Century 21 Redwood

April 20, 2015

Research Department

Jessica Lautz

Home Buyer and Seller Reports

2015 Investment & Vacation Home

Buyers Survey

• Rise of vacation buyers of 57.4%

• 45% of vacation buyers and 44% of investors purchased a distressed home

• 30% of vacation buyers and 41% of investors paid all cash for homes

• 33% vacation buyers bought for a retreat, but 19% bought for a future home in retirement

Share of Home Sales

Primary Residence Buyers,

60%Investor Buyers,

19%

Vacation Home Buyers, 21%

2015 Investment and Vacation Home Buyers Survey

2014 Profile of Home Buyers

and Sellers

• Annual survey of recent home buyers

• Purchased in the last year

• Report started in 1981

• Survey 75,000 to 100,000 recent home buyers

2014 Profile of Home Buyers and Sellers

$84,500

$68,300

$95,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013All Buyers First-time Buyers Repeat Buyers

Rise in Household Income

First-time Buyer Share Remains Under Historical

Norm

Profile of Home Buyers and Sellers

30%36%

50%

33%

%

10%

20%

30%

40%

50%

60%

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

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Sellers 1 year orless

2 to 3years

4 to 5years

6 to 7years

8 to 10years

11 to 15years

16 to 20years

21 yearsor more

16%3% 2%

12%19%

26% 22%12% 8%

83

97 9786

7872 77

87 91

No, sold home when I wanted to sell Yes, but rented home to others and lived elsewhere

Yes, and lived in home

Actual Tenure Among Sellers Remains High

Profile of Home Buyers and Sellers

6 6 6 6 6 67

89 9 9

10

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Where Clients Come From

• From Members:

– 21 percent repeat business from past clients

– 21 percent referrals from past clients

– 3 percent off member website (of those with a website)

• From Buyers:

– 52 percent use an agent that was referred to them or they

had worked with before

– 10 percent found agent online

• From Sellers:

– 60 percent use an agent that was referred to them or they

had worked with before

– 4 percent found agent online

• 2/3rds of buyers/sellers only contact 1 agent

2014 Member Profile and 2013 Profile of Home Buyers and Sellers

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

2015 Home Buyer and Seller Generational

Trends

• Why it matters:

– Gen Y largest home buying segment but

competing with investors

– Gen Xers kids=priority

– Younger Boomers 21% bought a multi-

generational home and are still actively in the

workforce

– Older Boomers hitting retirement and enjoying

life

– Silent Generation full retirement and want to be

near family

2013 Digital House Hunt Report

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90% of home buyers searched online during their home buying process

Real estate related searches on Google.com grew 253% over the past four years.

Buyers use specific online tools during different phases of the home search process.

2013 Profile of Buyers’

Home Features Preferences

• While more than three-fourths – 78%– of

all buyers purchased a home with a garage,

garages were more popular among new-

home buyers, Midwesterners, and

suburbanites.

• 41% of homes purchased had a basement,

but this feature was more popular among

buyers in the Midwest and Northeast.

• Among all 33 home features in the survey,

central air conditioning was the most

important to the most buyers

While All Want, Central AC and a Wired

House, these Buyers Want:

Single Male Single Female Married Couple

Walk-In Closet in Master Single Level Home Walk-In Closet in Master

New Kitchen Appliances En-suite Master Bath En-suite Master Bath

En-suite Master Bath New Kitchen Appliances New Kitchen Appliances

New Home Eat-in Kitchen Eat-in Kitchen

Wooded lot Handicap Accessible Open lot/few trees

Cathedral Ceilings

Stainless Steel Appliances

Granite

And the list goes on…

2013 Home Features Survey

2015 Profile of Home Staging

• Among REALTORS® who typically

represent the buyer, 49% report most

buyers are affected by home staging and

47% report some buyers are affected by

home staging.

– For buyers it is easier to visualize the property as

a future home (81 percent),

– buyers are more willing to walk through a home

they viewed online

– positively impact the value of the home if it is

decorated to the buyer tastes

• Among sellers’ agents 34 percent stage all

homes

Percent change in the dollar value buyer is willing to offer for a staged home compared to similar home:

REALTORS® Represent Buyer Side

%

5%

10%

15%

20%

25%

30%

35%

Not sure Staged homehad a

negativeimpact

compared toother similar

home

No impact ondollar value

Staged homehas increaseof 1% to 5%of the dollar

value

Staged homehas increaseof 6% to 10%of the dollar

value

Staged homehas increase

of 11% to15% of thedollar value

Staged homehas increase

of 16% to20% of thedollar value

28%

1%

19%

32%

16%

3%1%

2015 Profile of Home Staging

Member Reports

2014 Member Profile

• In 2013, the typical agent had 12

transactions

• 46% of residential brokerage specialists

had a transaction involving a foreclosure

and 42 percent had a transaction

involving a short sale.

• The typical agent had a sales volume of

$1.8 million in 2013, up from $1.5 million

in 2012.

