BRIAN BUFFINI’SREAL ESTATE REPORT

3RD QUARTER 2016FOLLOW-UP PROGRAM EDITION

CONTENTSIndustry Facts PAGE 1

Mortgage Stats PAGE 2

Price Information PAGE 3

Today’s Buyer PAGE 4

First-Time Homebuyer Facts PAGE 5

Today’s Seller PAGE 6

Millennials & Real Estate PAGE 7

Buyers & the Internet PAGE 8

Today’s Real Estate Professional PAGE 9

Why I Work by Referral PAGE 10

© 2015 Buffini & Company. All rights reserved.

Twice a year, we produce Brian Buffini’s Real Estate Report, a guide that provides important facts and information about the national real estate market to help you educate your clients about the process of buying or selling a home. We’ve updated many of the statistics in this resource to reflect changes in the national market. Use this resource in your listing presentations to help you not only flex your expertise on the real estate market, but also help you set expectations with your clients and find ways to serve them better.

It’s a good life!

There is a 4.6 month supply of homes at the current sales pace.

51%

say their homes have increased in value over the past year.

Northeast: Existing home sales decreased 1.3% to an annual rate of 760,000.

Midwest: Existing home sales increased 3.8% to an annual rate of 1.35 million.

South: Existing home sales increased 2.7% to an annual rate of 2.26million.

West: Existing home sales increased 1.7% to an annual rate of 1.20 million.

43% expect home values in their

neighborhood to increase in the coming year.

SOURCES: NATIONAL ASSOCIATION OF REALTORS®, U.S. CENSUS BUREAU, FANNIE MAE, WELLS FARGO, FEDERAL RESERVE BOARD

INDUSTRY FACTS

Brian Buffini’s Real Estate Report PAGE 1

MEDIAN DAYS ON THE MARKET:

EXISTING HOME SALES BY REGION:

48% of homes sold in June were on the market for less than a month.

The homeownership rate is 63.5%.

43% expect their personal financial situation will get better in the next 12 months; 42% expect it to stay the same.

63% of Americans said they would buy if they were going to move today.

60% say that now is a good time to buy.

54%

of American’s say rent will

increase in the next 12 months;

35% say rent will stay the same.

43% say that homeownership is a good way to build equity or more assets.

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39+61+LThe median home is on the market for the same number of days in the summer of 2016 as it was in the summer of 2015.

34 Days

Half of all buyers used

their savings for a down

payment, 17% used the

sale of a previous home

and 11% purchased

their home without a

down payment.

MORTGAGE STATS

Brian Buffini’s Real Estate Report PAGE 2

48% of Americans say mortgage rates will

go up in the next 12 months.

SOURCES: FANNIE MAE, WELLS FARGO, NATIONAL ASSOCIATION OF HOME BUILDERS, CNBC, NATIONAL ASSOCIATION OF REALTORS®, NAR 2015 PROFILE OF HOME BUYERS AND SELLERS

55% say it would be easy to get a home mortgage.

67% of people think you need to have a very

good credit score to buy a home.

TYPES OF DEBT:

Credit card debt - 69%Student loans - 45%Car loans - 44%Other - 26%

92% of people

want to be involved throughout the mortgage process, seeing each step along the way.

89%

want to have a personal connection with their lender.

86% of buyers financed their

home purchase, including 97% of buyers aged 25 to 44.

91% of borrowers chose a fixed-

rate mortgage.

60% of buyers said the mortgage

application and approval process was not or was easier than expected.

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59% Conventional 23% FHA

11% VA

7% Other

AMONG FIRST-TIME BUYERS:

66% Conventional

16% FHA

13% VA

5% Other

3 TYPES OF LOANS BUYERS CHOSE:

36% believe a 20% down payment is always required.

Only 13% of people say their existing debt is the biggest barrier to buying a home.

36+64+LBuyers typically financed 90% of their home purchase.

There was an increase in high-credit borrowers—that is, borrowers with FICO scores above 700—in 2015. The average credit score for purchase mortgages was 755, a record high. The average credit score in the U.S. is 695.

