2015 Home Owners Survey

THE TRUTHABOUTHOMEOWNERS WHY THEYRENOT SELLING

Presented byCarmen Hirciag

Senior Research Analyst

SALES OF EXISTING DETACHED HOMES

California, May 2015 Sales: 423,360 Units, +5.1%YTD, +8.9%YTY

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Jan-

14

Jul-1

4

Jan-

15

*Sales are seasonally adjusted and annualizedSERIES: Sales of Existing Single Family HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS

May-15:423,360

May-14:388,690

CALIFORNIA SALES

SERIES: Sales of Existing Single Family Homes, Not Seasonally AdjustedSOURCE: CALIFORNIA ASSOCIATION OF REALTORS

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Jan-

00

Aug

-00

Mar

-01

Oct

-01

May

-02

Dec

-02

Jul-0

3

Feb-

04

Sep-

04

Apr

-05

Nov

-05

Jun-

06

Jan-

07

Aug

-07

Mar

-08

Oct

-08

May

-09

Dec

-09

Jul-1

0

Feb-

11

Sep-

11

Apr

-12

Nov

-12

Jun-

13

Jan-

14

Aug

-14

Mar

-15

Year-over-Year % Chg 6 per. Mov. Avg. (Year-over-Year % Chg)

CHANGE IN SALES BY PRICE RANGE

(Year-to-Year)

-14.1%

7.9%4.0%

7.4% 8.8%11.6%

14.9%

21.1%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

May-15

SERIES: Sales of Existing Detached HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS

SALES BY REGION(EXISTING SFH)

SERIES: Sales, Not Seasonally AdjustedSOURCE: CALIFORNIA ASSOCIATION OF REALTORS

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Bay Area Central Valley So CA

INVENTORY DROPPED SLIGHTLY FROM LASTYEAR

May 2014: 3.7Months; May 2015: 3.5 Months

Note: Unsold Inventory Index represents the number of months it would take to sell the remaining inventory for the month in question. Theremaining inventory for the month is defined as the number of properties that were Active, Pending, and Contingent (when available) anddivide the sum by the number of Sold properties for the month in question.

0

2

4

6

8

10

12

14

16

18

Jan-

05

Jul-0

5

Jan-

Jul-0

6

Jan-

07

Jul-0

7

Jan-

Jul-0

8

Jan-

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Jan-

14

Jul-1

4

Jan-

15

SERIES: Unsold Inventory Index of Existing Single Family HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS

INVENTORY DROPPED SIGNIFICANTLYIN THE BAY AREA SINCE 2009

BUT REMAINED TIGHT

Note: Unsold Inventory Index represents the number of months it would take to sell the remaining inventory for the month in question. Theremaining inventory for the month is defined as the number of properties that were Active, Pending, and Contingent (when available) anddivide the sum by the number of Sold properties for the month in question.

2.2

3.53.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15

Bay Area Central Valley So CA

SERIES: Unsold Inventory Index of Existing Single Family HomesSOURCE: CALIFORNIA ASSOCIATION OF REALTORS

2015 HOMEOWNER SURVEYAbout the Home

MAJORITY BOUGHT HOME WITHIN THE PAST 15YEARS

2.3%

6.7%

11%

20%

26%

14%

3.2%5.3% 4.8% 5.2%

1.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Q. In which year did you buy your home?

MAJORITY HOMES IN SOCAL

Q. In which CA County is the home located?

Northern CA20%

Other CA 22%Southern CA

58%

MOST HOMES ARE SINGLE FAMILY

Q. What type of home is it?

Single family85%

Condo /townhome 11%

Other 4.1%

NEARLY HOMES ARE LOCATED IN THESUBURBS

Q. Please select the option below that best describes the location of the home.

0.7%

11%

16%

24%

49%

0% 10% 20% 30% 40% 50% 60%

Other

Rural

Urban adjacent

Urban

Suburban

THOSE WHO BOUGHT WITHIN THE PAST 15YEARS AREMORE LIKELY TO LIVE IN URBAN AREAS

Q. Please select the option below that best describes the location of the home.

16%

24%

49%

18%

17%

53%

14%

29%

46%

0% 10% 20% 30% 40% 50% 60%

Urban adjacent

Urban

Suburban

< 15 years 15 years+ All owners

MEDIAN PURCHASE PRICE: $265,000

Q. What was the purchase price of the home?

0%

5%

10%

15%

20%

25%

30%

35%35%

20%

15%11% 11%

3%5%

MEDIAN PURCHASE PRICE IS TWICE AS HIGH FORMORE RECENT OWNERS

Q. What was the purchase price of the home?

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

All owners 15 years+ < 15 years

$265,000

$162,000

$350,000

MEDIAN HOME VALUE SLIGHTLY HIGHER FORTHOSE WHOVE OWNED LONGER

Q. What is the current value of your home?

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000


$425,000$450,000

$400,000

2/3 HOMEOWNERS CONDUCTED RESEARCH ONHOME VALUE

Q. Have you conducted any research to make this appraisal? Please select all that apply.

0% 5% 10% 15% 20% 25% 30% 35%

Other research

Other websites

Appraisal

Agent comps

Realtor.com

Zillow

No research

4.3%

5.9%

18%

19%

23%

31%

31%

HOMEOWNERS HAVE $100K OR MORE EQUITY

Q. Approximately how much equity do you have in your home?

0%

5%

10%

15%

20%

25%

16%

10%

17%15%

20%

12%

9%

THOSE WHOVE OWNED 15+YEARS HAVE MOREEQUITY

Q. Approximately how much equity do you have in your home?

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000


$200,000

$300,000

$179,000

MEDIAN HOME EQUITY AMOUNT: $200,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Equity Purchase price Home value

