2011 Annual Housing Market Survey

The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this report by any means, including facsimile or computerized formats. Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS®

2011 Annual Housing Market Survey

$325,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

86 88 90 92 94 96 98 00 02 04 06 08 10

Median Sales Price Of Homes Sold In California

Q. What was the final sales price of the property?

Home Price Appreciation California Y-t-Y % Change

-9.7%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2000 2002 2004 2006 2008 2010

20% 20%

59%

0%

20%

40%

60%

REOs Short Sales Equity Sales

2008 2009 2010 2011

2 of 5 Homes Sold WereDistressed Properties

Q. Was the property purchased/sold as a foreclosure, REO, short sale, or none of the above?

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2008 2009 2010 2011

Equity Sales REO Sales Short Sales

Median Price (By Type of Sales)

Shares of Distressed Property By Regions

CaliforniaSouthern California

S.F. Bay Area

Rest Of California

Foreclosures 2% 2% 0% 2%

REO 20% 19% 14% 27%

Short Sales 20% 21% 19% 19%

% of Distressed Sales to Total Sales 41% 42% 33% 48%

Q. Was the property purchased/sold as a foreclosure, REO, short sale, or none of the above?

2011

Equity vs. REO vs. Short Sales


Share of Total Sales 58.7% 19.7% 20.2%

Median Home Price $431,000 $240,000 $287,000

Square Footage 1,783 1,500 1,600

Price / SF $250 $112 $175

Sales-to-List Price Ratio 95.9% 98.0% 95.9%

% of Sales With Multiple Offers 35.2% 58.3% 57.5%

Avg. Number of Offers 3.0 3.0 3.6

% of All Cash Sales 25.5% 34.0% 23.3%

Days on MLS 67 50 141

Days in Escrow 35 35 45

Nearly 1/3 of Sellers Sold Because Their Properties Were in Distressed Status

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2000 2002 2004 2006 2008 2010

Q. What was the single most important reason for selling/buying the property?

% of Homes Sold Due to Foreclosure/Short Sale/Default

Reasons For SellingAll Home Sellers

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

Foreclosure/Short Sale/Default

Change in Family Status

Retirement/Move to Retirement Community

Investment/ Tax Consderations

Desired Better Location

Desired Smaller Home

Changed Jobs

Desired Larger Home

Other


Top Reasons For Selling Home By Type of Sales


Equity Sales REO SalesShort Sales

Foreclosure/Short Sale/Default 2% 93% 83%

Change in Family Status 18% 2% 5%

Retirement/Move to Retirement Community 16% 2% 2%

Investment/ Tax Considerations 12% 2% 2%

Desired Better Location 14% 0% 1%

Desired Smaller Home 9% 0% 1%

Changed Jobs 7% 0% 3%

Desired Larger Home 7% 0% 2%

Other 15% 2% 2%

Total 100% 100% 100%

$75,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Net Cash To Sellers

Q. What was the net cash gain or net loss to the seller as a result of this sale?

Sellers with a Net Cash Loss

21.8%

0%

5%

10%

15%

20%

25%

30%

35%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011


Long Run Average = 11.2%

Sellers with a Net Cash LossEquity Sales vs. REO Sales vs. Short Sales


Home Seller Profile(By Type of Sales)

Equity Sales

REO Sales

Short Sales

Median Age of Sellers 60 48 45

Median Household Income $100,000 $49,000 $55,500

Years Seller Lived in Home 10 1 6

Percent of Sales with Net Cash Loss 11.9% 44.0% 44.9%

Median Net Cash Gain/Net Cash Loss to Seller $115,500 $0 $0

Seller Household Formation(By Type of Sales)

Equity Sales

REO Sales

Short Sales

Single 29.5% 2.8% 31.4%

Married Couple with Dependents 22.6% 3.7% 39.3%

Married Couple without Dependents 28.3% 0.9% 15.0%

2 or More Individuals (Related or Unrelated) 10.7% 2.8% 11.4%

Banks/Lending Institutions 0.0% 86.0% 2.1%

Other 8.9% 3.7% 0.7%

Total 100.0% 100.0% 100.0%

Home Buyer Profile(By Type of Sales)

Equity Sales

REO Sales

Short Sales

Median Age of Buyers 45 42 42

Median Household Income $100,000 $75,000 $100,000

% of First Time Buyers 29.3% 43.3% 36.7%

% of Foreign Buyers 6.4% 3.8% 5.1%

Median Down Payment $79,300 $10,553 $44,000

% of Down Payment 20.0% 5.0% 20.0%

Share of First-Time Buyers Fell Below Average

Q. Was the buyer a first-time buyer?

Share of First-Time Buyers(Equity Sales)

