Download - 2015 Home Buyer Survey
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UNDERSTANDING CALIFORNIA HOMEBUYERS
Presented byCarmen Hirciag, MBASenior Research Analyst
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Survey Methodology
700 telephone interviews and 567 online surveys conducted inFebruary April 2015
Respondents are home buyers who purchased a home Feb. 2014 Feb. 2015
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THE BUYING EXPERIENCE
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Residence Location
Q. County of most recent home purchase?
SoCal 54%
NorCal 14%
Other CA 32%
-
Distressed SalesContinue Decline
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 2010 2011 2012 2013 2014 2015
Regular/Equity REO/Bank Owned Short
Q. Was the home you recently bought a Regular Sale, REO/Bank Owned Property, Short Sale, or another type of sale?
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Most Purchases are Single Family Homes
Q. Was the home ?
Single family87%
Condo/townhouse 13%
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Vacation/2nd Home Purchases Increase
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015
Primary residence Investment Vacation/2nd home
Q What was the intended use of the property?
-
Listing Price Declines 7.9%YTY
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2013 2014 2015
$355,000$380,000
$350,000
Median
Q. What was the initial listing price of the home you purchased?
-
Sale/Listing Prices Equal
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Listing Purchase
$350,000 $350,000
Median
Q. What was the price of the home you purchased?
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Many Listing > Purchase Prices
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015
60%49% 44%
4%
5%28%
36%45%
28%
Listing < Purchase
Listing = Purchase
Listing > Purchase
Q. What was the initial listing price of the home you purchased?
Q. What was the price of the home you purchased?
-
Many Homes are in the Suburbs
0% 10% 20% 30% 40% 50%
Rural
Close to public transportation
Within walking distance of supermarket
Within walking distance ofshopping/restaurants/entertainment
Urban
Suburban
15%
26%
26%
28%
34%
40%
Q. Please describe the location of the home. Select all that apply.
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More Buyers Previously Lived with Parents
49%38%
50%59%
47%
48%54%
38%
40%
39%
3%7% 6%
2%12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
Owned Rented Lived w/parents Other
Q. What was the living arrangement immediately before your recent home purchase?
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Buyers Spending LessTime Considering PurchaseBefore ContactingAgent
0
5
10
15
20
25
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Q. How many weeks did you consider buying a home before contacting a real estate agent? (Asked if agent was used)
Average Weeks
-
Buyers Spending LessTime Investigating Homes &Neighborhoods BeforeContactingAgent
0
5
10
15
20
25
30
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wee
ks
Q. How many weeks did you spend investigating homes and neighborhoods before contacting a real estate agent?
Average Weeks
-
The Home Search is Longer than Its Ever Been
0
2
4
6
8
10
12
14
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Average Weeks
Q. Once you found your agent, about how many weeks did you spend looking for a home with your agent? (Asked if agent was used)
-
Decrease in HomesViewed ReflectsTightInventory
0
5
10
15
20
25
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Q. How many different homes did you preview and visit with your agent prior to making a purchase?
Median
-
Top 5 Reasons for Buying
Desired better/other location
Changed jobs/relocated
Desired larger home
To have a place to live
Tired of renting
8.4%
11%
12%
14%
15%
Q. What were your main reasons for buying your home?
-
Buyers Didnt Purchase Sooner Because
Q. Why didnt you buy a home sooner?
Difficulty qualifying for mortgage
Needed to sell current home
Needed to save for down payment
Waited to see when prices wouldstabilize
Not many good housing options
Waited until finances improved
No real buying urgency
5%
8%
12%
13%
13%
21%
22%
-
Most Buyers Feel their Home isWorth the Price Paid
Yes 85%
No, price toohigh 14%
No, price toolow 1.4%
Q. Do you feel the home you purchased is worth the price you paid?
-
Majority of Buyers Found Home throughAgent
Open house
For sale sign
Website
Agent
0%20%
40%60%
8.5%
11%
18%
55%
Q. How did you find the home you purchased?
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Buyers Plan to Keep Homes Longer
Q. How long do you plan to keep the property?
0
5
10
15
20
25
2013 2014 2015
6
8.8
20
AverageYears
-
BuyersOptimisticAbout LongTerm Direction ofHome Prices
67%
24%
7%
3%
71%
13%
11%
4%
Up
Flat
Unsure
1 Year 5 Years
Down
Q Do you think home prices in the neighborhood where you purchased will go up, down, or stay flat in one year, in five years?
