-Over-Year By Region
U.S. Midwest West South Northeast
NAR 1/2017
Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016
Percentage ofDistressed Property
Sales
35%
January 2012 - Today6%
9%
NAR 1/2017
Home Prices
6.8%
3.3%
8.5%
6.5%
9.2%
U.S. Northeast West Midwest South
Y-O-Y by region
EXISTINGHome Prices
NAR 1/2017
-2.4%
20.7%
35.4%31.9%
43.2%
33.9%
$0-100K $100-250K $250-500K $500-750K $750K-1M $1M+% -2.4% 20.7% 35.4% 31.9% 43.2% 33.9%
% Change in Salesfrom last year by Price Range
NAR 1/2017
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
June 2012 January 2013 January 2014 January 2015 January 2016
Year-Over-Year
PRICECHANGES
Case Shiller
S&P Case Shiller 1/2017
13.2%12.9%
12.4%
10.8%
9.3%
8.1%
6.7%
5.6%
4.8%4.5%
4.3% 4.4%4.6%
5.0% 5.0% 4.9% 4.9% 5.0% 5.0%4.7%
5.4% 5.5%5.7% 5.7% 5.7%
5.4% 5.5% 5.4% 5.3%5.1% 5.0% 5.1%
5.4%5.6%
Jan 2014
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2015
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2016
Feb Mar Apr May Jun Jul Aug Sep Oct
Year-Over-Year PRICE CHANGES20 City Composite
Case Shiller
S&P Case Shiller 1/2017
Jan 2014
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2015
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2016
Feb Mar Apr May Jun Jul Aug Sep Oct
Year-Over-Year PRICE CHANGES20 City Composite
Case Shiller
S&P Case Shiller 1/2017
Forecasted Year-Over-Year % Change in Price by State
CoreLogic
Quicken Loans
-1.8 -1.75
-1.99-2.17
-1.95 -1.89 -1.93
-1.69-1.56
-1.26-1.15
-1.00
Jan-16 Feb Mar April May Jun Jul Aug Sep Oct Nov Dec% -1.8 -1.75 -1.99 -2.17 -1.95 -1.89 -1.93 -1.69 -1.56 -1.26 -1.15 -1.00
Appraiser Home Value Opinions Compared to Homeowner Estimates
Last 12 Months
HOUSINGINVENTORY
Seller TrafficBy State
NAR
January 2011
January 2012
January 2013
January 2014
January 2015
January 2016
Months Inventory of HOMES FOR SALE
2011 - Today
NAR 1/2017
3.5
4
4.5
5
5.5
6
Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan-16 Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Months Inventory of HOMES FOR SALE
last 2 years
NAR 1/2017
3.94.0
4.4 4.4
4.7 4.7
4.5
4.74.6
4.44.3
4.0
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Months Inventory of HOMES FOR SALE
Last 12 Months
NAR 1/2017
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
% -24% -20. -16. -14%-13% -7.6 -5% -6.2 1.8%0.9%5.0%1.6%7.3%5.3%3.2%6.5% 6% 5.5%5.8%4.5% 6% 5.2% 5% -0.5 -0.5 -0.5 2.0% -0.9 1.8%0.4% -4.7 -1.7 -3.1 -4.5 -1.9 -3.8 -2.2 -1.1 -1.5 -3.6 -9.6 -5.8 -5.8 -10. -6.8 -10. -9.3
Year-over-Year Inventory Levels
NAR 1/2017
HOUSING SUPPLYYear-Over-Year
-3.8%
-2.2%
-1.1%-1.5%
-3.6%
-9.6%
-5.8% -5.8%
-10.1%
-6.8%
-4.3%
-9.3%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Last 12 MonthsNAR 1/2017
4.8
4.5
5.0 5.0 5.0
5.5
5.2 5.2
5.8
5.6
5.45.5 5.5 5.5
5.1 5.15.2
4.6
5.2
5.0
5.25.1
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
2015 2016 Census
New Home Inventory months supply
5.2
5.5 5.5 5.5
5.1 5.15.2
4.6
5.2
5.0
5.25.1
Dec Jan-16 Feb Mar Apr May Jun Jul Aug Sept Oct Nov
New Home Inventory months supply
Census
Last 12 Months
BUYERDEMAND
Buyer TrafficBy State
NAR
Jul 2013 Jan 2014 Jan 2015 Jan 2016
Foot Trafficindicator of future sales
NAR 1/2017
Dec Jan 2016 Feb Mar Apr May June July Aug Sept Oct Nov
Foot Trafficindicator of future sales
NAR 1/2017
Last 12 Months
January February March April May June July August September October November December
2015 2016
Foot Trafficindicator of future sales
NAR 1/2017
INTERESTRATES
3.974.20
3.39
3.49
3.59
3.69
3.79
3.89
3.99
4.09
4.19
4.29 30 Year FixedRate Mortgages
from Freddie Mac
Freddie Mac 1/2016
Quarter Fannie Mae
Freddie Mac MBA NAR Average
of All Four
2017 2Q 4.1 4.2 4.4 4.3 4.25
2017 3Q 4.1 4.2 4.6 4.4 4.33
2017 4Q 4.2 4.2 4.7 4.6 4.43
2018 1Q 4.2 ? 4.7 ? ?