32%

43%40%

29%

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011

% First-Time Home Buyers


Share of First-Time Buyers(REO Sales)

47%52%

48%43%

0%

10%

20%

30%

40%

50%

60%

70%

2008 2009 2010 2011



Share of First-Time Buyers(Short Sales)

41%

51%

37%

54%

0%

10%

20%

30%

40%

50%

60%

70%

2008 2009 2010 2011



Foreign Buyers

8%

5%6%6%

0%

2%

4%

6%

8%

10%

2008 2009 2010 2011

% of Foreign Buyers


Country of Foreign Buyer

• China (31.3%)

• India (18.8%)

• Canada (10.4%)

Foreign Buyers

Q. Was the buyer a foreigner from overseas?

Buyer Household Formation(By Type of Sales)

Equity Sales

REO Sales

Short Sales

Single 25.8% 31.6% 35.1%

Married Couple with Dependents 35.5% 32.9% 32.4%

Married Couple without Dependents 27.6% 19.1% 19.6%

2 or More Individuals (Related or Unrelated) 10.6% 12.5% 10.1%

Other 0.4% 3.9% 2.7%

Total 100.0% 100.0% 100.0%

Reasons For BuyingAll Home Buyers


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

Tired of Renting

Desired Larger Home




Changed Jobs




Other

Top Reasons For Buying Home(By Type of Sales)



Tired of Renting 18% 22% 23%

Desired Larger Home 20% 16% 12%

Investment/ Tax Considerations 12% 26% 21%

Desired Better Location 20% 10% 13%

Change in Family Status 6% 7% 6%

Changed Jobs 7% 2% 6%

Foreclosure/Short Sale/Default 1% 8% 12%

Desired Smaller Home 4% 3% 1%

Retirement/Move to Retirement Community 3% 1% 2%

Other 10% 7% 4%

Total 100% 100% 100%

Reasons For BuyingFirst Time Homebuyers Vs. Repeat Homebuyers


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

Tired of Renting

Desired Larger Home




Changed Jobs




Other

First-Time Buyers Repeat Buyers

Buyers’ Usage of Property By Type of Sales

Q. How was/will the property (be) occupied?


Primary Residence 82% 68% 74%

Vacation/Second Home 8% 7% 3%

Investment/Rental Property 10% 25% 24%

Buyers Usage of Property

81.7%

68.2%73.5%

7.9% 6.6%2.6%

8.8%

19.2%22.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Non-Distressed REO Short Sales

Primary Residence Vacation/Second HomeInvestment to Flip Investment as Rental

Q. How was/will the property (be occupied)?

Sellers Usage of Property

74.0%

61.1%

85.8%

13.3%6.9%

11.1%

0.8%

10.4% 11.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Non-Distressed REO Short Sales

Primary Residence Vacation/Second Home

Investment to Flip Investment as Rental

Q. How was/will the property (be occupied)?

Buyers Who Bought for Investment/Tax Considerations Dipped Slightly

Long Run Average = 12.1%


More Buyers Purchasing Investments & Second/ Vacation Homes

45%

3.5

0%

10%

20%

30%

40%

50%

60%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0

1

2

3

4

5

6% with Multiple Offers

# of Multiple offers (Average)

Buyers Continue to Face Highly Competitive Market

69%

0%

20%

40%

60%

80%

100%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Percent with Price Discount

Long Run Average = 68%

Q. What was the original list sales price of the property? What was the final sales price of the property?

Equity Sales Are More Likely to Be Sold Below the List Price

0%

1%

2%

3%

4%

5%

6%

7%

8%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0

2

4

6

8

10

12

14

16Med. Price DiscountMed. Weeks on MLS

Median Price Discount And Weeks On Market

Q. What was the original list sales price of the property? What was the final sales price of the property? How many weeks did the property remain on the MLS?

