2016 Home Buyer and Seller Generational Trends

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2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyers and Sellers Generational Trends Report Table of Contents Introduction ................................................................................................................................... 4 Highlights ....................................................................................................................................... 6 Chapter 1: Characteristics of Home Buyers............................................................................ 10 Chapter 2: Characteristics of Homes Purchased ................................................................. 28 Chapter 3: The Home Search Process .................................................................................... 48 Chapter 4: Home Buying and Real Estate Professionals ....................................................... 62 Chapter 5: Financing the Home Purchase ............................................................................ 80 Chapter 6: Home Sellers and Their Selling Experience .......................................................... 97 Chapter 7: Home Selling and Real Estate Professionals...................................................... 125 Methodology ............................................................................................................................ 140

© 2016 National Association of REALTORS®

Report Prepared by: Jessica Lautz-- Managing Director, Survey Research and Communications Meredith Dunn-- Research Communications Manager Brandi Snowden-- Research Survey Analyst Amanda Riggs-- Research Survey Analyst

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyers and Sellers Generational Trends Report Introduction Since 2013, the National Association of REALTORS® has been writing the Home Buyers and Sellers Generational Trends Report. This report provides insights into differences and similarities across generations of home buyers and home sellers. The home buyer and seller data is taken from the annual Profile of Home Buyers and Sellers. One consistent finding for the last three years of reports has been that Generation Y/Millennials (buyers 18 to 35) is the largest share of home buyers at 35 percent. The share has consistently grown over the four years of reports. The largest cohort in America is growing up, and while Gen Y ages they become more traditional in their buying habits. This year’s report saw an increased share who purchased in suburban locations and who purchased detached single-family homes. Forty-five percent of Gen Y buyers now have children under the age of 18 in their home, 64 percent are married couples, and 12 percent are unmarried couples (the largest share of all generations). Gen X (buyers 36 to 50) consists of 26 percent of recent home buyers. They are consistent with their buying trends and demographics. Notably, they are also the most racially and ethnically diverse population of home buyers, with 28 percent identifying they are a race other than White/Caucasian. Gen X buyers are in their peak earning years and thus their incomes are the highest among all generations of buyer types. They are both the generation most likely to be married and most likely to have children under the age of 18 in their home. Their housing preferences are driven by these demographics. Gen X buyers have the highest median priced homes of all other buyers and buy the largest homes in median square footage and bedrooms. Their neighborhood choices are driven by their convenience to job, but also the quality and convenience of school districts. For the report, Younger Baby Boomers (buyers 51 to 60) and Older Baby Boomers (buyers 61 to 69) were broken into two separate categories as they have differing demographics and buying behaviors. Younger Boomers consist of 16 percent of recent buyers and Older Boomers consist of 15 percent of recent buyers. Younger Boomers have higher median household incomes and are more likely to have children under the age of 18 in their home. Younger Boomers are also more likely to buy a multigenerational home. As the sandwich generation, they are nearly equally likely to buy this type of home for both children over 18 living at home and caretaking for aging parents. Younger Boomers buy for an array of reasons such as a job-relocation, desire for a smaller home, and change in their family situation. Older Boomers are often moving due to retirement, desire to be closer to friends and family, and desire for a smaller home. Older Boomers typically move the longest distance compared to all other buyers at a median of 34 miles. Older Boomers also project the length of time they will live in their home is the longest at 20 years.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

The Silent Generation (buyers 70 to 90) represents the smallest share of buyers at nine percent. As most of these buyers are likely to have retired or scaled back their work demands, they have the lowest median household incomes. The primary reasons to purchase are the desire to be closer to friends and family, the desire for a smaller home, and for retirement. The Silent Generation is least likely to purchase a detached singlefamily home. Thirty percent purchased in senior-related housing. They tend to purchase the newest homes and are least likely to make compromises on their home purchase. How to finance the home purchase has stayed similar to what has been reported in past years. Eighty-six percent of home buyers do finance their home purchase—a share that decreases as the age of the buyer increases. New to this year’s report is the impact of debt to saving for a downpayment. Among those who did have debt, that debt hindered the ability to save for a downpayment. The number of years in which the debt delayed them from saving increased as the buyer’s age increased. Student loan debt is one of the debts that buyers may have. In fact, 44 percent of Gen Y buyers did have student loan debt with a median loan balance of $25,000. The share who have student loan debt declines as the buyer’s age increases. While only 11 percent of Younger Boomers have student loan debt, they have the highest median balance of debt at $29,100. This may be due to not only their personal educational loans, but accumulating debt from their children’s education loans. However, if a buyer had to make financial sacrifices to purchase their home, the share that made sacrifices decreased as the age of the buyer increased. Among home sellers, Gen X is the largest generation of sellers at 25 percent, followed closely by Older Boomers at 24 percent. Consistent with past reports, Gen Y and Gen X tend to trade up to a larger and more expensive home. Younger Boomers stay at similarly priced and sized homes, while Older Boomers and the Silent Generation are often downsizing to a smaller and lower priced home. Among all sellers, 14 percent wanted to move earlier than they did, but could not because their home was worth less than their mortgage balance. This was most common among Gen X sellers—19 percent had the situation that they could not sell when they wanted to originally. All generations of buyers continue to consult a real estate agent or broker to help them buy and sell their home. Buyers need the help of a real estate professional to help them find the right home, negotiate terms of sale, and help with price negotiations. Sellers, as well, turn to professionals to help market their home to potential buyers, sell within a specific timeframe, and price their home competitively.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyer and Seller Generational Trends

Highlights Characteristics of Home Buyers  

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First-time buyers made up 32 percent of all home buyers, down from 33 percent last year. Sixtyseven percent of buyers 35 years and younger were first-time buyers, followed by buyers 36 to 50 years at 26 percent. The typical buyer was 44 years old and has a median household income of $86,100. At 35 percent, buyers 35 years and younger continue to be the largest generational group of home buyers with a median of 30 years old. Home buyers between the ages of 36 and 50 were reported to have the highest household incomes among any other generation at $104,700, followed by buyers between 51 and 60 that had an income at $100,200. Sixty-seven percent of recent buyers were married couples, 15 percent were single females, nine percent were single males, and seven percent were unmarried couples. The highest percentage of single female home buyers was found in the 51 to 60 age group. Sixty-three percent of all buyers had children living at home. Seventeen percent of buyers between 36 and 50 years had three or more children under the age of 18 residing in the home. Thirteen percent of home buyers purchased a multi-generational home to take care of aging parents, for cost savings, and because children over the age of 18 are moving back. The two largest generations of home buyers who purchased a multi-generational home were ages 51 to 60 years and 70 to 90 years, both with 16 percent of buyers. The 36 to 50 age group showed to be the most racially diverse group of home buyers in 2015. Twenty-five percent of this group of home buyers identified as Hispanic/Latino, black/African American, or Asian/Pacific Islander. The most common reasons for recently purchasing a home differed between the generations. Among buyers 35 and younger and between 36 and 50, the main reason for purchasing was the desire to own a home of their own, similar to last year. Looking at the 51 to 60 age category, there was a change in the reason for purchasing from a job related relocation (16 percent) in 2014, to the desire to own a home of their own (20 percent) in 2015. Buyers who were 61 to 69 primarily purchased for retirement (20 percent), and buyers between 70 and 90 years old purchased their home to be closer to family and friends (22 percent).

Characteristics of Homes Purchased   

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Buyers of new homes made up 16 percent and buyers of previously owned homes made up 84 percent. For buyers 35 years and younger, 11 percent bought new homes, whereas 19 percent of all other generations bought new homes. There was only a median of 14 miles between the homes that recent buyers purchased and the homes that they moved from. For buyers 61 to 69 years, the median distance was 34 miles and for buyers 50 and younger the median was 10 miles. Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity at 34 percent. Buyers who purchased previously owned homes were most often considering a better price at 32 percent. For buyers 35 years and younger, 46 percent bought new homes to avoid renovations and problems compared to 15 percent of buyers 70 years and older. Thirty-four percent of buyers 51 to 60 years bought previously owned homes to receive a better overall value. The most common type of home purchased continues to be the detached single-family home, which made up 83 percent of all homes purchased compared to 89 percent of buyers 36 to 50 years and only 71 percent for buyers 70 years and older. Senior-related housing increased slightly this year to 14 percent of buyers over the age of 50; that number was seven percent for buyers 51 to 60 years and 30 percent for buyers over 70 years.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

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Home prices increased slightly this year to a median of $220,000 among all buyers. The most expensive homes were purchased at a median of $263,200 by buyers 36 to 50 years; the least expensive were purchased at a median of $187,400 by buyers 35 years and younger. The typical home that was recently purchased was 1,900 square feet, had three bedrooms and two bathrooms, and was built in 1991. The size of homes for buyers 36 to 50 years was typically larger homes at 2,200 square feet, compared to buyers 35 years and younger that purchased homes at a median of 1,720. For buyers 35 years and younger, the median home was built in 1984; for ages 51 years to 69 the median was 1995. Heating and cooling costs were the most important environmental features for recent home buyers, with 84 percent finding these features at least somewhat important. Convenience to a job was the most important factor for all buyers at 44 percent. For buyers 35 years and younger, commuting cots were more important that heating and cooling costs at 35 percent and 33 percent respectively. Compared to buyers 61 years through 69, commuting costs was listed as very important to only 15 percent whereas heating a cooling accounted for 34 percent. Overall, buyers expect to live in their homes for a median of 14 years, while 26 percent say that they are never moving. For buyers 35 years and younger, the expected length of time is only 10 years compare to 20 years for buyers 61 to 69 years.

The Home Search Process 

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Among nearly all generations of home buyers, the first step taken was to look online for properties. Thirty-eight percent of buyers that were 35 and younger, 43 percent aged 36 to 50, 47 percent aged 51 to 60, and 53 percent of buyers aged 61 to 69 looked online for properties for sale. The first step that was taken by 70 to 90 year old buyers was to contact a real estate agent. Buyers typically searched for 10 weeks and looked at a median of 10 homes. The length of the home search was the longest for buyers 36 to 50 years old at 12 weeks. Buyers 35 and younger and 51 to 60 both searched for 10 weeks, while buyers 61 to 69 and buyers 70 to 90 searched for only eight weeks. All generations except for 70 years and older viewed 10 homes, while buyers over 70 years viewed only eight homes. As a result of an internet home search, buyers most often walked through the home that they viewed online. Eighty-seven percent of all buyers found photos and 84 percent found detailed information about properties for sale very useful. The most important website feature to buyers 35 years and younger, 36 to 50 years, and 61 to 69 years was photos at 88 percent, 90 percent, and 82 percent respectively. When looking during the home search process, buyers 35 and younger were the most likely generation to consider purchasing a home that was in foreclosure. A trend showed that as the buyers got older, they were less likely to consider purchasing a home in foreclosure. Fifty-nine percent of recent buyers were very satisfied with their recent home buying process, up from 56 percent a year ago. Buyers 70 years and over were the most satisfied compared to any other generation at 72 percent.

Home Buying and Real Estate Professionals     

Eighty-nine percent of Millennials, 87 percent of Gen X buyers, and 85 percent of Younger Boomers purchased their home through an agent. Five percent of Older Boomers and seven percent of Silent Generation buyers purchased their homes directly from the previous owner. Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations. Help understanding the purchase process was most beneficial to Millennial buyers at 71 percent. Referrals continue to be the way that most buyers find their real estate agent. Referrals by friends, neighbors, or relatives were higher among younger buyers such as Millennials (46 percent) and Gen X (43 percent) more than with the older generations. When choosing an agent to work with, the agent’s reputation was the most important factor for Younger Boomer (26 percent), Older Boomers (25 percent), and Silent Generation (24 percent)

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

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buyers. The most important factor for Millennial buyers was having an agent that is honest and trustworthy (24 percent). Eighty-two percent of Millennials, 86 percent of Gen X, 90 percent of Younger Boomers, 88 percent of Older Boomers, and 89 percent of Silent Generation buyers would definitely or probably use again or recommend their agent to others.