-
Fewer Buyers Believe PricesWill Rise in 5Years
Q Do you think home prices in the neighborhood where you purchased will go up in one year, in five years?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 2010 2011 2012 2013 2014 2015
Up in 1 Yr Up in 5 Yrs
-
Safety is Most Important in Choosing aNeighborhood
Q Please rate the importance of the following in your decision to purchase a home in the neighborhood where youpurchased. (Scale 1-10, 1=not at all important, 10=extremely important)
Category Rating
Safety 8.3Walkability 6.5Quality of schools 6.1Entertainment/cultural activities nearby 5.9Short commute to work 5.6Great restaurants nearby 5.5
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Ideal Neighborhood is Suburban & Pedestrian-oriented for Majority of Buyers
Q 21. Please select which of the following characteristics describe your ideal neighborhood. Select all that apply.
0% 5% 10% 15% 20% 25% 30% 35%
Ethnic
Resort area
Urban core (downtown)
Urban pioneer (up & coming)
Historic
Rural
Gated community
Cul-de-sac
Pedestrian-oriented (high walkability)
Suburban
5.6%
11%
12%
15%
17%
19%
21%
21%
21%
34%
-
Majority of Buyers are Satisfied with Purchase
Q Are you satisfied with the home you purchased or do you feel like you had to compromise?
75%
13%
12%Satisfied
Selectd best house givenlimited supply in desiredneighborhood
Selected best house inaffordable neighborhood;prices too high inpreferred neighborhood
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Technology Use
27
-
Zillow & Realtor.com are Most UsefulWebsites inBuying Process
10%
10%
13%
17%
33%
0% 5% 10% 15% 20% 25% 30% 35%
Q. What was the single most useful website that you visited during your home buying process?
Agent
-
Realtor.com & Zillow Most UsefulWebsites
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Zillow realtor.com Brokerage Redfin
Q. What was the single most useful website that you visited during your home buying process?
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Most Buyers are Using Mobile Devices
85%91%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015
Q. Did you use a mobile device in the home buying process?
-
85% of Buyers Used Mobile Device in Buying Process
95% Research homes
28% Communicate
20% Research neighborhoods
14% Take photos of homes/amenities/neighborhoods
13% Email
10% Make calls
Q. How did you use your mobile device in the home buying process? N = 1269
-
Zillow is Most Useful App
Q. What was the most useful app that you used during the home buying process? N = 1269
-
Zillow Remains Most Useful App
Q. What was the most useful app that you used during the home buying process?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2014 2015
Zillow realtor.com Trulia
-
BuyersWho Found Home Online Found it onZillow or Redfin
9.4%
13%
21%
29%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Q. On which website did you find your home?
-
Zillow Remains #1Website where Buyers FoundHome
0%
5%
10%
15%
20%
25%
30%
35%
2011 2012 2013 2014 2015
realtor.com Zillow Trulia Redfin
Q. On which website did you find your home?
-
Social Media Use Declines
0%
10%
20%
30%
40%
50%
60%
70%
80%
2011 2012 2013 2014 2015
52%
68%75% 77%
35%
Q. Did you use social media (such as Facebook, Twitter,YouTube, etc.) in your home buying process?
-
Social Media Used for Buying Info &Tips/Suggestions from Friends
0% 5% 10% 15% 20% 25% 30% 35% 40%
Agents' YouTube
Agent's Facebook page
Agent referrals
Neighborhood info
Buying tips, suggestions from friends
Home buying info
17%
26%
27%
30%
31%
35%
Q. How did you use social media (such as Facebook, Twitter,YouTube, etc.) in your home buying process?
-
35% of Buyers Used Social Media in BuyingProcess
Q. Which social media websites did you use during your home buying process?
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Facebook RemainsTop Social Media Site forBuyers
Q. Which social media websites did you use during your home buying process?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2014 2015
Facebook YouTube Twitter Yelp
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64% of Buyers Didnt Search for Agent Ratings
0% 2% 4% 6% 8% 10% 12% 14% 16%
Trulia
Yelp
Zillow
9.1%
10%
14%
Q. On which agent rating sites did you search for your agents ratings?
-
62% of Buyers Didnt Rate theirAgent Online
0% 2% 4% 6% 8% 10% 12% 14% 16%
Trulia
Yelp
Zillow
8.5%
10%
14%
Q. On which agent rating sites did you rate your agent?
-
Fewer BuyersGoogling theirAgent
0%
10%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Q. Did you Google your agent?