3.9%, 10.5 weeks

$52,400

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Median Downpayment

Q. What was the amount of downpayment?

$52,400

20%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2000 2002 2004 2006 2008 2010

0%

5%

10%

15%

20%

Median Down Payment % of Down Payment to Price

Down Payment

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2008 2009 2010 2011

0%

5%

10%

15%

20%


Down Payment(Equity Sales)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2008 2009 2010 2011

0%

5%

10%

15%

20%


Down Payment(REO Sales)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2008 2009 2010 2011

0%

5%

10%

15%

20%


Down Payment(Short Sales)

Cash Source for Down PaymentEquity vs. REO vs. Short Sales

Q. What was the source of the cash the buyer used for a downpayment or to purchase the residence?

Equity Sales

REO Sales

Short Sales

Personal savings 57.9% 64.9% 63.4%

Borrowed or gift from relatives 10.3% 10.3% 12.6%

Proceeds from sale of previous residence 15.0% 4.2% 6.9%

Sale of personal assets other than real property 9.9% 9.7% 9.7%

Proceeds from sale or refi of another property 1.6% 3.0% 0.6%

Inheritance 1.2% 3.0% 2.9%

Other 4.1% 4.9% 4.0%

Total 100.0% 100.0% 100.0%

Median Down PaymentFirst-Time Homebuyers Vs. Repeat Homebuyers

$18,473

$75,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011


Q. What was the amount of downpayment?

0%

10%

20%

30%

40%

50%

2000 2002 2004 2006 2008 2010

All Hombuyers First-Time BuyersRepeat Buyers

Percent of Buyers with Zero Down PaymentFirst-Time Buyers vs. Repeat Buyers

4.3%

3.9%

3.0%

Cash Source for Down PaymentFirst-Time Buyer vs. Repeat Buyer


First-time Buyers

Repeat Buyers All Buyers

Personal savings 66.3% 57.0% 60.2%

Proceeds from sale of previous residence 0.0% 16.9% 11.1%

Borrowed or gift from relatives 20.0% 6.2% 10.9%

Sale of personal assets other than real property 7.0% 11.2% 9.5%

Inheritance 2.3% 1.8% 1.9%

Proceeds from sale or refi of another property 0.0% 2.4% 1.7%

Other 4.3% 4.5% 4.8%

Total 100.0% 100.0% 100.0%

Repeat Buyers Rely on Personal Savings As Down Payment

0

10

20

30

40

50

60

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Sale of Previous Residence Savings


% o

f R

epea

t B

uye

rs

Percent of All Cash

Percent of All Cash(Investments & Second/ Vacation Homes)

42.1%

$2,225

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$0

$400

$800

$1,200

$1,600

$2,000

$2,400% needs Repair

Median Repair Costs/Price Adjustment

Repair Costs/Price Adjustments

$20,000

$10,000 $10,000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Equity Sales REO Short Sales

Amount Spent/Plan to Spend on Property Rehab

Proportion of Home Sellers Planning to Repurchase

37.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Q. Is the seller planning on purchasing another home?

Location of Seller’s New Home

Q. Where will the seller’s new home be located?

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Within the same county 44% 50% 48% 43% 38% 41% 37% 45% 47% 42% 49%

In another county in California 27% 24% 23% 19% 23% 18% 24% 17% 21% 21% 19%

In another state 20% 18% 23% 30% 31% 28% 29% 27% 19% 20% 20%

Out of US 2% 1% 2% 1% 1% 2% 1% 1% 2% 1% 1%

Don't Know/Not sure 6% 6% 5% 8% 7% 11% 9% 10% 12% 16% 10%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Reasons Sellers Not Planning to Buy Another Home

Q. Why is the seller not planning to purchase another home?

40.0%

2.7%

4.7%

4.9%

5.7%

10.9%

11.4%

19.8%

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

Seller is a lender/bank

Seller prefers to have less financial obligation

Poor credit background

Lack of cash for down payment

Out of work/unemployment

Decide to live with family/friends

Waiting for market to bottom

Other

Reasons Sellers Not Planning to Buy Another Home

Q. Why is the seller not planning to purchase another home?


Seller is a lender/bank 0% 83% 2%

Seller prefers to have less financial obligation 18% 1% 11%

Poor credit background 1% 7% 34%

Lack of cash for down payment 4% 1% 13%

Out of work/unemployment 1% 1% 12%

Decide to live with family/friends 7% 0% 7%

Waiting for market to bottom 3% 0% 4%

Other 67% 7% 16%

Total 100% 100% 100%

-9.7%

6.2%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% chg in sale price % chg in income

Change in Buyer Household Income vs. Change in Home Prices

77%

17.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2002 2004 2006 2008 2010

Single-Family Detached Condo/Townhome

Type of Residence

Note: Figures do not total 100% due to “other” types of homes sold.