Financing the Home Purchase  

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Eighty-six percent of recent buyers financed their home purchase. Ninety-seven percent of buyers 35 years and younger financed, whereas only 68 percent of buyers aged 61 to 69 years financed their home, and 57 percent over the age of 70. For 60 percent of buyers, the source of their downpayment came from their savings and 38 percent from the proceeds from the sale of a primary residence. Eighty percent of buyers 35 years and younger used savings to finance their home purchase and 34 percent of buyers 70 years and older. Buyers 61 to 69 years used proceeds from a previous sale more than any other generation at 53 percent. Thirteen percent of all buyers cited that saving for a downpayment was most difficult step in the home buying process. For buyers 35 years and younger, this was 21 percent compared to only one percent of buyers 70 years and older. Of all buyers that cited difficulty saving for a downpayment, 51 percent said they had student loans and 47 percent had credit card debt with a median amount of $25,000. For buyers 35 years and younger, 44 percent have student debt with a median amount of $25,000 compared to just 11 percent for buyers 51 to 60 years who had the highest median amount of debt at $29,100. Sixty-six percent of all buyers used conventional loans to finance their home. Only 53 percent of buyers 35 years and younger used a conventional loan compared to 67 percent of buyers 61 to 69 years. Eighty percent of all buyers reported they view a home purchase as a good investment. Eightyfour percent of buyers 35 years and younger said owning a home was a good financial investment compared to 68 percent of buyers 70 years and older.

Home Sellers and Their Selling Experience 

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The typical home seller was 54 years old with a median household income of $104,100. Sellers 36 to 50 years had a median age of 42 years with the highest income of $121,300, followed by sellers 61 to 69 years with a median age of 65 years. Sellers over 70 years had the lowest income of $69,500. Seventy-seven percent of sellers were married couples. Married couples were the highest for sellers 36 to 50 years at 85 percent and the lowest for ages 51 to 60 years at 71 percent. Seventy percent of all sellers moved within the same state. For sellers 35 years and younger, 79 percent purchased in the same state compared to 57 percent of sellers 61 to 69 years. For all sellers, the most commonly cited reason for selling their home was that it was too small (16 percent), followed by a job relocation (14 percent), and the desire to move closer to friends and family (13 percent). For sellers 35 and under, they cited that the home was too small (31 percent), which was higher than any other age group. For sellers 70 years and over, they cited they wanted to be closer to friends and family (33 percent). Sellers typically lived in their home for nine years before selling, declining from 10 years in last year’s report. Sellers 35 years and younger stayed in their home for five years compared to 15 years for sellers 70 years and older. Eighty-nine percent of home sellers worked with a real estate agent to sell their home, which is consistent across all age groups. For recently sold homes, the final sales price was a median 98 percent of the final listing price, which is also consistent across all age groups. Recently sold homes were on the market for a median of four weeks, again consistent across all age groups.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

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Thirty-seven percent of all sellers offered incentives to attract buyers. This varies across age groups where it was the most common for sellers 70 years and over to offer incentives and less likely for sellers under 35 years. This year, home sellers cited that they sold their homes for a median of $40,000 more than they purchased it. Sellers 35 years and younger gained the least at $28,500 in equity compared to sellers over 70 years that gained $64,000 in equity as they likely had lived in their homes for a longer period of time. Sixty-one percent of sellers were ‘very satisfied’ with the selling process. Fifty-eight percent of sellers 50 years and under were very satisfied with the selling process compared to 67 percent over the age of 70.

Home Selling and Real Estate Professionals     

Seventy-two percent of recent sellers contacted only one agent before finding the right agent they worked with to sell their home. That number jumps to 77 percent for home sellers 35 years and younger. Ninety-one percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home. Ninety-four percent of sellers 36 to 50 years listed on the MLS and only 88 percent for sellers 70 and over. Fifty percent of sellers used the same agent to buy and sell their homes. As distance and age increases, using the same agent declines. The typical seller has recommended their agent once since selling their home (32 percent). That number jumps to 37 percent for sellers 61 to 69 years. Eighty-four percent said that they would definitely (67 percent) or probably (17 percent) recommend their agent for future services. Sellers 51 to 60 years were the most likely to recommend their agent (86 percent) compared to sellers 36 to 50 years (82 percent).

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyer and Seller Generational Trends CHAPTER 1: CHARACTERISTICS OF HOME BUYERS The Millennial Generation is now those aged 35 years and younger, Gen X is 36 to 50, Younger Boomers are 51 to 60, Older Boomers are 61 to 69, and the Silent Generation are aged 70 to 90. Millennials made up the largest generation of home buyers in 2015 at 35 percent. Sixty-seven percent of Millennial buyers were first-time buyers, followed by Gen X at 26 percent. In 2015, the majority of recent home buyers were married couples, with Gen X buyers having the highest median household income at $104,700. Married couples comprised the majority of household compositions; followed by single females, single males, and unmarried couples. Multi-generational homes were purchased most often by the 51 to 60 and 70 to 90 age groups. The most common reason for purchasing a multi-generational home was for the health and caretaking of aging parents. The shares of first-time home buyers decreased in all age categories except for the 70 to 90 age group. Sixty-seven percent of buyers 35 and younger were first-time buyers. Buyers 35 and younger and buyers between 36 and 50, purchased their home because they had a desire to own a home of their own. DEMOGRAPHIC CHARACTERISTICS OF HOME BUYERS Exhibits 1-1 through 1-5 Looking at home buyers by generation, the distribution of Millennial home buyers rose by three percentage points in 2015 from 32 percent. At 35 percent, Millennials continue to be the largest generational group of home buyers. The typical Millennial home buyer was a median of 30 years old. Gen X buyers made up the second largest generational proportion of home buyers at 26 percent. Gen X buyers were a median of 42 years old. Younger Boomers made up 16 percent, the same as in 2014, and were typically 56 years old. The proportion of Older Boomers also stayed the same as the previous year at 15 percent. The median age of Older Boomer home buyers in 2015 was 65 years old. The Silent Generation saw a slight decrease from the past year to nine percent in 2015, with a median age of 74. The median household income for 2014 rose again this year to $86,100 from $84,500 in last year’s report. Home buyers between the ages of 36 and 50 were reported to have the highest household incomes among any other generation, at $104,700. Buyers between 51 and 60 had the second highest income at $100,200, followed by 61 to 69 ($81,600), 35 and younger ($77,400), and 70 to 90 ($67,100). Among all age groups, the household composition was majority married couples; followed by single females, single males, and unmarried couples. The highest percentage of single female home buyers was found in the 51 to 60 age group. At 20 percent, single female younger boomer buyers dropped three percentage points from 23 percent in 2014. Sixty-three percent of all buyers had children living at home. Ninetyseven percent of buyers between 61 and 69, and 70 to 90 years old had no children 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

under 18 living with them. In contrast, 17 percent of buyers between 36 and 50 had three or more children under the age of 18 residing in their home. The largest generation of home buyers who purchased a multi-generational home were the 51 to 60 and 70 to 90 age groups, both with 16 percent of buyers purchasing a multi-generational home. The younger boomer generation (51 to 60) saw a drop of five percentage points from 2014. This suggests that economic conditions for younger boomers may be improving. Fifteen percent of buyers between 36 and 50, 13 percent of buyer between 61 and 69, and only eight percent of buyers under 35 purchased a multi-generational home. For buyers of all generations, the most common reason for purchasing a multi-generational home was for the health and caretaking of aging parents. Other popular reasons for purchasing a multi-generational home included cost savings and children/relative over 18 moving back into the house. RACE, ETHNICITY, LANGUAGE AND NATIONAL ORIGIN OF BUYERS Exhibits 1-6 through 1-9 In 2015 four percent of both Millennials (35 and younger) and Gen X buyers (36 to 50) identified as gay, lesbian, or bisexual. The 36 to 50 age group showed to be the most racially diverse group of home buyers in 2015. Twenty-five percent of Gen X home buyers identified as Hispanic/Latino, black/African American, or Asian/Pacific Islander. Only 16 percent of Millennials, 13 percent of Younger Boomers, seven percent of Older Boomers, and five percent of Silent Generation buyers identifies as a race other than White/Caucasian. English was the primary language spoken, with all generations experiencing increases from 2014. The majority of recent home buyers were born in the U.S. Foreign buyers were most common within the 36 to 50 age range (15 percent), followed by 51 to 60 (nine percent), 35 and younger (seven percent), 61 to 69 (five percent), and 70 to 90 (five percent). DEMOGRAPHIC CHARACTERISTICS OF FIRST-TIME AND REPEAT HOME BUYERS Exhibits 1-10 through 1-14 In 2015 the shares of first-time home buyers decreased in all age categories except for the 70 to 90 age group, which increased in first-time buyers by one percentage point. A majority of buyers 35 and younger were first-time buyers at 67 percent in 2015. Among other buyers, the 36 to 50 age group had the second highest percentage of first-time buyers at 36 percent. Looking at all other age categories recent buyers most often rented an apartment or house prior to purchasing their home. It is interesting to see that while buyers 35 and younger were the most likely to be first-time buyers, they were also the most likely to have rented an apartment or house (58 percent) or have lived with parents, relatives, or friends (18 percent). The most common reasons for recently purchasing their home differed between some generations. Among younger buyers 35 and younger and buyers between 36 and 50, the main reason for purchasing was the desire to own a home of their own, similar to last year. Looking at the 51 to 60 age category, there was a change in the reason for purchasing from a job related relocation (16 percent) in 2014, to the desire to own a 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

home of their own (20 percent) in 2015. Buyers who were 61 to 69 primarily purchased for retirement (20 percent), and buyers between 70 and 90 years old purchased their home to be closer to family and friends (22 percent). When looking at the timing of purchasing their home, buyers across all generations said that it was just the right time, and they were ready to buy a home. Among Millennials, Gen X, Younger Boomers, and Silent Generation buyers, the second most common reason for the timing of their purchase was that they did not have much choice, and had to purchase when they did. For Older Boomers, the second most common reason for the timing of purchasing was that it was the best time because of the availability of homes for sale. The majority of buyers from all generations owned only the home that they recently purchased. Buyers between 36 and 50 were the most likely to also own one or more investment properties (13 percent). Buyers between 70 and 90 were the largest share who owned one or more vacation homes and who still owned previous home that they were trying to sell, both at seven percent.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOME BUYERS

Exhibit 1-1 Exhibit 1-2 Exhibit 1-3 Exhibit 1-4 Exhibit 1-5 Exhibit 1-6 Exhibit 1-7 Exhibit 1-8 Exhibit 1-9 Exhibit 1-10 Exhibit 1-11 Exhibit 1-12 Exhibit 1-13 Exhibit 1-14

AGE OF HOME BUYERS HOUSEHOLD INCOME OF HOME BUYERS ADULT COMPOSITION OF HOME BUYER HOUSEHOLDS NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD HOME PURCHASED WAS A MULTI-GENERATIONAL HOME (WILL HOME ADULT SIBLINGS, ADULT CHILDREN, PARENTS, AND/OR GRANDPARENTS) HOME BUYER SEXUAL ORIENTATION RACE/ETHNICITY OF HOME BUYERS PRIMARY LANGUAGE SPOKEN IN HOME BUYER HOUSEHOLD NATIONAL ORIGIN OF HOME BUYERS FIRST-TIME HOME BUYERS IN AGE GROUP PRIOR LIVING ARRANGEMENT PRIMARY REASON FOR PURCHASING A HOME PRIMARY REASON FOR THE TIMING OF HOME PURCHASE OTHER HOMES OWNED

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOME BUYERS Exhibit 1-1 AGE OF HOME BUYERS (Percentage Distribution)

Year Born: Millennials/Gen Y/Gen Next: Gen X: Younger Boomers: Older Boomers: Silent Generation:

1980-1995 1965-1979 1955-1964 1946-1954 1925-1945

Age in 2015: 35 and younger 36 to 50 51 to 60 61 to 69 70 to 90

Percent in Category

Median Age in Group

35% 26 16 15 9

30 42 56 65 74

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOME BUYERS Exhibit 1-2 HOUSEHOLD INCOME OF HOME BUYERS (Percentage Distribution)

AGE OF HOME BUYER Less than $25,000 $25,000 to $34,999 $35,000 to $44,999 $45,000 to $54,999 $55,000 to $64,999 $65,000 to $74,999 $75,000 to $84,999 $85,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 or more Median income (2014)