AMONG REPEAT BUYERS:

47% Conventional

35% FHA

9% VA

9% Other

TOP 3 SOURCES OF DOWN PAYMENTS1. Savings2. Sale of a primary residence3. Gift from family/friend

SOURCES: NATIONAL ASSOCIATION OF REALTORS®, FANNIE MAE

Home prices rose 4.8% on a 12-month seasonally adjusted basis in June 2016, the 52nd consecutive month of year-over-year growth.

The median existing home price for single family homes was $249,800 in June 2016, up 5.0% from June 2015.

49% of Americans say home prices will

increase in the next 12 months.

PRICE INFORMATION

The median existing home price for all housing types in June 2016 was $247,700, up 4.8% from June 2015.

Brian Buffini’s Real Estate Report PAGE 3

The median existing condo price was $231,600 in June, up 3.2% from the previous year.

The average price of a new home was $358,900 in May 2016.

Median Existing Hom

e Prices by Region

:

Nor theast:

Median home prices

increased

1.4% to $284,800.

Midwest:

Median home prices

increased

5.7% to $199,900.

South: Median hom

e prices increased

5.5% to $217,400.

West: Median hom

e prices increased

7.2% to $350,800.

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SOURCES: DS NEWS, NATIONAL ASSOCIATION OF HOME BUILDERS, KEEPING CURRENT MATTERS, WELLS FARGO, NATIONAL RESERVE BOARD, NATIONAL ASSOCIATION OF REALTORS®

TODAY’S BUYER

Brian Buffini’s Real Estate Report PAGE 4

TOP 3 REASONS BUYERS CHOSE A HOME1. Size2. Room layout/design3. Price

2.2 million “boomerang buyers,” or buyers who were forced to sell or had their homes foreclosed upon, can re-enter the market in five years.

TOP 9 PROFESSIONS WHO OWN HOMES BY PERCENTAGE:

90.4% of farmers and ranchers

84.9% of real estate agents

84% of postal workers

83.6% of firefighters

80.1% of police officers

78.5% of mechanics

77.8% of construction workers

75.3% of landscaping owners

69.1% of hairstylists/cosmetologists

54% said homeownership is an achievement to be

proud of.

44: The age of a typical buyer.

$86,100: The median household income of a home buyer.

Buyers purchased their homes for an average of 98% of the asking price.

Buyers expect to live in their homes for 14 years.

Buyers searched for an average of

10 weeks and viewed 10 homes, unchanged from 2014.

For more than half of buyers, the most difficult step of the home buying process was finding the right property.

TOP 5 FACTORS INFLUENCING NEIGHBORHOOD CHOICE

1. Quality of the neighborhood2. Convenience to workplace3. Overall affordability of homes4. Convenience to friends/family5. Design of neighborhood

30% said it was a dream to own a home.

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SOURCES: NATIONAL ASSOCIATION OF REALTORS®

FIRST-TIME HOMEBUYER FACTS

Brian Buffini’s Real Estate Report PAGE 5

43% of buyers in the Northeast

38% of buyers in the Midwest

30% of buyers in the South

26% of buyers in the West

32% of buyers were first-time buyers, including: 56% of first-time buyers

were married

18% were single females

11% were single males

13% were unmarried couples

2% Other

40% of first-time buyers had

children under the age of 18 living at home.

31: The median age of first-time

homebuyers.

75% rented an apartment or

house before buying a home.

19%

lived with parents, relatives or friends.

For 64% of first-time buyers, the desire to own a home was the primary reason they purchased one.

First-time buyers financed 94% of their home purchase.

$69,400: The median income of first-time homebuyers.

SOURCES: NATIONAL ASSOCIATION OF REALTORS®

TODAY’S SELLER

Brian Buffini’s Real Estate Report PAGE 6

Sellers lived in their homes 9 years. This is down from 10 years last year.

37% of sellers were first-time sellers.

52% of sellers offered incentives to attract buyers, including

home warranty policies and closing costs.

$104,100: The median income of a seller.

54: The median age of a seller.

TOP 3 REASONS FOR SELLING:

1. Home is too small2. Job relocation 3. Move closer to friends or family

Sellers report their homes were on the market a

median of 4 weeks before they sold.

