Profile of Home Buyers and Sellers 2012 News Release November 10, 2012

Methodology Surveys mailed to 93,502 households Response rate 9.1 percent with 8,501 responses Purchased a home between July 2011 and June 2012 Addresses from Experian Reflect distribution of home sales in each state

What is covered? Ask buyers about: Basic demographics Type of home Search process Relationship with agent Home financing Ask sellers about: Home selling experience FSBO vs agent-assisted sales

Demographic Changes Since 2010 2012 Profile 2011 Profile 2010 Profile Median Age 42 45 39 Gross HH Income $78,600 $80,900 $72,200 Household Composition 65% married couples, 16% single females, 9% single males, 8% unmarried couples 64% married couples, 18% single females, 10% single males, 7% unmarried couples 58% married couples, 20% single females, 12% single males, Children in Home 41% 36% 35% Own a 2nd Home 19% 14%

Shift in Household Composition   2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Married couple 68% 59% 62% 61% 60% 58% 64% 65% Single female 15 21 18 22 20 16 Single male 7 11 8 9 10 12 Unmarried couple Other 3 1 2

First-time Buyer Share Closer to Historical Norm

Desire to Own Home Remains Top Reason to Buy All Buyers First-time Buyers Repeat Buyers Desire to own a home of my own 30% 60% 11% Desire for larger home 11 3 16 Job-related relocation or move 9 13 Change in family situation 8 Affordability of homes 7 5 Desire to be closer to family/friends/relatives 6 1 Desire for a home in a better area Retirement 4 Desire for smaller home Desire to be closer to job/school/transit 2 Establish household Desire for a newly built or custom-built home Financial security Desire for vacation home/investment property Purchased home for family member or relative Tax benefits Greater number of homes on the market for sale/better choice Other

Increased Purchases in Senior-related Housing   All buyers over 50 Share who purchased a home in senior-related housing 14% Among buyers over 50 who purchased senior related housing Type of home purchased: Detached single-family home 63% Townhouse/row house 8 Apartment/condo in building with 5 or more units 12 Duplex/apartment/condo in 2 to 4 unit building 7 Other 11 Location: Suburb/ Subdivision 45% Small town 21 Urban/ Central city 10 Rural area Resort/ Recreation area 17 Increased incrementally from 11% in 2010

Expected Tenure Remains High AGE OF HOME BUYER All Buyers 18 to 24 25 to 44 45 to 64 65 or older 1 year or less 1% 2 2% 2 to 3 years 1 4 to 5 years 7 14 10 4 6 to 7 years 8 to 10 years 13 17 15 12 9 11 to 15 years 6 8 5 16 or more years 26 18 27 32 Don't Know 43 39 37 61 Median 20

Actual Tenure Among Sellers Remains High

Tightened Inventory Affecting Home Search Buyers saw 10 homes before buying-drop from 12 homes Typically look for 12 weeks total and 3 weeks before contacting an agent 51% of buyers reported hardest task in process was finding the right home

Use of the Internet Increased 96% of buyers under 44 used internet More than ½ started search online—looking at properties for sale or info about home buying process 42% found the home they purchased online

Agent Use By Buyers & Sellers Remains High 89% of buyers purchased their home through a real estate agent or 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 Sell w/in specific timeframe Help market home Find a buyer for the home Reputation and honesty and integrity important

Agent Assisted Sales High

Reasons Behind Selling as FSBO Among the 9% of FSBOs One-third knew the buyer Two-thirds did not know the buyer For FSBO sellers who did not know the buyer 20% were contacted by a buyer they did not know asking to buy home increase from 15 percent in 2010