C.A.R.
2014 HOME BUYER SURVEY
EXECUTIVE SUMMARY
Contents
Survey Methodology ..................................................................................................................................... 2
Who is the 2014 Home Buyer? ..................................................................................................................... 2
The Home Buying Experience ....................................................................................................................... 4
Technology in the Buying Process............................................................................................................. 8
Financing ................................................................................................................................................... 9
Buyer and Agent Interaction ....................................................................................................................... 10
Communication ....................................................................................................................................... 10
Agent Satisfaction Ratings ...................................................................................................................... 12
Key Conclusions .......................................................................................................................................... 12
Opportunities .......................................................................................................................................... 13
Works Cited ................................................................................................................................................. 14
List of Exhibits ............................................................................................................................................. 15
C.A.R. 2014 Home Buyer Survey
1
Survey Methodology
The Survey was conducted by telephone to 1,400 people statewide to measure their perceptions of the
home-buying process. Eligible respondents all closed escrow on their homes within the six months prior
to February 2014. Participants were selected on a random probability basis and the reported results are
subject to a maximum sampling error of +/- 3.5 percent at two standard deviations (a 95 percent
confidence level).
Who is the 2014 Home Buyer?
The characteristics of a typical California home buyer continue to evolve. The 2014 buyer is more likely
to be female, older, a minority, and single when compared to home buyers in prior years. Also, the
standard buyers’ annual household income continues to increase. While 33 percent of buyers in 2013
had incomes of $150,000 or more, 44 percent of 2014 buyers have incomes higher than $150,000.
The proportion of younger buyers significantly declined this year, increasing the average age by 10 years
to 48. This is the second consecutive year that the average age increased. Buyers 34 years of age or
younger comprised 45 percent of buyers in 2013, while the same group only represented 12 percent of
buyers in 2014. With millennials plagued by student debt and difficulties finding a high salary job, it is no
surprise that their ability to purchase a home is diminished.
Exhibit 1: Proportion of Younger Buyers Declines
100%
90%
10%
5%
5%
10%
13%
13%
80%
8%
12%
25%
70%
60%
7%
37%
39%
65+
34%
36%
50%
55-64
26%
40%
35-44
30%
20%
40%
43%
3%
2010
25-34
41%
10%
0%
45-54
43%
32%
2%
12%
Under 25
7%
2011
2012
2013
2014
Q: What is your age?
C.A.R. 2014 Home Buyer Survey
2
Minorities represent the majority of home buyers in California, making up 64 percent of all buyers. This
is up from 2003, when minorities made up less than half (47 percent) of all buyers. The percentage of
Hispanic buyers grew from 16 percent in 2003 to 26 percent this year, and the percentage of Black /
African American buyers quadrupled from three percent to 12 percent, while the White / Caucasian
percentage shrank from 53 percent to 36 percent over the same period. Home buyers now more closely
resemble California, where minorities consist of 60 percent of the population.
The percentage of unmarried buyers increased to 41 percent from 37 percent last year, reflecting the
gradual decline in married households. Gen Y and Gen X are getting married at an older age on average
and forming households outside the traditional boundaries of the institution. According to the U.S.
Census Bureau 2012 American Community Survey, only 46 percent of Californians are married,
compared to 57 percent who were married in 2000.
Home buyers are highly educated; 61 percent have a college or graduate degree and all buyers have at
least a high school diploma. In comparison to the State of California, where only 31 percent of the
population who is 25 years and older has a bachelor or graduate degree (U.S. Census Bureau, 2012),
home buyers are more educated.
Exhibit 2: Home Buyer Annual Household Income
Under $100,000
$100,000-$200,000
$200,000 +
60%
50%
40%
30%
20%
10%
0%
2010
2011
2012
2013
2014
Q: Which of the following categories best represents you total annual income from all sources?
Those who own a home have a higher income than the average Californian. Nearly all buyers (97
percent) have an annual household income over $75,000, whereas only about 40 percent of Californians
C.A.R. 2014 Home Buyer Survey
3
do. The discrepancy in six figure incomes is also large; more than seven in 10 buyers (72 percent) earn
more than $100,000 a year, but only 28 percent of Californians (U.S. Census Bureau, 2012) earn at that
same level. There is a strong link between owning a home, having a higher education and higher income.
The Home Buying Experience
The California homebuyer is facing an increasingly challenging market. Affordability is no stranger to this
housing marketplace; the coastal areas in particular have faced this problem for years. With home prices
expected to continue rising this year, even more buyers will be priced out of the market. The median
listing price in 2014 reached $380,000 while purchase price closely followed at $375,000. There were 11
percent fewer homes listed above the final sale price in 2014 compared to 2013. The shrinking discount
between listing and purchases prices further indicates a competitive market.