Mortgage Rate Projections
1/2017
Mortgage Credit Availability
YES NO MAYBE
Apr 2013 Jan 2014 Jan 2015 Jan 2016
Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association
Mortgage Credit Availability
MBA
0
100
200
300
400
500
600
700
800
900
June 2004 June 2005 June 2006 June 2007 June 2008 June 2009 June 2010 June 2011 June 2012 June 2013 June 2014 June 2015 June 2016 November
Historic Data for the MORTGAGE CREDIT AVAILABILITY INDEX (a report from the Mortgage Bankers Association)
MBA
49 50
46
44 44
45
46 46 46
48 48
49
Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov
Average Days To Close A Loan
All Closed Loans as per Ellie Mae
Last 12 Months
722
719720
722723
724
726727
731 731730
728
Dec Jan-16 Feb Mar Apr May June July Aug Sept Oct Nov
FICO Score Requirements Last 12 months
All Closed Loans as per Ellie Mae
0.02% 0.41%
8.6%
21.3%24.6%
32.2%
13.0%
500-549 550-599 600-649 650-699 700-749 750-799 800+
FICO Score Distribution
54.9%All Closed Loans as per Ellie Mae
728753
686
709
All Loans Conventional FHA VA
Average FICO Scorefor Closed Purchase Loans
by Loan Type
All Closed Loans as per Ellie Mae
3835
42 40
All Loans Conventional FHA VA
Average Back End DTIfor Closed Purchase Loans by Loan Type
All Closed Loans as per Ellie Mae
Resources
KEEPINGCURRENTMATTERS.COM
Slide Slide Title Link
4 Patricia Laya Quote https://www.bloomberg.com/news/articles/2016-12-23/consumer-sentiment-in-u-s-rises-to-11-year-high-after-trump-win
5 Luke Kawa Quote https://www.bloomberg.com/news/articles/2016-12-23/consumer-sentiment-in-u-s-rises-to-11-year-high-after-trump-win
6 Steve Liesman Quote http://www.cnbc.com/2016/12/09/optimism-on-economy-stocks-surges-since-trump-election-cnbc-survey.html
7 Michelle Jamrisko Quote https://www.bloomberg.com/news/articles/2016-12-27/u-s-consumer-confidence-index-increased-to-113-7-in-december
8 The Consumer Confidence Index http://money.cnn.com/2016/12/28/news/economy/consumer-confidence-trump/index.html
11-12 Housing Inventory by Category https://www.trulia.com/blog/trends/inventory-q42016/
15 Mortgage Rate Projection Quotes http://www.hsh.com/finance/mortgage/yearly-mortgage-outlook.htmlhttp://www.inman.com/2016/12/09/will-happen-mortgage-rates-2017-7-expert-opinions
16 Freddie Mac Quote http://freddiemac.mwnewsroom.com/press-releases/fixed-mortgage-rates-move-higher-otcqb-fmcc-1291436
17, 22-23 MarketWatch.com Quotes http://www.marketwatch.com/story/housings-big-question-what-will-happen-when-buyers-think-4-rates-are-crazy-2016-12-22?mod=mw_share_twitter
18 Realtor Magazine Quote http://realtormag.realtor.org/daily-news/2016/12/30/putting-mortgage-rates-perspective#.WGbTIPwydSE.twitter
19, 92 Median Asking Rent http://www.census.gov/housing/hvs/data/histtabs.html
20 Zillow Quote http://zillow.mediaroom.com/2016-12-30-U-S-Housing-Worth-Record-High-29-6-Trillion-in-2016
21 Lawrence Yun Quote https://www.nar.realtor/news-releases/2016/12/home-sales-expected-to-expand-modestly-in-2017-as-affordability-pressures-temper-buyer-enthusiasm
27 Fannie Mae Quote http://www.thehomestory.com/home-equity-could-be-an-important-source-of-financial-security-in-retirement/
28-30 Equity Quote & Maps http://www.corelogic.com/research/negative-equity/corelogic-q3-2016-equity-report.pdf
31, 106 Significant Equity Chart http://fanniemae.com/portal/about-us/media/commentary/080315-deggendorf-wilcox.html?sf11644984=1http://www.corelogic.com/about-us/researchtrends/homeowner-equity-report.aspx#.VnuAKpMrJE4
36,60, 69 Average Days on Market,Buyer & Seller Traffic Maps http://nar.realtor/reports/realtors-confidence-index
Resources
KEEPINGCURRENTMATTERS.COM
Slide Slide Title Link
10, 37-39, 50, 52-53, 61-65
Existing Home Sales Report http://nar.realtor/
40-41, 45 Freddie Mac Home Sales http://www.census.gov/construction/nrs/pdf/newressales.pdfhttp://nar.realtor/
42-44, 66-67 New Home Sales, Inventory http://www.census.gov/construction/nrs/pdf/newressales.pdf
9, 46-49, Pending Home Sales Report http://nar.realtor/
54-56 Case Shiller Price Index https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/461749_cshomeprice-release-1227.pdf?force_download=true
26-26, 57 CoreLogic Price Changes http://www.corelogic.com/about-us/researchtrends/corelogic-home-price-insights.aspx#
