Real Estate Report Carlos Rafael Cruz
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Carlos Rafael Cruz The Art of Real Estate. The Science of Success! AN AGENT WITH
CONTENTS Industry Facts
PAGE 1
Mortgage Stats
PAGE 2
Distressed Properties
PAGE 3
Price Information
PAGE 3
(408) 242-4011
Buyer Facts & Trends
PAGE 4
ccruz@interorealestate.com
First-Time Home Buyer Facts
PAGE 5
Seller Stats & Trends
PAGE 6
I n t e r o R e a l E s t a t e S e r vi c e s 1 2 9 0 0 S a r a t o g a A ve n u e Saratoga, CA 95070
w w w . L u xu r yC o n n o i s s e u r . c o m
Have a Question? Call us Now at (408) 242-4011
Brian Buffini’s Real Estate Report PAGE 1 or email us at ccruz@interorealestate.com
INDUSTRY FACTS HOMEOWNERSHIP RATE: Between 1950-2000
In 2012
62.4% 62%
72%
of homeowners have a greater respect for owning a home now than they did before the recession
As of May, there have been 11 consecutive months of existing home sale increases
7%
Increase in recreation home sales in 2011 from 2010
Housing is expected to add to the Gross Domestic Product for the first time in
By the end of 2011, the cost to rent an apartment was higher than the cost to own a home by
SUPPLY OF INVENTORY AS OF APRIL 2012:
15%
Buying a home hasn’t been as affordable
7 years
77.5%
of all new and existing homes sold in Q1 2012 were affordable to families earning the national median income
6.5 months 5.1 months Existing homes
New homes
24%
increase in housing starts in the first quarter of 2012, compared to the same time last year
since 1971
Additional
From May 2011 to May 2012, total existing home sales increased
EXPECTED HOUSING STARTS:
9.6%
Sales of existing homes in early 2012 were at the highest levels since 2007
50%
26% Increase in 2012
Compared to a year ago, listed inventory has
decreased 20.6%
In 2011, inventory of new single family homes
dropped 20%
Increase in 2013
Inventory of existing homes
dropped 23%
SOURCES: LA TIMES, RISMEDIA, INMAN NEWS, WALL STREET JOURNAL, KIPLINGER, FREDDIE MAC, NATIONAL ASSOCIATION OF REALTORS, STANDARD & POORS, THE STATE OF THE NATION’S HOUSING 2012
Have a Question? Call us Now at (408) 242-4011
Brian Buffini’s Real Report PAGE 2 or email us Estate at ccruz@interorealestate.com
MORTGAGE STATS
37%
As of June, the average 15-year fixed loan rate fell to
34%
2.97%
of households pay more than 30% of their income for housing
of buyers put down 20% or more in cash
This is the first time it’s dropped below 3% in 21 years
18% 30%
of existing home sales in 2011 were cash purchases
62%
of all new single family homes sold in 2011 were financed by a conventional loan, up from 58% in 2010
20%
of all new single family homes sold were financed by an FHA loan, down from 25%
$2,900
In May 2012, cash sales made up
28% of all sales
81.1%
pay more than 50% of their income for housing
33%
of homeowners own their homes outright
Refinance share of total mortgage activity
Median interest saved by a borrower during the first year of a $200,000 refinance loan life In 2011, the monthly payment for principal and interest on a median priced home
dropped 6.6%
The highest average loan size is in the District of Columbia at The average loan size in January 2012 was
$226,000
$375,000 The lowest average loan size is in Indiana at
$143,000
(assuming 20% down & a 30 year fixed mortgage)
SOURCES: RISMEDIA, US CENSUS BUREAU, NATIONAL ASSOCIATION OF REALTORS, THE STATE OF THE NATION’S HOUSING 2012, CORELOGIC
Have a Question? Call us Now at (408) 242-4011
Brian Buffini’s Real Estate Report PAGE 3 or email us at ccruz@interorealestate.com
DISTRESSED PROPERTIES
PRICE INFORMATION
In 2011, total foreclosure filings dropped
MEDIAN PRICE BY REGION AS OF MAY 2012:
33%
The average time to process a foreclosed property in Q4 2011 was
348 days
Foreclosure activity has decreased for 20 straight months
Northeast: $250,700
1.2%
The 60-day delinquency rate across all markets at the end of March 2012, below the peak of 1.8% 3 years ago
25% of sales
in May were foreclosures and short sales, down from 31% in May 2011
Up 3.8% from last year Midwest: $140,700
West: $233,900
Up 6.4% from last year
Up 13.4% from last year
THE 5 STATES WITH THE HIGHEST FORECLOSURE INVENTORY: South: $159,700 Up 7.8% from last year
Florida
11.9%
New Jersey
6.4%
Illinois
5.4%
Nevada
5.3%
Compared to June 2011, in June 2012 prices appreciated by
New York
4.6%
1.7%
14% Average price discount for short sale properties
AVERAGE HOME PRICES ARE PREDICTED TO INCREASE BY:
19% Average price discount for foreclosure properties