Exhibit 3: Listing vs. Purchase Price
Listing > Purchase
Median Home Price
$400,000
$380,000
Listing = Purchase
Listing < Purchase
$375,000
100%
$350,000
90%
80%
$300,000
70%
$250,000
60%
$200,000
36%
45%
4%
5%
50%
40%
$150,000
30%
$100,000
60%
49%
20%
$50,000
10%
$0
0%
Listing
Purchase
2013
2014
Q: What was the initial listing price of the home you purchased? Q: What was the price of the home you purchased?
More than half of buyers (59 percent) were previous home owners. Three percent of buyers previously
lived with their parents, down from seven percent two years ago, indicating that echo boomers are
moving out of their parents’ homes and beginning to form households of their own as the economy
improves.
C.A.R. 2014 Home Buyer Survey
4
Exhibit 4: Living Arrangement Immediately Before Purchase
100%
2%
7%
3%
90%
6%
6%
80%
70%
2%
40%
48%
38%
54%
60%
Other
Lived w/parents
50%
Rented
40%
Owned
30%
59%
50%
49%
20%
38%
10%
0%
2011
2012
2013
2014
Q: What was your living arrangement immediately before your recent home purchase?
The buying process begins long before buyers actually contact an agent. On average, buyers started
considering a purchase nearly five months (19.1 weeks) before getting in touch with a real estate agent,
down from 23.7 weeks last year. Home buyers are also taking their time investigating homes and
neighborhoods before contacting an agent, spending a little over five months on this compared to about
seven months last year. The average number of weeks that buyers spent looking for a home with their
agent also increased from 9.8 weeks last year to 10.4 weeks this year. This increase could be the result
of buyers viewing twice as many homes as last year. The long consideration time and home search
reflect the limited availability of homes for sale and the increasing prices, which are causing buyers to
weigh their options carefully before making a purchase.
C.A.R. 2014 Home Buyer Survey
5
Exhibit 5: Number of Homes Viewed with Agent Doubles
25
H
#
o
m
o
e
f
s
Median Homes Viewed
20
20
15
15
12
10
10
2012
2013
10
5
0
2010
2011
2014
Q: How many different homes did you preview and visit with your agent prior to making a purchase?
When they were finally ready to make a purchase, buyers tended to stay closer to their previous
homes—the median distance from their last residence was 15 miles, down from 25 miles last year. More
than 9 out of 10 buyers (91 percent) made offers on other homes and nearly half (46 percent) claim they
settled for the best option given the limited supply of houses.
Price decreases, a promotion/raise, and low interest rates were the top three reasons that buyers
purchased. Nearly half did not buy sooner because there were not many good housing options, others
waited to see when prices would stabilize or did not see a real urgency to buy. The average buyer plans
to stay in their home for almost nine years, up from six years in 2013.
Exhibit 6: Main Reasons for Buying
Price decreases
54%
Promotion/raise
34%
Low interest rates
29%
Favorable price/financing
17%
Desired better/other location
16%
Investment/Tax advantage
15%
Desired larger home
Long term appreciation
Change in family
13%
9%
8%
Q: What were your main reasons for buying your home?
C.A.R. 2014 Home Buyer Survey
6
While the majority of buyers (54 percent) found their home through an agent, the percentage who
found their home online tripled from 13 percent in 2011 to 39 percent in 2014, the highest rate in the
Survey’s history. There is a trend in buyers turning more to the internet to find their homes, rather than
relying on an agent.
Exhibit 7: More Buyers Finding their Own Home
Agent
Website
90%
Other
85%
80%
80%
80%
70%
60%
61%
50%
54%
40%
37%
30%
20%
39%
13%
13%
10%
16%
7%
1%
4%
0%
2010
8%
2%
2011
2012
2013
2014
Q: How did you find the home you purchased?
While the real estate market prospers, buyer optimism about the future direction of home prices is also
growing, with the majority of buyers (81 percent) believing prices will go up in five years and 60 percent
believing prices will rise in one year. This buyer optimism has improved since 2009 when only 35 percent
of buyers believed that prices would rise in five years and only eight percent believed prices would rise
in one year. More importantly, none of the buyers who responded to the survey this year felt that prices
would drop in the future. This optimism is echoed by a 38.8-point increase in the consumer confidence
index from 25.3 in February 2009 to 82.3 in March of this year. (The Conference Board(R))
C.A.R. 2014 Home Buyer Survey
7
Exhibit 8: Home Buyers Who Think Home Prices Will Rise Up Dramatically from 2009
100%
81%
80%
60%
20%
2014
60%
40%
35%
2009
8%
0%
In 1 Year
In 5 Years
Q: Do you think home prices in the neighborhood where you purchased will go up in one year, in five years?
