CALIFORNIA HOUSING MARKET OUTLOOK August 21,2015 2015 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 GDP BOUNCED BACK AFTER A SLOW START 2014: 2.4%; 2015 Q2: 2.3% ANNUAL PERCENT CHANGE, CHAIN-TYPE (2005) $ 5% ANNUALLY QUARTERLY 4% 3% 2% 1% 0% -1% -2% -3% 2009 Largest Annual Drop since 1938 (-3.4%) Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -4% SERIES: GDP SOURCE: US Dept. of Commerce, Bureau of Economic Analysis UNEMPLOYMENT RATES AT 7-YEAR LOWS June 2015: US 5.3% & CA 6.3% 14% US-CA CA US 12% 10% 8% 6% 4% 2% 0% -2% SERIES: Unemployment Rate SOURCE: US Bureau of Labor Statistics, CA Employment Development Division Jan-15 Jul-14 Jan-14 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 Jul-05 Jan-05 -4% EMPLOYMENT GROWTH, CALIFORNIA VS. U.S. ANNUAL PERCENT CHANGE 6 California US 4 2 0 -2 -4 -6 SERIES: Total Nonfarm Employment SOURCE: US Bureau of Labor Statistics, CA Employment Development Division Jan-15 Jul-14 Jan-14 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 Jul-05 Jan-05 -8 JOB TRENDS BY CALIFORNIA METRO AREA June 2015: CA +2.9%, +461,800 ANNUAL PERCENT CHANGE San Jose 5.5% San Francisco 4.2% Fresno MSA 3.2% Orange County 3.0% San Diego 2.8% Stockton MSA 2.8% Los Angeles 2.5% Sacramento 2.2% Oakland 1.9% Modesto 1.7% Bakersfield 1.6% Ventura 0.0% 1.2% 1.0% SERIES: Total Nonfarm Employment SOURCE: CA Employment Development Division 2.0% 3.0% 4.0% 5.0% 6.0% CONSUMER CONFIDENCE INDEX June 2015: 101.4 INDEX, 100=1985 120 100 80 60 40 20 SERIES: Consumer Confidence SOURCE: The Conference Board Jan-15 Jul-14 Jan-14 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 Jul-05 Jan-05 0 U.S. ECONOMIC OUTLOOK 2010 2011 2012 2013 2014 2015p 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 Real Disposable Income, % Change 1.6% 3.1% 2.1% 1.5% 1.6% 0.6% 2.4% 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 Outlook SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® CALIFORNIA ECONOMIC OUTLOOK 2010 2011 2012 2013 2014 2015p 2016f 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 Real Disposable Income, % Change 0.7% 0.7% 0.7% 0.9% 0.9% 1.0% 1.0% 0.9% 3.4% 4.7% 0.2% 3.0% 4.3% 4.5% SERIES: CA Economic Outlook SOURCE: 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 700,000 600,000 Jul-14: Jul-15: 398,980 449,530 500,000 400,000 300,000 200,000 100,000 SERIES: Sales of Existing Single Family Homes SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® *Sales are seasonally adjusted and annualized Jul-15 Jan-15 Jul-14 Jan-14 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 Jul-05 Jan-05 - MEDIAN PRICE OF EXISTING DETACHED HOMES California, Jul 2015: $488,260, -0.3% MTM, +5.4% YTY P: May-07 $594,530 $700,000 $600,000 Jul-15: $463,330 $500,000 Jul-15: $488,260 T: Feb-09 $245,230 -59% from peak $400,000 $300,000 $200,000 $100,000 SERIES: Median Price of Existing Single Family Homes SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® Jul-15 Jan-15 Jul-14 Jan-14 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 Jul-05 Jan-05 $- INVENTORY CONTINUED TO DECLINE FROM LAST YEAR Jul 2014: 3.8 Months; Jul 2015: 3.3 Months 18 16 14 12 10 8 6 4 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. SERIES: Unsold Inventory Index of Existing Single Family Homes SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® Jul-15 Jan-15 Jul-14 Jan-14 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-… Jul-08 Jan-… Jul-07 Jan-07 Jul-06 Jul-05 Jan-05 0 Jan-… 2 DEMAND OUTPACING SUPPLY July 2015 Sales Year-to-Year % Chg Active Listings 18% 20% 14% 10% 5% 2% 0% -4% -10% -13% -20% San Francisco Bay Area SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® Southern California