-
Financing
-
More BuyersObtained Financing
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013 2014 2015
100%94% 92% 96%
91%
74% 77%
Q. Did you obtain financing for your home purchase?
-
Nearly Buyers Paid Cash
Financing 77%
Cash 23%
Q. How did you pay for the home you purchased?
-
MostCash Buyers Used Personal Savings or Proceedsfrom Sale of Previous Residence
0% 5% 10% 15% 20% 25% 30% 35% 40%
Inheritance
Sale of personal assets
Borrowed/gifted
Proceeds from sale/refi of anotherproperty
Proceeds from sale of previousresidence
Personal savings
12%
13%
17%
18%
28%
40%
Q. If all cash, where did the funds come from? N = 367
-
Average Down Payment RemainsAbove 20%
0%
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012 2013 2014 2015
Average
Q. What was your down payment for the home purchased, in percent of the home value?
-
Most BuyersObtain Fixed Rate Loans
Fixed 83%
Adjustable 13%
Other 1.1%
Unsure 3.5%
Q. What type of loan do you have?
-
Fixed Rate Loans Remain Majority
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015
69%79% 84%
93% 91% 92%83%
31% 15%16%
7% 8% 8%13%
Fixed Adjustable Other Unsure
Q. What type of loan do you have?
-
Loans are for 30Years
0%10%20%30%40%50%60%70%80%90%
100%
20112012
20132014
2015
85% 87%85% 86%
75%
15% 13% 15% 14%
17%
Unsure Other 15 Year 30 Year
Q. What was the duration of your loan?
-
Buyers Have Less DifficultyWith Financing
0.01.02.03.04.05.06.07.08.09.0
2009 2010 2011 2012 2013 2014 2015
8.1 8.5 8.0 8.5 8.6
7.1
4.1
Average
Q. Please rate how easy or difficult it was to obtain financing on a scale of 1 to 10 with 1 being very easy and 10 being very difficult.
-
MajorityThink Interest Rates Have Bottomed
Yes 63%
No 37%
Q. Do you think mortgage interest rates have bottomed?
-
BUYER/AGENT RELATIONSHIP
-
More Buyers Used an Agent
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Q. Did you use a real estate agent in your home buying process?
-
Most Buyers FindAgents through Relationship/Contacts
0%10%20%30%40%50%60%70%80%90%
100%
Relationships/Contacts Advertising Internet Other
Q. How did you find your real estate agent?
-
Majority of Buyers Interviewed > 1 Agent
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 2 3 4 5 6 7 8 9 10
42%
17%
12%9%
4%3% 3% 4% 3% 3%
# of Agents Interviewed
Q. How many agents did you interview prior to selecting the agent you used in your recent home purchase?
-
BuyersContinue Interviewing MultipleAgents
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2.3 2.3 2.42.5 2.5 2.4
2.8
2.2
1.8
2.2
3.2 3.1
2.4
Average
Q. How many agents did you interview prior to selecting the agent you used in your recent home purchase?
-
Being Responsive is Important to Buyers inSelecting an Agent
7%
8%
8%
10%
20%
Knowledgeable/experienced
Negotiating ability
Trustworthy
Previously used agent
Seemed most reponsive
Q. What was the single most important reason for selecting the agent that you used in your recent home purchase?.
-
Agents CommunicateAccording to BuyerPreference
Telephone EmailText Message
In PersonSocial media
49%
22%
12% 13%
2%
52%
21%
12% 13%
2%
Preferred Actual
Q. What was your preferred method of communicating with your agent?
Q. How did your agent actually communicate with you?
-
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Q. What was the typical response time you expected from your agent to return any form of communication to you?
Fewer Buyers Expect Instant Response fromAgents
-
Agent ResponseTime Meets Buyer Expectations
0%
10%
20%
30%
40%
50%
60%
Instantly Within 1 hr. Within 2 hrs. Within 4 hrs. Within 1business day
26%
37%
11% 9.0%
16%
29%
42%
12%7%
10%
Expected Actual
Q. What was the typical response time you expected from your agent to return any form of communication to you?
Q. On average, what was the actual response time of your agent to return any form of communication to you?
-
Agent Satisfaction Ratings Improve-AverageRatingson1-5Scale-
2014 2015
Your real estate agents negotiating skills 3.4 4.3
Overall process of finding a home 3.3 4.1
Overall satisfaction with your real estate agent 3.3 4.4
Q. Please rate your degree of satisfaction with the following aspects of your home buying experience on a scale of 1-5, where 1 is leastsatisfied and 5 is most satisfied.
-
Buyer Satisfaction Improves
1
1.5
2
2.5
3
3.5
4
4.5
5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Process of Finding a Home Satisfaction with Agent
Q. Please rate your degree of satisfaction with the following aspects of your home buying experience on a scale of 1-5, where 1 is leastsatisfied and 5 is most satisfied.