All Buyers 35 and younger 3% 3% 5 6 7 9 7 8 9 11 9 10 9 11 10 9 15 16 9 6 5 5 3 2 8 4 $86,100 $77,400

36 to 50 2% 3 4 5 7 7 8 11 17 12 7 6 12 $104,700

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 3% 4 4 6 9 7 8 10 15 11 7 5 13 $100,200

61 to 69 5% 5 6 9 9 10 8 9 12 11 5 1 8 $81,600

70 to 90 3% 12 13 10 10 10 7 9 12 5 3 1 7 $67,100

CHARACTERISTICS OF HOME BUYERS Exhibit 1-3 ADULT COMPOSITION OF HOME BUYER HOUSEHOLDS (Percentage Distribution)

AGE OF HOME BUYER

All Buyers 35 and younger 67% 64% 71% 13% 15% 9% 10% 64% 7% 12% 2% 1%

80% Married couple Single female 67% 70% male Single Unmarried couple Other 60%

36 to 50 71% 13% 8% 63% 6%

51 to 60 63% 20% 10% 5% 2%

2%

61 to 69 68% 19% 68% 9% 3% 3%

70 to 90 67% 17% 67% 9% 3% 5%

50%

40% 30%

20% 20%

15% 9%

10%

13% 12% 10% 7% 2%

19%

17%

13% 8%

10%

6% 2%

1%

9%

5% 2%

9% 3% 3%

3%

0%

All Buyers

35 and younger Married couple

36 to 50 Single female

51 to 60 Single male

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Unmarried couple

61 to 69 Other

70 to 90

5%

CHARACTERISTICS OF HOME BUYERS Exhibit 1-4 NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Households)

97%

100%

97%

AGE OF HOME BUYER

All Buyers 90% None 63% One80% 15% Two 15% Three or more 7% 70% 63% * Less than 1 percent

35 and younger 55% 20% 18% 7%

36 to 50 31% 23% 30% 17%

51 to 60 81% 81% 12% 5% 2%

61 to 69 97% 2% 1% 1%

70 to 90 97% 2% 1% %

55%

60% 50%

40%

31%

30% 20%

17%

12% 7%

10%

23%

20% 18%

15%15%

30%

7%

5%

2%

2% 1% 1%

2% 1% %

0% All Buyers

35 and younger

36 to 50 None

One

51 to 60 Two

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Three or more

61 to 69

70 to 90

CHARACTERISTICS OF HOME BUYERS Exhibit 1-5 HOME PURCHASED WAS A MULTI-GENERATIONAL HOME (WILL HOME ADULT SIBLINGS, ADULT CHILDREN, PARENTS, AND/OR GRANDPARENTS) (Percent of Respondents)

AGE OF HOME BUYER

Multi-generational household Reasons for purchase: Health/Caretaking of aging parents Cost Savings Children/relatives over 18 moving back into the house To spend more time with aging parents Children/relatives over 18 never left home Wanted a larger home that multiple incomes could afford together None of the above Other * Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

All Buyers 35 and younger 13% 8% 21% 15 11 7 7 5 29 5

21% 14 3 8 7 6 35 6

36 to 50 15%

51 to 60 16%

61 to 69 13%

70 to 90 16%

26% 16 10 9 10 3 20 5

20% 14 18 5 9 3 24 6

20% 9 17 4 7 4 33 7

14% 13 10 9 * 10 41 2

CHARACTERISTICS OF HOME BUYERS Exhibit 1-6 HOME BUYER SEXUAL ORIENTATION (Percentage Distribution)

Heterosexual or straight Gay or lesbian Bisexual Prefer not to answer

AGE OF HOME BUYER

All Buyers 90% 3 1 7

35 and younger 93% 3 1 3

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 91% 3 1 6

51 to 60 88% 3 * 8

61 to 69 90% 2 * 8

70 to 90 88% 3 * 9

CHARACTERISTICS OF HOME BUYERS Exhibit 1-7 RACE/ETHNICITY OF HOME BUYERS (Percent of Respondents)

AGE OF HOME BUYER

White/Caucasian Hispanic/Latino Black/African-American Asian/Pacific Islander Other

All Buyers 85% 6 5 5 2

35 and younger 86% 8 3 5 2

36 to 50 76% 10 8 7 3

Note: Respondents were permitted to select as many races and ethnicities as they felt applicable. The percentage distribution may therefore sum to more than 100 percent.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 87% 5 5 3 2

61 to 69 94% 3 3 1 1

70 to 90 94% 1 2 2 1

CHARACTERISTICS OF HOME BUYERS Exhibit 1-8 PRIMARY LANGUAGE SPOKEN IN HOME BUYER HOUSEHOLD (Percentage Distribution)

AGE OF HOME BUYER

100% English Other 90%

All Buyers 96% 96% 4%

35 and younger 96% 96% 4%

36 to 50 94% 94%

5198% to 60 98% 3%

6%

61 to 99% 69 99% 1%

99% 70 to 90 99% 2%

80% 70%

60% 50% 40% 30% 20% 10%

4%

4%

6%

3%

1%

2%

0% All Buyers

35 and younger

36 to 50

51 to 60 English

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Other

61 to 69

70 to 90

CHARACTERISTICS OF HOME BUYERS Exhibit 1-9 NATIONAL ORIGIN OF HOME BUYERS (Percentage Distribution)

AGE OF HOME BUYER

All Buyers 93% 91% 9%

100% 91% Born in U.S. Not born in U.S. 90%

35 and younger 93% 85% 7%

36 to 50 91% 85% 15%

51 to 60 95% 91% 9%

61 to 69 95% 95% 5%

70 to 90 95% 5%

80% 70% 60% 50% 40% 30% 15%

20% 9% 10%

9%

7%

5%

5%

0% All Buyers

35 and younger

36 to 50 Born in U.S.

51 to 60 Not born in U.S.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

CHARACTERISTICS OF HOME BUYERS Exhibit 1-10 FIRST-TIME HOME BUYERS IN AGE GROUP (Percent of all Home Buyers)

67%

70%

Percent in Category 32% 67% 26% 11% 6% 4% 26%

60% All Buyers 35 and younger 36 to 50 50% 51 to 60 61 to 69 40% 32% 70 to 90 30% 20%

11% 6%

10%

4%

0% All Buyers

35 and younger

36 to 50

51 to 60

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

CHARACTERISTICS OF HOME BUYERS Exhibit 1-11 PRIOR LIVING ARRANGEMENT (Percentage Distribution)

Owned previous residence Rented an apartment or house Lived with parents, relatives or friends Rented the home buyer ultimately purchased

All Buyers 35 and younger 46% 22% 43 58 10 18 2

AGE OF HOME BUYER

36 to 50 46% 44 8

51 to 60 56% 36 5

61 to 69 65% 30 4

70 to 90 78% 15 4

1

3

1

2

1

Note: After selling their previous home, buyers may have rented a home or apartment before purchasing their next home. A first-time buyer could have acquired ownership of their previous home (as an inheritance or gift, for example) without having been the buyer of the home. Thus, a first-time buyer could have owned a home prior to their first home purchase.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOME BUYERS Exhibit 1-12 PRIMARY REASON FOR PURCHASING A HOME (Percentage Distribution) AGE OF HOME BUYER

All Buyers Desire to own a home of my own Desire for larger home Job-related relocation or move Change in family situation Desire to be closer to family/friends/relatives Desire for a home in a better area Affordability of homes Desire for smaller home Retirement Establish household Financial security Desire to be closer to job/school/transit Desire for a newly built or custom-built home Tax benefits Greater number of homes on the market for sale/better choice Other

30% 10 8 7

35 and younger 48% 11 7 6

36 to 50 31% 16 13 9

51 to 60 20% 6 12 8

61 to 69 9% 4 3 7

70 to 90 8% 5 1 6

7 6 6 6 5 2 2

2 4 4 1 * 4 3

2 7 2 2 * 2 2

5 6 3 10 6 1 3

17 6 3 12 20 * 1

22 7 3 19 14 * 1

2

4

6

4

2

0

2 1

1 *

2 1

3 2

3 1

3 1

* 7

1 4

* 5

* 9

* 13

* 9

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOME BUYERS Exhibit 1-13 PRIMARY REASON FOR THE TIMING OF HOME PURCHASE (Percentage Distribution) AGE OF HOME BUYER

It was just the right time for me, was ready to buy a home Did not have much choice, had to purchase when did It was the best time for because of affordability of homes It was the best time for because of mortgage financing options available It was the best time for because of availability of homes for sale Other Wish had waited

All Buyers

35 and younger

36 to 50

51 to 60

61 to 69

70 to 90

46%

52%

41%

44%

43%

48%

16

12

22

18

11

15

11

8

7

7

8

6

9

10

11

7

8

4

8

9

10

10

16

9

9 2

6 2

7 2

12 2

13 1

16 2

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOME BUYERS Exhibit 1-14 OTHER HOMES OWNED (Percent of Respondents)

All Buyers Recently purchased home only One or more investment properties Previous homes that buyer is trying to sell One or more vacation homes Primary residence Other

81% 10 3 4 3 2

AGE OF HOME BUYER

35 and younger 89% 7 1 1 2 *

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 78% 13 3 4 2 2

51 to 60 76% 10 5 6 4 3

61 to 69 79% 8 4 6 2 4

70 to 90 75% 10 7 7 2 2

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyer and Seller Generational Trends Chapter 2: Characteristics of Homes Purchased This year 16 percent purchased new homes. For Gen Y buyers, 11 percent bought new homes, whereas 19 percent of all other generations bought new homes. The most common type of home purchased continues to be the detached singlefamily home, which made up 83 percent of all homes purchased compared to 89 percent of Gen X buyers and only 71 percent for Silent Generation buyers. The most popular location to purchase a home was in the suburbs or in a subdivision, 52 percent for all buyers, 58 percent for Gen X buyers, and 42 percent for Silent Generation buyers. Convenience to job (eight percent) and to school districts (three percent) were the least important to buyers over 70 years compared to distance to health facilities (30 percent) and convenience to friends and family (50 percent). Convenience to a job and affordability were the most important for buyers under 35 years (60 and 50 percent respectively). Convenience to a job (50 percent), quality of school districts (41 percent), and distance to schools (34 percent) were a few of the most important factors to buyers 36 to 50 years. The expected tenure in homes has increased from last year to a median of 14 years. For buyers 35 years and younger, the expected length of time is only 10 years compare to 20 years for buyers 61 to 69 years. NEW AND PREVIOUSLY OWNED HOMES PURCHASED Exhibits 2-1 through 2-2 The trend of purchasing new homes continues, which has remained at 16 percent since 2011. The share of previously purchased homes has remained at 84 percent also since 2011. For buyers 35 years and younger, 11 percent bought new homes, whereas 19 percent of all other generations bought new homes. Buyers chose to purchase new and previously owned homes for different reasons. Purchasers of new homes are looking to avoid renovations and problems with plumbing or electricity (34 percent) and the ability to choose and customize design features in their home (30 percent). Buyers who chose a previously owned home were considering a better price (32 percent) and overall value (29 percent). For buyers 35 years and younger, 46 percent bought new homes to avoid renovations and problems compared to 15 percent of buyers 70 years and older. Thirty-four percent of buyers 51 to 60 years bought previously owned homes to receive a better overall value. TYPE OF HOME PURCHASED AND LOCATION Exhibits 2-3 through 2-4 The most common type of home purchased continues to be the detached singlefamily home, which made up 83 percent of all homes purchased compared to 89 percent of Gen X buyers and only 71 percent for Silent Generation buyers. The most popular location to purchase a home was in the suburbs or in a subdivision, 52 percent for all buyers, 58 percent for Gen X buyers, and 42 percent for Silent Generation buyers. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

