1. John L. Scott Convention Jessica Lautz National Association of REALTORS ® October 30, 2014

2. Methodology Survey conducted with recent home buyers who purchased a home between July 2013– June 2014 Survey consists of 127 questions Seller information gathered from those home buyers who sold a home Mailed 72,206 questionnaires- response rate of 9.4% Names obtained from Experian Data in the presentation is based on medians or the typical buyer in the category and is not all encompassing

3. Share of Home Sales 2014 Investment and Vacation Home Buyers Survey

4. Buyer Demographic Changes Profile of Home Buyers and Sellers 2010 Profile2011 Profile2012 Profile2013 Profile2014 Profile Median Age394542 44 Gross HH Income $72,200$80,900$78,600$83,300$84,500 Household Composition 58% married couples, 20% single females, 12% single males, 8% unmarried couples 64% married couples, 18% single females, 10% single males, 7% unmarried couples 65% married couples, 16% single females, 9% single males, 8% unmarried couples 66% married couples, 16% single females, 9% single males, 7% unmarried couples 65% married couples, 16% single females, 9% single males, 8% unmarried couples Children in Home 35%36%41%40%35% Own a 2 nd Home 14%19% 21%

5. Shift in Household Composition 2014 Profile of Home Buyers and Sellers

6. Rise in Household Income

7. First-time Buyer Share Remains Under Historical Norm Profile of Home Buyers and Sellers

8. Young Adult Homeownership Rate Home Prices Outpacing Incomes (under 35 years old)

9. Desire of Gen Y to Buy is Still Present 59 percent of young renters (18 to 39) believe owning a home makes more sense, but 73 percent of young renters also believe it would be difficult to get a mortgage today 75% believe home ownership is an important long-term goal 73% believe ownership is an excellent investment 24% already own their home and an additional 60% plan to buy a home in the future. Fannie Mae, 2013 Demand Institute Housing and Community Survey

10. Primary Reasons for Buying a Home All Buyers First-time Buyers Repeat Buyers Desire to own a home of my own24%53%9% Job-related relocation or move9412 Desire for a home in a better area8211 Change in family situation859 Desire for larger home7110 Affordability of homes583 Desire to be closer to family/friends/relatives314 Retirement3*5 Establish a household371 Desire for smaller home3*4 Financial security361 2014 Profile of Home Buyers and Sellers

11. Buyers’ View of Homes as a Financial Investment All Buyers Married couple Single female Single male Unmarried couple Good financial investment79% 78%81%83% Better than stocks4039464037 About as good as stocks27 252433 Not as good as stocks121371713 Not a good financial investment77686 Don't know14 1512 2014 Profile of Home Buyers and Sellers

12. Expenses that Delayed Saving for Downpayment or Saving for Home Purchase 2014 Profile of Home Buyers and Sellers All Buyers First-time Buyers Repeat Buyers Share Saving for Downpayment was Most Difficult Task in Buying Process: 12%23%7% Debt that Delayed Saving: Credit card debt50%45%58% Student Loans465728 Car loan384232 Child care expenses171324 Health care costs12817 Other8514

13. Where to go? 57 million Americans or 18.1% of the population live in a multi-generational family household in 2012, –double the number who lived in such households in 1980 Of those who are 25-34: –20% of the unemployed live with parents –12% of employed live with parents Pew Research, Federal Reserve Bank of New York

14. Multi-generational Home All Buyers Married couple Single femaleSingle male Unmarried couple Multi-generational household13% 16%7% Reasons for purchase: Cost Savings24%21%24%31%36% Children over 18 moving back into the house232623173 Health/Caretaking of aging parents1819181422 To spend more time with aging parents10128614 Other2422263225 2014 Profile of Home Buyers and Sellers

15. Pent Up Demand 20002013 Existing Home Sales5.2 m5.1 m New Home Sales880 K430 K Mortgage Rates8.0%4.0% Payroll Jobs132.0 m136.4 m Population282 m316 m

16. Seller Wanted to Sell Earlier But Waited or Stalled Because the Home Was Worth Less than the Mortgage 2014 Profile of Home Buyers and Sellers

17. Actual Tenure Among Sellers Remains High Profile of Home Buyers and Sellers

18. Expected Tenure Remains High Profile of Home Buyers and Sellers

19. Force Buyer to Move Again Married couple Single female Single male Unmarried couple Move with life changes (addition to family, marriage, children move out, retirement, etc.)40%55%49%44% Never moving-forever home24 1516 Move with job or career change2091320 May desire better area/neighborhood971213 May outgrow home74714 Will flip home1133 Other6574 2014 Profile of Home Buyers and Sellers

20. Home Type and Location

21. Home Type Bought 84% previously owned homes –Even if new home—58% used an agent to buy! 79% detached single-family home Where? –50% suburb –20% small town –16% urban –11% rural area 3 bedrooms/2 baths 1,870 square feet Built in 1993 12 miles from past residence for buyers 2014 Profile of Home Buyers and Sellers

