Share of Home Sales

Primary Residence

Buyers, 67%

Investor Buyers, 20%

Vacation Home Buyers,

13%

2014 Investment and Vacation Home Buyers Survey

Consumer and REALTOR® Confidence

Buyers’ View of Homes

All Buyers

Married

coupleSingle female

Single

maleUnmarried couple

Good financial investment 79%79%

78%

81% 83%

2014 Profile of Home Buyers and Sellers

Pent Up Demand2000 2013

Existing Home Sales

5.2 m 5.1 m

Population 282 m 316 m

Online Agent Recommendations

2014 Profile of Home Buyers and Sellers

Call Them Back!Number of Agents Buyer Interviewed Before Picking

Agent Used

2014 Profile of Home Buyers and Sellers

Consumer Satisfaction

•Process:–89% of buyers are satisfied with the buying process

–88% of sellers are satisfied with the selling process

2014 Profile of Home Buyers and Sellers

Consumer Satisfaction• With the agent:

– 88% of buyers would use agent or recommend to others•Since buying typically have recommended 3+ times - 28%

– 83% of sellers would use agent again or recommend to others•Since selling typically have recommended 3+times—28%

2014 Profile of Home Buyers and Sellers

Real Estate Trends and

2015 OutlookLawrence Yun, Ph.D.

Chief EconomistNATIONAL ASSOCIATION of

REALTORS®

Presentation at NAR Annual Residential Forum

New Orleans, LA

Expectations of Firm Profitability(over the next 12-months)

Existing + New Home Sales

Single Family Housing Starts … ½ the Normal

Thousand units

Multifamily Housing Starts … Back to Normal

Thousand units

Nationwide Home Price Recovery(Almost Doubled over 20 years)

FHFA Home Price Index

Household Net Worth($5,500 vs. $195,500)

Source: Federal Reserve Survey of Consumer Finances

Renter Households from 2010(Increased by 4 million)

In thousands

Homeownership Rate

First-time Buyer Share (Less than 30% of All Buyers for 18 months)

Among only primary owner-occupants (excluding investors) = 33% in 2014 … Lowest since 1987

30-year Mortgage Rates

Where Are Young People Hiding?

• 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

failure to launch

Pew Research, Federal Reserve Bank of New York

Student Loan(in $billion)

Desire of Gen Y to Buy a Home?• 75% believe home ownership is an important

long-term goal

• 73% believe ownership is an excellent investment

• 59% of young renters (18 to 39) believe owning a home makes more sense

• 73% of young renters also believe it would be difficult to get a mortgage today

• Many young people think 20 percent down payment is needed !

Fannie Mae, 2013 Demand Institute Housing and Community Survey

Non-worrisome CPI Inflation – YetCOLA of 1.7% in 2015

Rising Renters’ and Homeowners’ Rent Growth

(Above 3%)

Inventory of Homes for Sale

Shrinking Shadow Inventory(but not in CT, NY, NJ)

Distressed Property Sales(% of total sales)

Household Net Worth at All-Time High

Sales to International Buyers IncreasedBoth in Terms of Transactions and Price

Median Expected Price Change of REALTORS® in Next 12 Months, By State

Based on July 2014-September 2014 RCI Surveys

July 2014-September 2014 RCI Surveys

Housing Forecast

2013 2014Likely

2015Forecast

2016 Forecast

Housing Starts 925,000 1.0 million 1.3 million 1.4 million

New Home Sales

430,000 440,000 620,000 700,000

Existing Home Sales

5.1 million 4.9 million 5.3 million 5.4 million

Median Price Growth

+ 11.5% + 5.3% + 4% + 4%

30-year Rate 4.0% 4.2% 4.9% 6.0%

Underwriting Standards

Strict Strict Transition Normal

Fayetteville Regional Association of REALTORS®

2412 Raeford Road

1-910-323-1421

www.FayettevilleNCRealtors.com