SELLERS UPGRADED

42% of sellers bought a home larger than their current one.

47% purchased a more expensive home.

54% purchased a newer home.

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52+48+L44+56+L 44% of sellers

reduced the initial asking price at least once.

36% say their homes were listed for 1 to 2 weeks before they sold.

SOURCES: NATIONAL ASSOCIATION OF REALTORS®, CNN MONEY, FANNIE MAE, CALIFORNIA ASSOCIATION OF REALTORS®, BLOOMBERG BUSINESS

MILLENNIALS & REAL ESTATE

Brian Buffini’s Real Estate Report PAGE 7

28% of home buyers are between the

ages of 25 and 34, the largest share of any age group.

50%

of millennials have a positive attitude toward the buying experience.

Millennials want the amenities of city living, but also want some green space.

Millennials want a place near parks, grocery stores, family/friends, schools/employment, entertainment, retail stores and places of worship.

Nationally, it’s 23% cheaper for millennial households to buy instead of rent.

Millennial renters today want to own a home.

33%

of millennials expect to buy a home within 5 years.

67%

of millennials prefer single-family homes.

46% of millennials plan to buy locally in the

county in which they reside.

MARKETS WHERE IT’S SOMEWHAT CHEAPER FOR MILLENNIALS TO BUY THAN RENT:

MARKETS WHERE IT’S SUBSTANTIALLY CHEAPER TO BUY THAN RENT:

• Houston, TX• Baton Rouge, LA• Fort Lauderdale, FL• Syracuse, NY• Miami, FL• New Orleans, LA• Tampa, FL• Detroit, MI• Columbia, SC• Oklahoma City, OK• San Antonio, TX• West Palm Beach, FL• Dallas, TX

60% of millennial renters say

owning makes more sense than renting because homeowners have more control over where they live and a better sense of privacy and security.

72% of millennial renters say

owning makes more sense than renting because homeowners are protected against rent increases and owning is a good investment over the long term.

• Orange County, CA (buying is 5% cheaper)

• San Francisco, CA (buying is 7% cheaper)

• Oakland, CA (buying is 7% cheaper)

• Sacramento, CA (buying is 8% cheaper)

• Newark, NJ (buying is 10% cheaper)

• San Diego, CA (buying is 10% cheaper)

• Ventura County, CA (buying is 11% cheaper)

• New York, NY-NJ (buying is 11% cheaper)

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BUYERS & THE INTERNET

94% of millennials searched online compared to 84%

of Baby Boomers.

More than 89% of buyers used the Internet to search for homes.

SOURCES: NATIONAL ASSOCIATION OF REALTORS®, ENERICA

TIMES HAVE CHANGED

40% of buyers in 1964 read newspaper ads to find a home.In 2014, 43% of buyers looked for properties online first.

• 15% contacted a real estate agent• 12% looked online for information about the home buying process• 7% talked with a friend or relative about the home buying process• 6% contacted a bank or mortgage lender• 6% drove by homes and neighborhoods

TOP 5 WAYS BUYERS USE MOBILE DEVICES

1. Read general home info2. Get directions to visit a home3. Compare prices4. Compare features5. Search a listing company’s inventory

YouTube IS A TOP RESEARCH DESTINATION WHEN RESEARCHING A HOME

5 Ways Buyers Used YouTube

1. Find out more about a specific community2. Tour inside a home3. Obtain general information4. Understand specific features5. Watch customer testimonials

78%

visit more than 3 sites prior to taking action on a real estate site.

65%

of buyers walked through a home they viewed online as a result of their Internet home search.

56%

of all buyers found their home through a mobile application.

More first-time buyers are consulting the Internet as their first step in the home buying process: 33% looked for properties first, while 23% looked for information about the home buying process.

TOP 3 SOURCES OF INFORMATION USED IN A HOME SEARCH

• Online website• Real estate agent• Mobile or tablet website or application

MOST POPULAR SEARCH TERMS

• FHA Loan• Home grants• Home loan/home loans• Buying a home• Home mortgage calculator• Homebuyer assistance

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