SENIOR HOUSING AND ACTIVE ADULT COMMUNITIES Exhibit 2-5 Senior-related housing increased slightly this year to 14 percent of buyers over the age of 50; that number was seven percent for buyers 51 to 60 years and 30 percent for buyers over 70 years. For all buyers over 50 who recently purchased senior-related housing, 67 percent purchased a detached single-family home and 57 percent bought in a suburb or subdivision. Eighty-two percent of buyers in senior-related housing 51 to 60 years bought detached single-family homes compared to 71 percent of buyers over 70 years. Fifty-one percent of buyers 51 to 60 years bought in suburbs compared to 42 percent of buyers 70 years and older. DISTANCE BETWEEN HOME PURCHASED AND PREVIOUS RESIDENCE Exhibit 2-6 The distance between the home that buyers recently purchased and their previous residence was a median of 14 miles. For buyers 61 to 69 years, the median distance was 34 miles and for buyers 50 and younger the median was 10 miles. FACTORS INFLUENCING NEIGHBORHOOD CHOICE Exhibits 2-7 Some of the factors that influence recent home buyers’ neighborhood choice have remained consistent from last year. Quality of the neighborhood (59 percent), convenience to job (44 percent), and overall home affordability (38 percent) were the three most important factors to recent home buyers when choosing a neighborhood. Convenience to job (eight percent) and to school districts (three percent) were the least important to buyers over 70 years compared to distance to health facilities (30 percent) and convenience to friends and family (50 percent). Convenience to a job and affordability were the most important for buyers under 35 years (60 and 50 percent respectively). Convenience to a job (50 percent), quality of school districts (41 percent), and distance to schools (34 percent) were a few of the most important factors to buyers 36 to 50 years. PRICE OF HOME PURCHASED Exhibits 2-8 through 2-9 Home prices of homes that were purchased increased slightly this year to a median of $220,000 for all buyers. The most expensive homes were purchased at a median of $263,200 by Gen X buyers; the least expensive were purchased at a median of $187,400 by Gen Y buyers. Recent buyers typically purchased their home for a median of 98 percent of the asking price for their home, which was closely consistent between all generations. Ten percent of all buyers paid more than the asking price for their home, 12 percent for Younger Boomer buyers and only seven percent for Silent Generation buyers.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

SIZE OF HOME PURCHASED AND YEAR HOME WAS BUILT Exhibits 2-10 through 2-12 Recent homes purchased had a median size of 1,900 square feet, slightly larger than last year’s median of 1,870. The size of homes for buyers 36 to 50 years was typically larger homes at 2,200 square feet, compared to buyers 35 years and younger that purchased homes at a median of 1,720. Homes for all buyers across generations typically had three bedrooms and two bathrooms, with the exception of buyers 36 to 50 years who purchased homes with a median of four bedrooms. This year, the homes purchased were slightly older than the previous year. The typical home purchased was built in 1991. For buyers 35 years and younger, the median home was built in 1984; for ages 51 years to 69 the median was 1995. For home buyers over 70, the median home was built in 1998. ENVIRONMENT FEATURES AND COMMUTING COSTS Exhibits 2-13 To the majority of recent home buyers, heating and cooling costs were the most important environmentally friendly factors at 35 percent. Thirty percent of buyers said that commuting costs were also important to them when they recently purchased their home. For buyers 35 years and younger, commuting cots were more important that heating and cooling costs at 35 percent and 33 percent respectively. Compared to buyers 61 years through 69, commuting costs was listed as very important to only 15 percent whereas heating a cooling accounted for 34 percent. CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED Exhibits 2-14 When deciding on a home to purchase, recent buyers made compromises on some home characteristics. The most common compromise made was the price of the home at 20 percent, followed by the condition of the home at 19 percent. Thirty-five percent of buyers said that they made no compromises when purchasing their home. For buyers 35 years and younger, 21 percent made compromises on the size of the home. As buyers go up in age, the percentage drops for those who compromised on the price of the home, namely only 15 percent for buyers 70 year and older. The percentage also increases for those reporting that they made no compromises, notably more than half of buyers (53 percent) over 70 years did not compromise, compared to 27 percent of buyers 35 years and younger. EXPECTED LENGTH OF TENURE IN HOME PURCHASED Exhibits 2-15 and 2-16 The expected tenure in homes has increased from last year to a median of 14 years. For buyers 35 years and younger, the expected length of time is only 10 years compare to 20 years for buyers 61 to 69 years. While buyers can estimate the timeframe that they will live in their homes, there are factors which could cause buyers to move. Forty percent of buyers said that they would potentially move because of a life change, such as an addition to the family, marriage, children moving out, or retirement; than number jumps up to 47 percent for buyers 51 to 60 years. Buyers 35 years and younger were more likely than any other age group to potentially move because of a job or career change, while buyers over 61 years are most likely to say they are never moving. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-1 Exhibit 2-2 Exhibit 2-3 Exhibit 2-4 Exhibit 2-5 Exhibit 2-6 Exhibit 2-7

NEW AND PREVIOUSLY OWNED HOMES PURCHASED WHY NEW AND PREVIOUSLY OWNED HOMES PURCHASED TYPE OF HOME PURCHASED LOCATION OF HOME PURCHASED SENIOR-RELATED HOUSING BY TYPE OF HOME PURCHASED AND LOCATION DISTANCE BETWEEN HOME PURCHASED AND PREVIOUS RESIDENCE FACTORS INFLUENCING NEIGHBORHOOD CHOICE

Exhibit 2-8 Exhibit 2-9 Exhibit 2-10 Exhibit 2-11 Exhibit 2-12 Exhibit 2-13 Exhibit 2-14 Exhibit 2-15 Exhibit 2-16

PRICE OF HOME PURCHASED PURCHASE PRICE COMPARED WITH ASKING PRICE SIZE OF HOME PURCHASED NUMBER OF BEDROOMS AND BATHROOMS YEAR HOME BUILT ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED "VERY IMPORTANT" CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED EXPECTED LENGTH OF TENURE IN HOME PURCHASED FACTORS THAT COULD CAUSE BUYER TO MOVE

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-1 NEW AND PREVIOUSLY OWNED HOMES PURCHASED (Percentage Distribution)

89%

90%

84% All Buyers 16% 84%

New 80%Owned Previously

AGE OF HOME BUYER

35 and younger 11% 89%

36 to 50 82% 19% 82%

51 to 60 81% 19% 81%

61 to 69 81% 19% 81%

70 to 90 19% 81%

81%

70% 60% 50%

40% 30% 20%

16%

19%

19%

19%

19%

36 to 50

51 to 60

61 to 69

70 to 90

11%

10% 0% All Buyers

35 and younger

New

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Previously Owned

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-2 WHY NEW AND PREVIOUSLY OWNED HOMES PURCHASED (Percentage Distribution)

AGE OF HOME BUYER

New Home: Avoid renovations or problems with plumbing or electricity Ability to choose and customize design features Amenities of new home construction communities Green/energy efficiency Lack of inventory of previously owned home Other Previously Owned Home: Better price Better overall value More charm and character Lack of inventory of new homes Other

All Buyers

35 and younger

36 to 50

51 to 60

61 to 69

70 to 90

34%

46%

36%

36%

27%

15%

30

25

30

23

38

31

17 11

19 13

17 14

20 9

14 8

17 12

7 12

6 9

8 12

7 13

7 13

8 21

32% 29 19 9 17

41% 27 20 9 12

26% 29 21 12 17

24% 34 18 8 19

32% 27 18 7 18

28% 29 13 4 25

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-3 TYPE OF HOME PURCHASED (Percentage Distribution)

90% 83% Detached single-family home Townhouse/row house 80% Apartment/condo in building with 70% 5 or more units Duplex/apartment/condo in 2 to 4 unit building Other60%

AGE OF HOME BUYER

All Buyers 35 and89% younger 84% 83% 84% 7% 7% 1% 1%

36 to 50 82% 89%

51 to 60

5% 1%

82% 9% 2%

61 to 69

70 to 90

81% 5% 2%

71% 8% 4%

81%

71%

2%

2%

1%

1%

3%

6%

7%

6%

5%

6%

9%

12%

50% 40% 30% 20% 10%

7%

1% 2%

7%

7%

6%

1% 2%

9% 5%

5%

1% 1%

6%

2% 1%

9% 5%

2% 3%

12%

8%

6% 4%

0% All Buyers

35 and younger

36 to 50

Detached single-family home Apartment/condo in building with 5 or more units Other

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60

61 to 69

Townhouse/row house Duplex/apartment/condo in 2 to 4 unit building

70 to 90

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-4 LOCATION OF HOME PURCHASED (Percentage Distribution)

58% All Buyers 35 and younger 51% 51%52% 20% 19% 14% 17% 13% 13% 2% 1%

60% 52% Suburb/Subdivision Small town 50% Urban area/Central city Rural area Resort/Recreation area

AGE OF HOME BUYER

36 to 50 58%51% 16% 13% 13% 1%

51 to 60 51% 20% 13% 13% 2%

53%

61 to 69 53% 21% 8% 13% 5%

70 to 90 42% 29% 13% 9% 42% 7%

40% * Less than 1 percent

29%

30% 20% 14% 13%

21%

20%

19% 17%

20%

16% 13%13%

13%

13% 13%

13%

13% 9%

8%

10%

5% 2%

1%

2%

1%

0% All Buyers

35 and younger

Suburb/Subdivision

Small town

36 to 50

51 to 60

Urban area/Central city

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 Rural area

70 to 90

Resort/Recreation area

7%

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-5 SENIOR-RELATED HOUSING BY TYPE OF HOME PURCHASED AND LOCATION (Percentage Distribution)

Share who purchased a home in senior-related housing Buyers over 50 who purchased senior-related housing: Type of home purchased Detached single-family home Townhouse/row house Duplex/apartment/condo in 2 to 4 unit building Apartment/condo in building with 5 or more units Other Location Suburb/ Subdivision Small town Resort/ Recreation area Urban/ Central city Rural area

AGE OF HOME BUYER

All buyers over 50

51 to 60

61 to 69

70 to 90

14%

7%

16%

30%

67% 7 6 4 15

82% 9 1 2 6

81% 5 3 2 9

71% 8 6 4 12

57% 21 12 8 3

51% 20 2 13 13

53% 21 5 8 13

42% 29 7 13 9

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-6 DISTANCE BETWEEN HOME PURCHASED AND PREVIOUS RESIDENCE (Median Miles)

Miles 14 10 10 14 34 25

All Buyers 35 and 35 younger 36 to 50 51 to 3060 61 to 69 70 to 90 25

34

25

20 14

14

15 10

10

10 5 0 All Buyers

35 and younger

36 to 50

51 to 60

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-7 FACTORS INFLUENCING NEIGHBORHOOD CHOICE (Percent of Respondents) AGE OF HOME BUYER

All Buyers Quality of the neighborhood Convenient to job Overall affordability of homes Convenient to friends/family Design of neighborhood Convenient to shopping Quality of the school district Convenient to entertainment/leisure activities Convenient to schools Availability of larger lots or acreage Convenient to parks/recreational facilities Convenient to health facilities Home in a planned community Convenient to public transportation Convenient to airport Other

59% 44 38 35 26 25 25

35 and younger 63% 60 50 39 26 20 37

36 to 50 63% 50 35 29 24 22 41

51 to 60 56% 43 35 28 28 22 11

61 to 69 56% 18 32 39 26 33 3

70 to 90 52% 8 29 50 26 38 3

20 20 18

24 27 20

16 34 20

18 8 18

24 2 15

18 3 8

17 11 9 5 5 5

20 6 5 6 5 3

19 6 6 5 5 5

13 10 10 3 7 8

13 18 17 4 6 7

16 30 17 4 5 8

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-8 PRICE OF HOME PURCHASED (Percentage Distribution)

AGE OF HOME BUYER

Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price

All Buyers 4% 5 6 10 9 9 15 12 8 5 6 10 $220,000

35 and younger 5% 6 8 13 12 10 16 9 6 4 5 7 $187,400

36 to 50 4% 3 5 7 7 7 13 13 10 8 10 14 $263,200

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 5% 6 5 9 8 8 12 13 9 6 7 12 $239,000

61 to 69 4% 6 6 9 9 9 20 13 8 4 5 8 $220,000

70 to 90 5% 4 7 11 10 9 18 12 9 3 7 4 $209,100

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-9 PURCHASE PRICE COMPARED WITH ASKING PRICE (Percentage Distribution)

AGE OF HOME BUYER

Percent of asking price: Less than 90% 90% to 94% 95% to 99% 100% 101% to 110% More than 110% Median (purchase price as a percent of asking price)