Technology in the Buying Process
The overwhelming majority of buyers (91 percent) used a mobile device to access the internet. In
addition to accessing the internet, buyers used their mobile devices to look for comparable home prices
(78 percent), search for homes (45 percent), communicate (45 percent), and take photos of
neighborhoods, homes and amenities (43 percent).
Zillow, Realtor.com and Trulia are the most useful mobile apps among buyers.
Zillow is the most useful website in the home buying process, followed by Realtor.com and Redfin.
More than half of all buyers (59 percent) found their home on realtor.com or Zillow.
The use of social media in the buying process continued increasing this year, with more than threequarters of buyers using it, compared to 52 percent who used it in 2011.
C.A.R. 2014 Home Buyer Survey
8
Buyers primarily used social media for buying tips and suggestions from friends (44 percent),
neighborhood information (44 percent), and to view their agents’ Facebook pages (35 percent). The use
of social media as a form of communication is expected to continue to grow in the future, with 92
percent of buyers indicating they are receptive to receiving information about the home buying process
directly from their agent via social media.
Financing
The majority of buyers surveyed obtained financing for their home purchase (74 percent)1 and
experienced less difficulty in doing so. On a scale of one to 10, with 10 being very difficult, buyers rated
their difficulty in obtaining financing at 7.1 on average, down from 8.6 last year and the lowest difficulty
rating in the Survey’s history. Higher downpayments are still the norm in this market, with buyers
putting an average of 28 percent down on their purchases. The average downpayment has been higher
than the traditional 20 percent since 2009.
Fixed rate loans are being obtained by more than nine out of 10 buyers (92 percent), a 23 percent rise
from 2009, when only 69 percent had a fixed rate loan. Nearly nine out of 10 buyers (86 percent) have
30-year loan terms, and only 14 percent of buyers have terms under 30 years. Buyers acquiring these
types of long term loans and putting more “skin in the game” points to a more stable and healthy real
estate market, unlike that preceding the previous boom when creative loan products were being
acquired with little or no money down.
This year, more than one quarter of all buyers (26 percent) paid cash for their homes, the highest level
in the survey’s history.2 The majority of cash buyers (95 percent) used proceeds from a previous
1
2
This survey sample is skewed more towards owner-occupant buyers.
This survey sample is skewed more towards owner-occupant buyers.
C.A.R. 2014 Home Buyer Survey
9
residence, others had funds from the sale of personal assets (44 percent) or from personal savings (40
percent).
Exhibit 9: Source of Cash Funds for Cash Buyers (N = 367)
95%
Proceeds from previous residence
44%
Sale of personal assets
40%
Personal savings
32%
Inheritance
29%
Proceeds from sale/refi of another…
16%
Pension fund
5%
Borrowed/gifted
0%
20%
40%
60%
80%
100%
Q: If all cash, where did the funds come from?
Buyer and Agent Interaction
Nearly all surveyed buyers (88 percent) used an agent in 2014, down slightly from 91 percent in 2013.
Nearly two-thirds (65 percent) of those who used an agent found their agent online, compared to only
38 percent who found their agent online in 2003. Growing internet use to find an agent shows the
increasing importance of the web as an indispensable tool in the home buying process and presents an
opportunity for real estate professionals to market effectively to their target market through this
medium. Half of buyers Googled their agent, down from 68 percent last year; this could be the result of
buyers turning more to social media and mobile apps to learn about agents.
Despite nearly all buyers using an agent, agents must still compete for buyers’ business, as more than
three out of four buyers (76 percent) interviewed at least two agents before selecting the one they
would use to purchase their home. Buyers interviewed 3.1 agents on average before making a selection,
the second highest average in the Survey’s history. When it comes to selecting an agent, a previous
relationship and being most responsive are important to buyers.
Communication
Communication is a key component of any business relationship and the agent-buyer relationship is no
exception. While agents met expectations for the most part in email and in-person communication,
there is room for improvement in communication by telephone and text message. Only 11 percent of
buyers prefer to communicate with their agents by telephone, yet 38 percent of buyers reported that
agents communicated by telephone. There is a similar gap in text message communication; 40 percent
C.A.R. 2014 Home Buyer Survey
10
of buyers claimed they prefer this method of communication, but only 15 percent of agents
communicated by text message.
