We create Brian Buffinis Real Estate Report to give you a snapshot of todays market and to help you educate

your clients on the process of buying or selling a home. I recommend that you lean into this piece when giving a presentationuse it to help set expectations and position yourself as your clients trusted advisor. I hope you enjoy this comprehensive report and put it to use in your business. Its a good life!

Contents
Industry Facts Mortgage Stats Distressed Properties Price Information Todays Buyer First-Time Home Buyer Facts Seller Stats & Trends Consumer Confidence
Page 1 Page 2 Page 3 Page 3 Page 4 Page 5 Page 6 Page 7

2013 Buffini & Company. All rights reserved.

Brian Buffinis Real Estate Report

Page 1

InDUstRY FaCts
SUPPLY OF LISTED INVENTORY: EXPECTED HOUSING STARTS:

7.1 months November 2011 5.5 months November 2012

Over the next three years, home prices are projected to rise Average projected housing aordability index A median-income family would have 160% of the income needed to purchase a median-priced, existing single-family home

1.1 million in 2013 1.4 million in 2014

In 2012, existing-home sales were at the highest level since 2007 and up 9.2% from 2011 THE AVERAGE HOME PURCHASED WAS:

43%

15%
In Q4 2012, home prices rose in 120 out of 149 metro markets

of Echo Boomers are homeowners

1,900 square feet

50% of consumers

32%

expect home-rental prices to increase in 2013

of homes sold in November 2012 were on the market for less than a month

years old

20 3

bedrooms

20% 16%
Of all home purchases, new homes comprised

were on the market 6 months or longer

bathrooms Buying a home hasnt been as aordable since 1971

SOURCES: NATIONAL ASSOCIATION OF REALTORS, BUSINESS WIRE, MARKET WATCH, WALL STREET JOURNAL, CNBC

Brian Buffinis Real Estate Report

Page 2

MoRtgage stats
of consumers feel that mortgage rates will increase in the next 12 months At the end of 2012, the 30-year fixed rate mortgage averaged

37%

SOURCES FOR A BUYERS DOWN PAYMENT:

OF BUYERS WITH A MORTGAGE:

65%
Savings

25%
Proceeds from the sale of another home

92%

14%
Gift from a relative or friend

chose a fixed-rate loan

chose a conventional loan

49%

33%
chose an FHA loan

10%
chose a VA loan

37%

compared to 3.94% a year prior In January 2013, the 15-year fixed rate mortgage averaged

WHAT BUYERS SAID ABOUT THE MORTGAGE PROCESS:

of households use more than 30% of their income for housing

44%

18% 23%
somewhat more difficult than expected

not difficult/no more difficult than expected compared to 3.21% a year prior

use more than 50% of their income for housing

96% 91%

of buyers financed their home purchase of consumers say its easier to obtain a mortgage now than in the past

17%

easier than expected

The median percentage of home price financed

51%

SOURCES: US CENSUS BUREAU, NATIONAL ASSOCIATION OF REALTORS, FREDDIE MAC, HOUSINGWIRE, FANNIE MAE

Brian Buffinis Real Estate Report

Page 3

DIstResseD PRoPeRtIes

PRICe InFoRMatIon
Median price of a new home purchased Median price of an existing home purchased

5-year low
REO PROPERTY COMPARISON: In 2009:

As of October 2012, foreclosures were at a

$232,000

$179,900

670,000
In 2012:

National year-over-year price gains picked up steam in December, coming in at

4.9%

500,000

of home sales in 2012 were REOs and short sales

33%

Through 2013 national home prices are forecasted to

In 2012, the median price of new and existing homes

rose

20%
Average price discount on a foreclosure

16%
Average price discount on a short sale

grow by

5%

2.1%

SOURCES: NATIONAL ASSOCIATION OF REALTORS, CLEAR CAPITAL, MARKET WATCH, CNNMONEY, RISMEDIA SOURCES: ??