All Buyers 10% 17 36 26 9 1

35 and younger 9% 16 38 23 12 1

36 to 50 10% 14 36 28 10 2

51 to 60 12% 19 33 27 8 1

61 to 69 10% 23 35 26 4 2

70 to 90 8% 19 35 32 4 3

98%

98%

98%

97%

97%

98%

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-10 SIZE OF HOME PURCHASED (Percentage Distribution)

All Buyers 1,000 sq ft or less 1,001 to 1,500 sq ft 1,501 to 2,000 sq ft 2,001 to 2,500 sq ft 2,501 to 3,000 sq ft 3,001 to 3,500 sq ft 3,501 sq ft or more Median (sq ft)

* 13 28 27 15 9 9 1,900

AGE OF HOME BUYER

35 and younger 1% 16 34 25 12 7 6 1,720

36 to 50 * 9 21 23 18 14 15 2,200

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 1% 12 23 30 16 9 9 1,960

61 to 69 * 12 26 34 13 9 6 1,950

70 to 90 * 15 31 27 14 8 4 1,800

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-11 NUMBER OF BEDROOMS AND BATHROOMS (Percentage Distribution)

All Buyers One bedroom Two bedrooms Three bedrooms or more Median number of bedrooms One full bathroom Two full bathrooms Three full bathrooms or more Median number of full bathrooms

* 13 87 3 15 63 22 2

AGE OF HOME BUYER

35 and younger * 10 90 3 22 63 15 2

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 * 7 93 4 12 54 34 2

51 to 60 1% 15 84 3 14 63 23 2

61 to 69 * 19 81 3 8 73 19 2

70 to 90 * 31 69 3 12 73 15 2

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-12 YEAR HOME BUILT (Median)

AGE OF HOME BUYER

2014 2013 through 2010 2009 through 2006 2005 through 2001 2000 through 1986 1985 through 1960 1959 through 1912 1911 or earlier Median

All Buyers 15% 3 8 11 21 25 15 3 1991

35 and younger 12% 2 6 10 19 27 21 5 1984

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 18% 3 8 12 17 25 15 2 1992

51 to 60 17% 5 8 11 20 23 14 2 1995

61 to 69 17% 3 8 12 29 21 10 1 1995

70 to 90 14% 5 9 15 25 21 10 1 1998

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-13 ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED "VERY IMPORTANT" (Percent of Respondents)

AGE OF HOME BUYER

All Buyers

40% Heating and cooling costs 35% Commuting costs 35% efficient appliances Energy

35 and younger 37%33% 35% 35%

35% 35% 30% 33% 22%

Energy efficient lighting 30% Environmentally friendly community 30% features Landscaping for energy conservation 25% 22%on 22%home Solar panels installed

22% 10%

36 to 50 37%

18%

35% 23%

18% 7%

23% 10%

8%

10%

38%

30%

51 to 60

61 to 69

70 to 90

38%

34%

32%

30% 24%

15% 34% 22%

16% 23%

24% 10%

20% 11%

27% 18%

12% 24% 24% 2%

10%

15%

32%

27%

10% 2%

2%

23% 23%

2%

1%22%

2%

23%

20%

20%

18% 18%

18% 16%

15% 15%

12% 10% 10%

10%

5%

10%10% 7%

10%

11%

10%

8%

2%

2%

2%

2%

1%

0% All Buyers Heating and cooling costs Energy efficient lighting Solar panels installed on home

15%

35 and younger

36 to 50 51 to 60 Commuting costs Environmentally friendly community features

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 70 to 90 Energy efficient appliances Landscaping for energy conservation

2%

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-14 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED (Percent of Respondents)

Price of home Condition of home Size of home Lot size Style of home Distance from job Distance from friends or family Quality of the neighborhood Quality of the schools Distance from school None - Made no compromises Other compromises not listed

All Buyers 20% 19 17 14 13 13 6 6 4 2 35 7

AGE OF HOME BUYER

35 and younger 22% 19 21 18 17 18 8 7 7 1 27 7

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 22% 20 18 16 14 17 6 7 4 3 32 7

51 to 60 18% 16 15 12 10 11 5 6 2 1 39 7

61 to 69 16% 21 11 7 10 4 6 3 1 * 46 8

70 to 90 15% 14 17 8 8 1 5 5 * * 53 10

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-15 EXPECTED LENGTH OF TENURE IN HOME PURCHASED (Percentage Distribution)

All Buyers 1 year or less 2 to 3 years 4 to 5 years 6 to 7 years 8 to 10 years 11 to 15 years 16 or more years Don't Know Median

2% 4 9 2 14 6 26 38 14

AGE OF HOME BUYER

35 and younger 1% 4 14 4 18 5 22 33 10

36 to 50 2% 3 8 2 15 7 31 33 15

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 3% 3 6 3 11 5 20 40 15

61 to 69 2% 7 4 1 10 5 31 40 20

70 to 90 44% 3 2 * 11 8 13 58 15

CHARACTERISTICS OF HOMES PURCHASED Exhibit 2-16 FACTORS THAT COULD CAUSE BUYER TO MOVE (Percentage Distribution)

All Buyers

50% Move with life changes* Never 45% moving-forever home Move with job or career change 40% 39% May desire better 40% area/neighborhood May outgrow home 35% Will flip home Other 30%

40% 23% 16% 8% 6% 1% 6%

AGE OF HOME BUYER

35 and younger 39% 12% 24% 38%

10% 12% 1% 3%

51 to 60 47% 26% 14%

61 to 69 45% 45% 40% 40%2%

10% 5% 1% 4%

5% 1% 2% 5%

5% * 1% 7%

70 to 90 34% 41% 1% 41% 6% * 34% 2% 16%

26%

* Less than 1 percent

25%

3647% to 50 38% 21% 22%

24%

23%

22% 21%

20%

16%

16% 14%

15%

12% 8% 6%

10%

12% 10%

10% 7%

6%

5% 3%

5% 1%

1%

5%

4%

5% 2% 1%

1%

5% 2% %

1%

6% 1%

2% %

0% All Buyers

35 and younger

36 to 50

51 to 60

61 to 69

70 to 90

Move with life changes*

Never moving-forever home

Move with job or career change

May desire better area/neighborhood

May outgrow home

Will flip home

Other

*Life changes: addition to family, marriage, children move out, retirement, etc.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyers and Sellers Generational Trends Chapter 3: The Home Search Process Searching online continues to be the first step that most buyers took. Real estate agents remain a vital part of the home search process, and are the second most frequently used information source for younger home buyers and the most frequently used information source for Younger Boomers, Older Boomers, and Silent Generation buyers. Compared to last year, Older Boomer and Silent Generation buyers continued to search for eight weeks. The search time increased for Gen X buyers and decreased for Millennial buyers. Using the internet to search for homes increased among all generations this year with more buyers frequently using the internet. In response to looking at homes on the internet, buyers typically walked through the homes that they viewed online. Buyers also valued website features such as photos, and detailed property information. Overall buyers of all generations continue to be very satisfied with their home buying process. THE FIRST STEP IN THE HOME BUYING PROCESS AND INFORMATION SOURCES Exhibits 3-1 through 3-3 Among nearly all generations of home buyers, the first step taken was to look online for properties. Thirty-eight percent of buyers that were 35 and younger, 43 percent aged 36 to 50, 47 percent aged 51 to 60, and 53 percent of buyers aged 61 to 69 looked online for properties for sale at 31 percent. The first step that was taken by 70 to 90 year old buyers was to contact a real estate agent. It was interesting this year that fewer Millennials looked online for properties as their first step (38 percent) compared to in 2014 (44 percent), but more looked online about the buying process and reached out to an agent. The most used information source for Millennial (35 and younger) and Gen Y (35 to 49) buyers was online websites. Among Younger Boomer (50 to 59), Older Boomers (60 to 68), and Silent Generation (69 to 89), their most used information source was a real estate agent. The length of the home search was the longest for buyers 36 to 50 years old, at 12 weeks. Buyers 35 and younger and 51 to 60 both search for 10 weeks, while buyers 61 to 69 and buyers 70 to 90 searched for only eight weeks. All generations except for the Silent Generation viewed 10 homes, while Silent Generation buyers viewed only eight homes. FINDING THE PURCHASED HOME Exhibit 3-4 and 3-7 Similar to the info sources used, younger generations typically found the home they purchased through the internet. Over half of Millennial (52 percent) and Gen X (51 percent) buyers found their home through the internet. Two in five Older Boomer and Silent Generation buyers found their home through a real estate agent.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

When looking during the home search process, buyers 35 and younger were the most likely generation to consider purchasing a home that was in foreclosure. A trend showed that as the buyers got older, they were less likely to consider purchasing a home in foreclosure. Across all generations, the most difficult step in the home buying process was finding the right property. Over 50 percent of buyers from all generations frequently used the internet to search for their home. Ninety percent of Millennials and Gen X buyers frequently used the internet during their home search. WEBSITE AND MOBILE SEARCH Exhibit 3-8 through 3-10 As a result of an internet home search, buyers most often walked through the home that they viewed online. Millennials, Gen X, and Younger Boomer buyers also saw the exterior of homes as a result of searching online for properties. The most important website feature to Millennial, Gen X, and Older Boomer home buyers was photos at 88 percent, 90 percent, and 82 percent respectively. Detailed information about properties was the most important website feature for the Silent Generation at 75 percent. Photos and detailed information about properties for sale were both equally important website features for Younger Boomer buyers at 86 percent. Using mobile applications during the home search was common among younger generations of buyers. Seventy-one percent of both Millennial and Gen X buyers found their homes through a mobile application. Fifty-eight percent of Younger Boomers, 36 percent of Older Boomers, and 30 percent of Silent Generation buyers found their homes by using a mobile application, if they used a mobile device to search. Recent buyers also used mobile applications to find the agents that used during the home buying process. Surprisingly, Older Boomers more than any other generation found their agent through a mobile application. SATISFACTION IN BUYING PROCESS Exhibit 3-11 Buyers of all generations were overall very satisfied with their home buying process. Silent Generation buyers were the most satisfied with the buying process, than any other generation with 72 percent saying that they were very satisfied. Sixty-four percent of Older Boomer, 62 percent of Younger Boomer, 53 percent of Gen X, and 56 percent of Millennial buyers were very satisfied with the buying process.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-1 Exhibit 3-2 Exhibit 3-3 Exhibit 3-4 Exhibit 3-5 Exhibit 3-6 Exhibit 3-7 Exhibit 3-8 Exhibit 3-09 Exhibit 3-10 Exhibit 3-11

FIRST STEP TAKEN DURING THE HOME BUYING PROCESS INFORMATION SOURCES USED IN HOME SEARCH LENGTH OF SEARCH WHERE BUYER FOUND THE HOME THEY PURCHASED BUYER INTEREST IN PURCHASING A HOME IN FORECLOSURE MOST DIFFICULT STEPS OF HOME BUYING PROCESS USE OF INTERNET TO SEARCH FOR HOMES ACTIONS TAKEN AS A RESULT OF INTERNET HOME SEARCH VALUE OF WEBSITE FEATURES MOBILE SEARCH SATISFACTION IN BUYING PROCESS

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-1 FIRST STEP TAKEN DURING THE HOME BUYING PROCESS (Percentage Distribution)

All Buyers Looked online for properties for sale Contacted a real estate agent Looked online for information about the home buying process Talked with a friend or relative about home buying process Contacted a bank or mortgage lender Drove-by homes/neighborhoods Visited open houses Looked up information about different neightborhoods or areas (schools, local lifestyle/nightlife, parks, public transpo Contacted builder/visited builder models Contacted a home seller directly Looked in newspapers, magazines, or home buying guides Attended a home buying seminar Read books or guides about the home buying process Other

AGE OF HOME BUYER 36 to 50 51 to 60 43% 47% 13 16 13 5

42% 14 13

35 and younger 38% 13 18

61 to 69 53% 18 4

70 to 90 28% 31 *

5

8

3

1

2

*

7 7 3 2

9 5 2 2

9 8 3 4

5 10 3 2

* 4 * *

* 6 * *

2 * *

1 * *

2 * 1

6 3 *

9 * *

* * *

* *

1 *

* *

* *

* *

* *

6

3

3

9

14

25

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-2 INFORMATION SOURCES USED IN HOME SEARCH (Percent of Respondents)