Exhibit 10: Large Discrepancies in Preferred vs. Actual Communication
47%
Preferred
46%
38%
Actual
40%
11%
15%
1%
Telephone
0%
Email
Text Message
In Person
Q: What was your preferred method of communicating with your agent? Q: How did your agent actually communicate with
you?
Clients are more demanding when it comes to response time. The percentage of buyers who expect an
instant response from their agents is nearly five times higher from 10 percent in 2007 to 49 percent this
year.
Exhibit 11: Buyers Expect Quick Response
Expected
60%
50%
40%
30%
20%
10%
0%
Actual
49%
29%
18%
16%
7%
Instantly
11%
Within 30 Within 1 hr.
mins.
24%
17%
4%
Within 2
hrs.
13%
2%
Within 4
hrs.
0%
Same day
10%
0%
1 business
day or
longer
Q: On average, what was the actual response time of your agent to return any form of communication to you? Q: What was
the typical response time you expected from your agent to return any form of communication to you?
C.A.R. 2014 Home Buyer Survey
11
Agent Satisfaction Ratings
Buyer satisfaction with their agent improved for the first time in five years—3.3 on a scale of one to five,
with five being most satisfied. Buyers are also more satisfied with the home finding process, rating their
satisfaction a 3.3 on a scale of one to five. This improvement in home buyer satisfaction points to a
macro level improvement in housing market conditions in California.
Exhibit 12: Top 5 Reasons for Satisfaction with Agent
Key Conclusions
The Survey asked buyers to give their agents some advice to improve the home buying process or level
of service. Here is what they revealed:
 Respond faster (63 percent)
 Communicate according to client preference (55 percent)
 Communicate better (44 percent)
The Survey also revealed that the internet is an increasingly important tool for buyers in the home
buying process; more buyers are finding their agents and homes online. Mobile technology is growing in
popularity among buyers, they use their smartphones to look for house prices, search for properties,
take photos and create videos of homes and amenities, research communities and real estate agents.
Consequently, it is imperative for real estate professionals to adapt to changing customer needs and to
have a strong web presence and to integrate mobile marketing into their business plans. As Charles
Darwin said, “It is not the strongest of the species that survives, nor the most intelligent, but the one
most responsive to change.”
Customer service is crucial in any business, but especially so in service-oriented industries, like real
estate. The best way to provide clients with excellent customer service is to focus on their reasons for
selecting and being satisfied with their agents, such as “worked hard”, “negotiated a good deal” and
“helped find the best home”. Equally important is avoiding the key pitfalls, such as slow response,
C.A.R. 2014 Home Buyer Survey
12
ineffective/inefficient communication, and undesirable communication methods.
Opportunities
In addition to providing a better understanding of home buyers, this Survey offers ways that agents can
improve their business.
65% of buyers
found their agent
online
market your
business online
Buyers reported needing the most assistance from their agent in:
finding the right home
negotiating the price and terms of sale
determining comps and affordability.
These are the skills that are most important to showcase in marketing materials and to demonstrate
during client interviews and meetings.
Social media use will continue to grow in the real estate business, as more than nine out of every 10
buyers are receptive to receiving information about the home buying process directly from their agent
via social media. Therefore, it would be useful to devise a strategy for maximizing social media use.
Effective marketing is key to getting the most “bang for your buck”, not only in terms of the various
marketing methods available and the appropriate target audience, but also in terms of content. When
marketing yourself and your brand, highlight the qualities that matter most to buyers, like having a fast
response to inquiries, being aggressive on the client’s behalf, and possessing strong negotiation skills.
When marketing properties, focus on the reasons that buyers made a purchase, such as price decreases,
promotions or raises, and low interest rates.
With clients being so demographically diverse, it is not always easy to communicate effectively, but
effective communication is crucial to delivering top notch customer service. Communicate more
effectively with clients by asking them their preferred method of communication and using that method.
C.A.R. 2014 Home Buyer Survey
13
Works Cited
CALIFORNIA ASSOCIATION OF REALTORS(R). (n.d.). 2012 Annual Housing Market Survey.
Harvard University Joint Center for Housing Studies. (2012). The State of the Nation's Housing.
The Conference Board(R). (n.d.). US Consumer Confidence Index.
The White House National Economic Council. (2010, October). Jobs and Economic Security for America's
Women. Retrieved October 15, 2012, from The White House:
http://www.whitehouse.gov/sites/default/files/Jobs-and-Ecomomic-Security-for-AmericasWomen.pdf
U.S. Census Bureau. (2012). 2012 American Community Survey.