SOURCES: RISMEDIA, CNN MONEY, FREDDIE MAC, CORELOGIC
1.0%
in the second half of 2012
2.5%
by 2014
3-4%
between 2015 & 2017
April 2012 broke 7 consecutive months of price decreases nationwide MONTH-TO-MONTH PRICE CHANGE:
MAR APR MAY JUN 2012
2012
+1.3%
2012
+1.8%
2012
+0.1%
SOURCES: THE DEMAND INSTITUTE, STANDARD & POORS, CORELOGIC, RISMEDIA, CLEAR CAPITAL
Have a Question? Call us Now at (408) 242-4011 Brian Buffini’s Report PAGE 4 or emailReal us at Estate ccruz@interorealestate.com
BUYER FACTS & TRENDS
96%
of consumers agree or somewhat agree that now is a good time to buy
4.5%
of consumers plan to buy a home within 6 months
21%
of buyers are concerned that prices will rise beyond what they can afford
TOP MOTIVATIONS FOR BUYING A HOME:
18%
American dream
17%
Good opportunity
11%
Evolving family
10%
Being financially ready
BUYERS’ HOME SEARCH METHODS: 56% MLS website
43%
Increase in buyer inquiries compared to this time last year
45% Realtor.com 40% A real estate company website
60%
38% Other websites like Google & Yahoo
of buyers faced a competing offer when trying to purchase a home
location 34% consider when purchasing a home
15%
46% Agent’s website
of buyers cite staying within a budget as their top consideration when making a purchase decision
home 16% consider layout
13%
consider home size
home 4% consider construction
3%
consider updated appliances and fixtures
say 94% ofthatpeople finding the
right home and community are crucial to having a happy family
FACTORS LIMITING BUYERS FROM COMPLETING A TRANSACTION:
50% 18% 12% 4%
Difficulty in obtaining financing Expectation that prices might fall further Difficulty in finding the right property The ability to sell their existing home
TOP 5 REASONS BUYERS WANT TO MOVE: 45%
To live in a larger space
44%
To live in a home better suited to their life phase
42%
To live in a home better suited to their style
30%
To live in a better neighborhood
27%
For a greener, more environmentally sustainable home
SOURCES: RISMEDIA, WALL STREET JOURNAL, TD BANK, NATIONAL ASSOCIATION OF REALTORS, YAHOO, STANDARD & POORS
Have a Question? Call us Now at (408) 242-4011
Brian Buffini’s Real Estate Report PAGE 5 or email us at ccruz@interorealestate.com
FIRST-TIME HOME BUYER FACTS
82%
of Echo Boomers have a favorable view of the residential real estate market
33%
of buyers were firsttime buyers in 2011
43% Of all recent home purchases, buyers aged 18-34 represent
31%
27% 84%
80%
of current homeowners purchased their first home between the ages of 18 and 34
900,000 Echo Boomers currently own their own home, compared to 500,000 Baby Boomers who owned at the same time in their lives
50%
cut back on dining out
49%
cut back on shopping for non-essential items
47%
of home buyers were 25-34 year olds in 2011
of renters aged 18-34 intend to buy a home
of all current heads of households moving during the next 2 years will be 18-34 year olds
SACRIFICES RENTERS ARE WILLING TO MAKE FOR HOMEOWNERSHIP:
would give up luxuries like cable, salon visits, etc.
39%
would cut back on vacations
10%
would contribute less to their 401K
SOURCES: RISMEDIA, THE FISCAL TIMES, THE STATE OF THE NATION’S HOUSING 2012, TD BANK, THE DEMAND INSTITUTE, HARRIS INTERAC TIVE
Have a Question? Call us Now at (408) 242-4011
Brian Buffini’s Real Report PAGE 6 or email us Estate at ccruz@interorealestate.com
SELLER STATS & TRENDS LENGTH OF TIME SELLERS OWN THEIR HOME:
18%
17% 16% 13%
50%
of Baby Boomers looking to downsize are aged 50-64
66%
of them are 65 and older
BABY BOOMERS LOOKING TO DOWNSIZE WANT: ■ A 1,500 to 2,500 square foot home for for 11-15 8-10 years years
for 6-7 years
for 4-5 years
11%
of homeowners would like to sell their home but haven’t listed it yet
The most common reason for homeowners not listing yet is the perception that they won’t get the price they want
■ To pay between $130,000 and $230,000
The average FSBO seller sold their home for
$150,000
The average seller who used an agent sold their home for
The percentage of consumers who feel it’s a good time to sell increased from 10% for the 4th straight month to
15%
$250,000 The typical seller sold their home after owning it for
9 years
Spending on homeowner improvements is expected to grow at an average
annual pace of 3.5%
■ A single story home ■ To be close to where they live now ■ A low-maintenance home ■ Open living spaces
SOURCES: NATIONAL ASSOCIATION OF REALTORS, THE DEMAND INSTITUTE, RISMEDIA, FANNIE MAE, JOINT CENTER OF HOUSING STUDIES OF HARVARD UNIVERSITY
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