24, 32-33, 58 Appraisal Challenge http://www.quickenloans.com/press-room/2016/12/13/appraiser-opinions-trail-owner-estimates-one-percent/
70-72 Foot Traffic http://nar.realtor/
13, 74 Freddie Mac Rates http://www.freddiemac.com/pmms
14, 75 Mortgage Rate Projections
http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_122016.pdfhttp://www.freddiemac.com/finance/pdf/201612-Outlook-12%2021%2016.pdfhttps://www.mba.org/Documents/Research/MFF_DEC16.pdfhttps://www.nar.realtor/sites/default/files/reports/2016/embargoes/forecast-12-2016-us-economic-outlook-12-14-2016.pdf
77-78 Mortgage Credit Availability https://www.mba.org/news-research-and-resources/research-and-economics/single-family-research/mortgage-credit-availability-index
79-83, 104 Ellie Mae Report http://www.elliemae.com/origination-insight-reports/Ellie_Mae_OIR_NOVEMBER2016.pdf
87 SmartAsset.com Quote https://smartasset.com/mortgage/real-estate-trends-2017
91 5 Reasons to Own https://www.trulia.com/blog/buying-your-first-home-for-financial-security/
95, 101 FSBO Slides http://economistsoutlook.blogs.realtor.org/2016/11/17/homes-sell-for-more-with-a-realtor-than-if-you-sell-solo-research-says/http://nar.realtor/reports/highlights-from-the-profile-of-home-buyers-and-sellers
“Whether you’re preparing to purchase a new home or sell an old house in the new year, it’s important to know how housing trends could affect you. Keeping your finger on the pulse of the market can help you avoid being left out in the cold by rising interest rates or a widening gap between supply and demand.”
SmartAsset.com
3 Ways to Use KCM Materials
When Prospecting
Direct Mail
RentersApartmentLeaseRENTERS
Reasons Why Homeownership isa Good Financial Investment5
5.Overall,homeownerscanenjoygreaterwealthgrowththanrenters.“Owningahomeisoneofthemostcommonwayshouseholdsbuildlong-termwealth,asitactslikeaforcedsavingsaccount.Insteadofpayingyourlandlord,youcanpayyourselfinthelongrunthroughpayingdownamortgageonahouse.”
– RalphMcLaughlin– TruliaChiefEconomist
1.Mortgagepaymentscanbefixedwhilerentsgoup.2.Equityinyourhomecanbeafinancialresourcelater.3.Youcanbuildwealthwithoutpayingcapitalgains.4.Amortgagecanactasaforcedsavingsaccount.
Trulia
300
350
400
450
500
550
600
650
700
750
800
850
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Median Asking
RENTsince 1988
Census
FSBOs
Reasons to Hire a Real Estate Professional5
They help with all disclosures and paperwork necessary in today’s heavily regulated environment.
They are well educated in and experienced with the entire sales process.
They act as a ‘buffer’ in negotiations with all parties throughout the entire transaction.
They help understand today’s real estate values when setting the price on a listing or on an offer to purchase.
They simply and effectively explain today’s real estate headlines and decipher what they mean to you.
By FSBO By AGENT
$168K $185K
$245K
FSBOs where buyer knew seller
All FSBOs Homes Sold by an Agent
Typical Sold PriceFSBO vs. Agent
Source: NAR
Studies have shown that people are more likely to FSBO in markets with lower price points.
Door Knocking or 10/10/20
The Buyer’s Guide
The Seller’s Guide
Conversations
“I’m thinking of selling my house on my own.”
By FSBO By AGENT
$168K $185K
$245K
FSBOs where buyer knew seller
All FSBOs Homes Sold by an Agent
Typical Sold PriceFSBO vs. Agent
Source: NAR
Studies have shown that people are more likely to FSBO in markets with lower price points.
5
7
9
11
13
15
17
19
1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The percentage of homes selling as a FSBO hasdecreased to 8%, the lowest number recorded since 1981.
FSBOs as a Percentage of all Home Sales
“I’m not sure my credit score is high enough to buy a home.”
0.02% 0.41%
8.6%
21.3%24.6%
32.2%
13.0%
500-549 550-599 600-649 650-699 700-749 750-799 800+
FICO Score Distribution
54.9%All Closed Loans as per Ellie Mae
“I don’t know if I’d get enough money from my house to make
it worth selling.”
FannieMae&CoreLogic
37%
79.1%
% who believe they have > than 20% equity % who actually have > 20% equity
SignificantEquity (>20%)
Perceived/Actual
JANUARY 2017
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