C.A.R. 2014 Home Buyer Survey
14
List of Exhibits
Exhibit 1: Proportion of Younger Buyers Declines ........................................................................................ 2
Exhibit 2: Home Buyer Annual Household Income ....................................................................................... 3
Exhibit 3: Listing vs. Purchase Price .............................................................................................................. 4
Exhibit 4: Living Arrangement Immediately Before Purchase ...................................................................... 5
Exhibit 5: Number of Homes Viewed with Agent Doubles ........................................................................... 6
Exhibit 6: Main Reasons for Buying .............................................................................................................. 6
Exhibit 7: More Buyers Finding their Own Home ......................................................................................... 7
Exhibit 8: Home Buyers Who Think Home Prices Will Rise Up Dramatically from 2009 .............................. 8
Exhibit 9: Source of Cash Funds for Cash Buyers (N = 367) ........................................................................ 10
Exhibit 10: Large Discrepancies in Preferred vs. Actual Communication ................................................... 11
Exhibit 11: Buyers Expect Quick Response ................................................................................................. 11
Exhibit 12: Top 5 Reasons for Satisfaction with Agent ............................................................................... 12
Exhibit 13: Average Age .............................................................................................................................. 17
Exhibit 14: Ethnic Background .................................................................................................................... 17
Exhibit 15: Marital Status ............................................................................................................................ 18
Exhibit 16: Education Level ......................................................................................................................... 18
Exhibit 18: Percentage of Repeat Buyers Previously Under Water ............................................................ 19
Exhibit 17: Residence Location ................................................................................................................... 19
Exhibit 19: Purchase Price ........................................................................................................................... 19
Exhibit 20: Median Price ............................................................................................................................. 20
Exhibit 21: Number of Weeks Considering Purchase before Contacting Agent ......................................... 20
Exhibit 22: Average Number of Weeks Considering Purchase before Contacting Agent ........................... 20
Exhibit 23: Number of Weeks Investigating Homes/Neighborhoods before Contacting Agent ................ 21
Exhibit 24: Average Number of Weeks Investigating Homes/Neighborhoods before Contacting Agent .. 21
Exhibit 25: Number of Weeks Searching for Home with Agent .................................................................. 22
Exhibit 26: Average Number of Weeks Searching for Home with Agent ................................................... 22
Exhibit 27: Number of Homes Viewed With Agent before Purchase ......................................................... 22
Exhibit 28: Distance of Current Residence from Previous Residence ......................................................... 23
Exhibit 29: Distance of Current Residence from Previous Residence ......................................................... 23
Exhibit 30: Number of Offers on Other Homes .......................................................................................... 24
Exhibit 31: Satisfied Buyers vs. those who settled for Best Option Given Limited Supply of Homes......... 24
Exhibit 32: Why Buyers Did Not Purchase Sooner ...................................................................................... 25
Exhibit 33: How Long Buyer Plans to Keep Property .................................................................................. 25
