Presentation is loading. Please wait.

Presentation is loading. Please wait.

2012 ANNUAL HOUSING MARKET SURVEY. Methodology C.A.R. has conducted the Annual Housing Market Survey since 1981. The questions and methodology have stayed.

Similar presentations


Presentation on theme: "2012 ANNUAL HOUSING MARKET SURVEY. Methodology C.A.R. has conducted the Annual Housing Market Survey since 1981. The questions and methodology have stayed."— Presentation transcript:

1 2012 ANNUAL HOUSING MARKET SURVEY

2 Methodology C.A.R. has conducted the Annual Housing Market Survey since 1981. The questions and methodology have stayed essentially the same throughout that time. The survey was mailed to a random sample of 15,000 REALTORS® throughout California. The sample represented the geographical distribution of C.A.R. membership across the state. The survey asked REALTORS® to provide information from their most recent sales transaction that closed escrow in the second quarter of 2012. The survey instrument was a seven-page questionnaire with both multiple choice and open-ended questions. There were 932 valid survey responses, equivalent to a response rate of 6.2 percent. The margin of error for this survey was +/- 3.2 percent at a 95 percent confidence level.

3 CA Unsold Inventory: Nearing Record Lows September 2012: 3.7 Months SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® 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.

4 Supply Shortage Creates More Market Competition Share of home sales with multiple offers is the highest in at least the last 12 years

5 Long Run Average = 68% Market Competition Leads to Fewer Sales with Price Discount Q. What was the original list sales price of the property? What was the final sales price of the property? How many weeks did the property remain on the MLS?

6 More Buyers Are Purchasing with Cash Almost one-third of buyers paid with all cash The share of all cash buyers has been on the rise since 2006

7 Equity Sales vs. REO vs. Short Sales (2012) Equity SalesREO SalesShort Sales Share of Total Sales64.7%12.3%21.7% Median Home Price$448,000$185,000$235,000 Square Footage1,7501,5001,600 Price / SF$243$116$154 Sales-to-List Price Ratio97.3%100.0%99.9% % of Sales With Multiple Offers50.9%70.8%66.1% Avg. Number of Offers4.04.24.3 % of All Cash Sales27.343.1%26.7% Days on MLS323090 Days in Escrow354550

8 Equity Sales (2011 vs. 2012) 20122011 Share of Total Sales64.7%58.7% Median Home Price$448,000$431,000 Square Footage1,7501,783 Price / SF$243$250 Sales-to-List Price Ratio97.3%95.9% % of Sales With Multiple Offers50.9%35.2% Avg. Number of Offers4.03.0 % of All Cash Sales27.3%25.5% Days on MLS3267 Days in Escrow35

9 REO Sales (2011 vs. 2012) 20122011 Share of Total Sales12.3%19.7% Median Home Price$185,000$189,500 Square Footage1,500 Price / SF$116$112 Sales-to-List Price Ratio100.0%98.0% % of Sales With Multiple Offers70.8%58.3% Avg. Number of Offers4.24.3 % of All Cash Sales43.1%34.0% Days on MLS3050 Days in Escrow4535

10 Short Sales (2011 vs. 2012) 20122011 Share of Total Sales21.7%20.2% Median Home Price$235,000$287,000 Square Footage1,600 Price / SF$154$175 Sales-to-List Price Ratio99.9%95.9% % of Sales With Multiple Offers66.1%57.5% Avg. Number of Offers4.33.6 % of All Cash Sales26.7%23.3% Days on MLS90141 Days in Escrow5045

11 Share of International Buyers Q. Was the buyer an international buyer – a person who was a citizen of another country who wished to purchase residential real estate in the U.S.?

12 Country of International Buyer China (39.1%) Canada (13.0%) India (8.7%) Mexico (8.7%)

13 One of Five REALTORS® Worked with an International Buyer in the Past 12 Months Q. How many properties have you sold to an international buyer in the last 12 months? % Who Sold to International Buyers # of Properties Sold to International Buyers in the Last 12 Months

14 Demand for Investment & Second/ Vacation Homes Dips Slightly, But Remains Strong 7% 16%

15 For Those Who Purchased an Investment Property: 17% 83% Investment to Flip Rental Property

16 Home Buyer Profile (By Type of Sales)

17 Distressed Sales Have a Higher Share of First-Time Buyers Than Equity Sales Q. Was the buyer a first-time buyer?

18 Share of First-Time Buyers Remains Below Average But Improves from 2011 Q. Was the buyer a first-time buyer? Long Run Average = 39%

19 First-time Buyer Housing Affordability Index (California) % OF HOUSEHOLDS THAT CAN BUY SOURCE: California Association of REALTORS®

20 First-time Buyer HAI vs. Eff Interest Rates % OF HOUSEHOLDS THAT CAN BUY SOURCE: California Association of REALTORS®

21 First-time Buyer HAI vs. Entry Level Median Price % OF HOUSEHOLDS THAT CAN BUY SOURCE: California Association of REALTORS®

22 Reasons For Buying Q. What was the single most important reason for buying the property?

23 Reasons For Buying First Time Homebuyers Vs. Repeat Homebuyers Q. What was the single most important reason for selling/buying the property?