22. Location, Location, Location Quality of the neighborhood Convenient to job Overall affordability of homes Convenient to friends/family Convenient to shopping Quality of school district Design of neighborhood 2014 Profile of Home Buyers and Sellers

23. Commuting Costs

24. Environmentally Friendly Features—Good for Earth and Wanted by clients

25. Compromises on Home Purchase All Buyers First-time Buyers Repeat Buyers Price of home23%25%21% Size of home202717 Condition of home181917 Lot size161815 Style of home161814 Distance from job141811 Distance from friends or family796 Quality of the neighborhood565 Quality of the schools472 Distance from school231 None - Made no compromises332536 2014 Profile of Home Buyers and Sellers

26. Inventory Still Tight

27. Tightened Inventory Affects Home Search and Selling Buying Side: –Buyers saw 10 homes before buying –Typically look for 10 weeks total and 2 weeks before contacting an agent –53% of buyers reported hardest task is in process was finding the right home Selling Side: –Typically received 97% of final asking price –Median time on market 4 weeks 11 weeks in 2012 For FSBO sellers who did not know the buyer –15% were contacted by a buyer they did not know asking to buy home 2014 Profile of Home Buyers and Sellers

28. Most Important Factor Limiting Clients ALL REALTORS® Difficulty in finding the right property33% Difficulty in obtaining mortgage finance25 No factors are limiting potential clients16 Ability to sell existing home7 Expectation that prices might fall further6 Low consumer confidence6 Concern about losing job1 2014 Member Profile

29. Agent Use By Buyers & Sellers Remains High 88% 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 –Help market home –Sell w/in specific timeframe –Help price home competitively –Reputation and honesty and integrity important 2014 Profile of Home Buyers and Sellers

30. Agent Assisted Sales High Profile of Home Buyers and Sellers

31. Buyer Use of Online Agent Recommendations 2014 Profile of Home Buyers and Sellers

32. Personal Recommendations are Key! How buyers found agent: –40% referred by or is a friend, neighbor, relative –12% used agent they had previously worked with Selling side: –38% referred by or is a friend, neighbor, relative –22% used an agent they had previously used to buy/sell a home What you tell us: 21% of business from past consumers and clients 21% of business from referrals from past consumers and clients 2014 Profile of Home Buyers and Sellers, 2014 Member Profile

33. How and How Many Times Contact Agent Method Phone call56% E-mail21 Contacted friend/family7 Web form on home listing website5 Text message3 Through agent's website3 Social Media (FaceBook, Twitter, LinkedIn, etc.)2 Other4 Number of Times Contacted (median)1 2014 Profile of Home Buyers and Sellers

34. Call Them Back! Number of Agents Buyer Interviewed Before Picking Agent Used 2014 Profile of Home Buyers and Sellers

35. The Search Process

36. Frequency of Use

37. Value of Website Features 2014 Profile of Home Buyers and Sellers

38. Make Your Site Mobile Ready All Buyers First-time Buyers Repeat Buyers Searched with an iPhone52%54%51% Search with an iPad463950 Searched with an Android273323 Found my home with a mobile application273024 Search with a different tablet10119 Searched with a Windows based mobile device657 Found my agent with a mobile application444 Used QR Code that lead me to more information on the property334 2014 Profile of Home Buyers and Sellers

39. Keep in Contact All Buyers First-time Buyers Repeat Buyers Calls personally to inform of activities79%75%80% Sends postings as soon as a property is listed/the price changes/under contract69 Sends emails about specific needs596058 Can send market reports on recent listings and sales514754 Sends property info and communicates via text message454844 Has a web page29 30 Has a mobile site to show properties25 Sends an email newsletter101110 Advertises in newspapers657 Is active on Facebook/Twitter675 Has a blog111 2014 Profile of Home Buyers and Sellers

40. Satisfaction Process: –89% of buyers are satisfied with the buying process –88% of sellers are satisfied with the selling process With the agent: –88% of buyers would use agent or recommend to others Since buying typically have 1 time—28% have recommended 3+ times –83% of sellers would use agent again or recommend to others Since selling typically have 1 times—28% have recommended 3+times 2014 Profile of Home Buyers and Sellers

41. Where to find NAR Research Jessica Lautz: jlautz@realtors.org, 202-383-1155jlautz@realtors.org NAR Research www.realtor.org/research-and-statisticswww.realtor.org/research-and-statistics Economists’ Outlook Blog: economistsoutlook.blogs.realtor.org economistsoutlook.blogs.realtor.org Facebook: facebook.com/narresearchgroupfacebook.com/narresearchgroup Twitter: twitter.com/NAR_Researchtwitter.com/NAR_Research