Central Valley CA PERMITS UP BUT MORE UNITS NEEDED 2014: 85,065 Units, Up 3.4% from 2013 2015f: 91,750 Units 350000 Single Family Multi-Family 300000 250000 200000 150000 100000 50000 0 SERIES: New Housing Permits SOURCE: Construction Industry Research Board Household Growth: 165,000/yr POPULATION AND HOUSEHOLDS WILL CONTINUE TO GROW California 1970-2020 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 SOURCE: Moody’s Analytics 2020 2018 2016 2014 2012 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 - 2015 - WHERE ARE WE TODAY? • 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 SHARE OF FIRST-TIME BUYERS UP IN ’14 BUT STILL BELOW LONG-RUN AVERAGE % First-Time Home Buyers Long Run Average 50% 40% Long Run Average = 38% 28.1% 30% 30.5% 20% 10% 0% 2005 2006 2007 2008 QUESTION: Was the buyer a first-time buyer? SERIES: 2014 Housing Market Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® 2009 2010 2011 2012 2013 2014 HOUSING AFFORDABILITY DOWN SHARPLY SINCE Q1 2012 California vs. U.S. – 1984-2014 % OF HOUSEHOLDS THAT CAN BUY A MEDIAN-PRICED HOME 80% CA 70% 60% 50% 40% 30% 20% 10% 0% SERIES: Housing Affordability Index of Traditional Buyers SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® US Annual 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 80% CA 70% 60% 50% 40% 30% 20% 10% 0% SERIES: Housing Affordability Index of Traditional Buyers SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® US Annual Quarterly HOUSING AFFORDABILITY IN CA: BY COUNTY HAI 70 60 50 % able to purchase median priced home 2015 Q1 62 61 60 58 57 51 51 49 48 46 43 42 40 30 20 10 0 SERIES: Housing Affordability Index SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® 39 34 34 31 31 30 29 28 28 23 22 22 22 21 19 18 14 12 AFFORDABLE INVENTORY AVAILABLE TO MEDIAN-INCOME HOUSEHOLDS 2015 Q1 80% 70% 68.9% 60% 50% 40% 31.2% 30% 20% 11.6% 10.1% 10% 1.7% 0% SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® HOW WAGES MEASURED AGAINST INCOME REQUIRED TO BUY A HOME (2014) California $120,000 Annual Mean Wage $119,970 $100,000 $98,400 $87,520 $80,000 $69,990 $60,000 $40,000 $20,000 $0 $89,250 $87,698 $71,630 $45,340 $27,010 Retail Chefs and Elementary Salespersons Head Cooks School Teachers SOURCE: Bureau of Labor Statistics, C.A.R. Firefighters Police and Computer Registered Software Min. Inc Sherriff's Programmers Nurses Developers Required to Patrol (Applications) Buy a Med. Officers Home MILLENNIAL “TRUE” HOMEOWNERSHIP FALLING … SHARE OF FIRST-TIME BUYERS UP IN ’14 BUT STILL BELOW LONG-RUN AVERAGE % First-Time Home Buyers Long Run Average 50% 40% Long Run Average = 38% 28.1% 30% 30.5% 20% 10% 0% 2005 2006 2007 2008 QUESTION: Was the buyer a first-time buyer? SERIES: 2014 Housing Market Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® 2009 2010 2011 2012 2013 2014 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 67% Can't afford to buy 37% Not ready to buy 24% It's easier to rent 20% Don't have a down payment Can't qualify for a mortgage 17% Too costly to maintain property as owner 16% 15% Enjoy the flexibility/freedom of renting 10% 9% 7% Don't have a job Don't want the responsibility of owning No interest in buying Believe housing market will decline in the near… Other 0% Why do you rent instead of buying? SERIES: 2014 Millennials Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® 4% 2% 10% 20% 30% 40% 50% 60% 70% 80% MILLENNIALS’ BIGGEST CONCERNS Price/Affordability (45%) Problems with Credit, Mortgages, or Taxes (19%) Maintenance/Upkeep (14%) Satisfaction with Home/Location (7%) Responsibility (4%) What are your biggest concerns about home ownership? SERIES: 2014 Millennials Survey SOURCE: 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 Yes 22% Don't know 45% No 33% SOURCE: C.A.R. 2014 Millennial Survey Q: Could you obtain a mortgage if you applied now ? 