AGE OF HOME BUYER All Buyers Online website Real estate agent Mobile or tablet website or application Mobile or tablet search engine Yard sign Open house Online video site Home builder Print newspaper advertisement Home book or magazine Billboard Television Relocation company

89% 87 57 54

35 and younger 93% 87 71 66

36 to 50 92% 87 64 61

51 to 60 87% 89 46 43

61 to 69 84% 89 38 36

70 to 90 70% 89 26 25

51

50

53

54

39

52

48 29 20 20 13 6 3 3

45 24 15 17 12 4 4 3

53 29 23 18 13 6 3 5

50 32 22 24 13 4 5 5

39 31 19 21 16 4 2 1

49 34 25 30 14 4 2 4

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-3 LENGTH OF SEARCH (Median)

AGE OF HOME BUYER Number of Weeks Searched Number of Weeks Searched Before Contacting an Agent Number of homes viewed

All Buyers 10

35 and younger 10

36 to 50 12

51 to 60 10

61 to 69 8

70 to 90 8

2 10

3 10

2 10

3 10

3 10

2 8

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-4 WHERE BUYER FOUND THE HOME THEY PURCHASED (Percentage Distribution)

All Buyers 35 and younger Internet 44% 52% Real estate agent 33 30 Yard sign/open house sign 9 6 Friend, relative or neighbor 6 5 Home builder or their agent 6 4 Directly from sellers/Knew the sellers 2 2 Print newspaper advertisement 1 * Home book or magazine * * Other * 1 * Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 51% 39% 26 24 8 11 6 7 6 1 2 2 1 6 * * 1 1

61 to 69 33% 41 10 6 7 1 1 * *

70 to 90 24% 40 13 12 7 1 2 1 *

THE HOME SEARCH PROCESS Exhibit 3-5 BUYER INTEREST IN PURCHASING A HOME IN FORECLOSURE (Percent of Respondents)

Did not consider purchasing a home in foreclosure Considered purchasing a home in foreclosure, but did not: Could not find the right home The process was too difficult or complex The home was in poor condition The home price was too high The neighborhood was undesirable Financing options were not attractive

All Buyers 59%

35 and younger 49%

23 11 10 4 4 3

29 14 14 5 5 5

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 61 to 69 54% 65% 72% 26 13 10 4 4 3

20 8 7 3 5 2

16 7 6 2 3 1

70 to 90 81% 11 5 4 3 2 2

THE HOME SEARCH PROCESS Exhibit 3-6 MOST DIFFICULT STEPS OF HOME BUYING PROCESS (Percent of Respondents)

AGE OF HOME BUYER All Buyers 35 and younger Finding the right property Paperwork Understanding the process and steps Getting a mortgage Saving for the down payment Appraisal of the property No difficult steps Other

36 to 50

51 to 60

61 to 69

70 to 90

51% 23

54% 27

52% 24

49% 21

49% 20

43% 17

14 13 13 5 17 6

24 16 21 7 10 5

13 13 17 5 13 7

7 10 6 4 23 5

6 11 2 3 24 6

8 7 1 3 33 6

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-7 USE OF INTERNET TO SEARCH FOR HOMES

All Buyers 100% 35 and younger 36 to 90% 50 51 to 60 80% 61 to 69 70 to 70% 90

Frequently 82% 7% 90% 10%

90% 80% 74% 51%

Occasionally 10% 7% 7% 7% 12% 14% 21%

12% 14%

21%

60% 50% 40%

82%

90%

90% 80%

74%

30%

51%

20% 10% 0% All Buyers

35 and younger

36 to 50

51 to 60

Frequently

Occasionally

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

THE HOME SEARCH PROCESS Exhibit 3-8 ACTIONS TAKEN AS A RESULT OF INTERNET HOME SEARCH (Percent of Respondents Among Buyers Who Used the Internet)

All Buyers 35 and younger Walked through home viewed online 65% 63% Saw exterior of homes/neighborhood, but did not walk through 38 home 41 Found the agent used to search for or buy home 33 33 Requested more information 27 32 Contacted builder/developer 17 18 Looked for more information on how to get a mortgage and general home buyers tips 14 22 Pre-qualified for a mortgage online 13 13 Applied for a mortgage online 10 12 Found a mortgage lender online 8 12

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 70% 65% 39 36 27 30 27 22 20 18 14 14 11 7

7 13 9 6

61 to 69 64% 31 43 21 13

70 to 90 56% 29 46 25 10

5 12 7 5

4 10 4 5

THE HOME SEARCH PROCESS Exhibit 3-09 VALUE OF WEBSITE FEATURES (Percentage Ranking Feature "Very Useful" Among Buyers Who Used the Internet)

Photos Detailed information about properties for sale Interactive maps Virtual tours Real estate agent contact information Neighborhood information Detailed information about recently sold properties Pending sales/contract status Information about upcoming open houses Videos Real estate news or articles

All Buyers 35 and younger 88% 87%

AGE OF HOME BUYER 36 to 50 51 to 60 90% 86%

61 to 69 82%

70 to 90 71%

84 45 42 42 40

84 49 39 38 42

85 52 43 39 46

86 41 44 40 36

78 29 40 50 28

75 26 45 57 41

37 33

37 37

42 39

36 31

30 20

32 20

24 22 8

26 22 9

29 23 9

26 21 7

13 16 5

16 24 7

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

THE HOME SEARCH PROCESS Exhibit 3-10 MOBILE SEARCH (Percent of Respondents Among those Who Used Mobile Search)

Found 80% my home with a mobile application Found my agent with a mobile application 71% 70%

AGE OF HOME BUYER 36 to 50 51 to 60 71% 58% 11% 4%

All Buyers 35 and younger 66% 71% 13% 10% 71%

61 to 69 36% 34%

70 to 90 30% 17%

66% 58%

60%

50%

36%

40%

34% 30%

30%

17%

20% 13% 10%

11%

10%

4%

% All Buyers

35 and younger

36 to 50

Found my home with a mobile application

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60

61 to 69

Found my agent with a mobile application

70 to 90

THE HOME SEARCH PROCESS Exhibit 3-11 SATISFACTION IN BUYING PROCESS (Percentage Distribution)

80%

AGE OF HOME BUYER 36 to 50 51 to 60 53% 62% 64% 35% 31% 62% 8% 5% 4% 3%

All Buyers 35 and younger 59% 56% 32% 34% 7% 7% 56% 53% 3% 3%

Very Satisfied 70% Somewhat Satisfied 59% Somewhat Dissatisfied 60% Very Dissatisfied

61 to 69 64% 28% 6% 2%

72%70 to 90 72% 20% 4% 4%

50% 40%

35%

34%

32%

31%

28%

30%

20%

20% 10%

7%

8%

7% 3%

5%

4%

3%

3%

6%

4% 4%

2%

0% All Buyers Very Satisfied

35 and younger

36 to 50

Somewhat Satisfied

51 to 60 Somewhat Dissatisfied

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90 Very Dissatisfied

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyers and Sellers Generational Trends Chapter 4: Home Buying and Real Estate Professionals Purchasing a home through a real estate agent continues to be the most used purchase method for recent buyers. When choosing an agent to work with, buyers wanted help finding the right home, negotiating sales terms, and negotiating prices. Millennial buyers, more than any other generation, found the most used benefit provided by their agent was help understanding the home buying process. Referrals remain the primary way that buyers are finding their agent. Particularly among Millennial and Gen X buyers, referrals were used more compared to other generations. Recent buyers initially contacted their age by phone, and interviewed only one agent. Buyers were overall very satisfied with their agent’s skills and qualities, such as honesty and integrity, and knowledge of the purchase process. The majority of buyers would definitely recommend or use their agent again. METHOD OF HOME PURCHASE Exhibits 4-1 to 4-4 Buyers from all generations typically used a real estate agent or broker to purchase their home. In 2015 younger buyers used agents more often than older buyer to purchase. Eighty-nine percent of Millennials, 87 percent of Gen X buyers, and 85 percent of Younger Boomers purchased their home through an agent. Five percent of Older Boomers and seven percent of Silent Generation buyers purchased their homes directly from the previous owner. Older buyers are more likely than younger buyers to buyer directly from a builder or builder’s agent. When working with an agent, whether or not buyers signed an agent representation disclosure varied by generation. Twenty-four percent of Millennial buyers did not sign a disclosure agreement, while 23 percent signed a disclosure at their first meeting. Gen X (25 percent), Younger Boomers (28 percent), Older Boomers (37 percent), and Silent Generation buyers typically signed an agreement at the first meeting. Buyer representation arrangements were typically written agreements. Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations. Particularly important to Older Boomer buyers was to have help determining what comparable homes were selling for (14 percent). AGENT BENEFITS AND CONTACT METHOD Exhibits 4-5 to 4-8 Working with a real estate agent during the home buying process has many benefits. The benefit that most buyers cited was help understanding the purchase process. Help understanding the purchase process was most beneficial to Millennial buyers at 71 percent.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Referrals continue to be the way that most buyers find their real estate agent. Referrals by friends, neighbors, or relatives were higher among younger buyers such as Millennials (46 percent) and Gen X (43 percent) buyers than with the older generations. Buyers of all generations initially contacted their agent by phone. Initial contact through e-mail was most common among Millennial (21 percent) and Gen X (18 percent) buyers. Silent Generation (27 percent) and Younger Boomers (23 percent) buyers were the most likely to initially talk to their agent in person. When interviewing agents to work with, buyers often interviewed only one real estate agent. At 70 percent, Silent Generation buyers were the most likely to interview only one agent, perhaps they are more likely to have past relationships with agents. Among buyers who interviewed four or more agents, Millennials were the most likely to do so at five percent. CHOOSING A REAL ESTATE AGENT Exhibits 4-9 to 4-11 When choosing an agent to work with, the agent’s reputation was the most important factor for Younger Boomer (26 percent), Older Boomers (25 percent), and Silent Generation (24 percent) buyers. The most important factor for Millennial buyers was having an agent that is honest and trustworthy (24 percent). Gen X buyers found that having an agent who is honest and trustworthy, as well as having a good reputation to be equally important, both at 23 percent. Recent buyers from all generations looked for agents who were honest and had integrity, were responsive, had knowledge of the purchase process, and knowledge of the real estate market. It is interesting to see that an agent’s skills with technology were more important to Older Boomer (52 percent) and Silent Generation (53 percent) buyers, than to Millennials and Gen X buyers, both at 44 percent. When communicating with their agent, recent buyers found it important that their agent personally calls to inform them of activities. Particularly important to Millennial (70 percent) and Gen X (69 percent) buyers was that their agent send them postings as soon as a property is listed, a price changes, or is under contract, indicating low inventory in the markets they want to buy in. SATIFICATION AND RECOMMENDATION OF AGENT Exhibits 4-12 to 4-14 Recent buyers from all generations were satisfied with their real estate agent’s skills and qualities. Millennials (87 percent) and Younger Boomers (89 percent) were the most satisfied with their agent’s honesty and integrity. Gen X (86 percent), Older Boomers (88 percent), and Silent Generation (89 percent) buyers were the most satisfied with their agent’s knowledge of the purchase process. Across all generations, the majority of recent buyers would definitely use their agent again or recommend their agent to others. Eighty-two percent of Millennials, 86 percent of Gen X, 90 percent of Younger Boomers, 88 percent of Older Boomers, and 89 percent of Silent Generation buyers would definitely or probably use again or recommend their agent to others. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Since purchasing, Millennial and Older Boomer buyers have recommended their agent once. Gen X buyers and Younger Boomer buyers have recommended their agent twice. Fifty percent of Silent Generation buyers have not recommended their agent.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-1 Exhibit 4-2 Exhibit 4-3 Exhibit 4-4 Exhibit 4-5 Exhibit 4-6 Exhibit 4-7 Exhibit 4-8 Exhibit 4-9 Exhibit 4-10 Exhibit 4-11 Exhibit 4-12 Exhibit 4-13 Exhibit 4-14