Q. What type of residence was purchased?

Type of Home PurchasedBy Type of Sales



Single-Family Detached 76% 80% 76%

Condo/Townhome 18% 16% 19%

Mobile Home 2% 1% 1%

Other 4% 3% 5%

Total 100% 100% 100%

Type of Home PurchasedBy Region in California


CaliforniaSouthern California

S.F. Bay Area

Rest Of California

Single-Family Detached 77% 71% 77% 89%

Condo/Townhome 18% 22% 20% 5%

Mobile Home 2% 2% 1% 1%

Other 4% 4% 2% 6%

Total 100% 100% 100% 100%

Property Fallen Out of Escrow

Reasons Why Property Fell Out of EscrowAll Homes

Q. Do you know why the property fell out of escrow previously?

2008 2009 2010 2011

Buyer changed mind and decided not to buy 33% 37% 44% 51%

Buyer could not secure a mortgage 33% 41% 30% 19% - because of his/her credit background NA NA NA 14% - because the appraised value was too low NA NA NA 5%

Lender's delay in approving the short sale NA NA NA 9%Buyer could not come up with the down payment 11% 6% 5% 4%

Seller decided not to sell 1% 0% 1% 1%

Lender's delay in approving the REO sale NA NA NA 1%

Other 22% 18% 20% 16%

Total 100% 100% 100% 100%

Reasons Why Property Fell Out of EscrowEquity Sales


15.0%

0.0%

1.7%

6.7%

0.0%

3.3%

18.3%

55.0%

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

Buyer changed mind and decided not to buy

Buyer could not secure a mortgage because ofhis/her credit background

Buyer could not secure a mortgage because theappraised value was too low

Lender's delay in approving the short sale

Buyer could not come up with the down payment

Seller decided not to sell

Lender's delay in approving the REO sale

Other

Reasons Why Property Fell Out of EscrowREO Sales


31.4%

0.0%

0.0%

0.0%

2.9%

5.7%

20.0%

40.0%

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








Other

Reasons Why Property Fell Out of EscrowShort Sales


7.3%

0.0%

0.0%

1.8%

25.5%

5.5%

7.3%

52.7%

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








Other

$269,326

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Median Amount Financed (New First Mortgages)

Percent of Loans Below the Maximum Conforming Loan Limit(New First Mortgage)

97%

3%

0%

20%

40%

60%

80%

100%

2000 2002 2004 2006 2008 2010

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Conforming Loans Jumbo Loans Loan Limit

96.6%$729,750

0%

20%

40%

60%

80%

100%

2000 2002 2004 2006 2008 2010

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Percent of Loans At or Below the Maximum Conforming Loan Limit(New First Mortgage)

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

FRM ARM Other

Types Of New First Mortgages

Q. Please indicate the type of mortgage

95%

5%0%

20%

40%

60%

80%

100%

2000 2002 2004 2006 2008 2010

FRM ARM

Share of Homebuyers Who Used ARM(First-Time Homebuyers)

95%

6%0%

10%20%

30%

40%50%

60%

70%

80%90%

100%

2000 2002 2004 2006 2008 2010

FRM ARM

Share of Homebuyers Who Used ARM(Repeat Homebuyers)

Sources of New First Mortgages

0%

10%

20%

30%

40%

50%

60%

70%

2000 2002 2004 2006 2008 2010

MORTGAGE BANKERS S&Ls BANKS OTHERS

Q. What type of lender funded the loan?

FHA Loans Gained Popularity in Last 4 Years (First Mortgage)

Q. Please indicate the type of mortgage

27.7%

5.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

FHA VA

Proportion of Transactions With Second Mortgages

4.2%

0%

10%

20%

30%

40%

50%

60%

2000 2002 2004 2006 2008 2010

Q. In addition to the first mortgage or assumption, was there a second mortgage?

5.3%

3.5%0%

10%

20%

30%

40%

50%

60%

70%

2000 2002 2004 2006 2008 2010


Percent of Buyers with Second MortgageFirst-Time Buyers vs. Repeat Buyers

7.06.0

0

2

4

6

8

10

12

14

All Sellers Second Home and Investment Home Sellers

Years Owned Home Before Selling(All Sellers and Second Home/Investment Home Sellers)

$75,000

$59,000

$0$20,000

$40,000$60,000

$80,000$100,000$120,000

$140,000$160,000

$180,000$200,000

$220,000$240,000

2000 2002 2004 2006 2008 2010

All Sellers Second Home and Investment Home Sellers

Median Net Cash To Sellers(All Sellers and Second Home/Investment Home Sellers)


FHA vs. Conventional(New First Mortgages)

FHA Conventional

Median Home Price $247,900 $407,000

Median Down Payment (Dollar) $9,033 $85,400

Median Down Payment (% to Price) 3.5% 20.0%

Share of All Home Sales 28.0% 66.9%Percent of Mortgages with Distressed Property 54.5% 34.8%

Percent of First-Time Buyers 65.8% 31.8%

2011 Annual Housing Market Survey

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