Exhibit 35: Buyer Receptiveness to Receiving Information via Social Media ............................................. 26
Exhibit 34: How Long Buyer Plans to Keep Property .................................................................................. 26
Exhibit 36: Percentage of Homes Listed on MLS ........................................................................................ 26
Exhibit 37: Future Direction of Home Prices............................................................................................... 27
Exhibit 38: How Buyers Used Mobile Devices in Buying Process ............................................................... 27
Exhibit 39: Most Useful Websites ............................................................................................................... 28
Exhibit 40: Most Useful Websites ............................................................................................................... 28
C.A.R. 2014 Home Buyer Survey
15
Exhibit 41: Website Where Buyers Found Home........................................................................................ 29
Exhibit 42: Website Where Buyers Found Home........................................................................................ 29
Exhibit 43: How Buyers Used Social Media................................................................................................. 30
Exhibit 45: How Receptive Buyers are to Receiving Information via Social Media .................................... 30
Exhibit 44: How Receptive Buyers are to Receiving Information via Social Media .................................... 30
Exhibit 47: Difficulty Rating of Obtaining Financing (Scale: 1-10, 10 = extremely difficult) ....................... 31
Exhibit 48: Difficulty Rating of Obtaining Financing (Scale: 1-10, 10 = extremely difficult) ....................... 31
Exhibit 49: Down Payment .......................................................................................................................... 32
Exhibit 50: Loan Type .................................................................................................................................. 32
Exhibit 51: Loan Duration............................................................................................................................ 32
Exhibit 52: Appraisal Problems ................................................................................................................... 33
Exhibit 53: Buyers Who Used an Agent ...................................................................................................... 33
Exhibit 54: How Buyers Found Agent.......................................................................................................... 34
Exhibit 55: Percentage of Buyers Who Googled their Agent ...................................................................... 34
Exhibit 56: Number of Agents Interviewed by Buyers ................................................................................ 35
Exhibit 57: Number of Agents Interviewed by Buyers ................................................................................ 35
Exhibit 58: Most Important Reason for Selecting Agent ............................................................................ 36
Exhibit 59: Percentage of Buyers Who Expect Instant Response from Agent ............................................ 36
Exhibit 60: Buyer Satisfaction Ratings......................................................................................................... 36
Exhibit 61: Buyers Who Would Work With Same Agent Again .................................................................. 37
Exhibit 62: What Buyers Would Change About the Home Buying Experience ........................................... 37
Exhibit 63: First-time Buyer Advice to Other First-time Buyers ................................................................. 38
C.A.R. 2014 Home Buyer Survey
16
Exhibit 13: Average Age
Average Age
60
48
50
40
38
37
36
35
2010
2011
2012
30
20
10
0
2013
2014
Exhibit 14: Ethnic Background
White
100%
9%
Black
26%
28%
Hispanic
1%
7%
90%
80%
Asian/Pacific Islander
26%
Other
3%
26%
27%
38%
70%
60%
50%
40%
22%
20%
26%
28%
26%
14%
3%
11%
14%
8%
12%
6%
39%
35%
34%
37%
36%
39%
30%
20%
10%
0%
2010
2011
C.A.R. 2014 Home Buyer Survey
2012
2013
2014
CA*
17
Exhibit 15: Marital Status
Other 14%
Single 27%
Married 59%
Exhibit 16: Education Level
High School