METHOD OF HOME PURCHASE AGENT REPRESENTATION DISCLOSURE BUYER REPRESENTATIVE ARRANGEMENT WITH AGENT WHAT BUYERS WANT MOST FROM REAL ESTATE AGENTS BENEFITS PROVIDED BY REAL ESTATE AGENT DURING HOME PURCHASE PROCESS HOW BUYER FOUND REAL ESTATE AGENT HOW TIMES CONTACTED AGENT BEFORE RECEIVED RESPONSE AND ORIGINAL FORM OF CONTACT NUMBER OF REAL ESTATE AGENTS INTERVIEWED MOST IMPORTANT FACTORS WHEN CHOOSING AN AGENT AGENT SKILLS AND QUALITIES CONSIDERED 'VERY IMPORTANT' IMPORTANCE OF AGENT COMMUNICATIONS SATISFACTION WITH REAL ESTATE AGENT SKILLS AND QUALITIES WOULD BUYER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS HOW MANY TIMES BUYER RECOMMENDED TYPICAL AGENT

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-1 METHOD OF HOME PURCHASE (Percentage Distribution)

Through a real estate agent or broker Directly from builder or builder's agent Directly from the previous owner Knew previous owner Did not know previous owner

All Buyers 87% 8 5 3 2

35 and younger 89% 5 6 3 3

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 87% 85% 8 8 5 6 3 3 2 3

61 to 69 84% 10 5 3 2

70 to 90 83% 9 7 3 4

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-2 AGENT REPRESENTATION DISCLOSURE (Percentage Distribution)

Disclosure Statement Signed? Yes, at first meeting Yes, when contract was written Yes, at some other time No Don’t know

All Buyers 27% 22 12 22 18

35 and younger 23% 22 12 24 19

AGE OF HOME BUYER 36 to 50 51 to 60 25% 28% 22 23 15 13 23 17 14 19

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 37% 19 9 19 17

70 to 90 28% 23 7 23 19

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-3 BUYER REPRESENTATIVE ARRANGEMENT WITH AGENT (Percentage Distribution)

Yes, a written arrangement Yes, an oral arrangement No Don't know

All Buyers 40% 18 29 13

35 and younger 38% 17 29 16

AGE OF HOME BUYER 36 to 50 51 to 60 42% 40% 19 16 28 33 10 12

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 40% 17 33 10

70 to 90 30% 20 37 13

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-5 BENEFITS PROVIDED BY REAL ESTATE AGENT DURING HOME PURCHASE PROCESS (Percent of Respondents)

All Buyers Helped buyer understand the process Pointed out unnoticed features/faults with property Negotiated better sales contract terms Provided a better list of service providers Improved buyer's knowledge of search areas Negotiated a better price Shortened buyer's home search Provided better list of mortgage lenders Expanded buyer's search area Narrowed buyer's search area None of the above Other

60% 55 48 47 45 37 30 22 20 17 6 2

35 and younger 71% 58 52 48 45 38 31 25 21 16 6 1

*Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 57% 53% 54 52 46 44 47 43 40 47 34 32 23 29 26 18 21 20 13 15 7 9 2 2

61 to 69 51% 48 42 46 47 36 36 13 18 24 7 1

70 to 90 46% 46 36 36 41 33 37 11 16 19 10 2

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-4 WHAT BUYERS WANT MOST FROM REAL ESTATE AGENTS (Percentage Distribution)

All Buyers Help find the right home to purchase Help buyer negotiate the terms of sale Help with the price negotiations Determine what comparable homes were selling for Help with paperwork Help determining how much home buyer can afford Help find and arrange financing Help teach buyer more about neighborhood or area (restaurants, parks, public transportation) Help find renters for buyers property Other

AGE OF HOME BUYER 36 to 50 51 to 60 47% 58% 14 12 13 9

53% 12 11

35 and younger 49% 13 12

7 6

7 8

8 6

4 4

5 4

1 * 2

2 * 2

*Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 54% 9 7

70 to 90 58% 10 11

6 4

14 4

5 7

5 3

4 4

4 4

2 2

1 * 2

1 * 2

2 1 2

1 * 4

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-6 HOW BUYER FOUND REAL ESTATE AGENT (Percentage Distribution)

AGE OF HOME BUYER 36 to 50 51 to 60

All Buyers

35 and younger

61 to 69

70 to 90

41% 12

46% 7

43% 12

36% 15

32% 15

35% 17

Internet Web site (without a specific reference) Visited an open house and met agent Saw contact information on For Sale/Open House sign Referred by another real estate agent/broker Personal contact by agent (telephone, e-mail, etc.)

10 5

10 6

8 4

8 5

17 4

7 5

5 5

4 6

5 5

5 4

6 4

6 4

4

4

3

3

6

6

Referred through employer or relocation company Walked into or called office and agent was on duty Search engine Mobile or tablet application Newspaper, Yellow Pages or home book ad Advertising specialty (calendar, magnet, etc.) Crowdsourcing through social media/knew the person through social media Direct mail (newsletter, flyer, postcard, etc.) Saw the agent's social media page without a connection Other

3

3

5

5

1

1

2 1 1 * *

1 1 1 * *

2 1 * * *

4 1 * * *

3 2 * 1 *

5 1 * 1 1

* *

* *

* *

* *

* *

* *

* 10

* 10

* 10

* 13

* 10

* 9

Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a home

*Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-7 HOW TIMES CONTACTED AGENT BEFORE RECEIVED RESPONSE AND ORIGINAL FORM OF CONTACT (Median, Percentage Distribution)

AGE OF HOME BUYER

Phone call Talked to them in person E-mail Contacted friend/family Web form on home listing website Text message Through agent's website Social Media (FaceBook, Twitter, LinkedIn, etc.) Number of Times Contacted (median)

All Buyers 44% 20 17 9 5 3 2 1 1

35 and younger 40% 17 21 9 6 3 2 2 1

*Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 42% 20 18 9 5 4 2 1 1

51 to 60 48% 23 13 9 4 1 2 1 1

61 to 69 44% 21 16 9 4 2 4 * 1

70 to 90 50% 27 7 8 3 2 2 1 1

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-8 NUMBER OF REAL ESTATE AGENTS INTERVIEWED (Percentage Distribution)

All Buyers 35 and younger 67% 67% 70% One 67% 67% Two 20% 19% Three60% 9% 8% Four or more 5% 5%

AGE OF HOME BUYER 36 51 to 60 67% to 50 66% 67% 66% 20% 22% 9% 8% 4% 4%

61 to 69 67%70 to 90 67% 70% 18% 18% 10% 8% 4% 3%

70%

50%

40%

30% 20%

22%

20%

19%

18%

20%

9% 10%

9%

8% 5%

5%

8% 4%

4%

18%

10%

8%

4%

3%

0%

All Buyers

35 and younger

36 to 50

51 to 60 One

Two

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 Three

Four or more

70 to 90

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-9 MOST IMPORTANT FACTORS WHEN CHOOSING AN AGENT (Percentage Distribution)

Reputation of agent Agent is honest and trustworthy Agent is friend or family member Agent’s knowledge of the neighborhood Agent has caring personality/good listener Agent is timely with responses Agent seems 100% accessible because of use of technology like tablet or smartphone Agent’s association with a particular firm Professional designations held by agent Other

All Buyers 35 and younger 23% 20% 21 24 16 16 13 11 8 8 7 9

AGE OF HOME BUYER 36 to 50 51 to 60 23% 26% 23 20 17 15 12 16 8 8 6 5

61 to 69 25% 15 15 14 10 6

70 to 90 24% 16 15 14 6 6

5

5

4

4

4

6

3 1 1

2 2 1

3 1 1

2 1 *

4 1 *

7 2 *

*Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-10 AGENT SKILLS AND QUALITIES CONSIDERED 'VERY IMPORTANT' (Percent of Respondents)

Honesty and integrity Responsiveness Knowledge of purchase process Knowledge of real estate market Communication skills Negotiation skills People skills Knowledge of local area Skills with technology

All Buyers 35 and younger 97% 98% 93 93 92 93 90 89 86 87 83 83 79 79 77 73 46 44

AGE OF HOME BUYER 36 to 50 51 to 60 97% 97% 93 92 92 88 89 92 87 85 85 80 80 79 74 81 44 43

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 96% 93 92 92 86 79 80 85 52

70 to 90 97% 92 91 91 81 77 78 85 53

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-11 IMPORTANCE OF AGENT COMMUNICATIONS (Percent of Respondents)

Calls personally to inform of activities Sends postings as soon as a property is listed/the price changes/under contract Sends property info and communicates via text message Sends emails about specific needs Can send market reports on recent listings and sales Has a web page Has a mobile site to show properties Is active on Facebook/Twitter Sends an email newsletter Advertises in newspapers Has a blog

All Buyers 35 and younger 78% 75%

AGE OF HOME BUYER 36 to 50 51 to 60 77% 80%

61 to 69 83%

70 to 90 81%

68

70

69

67

63

57

55 54

58 58

60 56

53 54

51 48

38 39

51 29 27 12 9 5 2

48 29 28 11 8 3 1

57 28 26 12 8 5 2

49 29 24 11 9 7 2

53 33 31 16 11 7 1

46 32 29 12 13 13 3

*Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-12 SATISFACTION WITH REAL ESTATE AGENT SKILLS AND QUALITIES (Percent Ranking 'Very Satisfied')

Honesty and integrity Knowledge of purchase process Knowledge of real estate market Responsiveness People skills Communication skills Knowledge of local area Skills with technology Negotiation skills

All Buyers 35 and younger 88% 87% 87 86 86 84 85 83 85 84 82 81 82 80 80 81 75 73

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 85% 89% 86 88 84 87 84 86 85 88 81 85 79 85 75 81 71 78

61 to 69 87% 88 87 85 83 83 87 82 77

70 to 90 87% 89 85 86 83 83 86 80 75

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-13 WOULD BUYER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS (Percentage distribution)

80% Definitely Probably 70% Probably Not Definitely Not

60%

Don't Know

72%

All Buyers 35 and younger 72% 70% 70% 16% 17% 5% 6% 5% 5% 2% 2%

AGE OF HOME BUYER 36 to 50 51 75% to 60 69% 75% 69% 17% 15% 6% 4% 5% 4% 2% 2%

61 to 69 76% 12% 4% 6% 1%

76%

70 to 90 72% 17% 4% 5% 2%

72%

50%

40%

30%

20%

17%

16%

17%

17%

15%

12% 10%

6% 5%

5% 5% 2%

6% 5% 2%

4% 4%

2%

2%

4%

6%

4% 5% 1%

0% All Buyers

35 and younger Definitely

Probably

36 to 50

51 to 60

Probably Not

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Definitely Not

61 to 69 Don't Know

70 to 90

2%

HOME BUYING AND REAL ESTATE PROFESSIONALS Exhibit 4-14 HOW MANY TIMES BUYER RECOMMENDED TYPICAL AGENT (Percentage distribution)

None One time Two times Three times Four or more times Times recommended since buying (median)