$200,000

$265,000

$425,000Median

FINANCING21

24% OF HOME OWNERS DO NOT HAVE A MORTGAGE

Q. What type of mortgage do you have?

0%

10%

20%

30%

40%

50%

60%

Fixed rate Adjustable rate Other Unsure Don't have amortgage

58%

12%

1%6%

24%

47%

8%

1%

6%

38%

58%

12%

1%6%

15%

All owners 15 years+

MAJORITY OF HOME OWNERS WITH A MORTGAGEHAVE AN INTEREST RATE LESS THAN 5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2-2.99% 3-3.99% 4-4.99% 5-5.99% 6%+

8.8%

33%35%

17%

6.5%

Q. What is your current mortgage rate?

27% OF HOME OWNERS HAVE TAPPED INTO THEIRHOME EQUITY

Q. Is any portion of your outstanding mortgage balance form a cash-out refinance, second loan or home equity line of credit?

Yes 27%

No 73%

27% OF HOME OWNERS HAVE TAPPED INTO THEIR HOMEEQUITY

Q. Is any portion of your outstanding mortgage balance form a cash-out refinance, second loan or home equity line of credit?

27%

32%

24%

0% 10% 20% 30% 40%

All owners

15 years+

WILL OWNERS SELL THEIRHOMES?

35% HAVE CONSIDERED SELLING

Q. On a scale of 1 to 10, how seriously have you thought about selling your home within the past year?

0%

10%

20%

30%

40% 36%

9.4%7.1% 5.9% 6.9%

3.7%

11% 9.9%5.5% 4.6%

AVERAGE RATING

Q. On a scale of 1 to 10, how seriously have you thought about selling your home within the past year?

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5


WHY HAVE OWNERS CONSIDERED SELLING?

Q. Please rate the importance of each of the following in your consideration to possibly sell your home. (1-10 scale)

Factors Considered All Owners 15Years+

59% OF HOME OWNERS HAVE NOT CONSIDEREDSELLING

Q. Please rate the importance of each of the following in your decision to not sell your home. (1-10 scale)

Reasons for Not Selling AllOwners

15Years+

WHAT WOULD PROMPT HOME OWNERS TO SELL?

Q. What would prompt you to put your home up for sale within the next year?

Motivations AllOwners

15Years+

NEARLY HOME OWNERS HAVE CONSIDERED MOVINGOUT OF STATE

Q. How seriously have you considered moving out of state? (1-10 scale)

0%

5%

10%

15%

20%

25%

30% 28%

9.7%6.8% 5.2% 4.9%

13%9.6% 10%

5.8% 6.7%

Average rating: 4.6

45% OF HOME OWNERS HAVE CONSIDERED MOVINGOUT OF STATE

Q. How seriously have you considered moving out of state? (1-10 scale)

4.64.0

4.9

45%

38%

50%

0%

10%

20%

30%

40%

50%

60%

0.0

1.0

2.0

3.0

4.0

5.0

6.0


TOP 10 STATES WHERE HOME OWNERS HAVE CONSIDEREDMOVING

2.6%4.4%

4.9%6.1%

7.0%7.7%

8.0%8.9%

11%15%

0% 2% 4% 6% 8% 10% 12% 14% 16%

IdahoHawaii

ColoradoFlorida

WashingtonNevadaArizona

New YorkOregon

Texas

Q. Where have you considered moving?

DEMOGRAPHICS

HOME OWNER MEDIAN AGE: 51

Q. What is your age?

0% 10% 20% 30% 40% 50%

Gen Y

Gen X

Boomers

Silent

27%

21%

40%

8.4%

HOME OWNER MEDIAN AGE

Q. What is your age?

0 20 40 60

All owners

15 years+

45% OF HOME OWNERS HAVE CHILDREN RESIDINGWITH THEM

Q. Do your children currently reside with you in the home?

Yes 45%

No 42%

Don't havechildren

13%

83% OF CHILDREN RESIDING AT HOME ARE MINORS

Q. What is the age of each child living in the home?

0%10%20%30%40%50%60%70%80%90%

Under 18 18-21 22-29 30+

83%

6.5% 7.0% 3.8%

HOME OWNER MEDIAN ANNUAL HOUSEHOLDINCOME: $77,000

Q. What is your total annual household income?

< $50,000

$50-000-$74,999

$75,000-$99,999

$100,000-$149,999

$150,000-$199,999

$200,000 +

0% 5% 10% 15% 20% 25%

21%

23%

20%

19%

7.7%

8.5%

71% OF HOME OWNERS ARE WHITE

Q. What is your ethnic background?

2.7%

2.9%

12%

12%

71%

Other

Black

Asian

Hispanic

White

0% 10% 20% 30% 40% 50% 60% 70% 80%

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Documents

2015 Home Owners Survey