Some College
Vocation/Technical
College Grad
Post Grad
100%
90%
17%
12%
15%
16%
11%
45%
50%
80%
70%
60%
46%
47%
45%
50%
40%
30%
12%
20%
16%
10%
0%
9%
2010
C.A.R. 2014 Home Buyer Survey
14%
20%
7%
2011
14%
17%
9%
2012
16%
23%
15%
9%
11%
7%
2013
2014
18
Exhibit 17: Percentage of Repeat Buyers Previously Under
Water
Exhibit 18: Residence Location
12%
12%
SoCal
55%
10%
Other
CA 26%
8%
6%
4%
4%
2%
NorCal
20%
0%
2013
2014
Exhibit 19: Purchase Price
Median: $375,000
$800,000+
$700,000-$799,999
$600,000-$699,999
10%
3%
5%
$500,000-$599,999
7%
$400,000-$499,999
24%
$300,000-$399,999
27%
$200,000-$299,999
-5%
C.A.R. 2014 Home Buyer Survey
26%
5%
15%
25%
35%
45%
19
Exhibit 20: Median Price
$400,000
$300,000
$200,000
$100,000
$0
2010
2011
2012
2013
2014
Exhibit 21: Number of Weeks Considering Purchase before Contacting Agent
36+ Weeks
17%
15%
16-24 Weeks
8-12 Weeks
40%
3-7 Weeks
28%
0%
10%
20%
30%
40%
Exhibit 22: Average Number of Weeks Considering Purchase before Contacting Agent
25
20
15
10
5
0
2010
2011
C.A.R. 2014 Home Buyer Survey
2012
2013
2014
20
Exhibit 23: Number of Weeks Investigating Homes/Neighborhoods before Contacting Agent
29-52
10%
21-28
26%
W
e
e 17-20
k
s
13-16
2%
29%
8-12
33%
0%
5%
10%
15%
20%
25%
30%
35%
Exhibit 24: Average Number of Weeks Investigating Homes/Neighborhoods before Contacting Agent
30
Weeks
25
20
15
10
5
0
2010
C.A.R. 2014 Home Buyer Survey
2011
2012
2013
2014
21
Exhibit 25: Number of Weeks Searching for Home with Agent
35%
28%
30%
30%
28%
25%
20%
15%
9%
10%
5%
0%
4-7
8-11
Weeks
12-15
16-19
Exhibit 26: Average Number of Weeks Searching for Home with Agent
12
10
8
6
4
2
0
2010
2011
2012
2013
2014
Exhibit 27: Number of Homes Viewed With Agent before Purchase
37%
29%
19%
16%
10
12-18
20
> 20
Number of Homes
C.A.R. 2014 Home Buyer Survey
22
Exhibit 28: Distance of Current Residence from Previous Residence
24%
>100
16%
Miles
26-100
22%
11-25
38%
1-10
0%
5%
10%
15%
20%
25%
30%
35%
40%
Exhibit 29: Distance of Current Residence from Previous Residence
Median
25
25
Miles
20
15
15
10
5
0
2013
C.A.R. 2014 Home Buyer Survey
2014
23
Exhibit 30: Number of Offers on Other Homes
32%
35%
30%
25%
20%
15%
10%
5%
0%
24%
9%
10%
11%
0
1
2
14%
3
4
5+
Number of Offers
Exhibit 31: Satisfied Buyers vs. those who settled for Best Option Given Limited Supply of Homes
Satisfied
Settled
100%
90%
34%
80%
46%
70%
60%
50%
40%
30%
20%
10%
0%
66%
54%
2013
2014
C.A.R. 2014 Home Buyer Survey
24
Exhibit 32: Why Buyers Did Not Purchase Sooner
57%
53%
36%
30%
21%
20%
15%
•Not many good housing options
•Waited to see when prices would stabilize
•No real buying urgency
•Difficulty qualifying for mortgage
•Needed to sell existing home
•Needed to save for down payment
•Waited until finances improved
Exhibit 33: How Long Buyer Plans to Keep Property
25%
20%
15%
10%
5%
0%
3
4
5
6
7
9
10
12
15
20
Unsure
Years
C.A.R. 2014 Home Buyer Survey
25
Exhibit 35: How Long Buyer Plans to Keep Property
Exhibit 34: Buyer Receptiveness to Receiving Information via
Social Media
Average Years
Average on 1-5 Scale
5.0
10
8
8.8
4.5
4.2
4.1
4.1
4.0
6
3.5
6
3.0
4
2.5
2
2.0
1.5
0
2013
2014
1.0
2011
2012
2013
Exhibit 36: Percentage of Homes Listed on MLS
100%
80%
60%
40%
20%
0%
2013
C.A.R. 2014 Home Buyer Survey
2014
26
Exhibit 37: Future Direction of Home Prices
Up
60%
81%
Flat
26%
10%
14%
9%
Unsure
1 Year
5 Years
Exhibit 38: How Buyers Used Mobile Devices in Buying Process
78%
• Look for comparable prices
45%
• Search for homes
45%
• Communicate
43%
• Take photos of homes/amenities/neighborhoods
42%
• Research a particular home
41%
• Search websites
39%
• Communicate w/agent
22%
• Research communities/neighborhoods
C.A.R. 2014 Home Buyer Survey
27
Exhibit 39: Most Useful Websites
Zillow
31%
realtor.com
22%
RedFin
10%
Trulia
9%
Yahoo
8%
Brokerage
5%
Agent
4%
0%
5%
10%
15%
20%
25%
30%
35%
Exhibit 40: Most Useful Websites
50%
Zillow
realtor.com
Brokerage
Yahoo
Redfin
40%
30%
20%
10%
0%
2010
C.A.R. 2014 Home Buyer Survey
2011
2012
2013
2014
28
Exhibit 41: Website Where Buyers Found Home
Zillow
33%
realtor.com
26%
Redfin
13%
Trulia
12%
Yahoo
8%
ZipRealty.com
5%
Homes.com
4%
0%
10%
20%
30%
40%
Exhibit 42: Website Where Buyers Found Home
35%
realtor.com
Zillow
Trulia
Redfin
30%
25%
20%
15%
10%
5%
0%
2011
C.A.R. 2014 Home Buyer Survey
2012
2013
2014
29
Exhibit 43: How Buyers Used Social Media
Buying tips, suggestions from friends
44%
Neighborhood info from friends
44%
42%
Agent's Facebook page
35%
Agent referrals
33%
Neighborhood lifestlye
