Profile of Home Buyers and Sellers 2012

News ReleaseNovember 10, 2012

Methodology

• Surveys mailed to 93,502 households• Response rate 9.1 percent with 8,501 responses• Purchased a home between July 2011 and June 2012• Addresses from Experian• Reflect distribution of home sales in each state

What is covered?

• Ask buyers about:– Basic demographics– Type of home– Search process– Relationship with agent– Home financing

• Ask sellers about: – Basic demographics– Home selling experience– Relationship with agent– FSBO vs agent-assisted sales

Demographic Changes Since 20102012 Profile 2011 Profile 2010 Profile

Median Age 42 45 39

Gross HH Income

$78,600 $80,900 $72,200

Household Composition

65% married couples, 16% single females, 9% single males, 8% unmarried couples

64% married couples, 18% single females, 10% single males, 7% unmarried couples

58% married couples, 20% single females, 12% single males, 8% unmarried couples

Children in Home

41% 36% 35%

Own a 2nd Home

19% 19% 14%

Shift in Household Composition

 200

1200

3200

4 2005 2006 2007 2008 2009 2010 2011 2012Married couple 68% 59% 62% 61% 61% 62% 61% 60% 58% 64% 65%Single female 15 21 18 21 22 20 20 21 20 18 16Single male 7 11 8 9 9 9 10 10 12 10 9Unmarried couple 7 8 9 7 7 7 7 8 8 7 8Other 3 1 2 2 1 2 2 1 1 1 2

First-time Buyer Share Closer to Historical Norm

2001 2003 1905 1905 1905 1905 1905 1905 1905 1905 190520%

25%

30%

35%

40%

45%

50%

55%

60%

42%40% 40% 40%

36%39%

41%

47%50%

37%39%

Desire to Own Home Remains Top Reason to Buy

All BuyersFirst-time

BuyersRepeat Buyers

Desire to own a home of my own 30% 60% 11%Desire for larger home 11 3 16Job-related relocation or move 9 3 13Change in family situation 8 9 8Affordability of homes 7 11 5Desire to be closer to family/friends/relatives 6 1 9Desire for a home in a better area 6 3 7Retirement 4 1 7Desire for smaller home 4 0 6Desire to be closer to job/school/transit 4 2 5Establish household 2 3 1Desire for a newly built or custom-built home 2 1 2Financial security 1 1 1Desire for vacation home/investment property 1 0 1Purchased home for family member or relative 1 1 1Tax benefits 1 1 1Greater number of homes on the market for sale/better choice 1 1 1Other 4 2 5

Increased Purchases in Senior-related Housing

 All buyers

over 50Share who purchased a home in senior-related housing 14%

Among buyers over 50 who purchased senior related housingType of home purchased:   Detached single-family home 63% Townhouse/row house 8 Apartment/condo in building with 5 or more units 12 Duplex/apartment/condo in 2 to 4 unit building 7 Other 11Location:   Suburb/ Subdivision 45% Small town 21 Urban/ Central city 10 Rural area 7 Resort/ Recreation area 17

Expected Tenure Remains HighAGE OF HOME BUYER

All Buyers 18 to 24 25 to 44 45 to 64 65 or older

1 year or less 1% 2 1% 1% 2%2 to 3 years 2 2 2 1 24 to 5 years 7 14 10 4 26 to 7 years 2 1 4 1 08 to 10 years 13 17 15 12 911 to 15 years 6 8 5 5 716 or more years 26 18 27 32 18Don't Know 43 39 37 43 61

Median 15 10 12 20 15

Actual Tenure Among Sellers Remains High

20032004200520062007200820092010201120120123456789

10

6 6 6 6 6 67

89 9

Years

in

Hom

e

Tightened Inventory Affecting Home Search

• Buyers saw 10 homes before buying-drop from 12 homes

• Typically look for 12 weeks total and 3 weeks before contacting an agent

• 51% of buyers reported hardest task in process was finding the right home

Use of the Internet Increased

Agent Use By Buyers & Sellers Remains High

• 89% 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– Sell w/in specific timeframe– Help market home– Find a buyer for the home– Reputation and honesty and integrity important

Agent Assisted Sales High

1991

1993

1995

1997

1999

2001

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

10

20

30

40

50

60

70

80

90

100

19 17 15 18 16 13 14 14 13 12 12 13 11 9 10 9

77 82 81 80 77 79 83 82 85 84 85 84 85 88 87 88

4 1 4 4 7 8 4 4 2 3 3 3 4 3 3 2

All FSBO (For-sale-by-owner) Agent-assistedOther

Reasons Behind Selling as FSBO

• Among the 9% of FSBOs– One-third knew the buyer – Two-thirds did not know

the buyer• For FSBO sellers who did not

know the buyer– 20% were contacted by a

buyer they did not know asking to buy home increase from 15 percent in 2010