Changes in Technology

CommunicationSource

2009 Survey

2010 Survey

2011 Survey

2012Survey

2013Survey

2014 Survey

Realtor website 60% 63% 62% 62% 64% 67%

Realtor blog 7 10 10 10 12 12

Use of social media

35 51 49 54 56 61

2014 Member Profile

Gross Annual Income, 2001-2013-Member

$47,700

$52,200 49,300

$47,700

$42,600 $36,700

$35,700 $34,100

$34,900

$43,500

$47,700

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2001 2002 2004 2006 2007 2008 2009 2010 2011 2012 2013

2014 Member Profile

2014 Commercial Member Profile

• The median age of commercial members

is 59-years-old.

• Investment sales are the most cited

primary specialty of commercial members

and is the top ranked secondary specialty

area. Land sales are the second most

common primary and secondary specialty

area.

• Commercial members typically have been

in real estate 25 years, in commercial real

estate 15 years, and members of NAR 18

years.

Median Gross Annual Income, 2006-2013-

Commercial Member

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2006 2008 2009 2010 2011 2012 2013

$115,600

$99,900

$68,600

$76,500

$86,000$90,200

$96,200

2014 Commercial Member Profile

2014 Profile of Real Estate Firms

• 45% of firms reported they are actively

recruiting sales agents in 2014.

• 64% of firms expect profitability (net income)

from all real estate activities to increase in the

next year.

• Profitability, keeping up with technology,

maintaining sufficient inventory, and local or

regional economic conditions are among the

biggest challenges cited by firms

• The most common concern cited by firms

(59%) was Millennials’ ability to buy a home

due to stagnant wage growth, a slow job

market and their debt-to-income ratios.

2015 Member Safety Report

• 96% have never been a

victim of a crime while

working as a real estate

professional

• 40% have been in a

situation that made them

fear for their safety

Profile of International Home Buying Activity

• A significant share of home

purchases in the U.S. are made

by people whose primary

residence is outside the U.S.

• The annual Profile of

International Home Buying

Activity reveals the top five

countries of origin of foreign

home buyers and how these

buyers are utilizing the services

of REALTORS®.

REALTORS® Confidence Index:

What Conditions Are You and Other REALTORS®

Seeing?

• The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners.

• Practitioners are asked about their expectations for home sales, prices and market conditions.

• In addition, the "Questions of the Month," feature results of the most current issue facing the housing market.

Industry Research

Realtor® University Speaker Series

• Leading experts discuss important topics related to real estate, housing and the economy.

• Presented front of a live audience, these presentations feature expert speakers as well as their slides.

• Live webinars available for those unable to join in person.

• Series is brought to you by NAR and REALTOR® University.

• For more: http://www.realtor.org/topics/realtor-university/videos/realtor-university-speaker-series

Interact with NAR Research

on the Web

facebook.com/narresearchgroup

@NAR_Research

economistsoutlook.blogs.realtor.org

pinterest.com/Realtors/nar-research/

Join our social media network

Century 21 Redwood

April 20, 2015

Social Media

TJ Doyle

Wealth of well-

established and

influential accounts in

multiple channels:

•Facebook

•Twitter

•Pinterest

•YouTube

•LinkedIn

•Tumblr

•Blogs

Social Media and You

Not Just Younger Generation—But a Must-

Have for Younger Generation

• 67% of all Internet users

use social networking

sites

• 83% of users 18-29

• 77% of users 30-49

• 52% of users 50-64

(source: Pew Research Project, The

Demographics of Social Media Users)

71% of users utilize mobile to access social

Don’t Be Anti-Social

• Not just a marketing

channel

• 70/20/10 content mix

• Content curation: it’s

not one-size-fits-all.

Specific content pieces

for specific channels are

key to reaching and

engaging your audience.

A Picture Speaks A Thousand Likes

Long Live Pinterest (and Buh Bye to Google+)

Content Pieces That Work

• Infographics, both static and interactive

• Video (the shorter the better)

• Podcasts

• Google Hangouts

• Original, Quality Photos

• SlideShare

Content Pieces That Work

• Infographics, both static

and interactive

Content Pieces That Work

• Video (the shorter

the better)

Content Pieces That Work

• Podcasts

Content Pieces That Work

• Google Hangouts

Content Pieces That Work

• Original, Quality Photos (Instagram, Flickr, Imgur)

Content Pieces That Work

• SlideShare

BUT…Don’t Worry About Being Everywhere

• Evaluate which channels

make sense for your

membership

• Be good at few instead of

ineffective at many

• Be realistic about resources

• Meet you members where

they are

Encourage Sharing of Content

• Sharing widgets on website, online publications and email

• Cross promote content across print & online channels

• Promote conference hashtags on EVERY communication

Social Media Best Practices

• DON’T be afraid of social

media. Don’t be afraid to

experiment

• DO be a resource for

members on how to use

social media in the context

of their profession. Provide

training and resources.

Monitor and be a strong

administrator of your

leadership brand.

Social Media Best Practices

• DON’T feed the trolls

• DO have a plan

• DON’T discount the

value of what you’re

doing for members.

• DO show it off, don’t

keep it a secret…have

fun!

Interact with NAR

on the Web

facebook.com/realtors

@REALTORS

pinterest.com/Realtors

Instagram - https://instagram.com/realtors/

YouTube - https://www.youtube.com/user/NAREALTORS

Join our social media networks

Questions?