Brian Buffinis Real Estate Report

Page 4

toDaYs BUYeR
MEDIAN HOME PURCHASED: Built in

1992

from previous residence

11 miles

78%

of all buyers see their home as a good financial investment

ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED VERY IMPORTANT: Heating and cooling costs Energy efficient appliances Energy efficient lighting

the desire to own a home

remains the most popular reason for a home purchase of buyers expanded their home search to include new areas because of low inventory

46% 38%

On average, a home buyer searched for

12 weeks

and viewed 10 homes

took a break until more listings came on the market

89%

of buyers used a real estate agent or broker

90%
TOP 5 REASONS BUYERS WANT TO MOVE: TOP FACTORS THAT INFLUENCE NEIGHBORHOOD CHOICE: Quality of neighborhood Convenience to job Overall aordability of homes Convenience to friends/family Convenience to shopping

of buyers used the Internet to help them find a home

45% To live in a larger

space

44% To live in a home

better suited to their life phase better suited to their style neighborhood

used their agents website

51%

42% To live in a home 30% To live in a better 27% For a greener,

more environmentally sustainable home

42%

first saw the house they purchased on the Internet

15 years

The average buyer plans to stay in their home for

34%

heard about the home from their real estate agent

SOURCES: NATIONAL ASSOCIATION OF REALTORS

Brian Buffinis Real Estate Report

Page 5

FIRst-tIMe HoMe BUYeR FaCts

THE TYPICAL FIRSTTIME BUYER:

82%

see their home as a good financial investment

75%

FIRST-TIME BUYERS BY REGION:

of first-time buyers believe that owning a home is a key indicator of success

40% 39%
West Midwest

Northeast

45%

31 years old $154,100

purchased a 1,600 square foot home for

consider homeownership something they have to earn, rather than believing it is something they deserve

71%

39%

37%
South First-time buyers contacted an agent after searching for a home for

of recent home buyers were first-time buyers The average first-time buyer plans to stay in their home for

3 weeks

PRIMARY REASONS FOR BUYING A HOME:

10 years

60% 11% 9% 3/4

of first-time buyers used their savings for a down payment used a gift from a relative or friend

desire to own a home

SACRIFICES RENTERS ARE WILLING TO MAKE FOR HOMEOWNERSHIP:

aordability of homes

62% eat out less take on a 40% second job

move back 23% in with their parents

1/4

change in family situation Finding the right property & the paperwork were the most difficult steps in the homebuying process

SOURCES: BET TER HOMES AND GARDENS REAL ESTATE, NATIONAL ASSOCIATION OF REALTORS, NBCNEWS.COM

Brian Buffinis Real Estate Report

Page 6

seLLeR stats & tRenDs

WHAT SELLERS BOUGHT: a larger, higherpriced home

46%

62%

a newer home

68%

$20,000

WEEKS ON THE MARKET: less than 1

a home within the same state

The median amount of equity earned on a home sale The typical seller lives in their home for

1-4

95%

On average, sellers sold their home for

9 years

5-8

of the listing price

40%

of sellers oered incentives including assistance with home warranty policies and closing costs

9-12

13-16

17-24

25-36

40%

of sellers did not reduce their asking price

37 or more

4% 31% 10% 13% 8% 10% 8% 8%

25% 17%
reduced it once
SOURCE: NATIONAL ASSOCIATION OF REALTORS

reduced it twice

18%

88%

reduced it three or more times

of sellers used a real estate agent to sell their home

Brian Buffinis Real Estate Report

Page 7

ConsUMeR ConFIDenCe

57%

of homebuyers plan to buy now to take advantage of low interest rates CONSUMERS BELIEVE

Before becoming active in the market, the typical consumer thinks about the possibility of buying or selling a home for

6 to 12 months

72%
88% 45%
owning a home is important a home is the best investment a family can make

43%
home ownership is attainable for middleincome families

of Millennials (age 18-34) say that homeownership is part of their personal American Dream

93%

of consumers say that now is a good time to buy

72%

of Millennials plan to purchase a home in the future

18% say its a good time to sell

of renters plan to buy a home within the next two years, up from 22% in January 2011

31%

67%

of consumers would buy if they had to move in the near future

More than 70%

of buyers believe prices will rise next year in their markets
SOURCES: REDFIN, MARKET WATCH, HOUSING WIRE, BUSINESS WIRE