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 Tenure of Homeowners (Years) 30 CA Long Run Average 25 18.9 20 Long Run Average = 15.9 15 10 5 SERIES: Percent of existing single-family homes being sold SOURCE: Census Bureau, American Community Survey, Moody’s Analytics, C.A.R. 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 0 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 2013 2015f: 91,750 Units 350000 Single Family Multi-Family 300000 250000 200000 150000 100000 50000 0 SERIES: New Housing Permits SOURCE: Construction Industry Research Board Household Growth: 165,000/yr # OF HOUSEHOLDS LOST IN THE GREAT RECESSION 1,200,000 Households not formed 1,000,000 957,834 800,000 600,000 575,156 400,000 200,000 0 -5,485 165,105 2009 2010 -200,000 SOURCE: California Dept. of Finance; compiled by C.A.R. 223,058 2011 2012 2009 - 2012 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 95% California Association of REALTORS® Local Real Estate Board/Association of REALTORS® 93% 79% National Association of REALTORS® California Bureau of Real Estate (CalBRE formerly DRE) 29% 18% 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) 14% 10% 7% Q: What industry (real estate) associations or other organizations are you aware of? AWARENESS OF ASSOCIATIONS SLIGHTLY UP FOR C.A.R./NAR C.A.R. Local AOR N.A.R. W.C.R. CalBRE (DRE) 100% 95% 93% 90% 80% 79% 70% 60% 50% 40% 30% 29% 20% 18% 10% 0% 2005 • 2006 2007 2008 2009 2010 2011 2012 2013 Q: What industry (real estate) associations or other organizations are you aware of? 2014 2015 84% FIND C.A.R HELPFUL IN THEIR REAL ESTATE BUSINESS 100% 2% 11% 0% 16% 4% 16% 0% 16% 80% Unsure 60% 40% No 86% 84% 80% 84% 2012 2013 2014 2015 20% 0% • Q: Do you feel that organized real estate, such as C.A.R, helps you in your real estate business? Yes HOW C.A.R HELPS REALTORS® Lobbying & Government Advocacy Code of Ethics 69% 60% zipForm® 6 and standard forms 31% Economic & Market Information 65% CRE Magazine and Other Publications 40% • Legal advice, Legal Hotline 43% Helps promote professional image of REALTORS® 23% Education and Training 38% 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” 2011 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2012 73% 2013 2014 74% 2015 74% 77% 58% CRE Magazine zipForm® Plus Government Helping you Legal Hotline (8) Advocacy stay current on (Lobbying) trends in real estate • 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) 2012 2013 2014 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%) 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%) Protects interests of REALTORS® (13%) • 2015 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) 2015 TOP 5 BENEFITS MENTIONED 1. Legal Hotline 77% 2. Helping you stay current on trends in real estate 74% 2. Government Advocacy (Lobbying) 74% 3. zipForm® Plus 73% 4. California Real Estate Magazine 58% 5.Develop, introduce, and advocate CARsponsored legislation 43% 0% • 20% 40% 60% 80% Q: What benefits, information, events, services or products does the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) offer REALTORS® like you? 100% SATISFACTION OF SERVICES AND PROGRAMS CRE 8.4 RE Mkt Analysis/Stats 8.4 Lobbying 8.4 Staff Services Legal Services zipForm® Plus • 8.1 8.3 8.0 Value of your membership compared to what you pay 8.2 Overall Satisfaction 8.2 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. LEGISLATIVE & INDUSTRY ISSUES FINANCE AMONG THE MOST IMPORTANT LEGISLATIVE ISSUES IN 2015 IN 2015 (AVERAGE SCORE) Mortgage Interest Deduction 9.5 Mortgage loan availability 9.1 Restoring FHA Loan Limits 8.4 Vacant property maintenance requirements 8.2 Mortgage Reform/Housing Finance Reform 7.9 Point-of-Sale regulations 7.1 Business license taxes 6.5 1031 Exchange 6.1 1 • 2 3 4 5 6 7 8 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. 