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