-
Top 5 Reasons for SatisfactionWithAgent
Q. Why do you have that level of satisfaction with your agent?
-
Reasons for DissatisfactionWithAgent
Q. Why do you have that level of satisfaction with your agent?
-
Most BuyersWouldWork withAgentAgain
88% 87%
50%67% 61% 64%
72%54% 60% 52%
61%
85%
2% 3%
4%
3% 15% 13%11%
11%12% 22%
33%
11%10% 10%
46%30%
25%22% 17%
35% 28%26%
6% 4%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Unsure No Yes
Q. Would you work with the same agent again?
-
Most BuyersWould RecommendAgent to Others
Q. Would you recommend your agent to others?
Yes 85%
No 11%Unsure 4%
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WHO IS THE 2014 BUYER?Demographics
-
TypicalCA Home Buyer
-
TypicalCA Household
-
Percent of First-time Buyers Rebounds20
02
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
8% 7%
15%
25%25%
19%19%
38%
46%43%
54%
42%
12%
40%
Q. Was this your first home purchase?
-
Most Buyers have Not Experienced a DistressedSaleForeclosure 10%
Short sale 12%
Neither 78%
Q. Have you ever gone through a foreclosure or short sale?
-
79% of Distressed SalesOccurredAfter 2007
Q. What year was the foreclosure or short sale?
0
5
10
15
20
25
30
before2008
2008 2009 2010 2011 2012 2013
#of
Dis
tres
sed
Sale
s
Year
-
More Repeat Buyers Previously UnderWater
Q. Was the outstanding loan balance on your previous home higher than the sale price?
0%
5%
10%
15%
20%
25%
2013 2014 2015
12%
4%
23%
-
Buyer Gender
0%10%20%30%40%50%60%70%80%90%
100%
Male Female
Q. What is your gender?
-
Majority of Buyers are Over 35
0%
20%
40%
60%
80%
100%20
0220
0320
0420
0520
0620
07
2008
2009
2010
2011
2012
2013
2014
2015
Under 25 25-34 35-44 45-54 55-64 65+
Q. What is your age?
-
BuyerAge Slightly Declines
38 39 3940 41 39 39
37 36 35 35 36
4644
0
5
10
15
20
25
30
35
40
45
50
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Median Age
Q. What is your age?
-
Majority of Buyers areWhite
5%
7%
9%
15%
64%
Other
Black
Asian
Hispanic
White
0% 10% 20% 30% 40% 50% 60% 70%
Q. How would you describe your ethnic background?
-
Majority of Buyers are Married
married 70%
Single 18%
Other 12%
-
More than Half of Buyers haveCollege Degrees
HighSchool
SomeCollege
4-YearCollege
Grad
GraduateSchool
0% 5% 10% 15% 20% 25% 30%35%
16%
28%
33%
22%
Q. What is the highest level of education you have completed?
-
Majority of Buyers haveAnnual Household Income> $75K
< $50,000
$50-000-$74,999
$75,000-$99,999
$100,000-$149,999
$150,000-$199,999
$200,000 +
0% 5% 10% 15% 20% 25%
18%
22%
18%
19%
7%
16%
Q. Which of the following categories best represents you total annual income from all sources?
-
SO WHAT?Key Conclusions & Opportunities
-
Buying Process Begins BeforeAgent isContacted
-
Safety is Most Important in Choosing aNeighborhood
Q Please rate the importance of the following in your decision to purchase a home in the neighborhood where youpurchased. (Scale 1-10, 1=not at all important, 10=extremely important)
Category Rating
Safety 8.3Walkability 6.5Quality of schools 6.1Entertainment/cultural activities nearby 5.9Short commute to work 5.6Great restaurants nearby 5.5
-
Buyers Need MostAgentAssistance in Negotiating
0% 5% 10% 15% 20% 25%
Determine comps
Determine affordability
Paperwork
Price negotiation
Find the right home
Negotiate terms of sale
11%
12%
15%
18%
22%
25%
Q. In which part(s) of the transaction did you need the most assistance from your agent?
-
Top 5 Reasons for Buying
Desired better/other location
Changed jobs/relocated
Desired larger home
To have a place to live
Tired of renting
8.4%
11%
12%
14%
15%
Q. What were your main reasons for buying your home?
-
Communication
Important to buyersin agent selection
Responsive Trustworthy Negotiation skills Knowledge /
experience
Communicate better
Respondimmediately
Market skillseffectively
Communicateaccording toclient preference
-
What BuyersWould ChangeAbout the HomeBuying Experience
1. I would have a better market understanding (14%)
2. Process would be faster & easier (9.1%)
3. Id seek additional assistance with mortgage approval (7.5%)
4. Agent would negotiate better (6.7%)
5. Agent would respond faster (6.4%)
Q. If there was one thing you could change about the home buying experience, what would it be?
-
Advice to Agents from Buyers
Communicate better (17%)
Communicate according to client preference (12%)
Negotiate better (9.3%)
Understand market better (9%)
Respond faster (7.6%)
Q. What advice would you give to real estate agents to improve the process or the level of service?
-
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