24 Median Down Payment First-Time Homebuyers Vs. Repeat Homebuyers Q. What was the amount of downpayment?

25 The Median Down Payment Up 24 Percent from 2011, As Home Prices Increase

26 Cash Source for Down Payment First-Time Buyer vs. Repeat Buyer Q. What was the source of the cash the buyer used for a downpayment or to purchase the residence? First-time BuyersRepeat BuyersAll Buyers Personal savings 68.9%53.2%59.0% Proceeds from sale of previous residence0.0% 17.4%11.1% Borrowed or gift from relatives 20.3%5.0%10.5% Sale of personal assets other than real property 4.5%12.9%9.7% Inheritance 1.4%3.8%2.9% Proceeds from sale or refi of another property0.0% 3.8%2.2% Other 4.8%4.0%4.6%

27 Repeat Buyers Rely on Personal Savings As Down Payment Q. What was the source of the cash the buyer used for a down payment or to purchase the residence?

28 Percent of Buyers with Zero Down Payment

29 Proportion of Transactions With Second Mortgages Q. In addition to the first mortgage or assumption, was there a second mortgage?

30 Percent of Buyers with Second Mortgage

31 Q. Please indicate the type of mortgage Share of FHA Still Significantly Higher than 2007, But Was the Lowest in 4 Years (First Mortgage)

32 FHA vs. Conventional (New First Mortgage) FHAConventional Median Home Price$250,000$456,000 Median Down Payment (Dollar)$8,820$100,000 Median Down Payment (% to Price)3.5%20.0% Share of All Home Sales23.5%72.7% Percent of Mortgages with Distressed Property50.0%26.9% Percent of First-Time Buyers76.6%34.3%

33 Seller Household Formation Equity vs. REO vs. Short Sales Equity SalesREO SalesShort Sales Single29.3%0.9%27.6% Married Couple with Dependents27.1%0.9%39.1% Married Couple without Dependents26.1%0.0%19.9% 2 or More Individuals (Related or Unrelated)10.6%0.0%9.6% Banks/Lending Institutions0.6%98.2%0.6% Other6.3%0.0%3.2% Total100.0%

34 Home Seller Profile (By Type of Sales) Equity SalesShort Sales Median Age of Sellers5845 Median Household Income$110,000$65,500 Years Seller Lived in Home10 7 Percent of Sales with Net Cash Loss23.7%71.9% Median Net Cash Gain/Net Cash Loss to Seller$50,000$-110,000

35 As Sellers with Net Cash Loss Hit a Record High … Q. What was the net cash gain or net loss to the seller as a result of this sale? Long Run Average = 12.3%

36 Q. What was the net cash gain or net loss to the seller as a result of this sale? The Median Net Cash Gain to Sellers Reaches a Record Low in 2012

37 Years Owned Home Before Selling

38 Reasons For Selling Q. What was the single most important reason for selling the property?

39 More than a Quarter of Sellers Sold Because Their Properties Were in Distressed Status Q. What was the single most important reason for selling/buying the property?

40 Reasons For Selling Home Equity vs. REO vs. Short Sales Equity SalesREO SalesShort SalesAll Sales Foreclosure/Short Sale/Default2%97%85%27% Change in Family Status17%0%1%13% Retirement/Move to Retirement Community16%0%1%11% Investment/ Tax Considerations13%3%1%10% Desired Better Location14%0%2%10% Desired Smaller Home9%0%1%6% Changed Jobs5%0%1%4% Desired Larger Home10%0%1%7% Other15%0%7%12% Q. What was the single most important reason for selling the property?

41 More Sellers Are Planning to Buy Another Home As the Market Slowly Recovers Q. Is the seller planning on purchasing another home?

42 Location of Seller’s New Home 20052006200720082009201020112012 Within the same county38%41%37%45%47%42%49% In another county in California23%18%24%17%21% 19%18% In another state31%28%29%27%19%20% 22% Out of US1%2%1% 2%1% Don't Know/Not sure7%11%9%10%12%16%10% Total100%

43 For Those Who Do Not Plan to Repurchase, Here Are Their Top 5 Reasons:

44 Reasons Sellers Not Planning to Buy Another Home Q. Why is the seller not planning to purchase another home?

45 Top Reasons Under “Other” for Equity Sellers Not Planning to Buy Another Home

46 Property Fallen Out of Escrow Q. Had the property fallen out of escrow prior to this sale ?

47 Reasons Why Property Fell Out of Escrow Q. Do you know why the property fell out of escrow previously ?

48 Repair Costs/Price Adjustments Q. Did the seller repair items, make adjustments to the purchase price, or make any other concessions during escrow due to discovered defects?

49 How Client Found Their Agent Q. How did your client find and select you to represent them?

50 Buyers Have More “Skin” in the Game 20062012 % of buyers with 20+% down payment43.2%54.4% % of buyers with zero down payment21.1%4.6% % of cash buyers11.0%30.0% % of home buyers with a second mortgage43.4%1.8% % of buyer with ARM32.6%3.5%

51 Less Likelihood to Default as Monthly Payment Is More Affordable 20062012 Average mortgage rate (FRM)6.4%3.7% Median home price for existing single-family homes$556,430$319,340 Median household income for home buyers$100,000 Housing Affordability Index12.0%51.0%


Download ppt "2012 ANNUAL HOUSING MARKET SURVEY. Methodology C.A.R. has conducted the Annual Housing Market Survey since 1981. The questions and methodology have stayed."

Similar presentations


Ads by Google