9 10 ETHICS AND PROFESSIONALISM MOST IMPORTANT INDUSTRY ISSUES IN 2015 Ethics and professionalism in the industry 8.5 The value of using a "REALTOR®" 8.4 Placement of listings on online portals such as Zillow/Trulia 8.3 The geographic comprehensiveness/reach data share of your MLS* 8.2 CalBRE licensing requirements and rules 8.1 6.7 The growing dominance of Real Estate Teams* 6.3 Agent rating websites (such as Yelp, RatedAgent, etc) 5.9 Pocket Listing/Off-MLS Listings 1 • 2 3 4 5 6 7 8 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. 9 10 INVENTORY & FINANCING GREATEST CHALLENGES IN 2015 Lack of inventory, listings 48% Mortgage financing is very difficult 30% Especially difficult to qualify investors for financing 14% Lenders tracking credit changes, purchases hits right up to closing (reduces certainty of mortgage) 8% 0% • 10% 20% 30% 40% 50% Q: What do you anticipate will be the greatest challenge in your real estate business over the next year? 60% CONSUMER BEHAVIOR TOP 5 REASONS FOR BUYING Tired of renting 15% To have a place to live 14% Desired larger home 12% Changed jobs/relocated Desired better/other location Q. What were your main reasons for buying your home? 11% 8.4% REASONS FOR NOT BUYING SOONER FIRST-TIME BUYERS VS. REPEAT BUYERS Repeat buyers No need First-time buyers 10% 2.3% 9.4% No real buying urgency 14% Waited to see when prices would stabilize 8.1% Couldn't afford 8.1% Waited until finances improved 18% 12% 5.4% 18% Needed to save for down payment 3.3% 24% Q. Why didn’t you buy a home sooner? TOP REASONS FOR SELLING I wanted to move to a better location I wanted a larger home I wanted to downsize Another reason: I had a change in family status (i.e.… I had to relocate for work I was retiring I had trouble making the mortgage… I am an empty nester To get the highest price for the home I lost my job For the investment advantages 19% 14% 12% 12% 11% 10% 7.9% 4.6% 2.9% 2.8% 2.5% 2.3% 0% Q: What was your primary reason for selling your home? 5% 10% 15% 20% REASONS FOR SELLING DIFFER ACROSS GENERATIONS 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% Q: What was your primary reason for selling your home? BEING RESPONSIVE IS IMPORTANT TO BUYERS IN SELECTING AN AGENT Seemed most reponsive 20% Previously used agent Trustworthy 10% 8% Negotiating ability 8% Knowledgeable/experienced 7% 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 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%) 1. Didn’t communicate well (5.6%) 2.Good/excellent job (13%) 2. Could have done a better job (5.4%) 3. Agent was professional (11%) Q: Please explain why you had that level of satisfaction with your agent. 3. Could have sold for higher price (1.8%) 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 everything 47% • Be honest and ethical 46% • Keep client informed 34% • Listen to client needs 33% • Be up front with clients 30% • 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 35% Home buying info Buying tips, suggestions from friends 31% Neighborhood info 30% Agent referrals 27% Agent's Facebook page 26% Agents' YouTube 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% Q. How did you use social media (such as Facebook, Twitter, YouTube, etc.) in your home buying process? THANK YOU! joels@car.org
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