31%
Neighborhood amenities
Home buying info
23%
Neighborhood profiles
23%
20%
Agents' YouTube
0%
5%
Exhibit 45: How Receptive Buyers are to Receiving
Information via Social Media
Scale: 1-5 (5=extremely receptive)
10%
15%
20%
30%
35%
40%
45%
Exhibit 44: How Receptive Buyers are to Receiving
Information via Social Media
Average
5.0
52%
25%
4.5
4.2
4.1
4.1
4.1
4.0
3.5
3.0
24%
2.5
17%
2.0
8%
1.5
1.0
2
3
4
C.A.R. 2014 Home Buyer Survey
5
2011
2012
2013
2014
30
94%
100%
96%
92%
91%
90%
74%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010
2011
2012
2013
2014
Exhibit 46: Difficulty Rating of Obtaining Financing (Scale: 1-10, 10 = extremely difficult)
Average
10.0
8.5
8.0
8.5
8.6
2010
2011
2012
2013
7.1
5.0
0.0
2014
Exhibit 47: Difficulty Rating of Obtaining Financing (Scale: 1-10, 10 = extremely difficult)
2010
40%
2014
20%
0%
1
2
3
C.A.R. 2014 Home Buyer Survey
4
5
6
7
8
9
10
31
Exhibit 48: Down Payment
Average
%
o P
f r
i
S c
a e
l
e
35%
30%
25%
20%
15%
10%
5%
0%
2010
2011
2012
2013
2014
Exhibit 49: Loan Type
Fixed
100%
50%
Adjustable
Other
15%
16%
7%
8%
8%
79%
84%
93%
91%
92%
0%
2010
2011
2012
2013
2014
Exhibit 50: Loan Duration
15 Year
100%
15%
13%
80%
60%
40%
85%
87%
30 Year
15%
85%
20%
14%
86%
0%
2011
C.A.R. 2014 Home Buyer Survey
2012
2013
2014
32
Exhibit 51: Appraisal Problems
19%
None
Had to get 2nd
appraisal
15%
66%
Had to find more
recent comps
Exhibit 52: Buyers Who Used an Agent
100%
94%
92%
96%
91%
90%
88%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010
2011
C.A.R. 2014 Home Buyer Survey
2012
2013
2014
33
Exhibit 53: How Buyers Found Agent
Relationships/Contacts
Advertising
70%
Internet
66%
Other
65%
63%
59%
60%
55%
50%
40%
29%
30%
28%
21%
28%
21%
20%
13%
12%
11%
10%
9%
7%
0%
2010
2011
2012
2013
2014
2013
2014
Exhibit 54: Percentage of Buyers Who Googled their Agent
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010
C.A.R. 2014 Home Buyer Survey
2011
2012
34
Exhibit 55: Number of Agents Interviewed by Buyers
24%
25%
23%
18%
20%
16%
15%
10%
10%
5%
5%
4%
0%
1
2
3
4
5
6
7
# of Agents Interviewed
Exhibit 56: Number of Agents Interviewed by Buyers
Average
3.5
3.2
3.1
2013
2014
3.0
2.5
2.2
2.2
1.8
2.0
1.5
1.0
0.5
0.0
2010
2011
C.A.R. 2014 Home Buyer Survey
2012
35
Exhibit 57: Most Important Reason for Selecting Agent
Previously used agent
29%
Seemed most reponsive
22%
Seemed most aggressive
13%
1st to respond
13%
Negotiating ability
8%
Distressed property knowledge
Most knowledgeable
7%
3%
Exhibit 58: Percentage of Buyers Who Expect Instant Response from Agent
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
49%
38%
37%
2010
2011
42%
44%
2012
2013
2014
Exhibit 59: Buyer Satisfaction Ratings
Process of Finding a Home
Satisfaction with Agent
4
3.5
3
2.5
2
1.5
1
2010
2011
C.A.R. 2014 Home Buyer Survey
2012
2013
2014
36
Exhibit 60: Buyers Who Would Work With Same Agent Again
Unsure
No
Yes
6%
17%
11%
35%
28%
26%
33%
12%
11%
22%
72%
54%
2010
2011
60%
2012
52%
2013
61%
2014
Exhibit 61: What Buyers Would Change About the Home Buying Experience
1. Better Communication with agent (38%)
2. Faster agent response (26%)
3. Better agent negotiation (19%)
4. Better market understanding (14%)
5. More assistance with mortgage approval (3%)
C.A.R. 2014 Home Buyer Survey
37
Exhibit 62: First-time Buyer Advice to Other First-time Buyers
53%
• Find out how fast the agent will respond to you
47%
• Do your homework online
39%
• Check agents’ references
31%
• Get pre-qualified for a mortgage by more than 1
lender
23%
• Don’t use the sellers’ agent
20%
• Make your agent prove he/she will negotiate hard
for you
18%
• Find out how frequently agent will be in contact
C.A.R. 2014 Home Buyer Survey
38
Leading the way…® in California real estate for more than 100
years,
the
CALIFORNIA
ASSOCIATION
OF
REALTORS®
(www.car.org) is one of the largest state trade organizations in the
United
States
with
155,000
members
dedicated
to
the
advancement of professionalism in real estate. C.A.R. is
headquartered in Los Angeles.
The Association develops and promotes programs and services
that will enhance the members' freedom and ability to conduct
their individual businesses successfully with integrity and
competency and, through collective action, promotes the
preservation of real property rights.
CALIFORNIA ASSOCIATION OF REALTORS®
Research and Economics
525 South Virgil Avenue
Los Angeles, CA 90020-1403
213.739.8200
[email protected]
http://www.car.org/marketdata/
C.A.R. 2014 Home Buyer Survey
39