All Buyers 35 and younger 36% 35% 15 18 19 20 11 12 19 16 1

1

AGE OF HOME BUYER 36 to 50 51 to 60 34% 35% 14 15 20 20 11 10 20 21 2

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

2

61 to 69 36% 15 19 8 22

70 to 90 50% 11 12 9 18

1

*

NATIONAL ASSOCIATION OF REALTORS 2016 Home Buyer and Seller Generational Trends Chapter 5: Financing the Home Purchase While many share the desire to own their own home, financing the purchase has a variety of obstacles according to this year’s survey responses. Eighty-six percent of all buyers financed their homes last year, down from 88 percent the year prior. Consistent with previous years, younger buyers are more likely to finance their home purchase. Ninety-seven percent of Gen Y buyers financed, whereas only 68 percent of buyers over the age of 61 years financed their home. Eighty percent of Gen Y buyers used savings to finance their home purchase compared to only 34 percent of Silent Generation buyers. Older Boomers used proceeds from a previous sale more than any other generation at 53 percent. Younger buyers were also more likely to use a gift from a friend of relative for their downpayment. Thirteen percent of all buyers reported that saving for the downpayment was the most difficult task. For Gen Y buyers, this was 21 percent compared to only one percent of Silent Generation buyers. Sixteen percent of buyers said that the mortgage application process was more difficult than expect and 17 percent said it was easier. The bulk of buyers said that the mortgage application and approval process was no more difficult than expected at 43 percent, which was consistent across age groups. Twenty-one percent of buyers 51 to 60 years and 70 years and older said the process was easier than expected. Nineteen percent of buyers 61 to 69 said the process was much more difficult than expected. Buyers Who Financed Their Home Exhibits 5-1 and 5-2 Eighty-six percent of all buyers financed their homes last year, down from 88 percent the year prior. Consistent with previous years, younger buyers are more likely to finance their home purchase. Ninety-seven percent of buyers 35 years and younger financed, whereas only 68 percent of buyers aged 61 years to 69 financed their home, and 57 percent over the age of 70. Fourteen percent of buyers, the same as last year, financed 100 percent of the entire purchase price with a mortgage. The median percent financed for all buyers was 90 percent compared to 93 percent of buyers 35 years and younger and 79 percent for buyers 61 years and older. Sources of Downpayment Exhibits 5-3 and 5-4 Sixty percent of recent home buyers used their savings to finance their home purchase, down from 65 percent last year. Overall, this is still above the historical norm of 47 percent since 2000. For all buyers, the proceeds from the sale of a primary residence was the next most commonly cited way of financing a home purchase at 38 percent, up from 33 percent last year. This is still below the historical average of 51 percent since 2000.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Eighty percent of buyers 35 years and younger used savings to finance their home purchase compared to only 34 percent of buyers 70 years and older. Buyers 61 to 69 years used proceeds from a previous sale more than any other generation at 53 percent. Younger buyers were also more likely to use a gift from a friend of relative for their downpayment. Forty-six percent of all buyers saved for six months or less for their downpayment. Eighteen percent of buyers 35 years and younger saved for two to five years. Buyers 61 to 69 years saved for the least amount of time—61 percent—citing that they saved for six months or less. Eighteen percent of this group also cited saving for more than five years. Debt Delay and Sources of Debt Exhibits 5-5 and 5-6 For all buyers, the median period of time that debt delayed home buyers from saving for a downpayment was four years. Twenty percent were delayed for five years and 24 percent were delayed for more than five years. For buyers 35 years and younger, three years was the median compared to six years for buyers 61 to 69 years. Twenty percent of buyers 35 years and younger were delayed only one year whereas 62 percent of buyers 61 to 69 years were delayed more than five years. Thirteen percent of all buyers reported that saving for the downpayment was the most difficult task. For buyers 35 years and younger, this was 21 percent compared to only one percent of buyers 70 years and older. Fifty-one percent of all buyers reported that student loan debt delayed buying a home. Fifty-three percent of buyers 35 years and younger reported being delayed due to student loan debt as did 31 percent for buyers 36 to 50 years. Seventy-one percent of buyers over 70 years reported having other types of debt no listed. Sacrifices Made to Purchase Home Exhibit 5-7 Some buyers chose to make financial sacrifices in order to make a home purchase. Fifty-four percent of buyers did not need to make any sacrifices, consistent with last year. For all buyers, the most common sacrifices reported were a cut in spending on luxury or non-essential items (33 percent), a cut in spending on entertainment (25 percent), and a cut in spending on clothes (20 percent). For buyers 35 years and younger, 47 percent cut spending on luxury items compared to 11 percent of buyers 70 years and older. Inversely, only 40 percent of buyers 35 years and younger reported not making any sacrifices at all compared to 84 percent of buyers 70 years and older. Difficulty of Mortgage Application and Approval Process and Sold a Distressed Property Exhibits 5-8 and 5-9 Sixteen percent of buyers said that the mortgage application process was more difficult than expect and 17 percent said it was easier. The bulk of buyers said that the mortgage application and approval process was no more difficult than expected at 43 percent, which was consistent across age groups. Twenty-one percent of buyers 51 to 60 years and 70 years and older said the process was easier than expected. Nineteen percent of buyers 61 to 69 said the process was much more difficult than expected. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Nine percent of recent buyers had a distressed property sale in the past—either a short sale or a foreclosure—and the typical year for a distressed sale was in 2010. For buyers 35 years and younger, only six percent had a distressed sale compared to 13 percent for buyers 51 to 60 years. Student Loan Debt Exhibit 5-10 Twenty-five percent of all buyers reported having student loan debt with a median amount of $25,000. Twenty-eight percent of buyers who have student loan debt have debt between $10,000-25,000. For buyers 35 years and younger, 44 percent have student debt with a median amount of $25,000 compared to just 11 percent for buyers 51 to 60 years who had the highest median amount of debt at $29,100. Twenty-five percent of this age group also reported falling between the $25,000 and $50,000 debt range. Type of Mortgage and Loan Exhibits 5-11 and 5-12 Ninety-one percent of all buyers used a fixed rate mortgage, 93 percent for buyers 36 to 50 years and 87 percent for buyers 70 years and older. Fifty-nine percent of buyers chose a conventional loan to finance their home, down from 61 percent last year. Twenty-three percent of buyers reported securing a FHA loan and 11 percent chose a VA loan. Only 53 percent of buyers 35 years and younger used a conventional loan compared to 67 percent of buyers 61 to 69 years. Twenty-nine percent of buyers 35 years and younger used an FHA loan. Twenty-five percent of buyers 70 years and older used at VA loan and only five percent used a FHA loan. Buyers’ View of Homes as a Financial Investment Exhibit 5-13 Buyers continue to see purchasing a home as a good financial investment. Eighty percent (up from 79 percent last year) reported the view that a home purchase is a good investment and 43 percent said it was better than owning stock. Only six percent reported that it was not a good financial investment, down from seven percent last year. Eighty-four percent of buyers 35 years and younger said owning a home was a good financial investment compared to 68 percent of buyers 70 years and older. Only three percent of buyers 35 and under years said they considered it not to be a good financial investment.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

FINANCING THE HOME PURCHASE Exhibit 5-1 Exhibit 5-2 Exhibit 5-3 Exhibit 5-4 Exhibit 5-6 Exhibit 5-7 Exhibit 5-8 Exhibit 5-9 Exhibit 5-10 Exhibit 5-11 Exhibit 5-12 Exhibit 5-13

BUYERS WHO FINANCED THEIR HOME PURCHASE PERCENT OF HOME FINANCED SOURCES OF DOWNPAYMENT LENGTH OF TIME TO SAVE FOR A DOWNPAYMENT EXPENSES THAT DELAYED SAVING FOR A DOWNPAYMENT OR SAVING FOR A HOME PURCHASE, BY AGE SACRIFICES MADE TO PURCHASE HOME DIFFICULTY OF MORTGAGE APPLICATION AND APPROVAL PROCESS BUYER PREVIOUSLY SOLD A DISTRESSED PROPERTY (SHORT SALE OR FORECLOSURE) BUYERS WHO HAVE STUDENT LOAN DEBT TYPE OF MORTGAGE TYPE OF LOAN BUYERS' VIEW OF HOMES AS A FINANCIAL INVESTMENT

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

FINANCING THE HOME PURCHASE Exhibit 5-1 BUYERS WHO FINANCED THEIR HOME PURCHASE (Percent of Respondents)

100%

All Buyers 86% 90% 35 and younger 36 to 50 80% 51 to 60 61 to 69 70% 70 to 90

97%in Percent Category 86% 97% 95% 83% 68% 57%

95% 83%

68% 57%

60% 50% 40% 30% 20% 10% 0% All Buyers

35 and younger

36 to 50

51 to 60

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

FINANCING THE HOME PURCHASE Exhibit 5-2 PERCENT OF HOME FINANCED (Percentage Distribution)

All Buyers Less than 50% 50% to 59% 60% to 69% 70% to 79% 80% to 89% 90% to 94% 95% to 99% 100% – Financed the entire purchase price with a mortgage Median percent financed

9% 3 5 12 22 15 21 14

35 and younger 5% 1 2 9 22 18 27 16

90%

93%

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 5% 10% 3 6 2 6 16 14 23 22 17 13 20 16 14 13 90%

86%

61 to 69 19% 7 10 15 23 5 10 11

70 to 90 25% 8 7 11 20 7 6 16

79%

79%

FINANCING THE HOME PURCHASE Exhibit 5-3 SOURCES OF DOWNPAYMENT (Percent of Respondents Among those who Made a Downpayment)

All Buyers Savings Proceeds from sale of primary residence Gift from relative or friend 401k/pension fund including a loan Sale of stocks or bonds Inheritance Individual Retirement Account (IRA) Loan from relative or friend Equity from primary residence buyer continue to own Proceeds from sale of real estate other than primary residence Loan or financial assistance from source other than employer Loan from financial institution other than a mortgage Loan or financial assistance through employer Other

AGE OF HOME BUYER 36 to 50 51 to 60 65% 49% 35 45 14 7 13 10 7 6 3 5 3 2 3 1

60% 38 13 8 8 5 4 3

35 and younger 80% 19 23 6 8 4 3 4

2

1

3

2

1

1

2

1 * 5

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 43% 53 4 8 6 6 5 1

70 to 90 34% 49 1 3 7 3 9 *

3

3

4

1

2

4

4

1

1

*

2

1

*

1

*

1

1 5

1 4

* 4

* 4

* 7

FINANCING THE HOME PURCHASE Exhibit 5-4 LENGTH OF TIME TO SAVE FOR A DOWNPAYMENT (Percentage Distribution Among those who Made a Downpayment)

6 months or less All Buyers 6 to 12 months 12 to 18 months 18 to 24 months 24 to 5 years 35months and younger More than 5 years

AGE OF HOME BUYER 61 to 69 51 to 60 36 35 to and 50 younger All Buyers 14% 8% 47%7% 14% 10% 61% 56% 37% 46% 9% 12% 12% 17% 14% 2% 7% 8% 12% 8% 4% 5% 8% 9% 7% 17% 9% 18% 8% 6% 9%12% 15% 18% 14% 18% 11% 10% 8% 10%

70 to 90 53% 46% 8% 3% 2% 37% 13% 11%

47%

36 to 50

12%

56%

51 to 60

8%

8%

12%

7%

61%

61 to 69

0%

10%

20%

30%

5%

9% 2%4% 6%

53%

70 to 90

15%

8%

40%

50%

60%

3%2%

70%

9%

11%

18%

13%

80%

6 months or less

6 to 12 months

12 to 18 months

18 to 24 months

24 months to 5 years

More than 5 years

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

10%

11%

90%

100%

FINANCING THE HOME PURCHASE Exhibit 5-5 YEARS DEBT DELAYED HOME BUYERS FROM SAVING FOR A DOWNPAYMENT OR BUYING A HOME (Percentage Distribution)

One year Two years Three years Four years Five years More than five years Median

All Buyers 16% 19 14 7 20 24 4

35 and younger 20% 24 15 7 23 11 3

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 12% 13% 18 13 13 13 9 7 19 14 29 39 4 5

61 to 69 3% 13 13 * 10 62 6

70 to 90 * 12 18 18 18 35 5

FINANCING THE HOME PURCHASE Exhibit 5-6 EXPENSES THAT DELAYED SAVING FOR A DOWNPAYMENT OR SAVING FOR A HOME PURCHASE, BY AGE (Percent of Respondents Who Reported Saving for a Down Payment was Difficult)

AGE OF HOME BUYER 36 to 50 51 to 60

All Buyers

35 and younger

61 to 69

70 to 90

Share Saving for Downpayment was Most Difficult Task in Buying Process: Debt that Delayed Saving:

13%

21%

17%

6%

2%

1%

Student Loans Credit card debt Car loan Child care expenses Health care costs Other Median Years Debt Delayed Home Purchase Among Those Who Had Difficulty Saving

51% 47 35 18 13 17

53% 35 31 14 10 17

31% 44 20 18 9 24

9% 36 17 6 13 46

5% 23 7 2 13 62

3% 19 6 * 11 71

3

3

4

5

6

5

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

FINANCING THE HOME PURCHASE Exhibit 5-7 SACRIFICES MADE TO PURCHASE HOME (Percent of Respondents)

All Buyers Cut spending on luxury items or non-essential items Cut spending on entertainment Cut spending on clothes Canceled vacation plans Earned extra income through a second job Sold a vehicle or decided not to purchase a vehicle Other Did not need to make any sacrifices

33% 25 20 15 8 7 3 54

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

35 and younger 47% 34 30 16 11 9 3 40

AGE OF HOME BUYER 36 to 50 51 to 60 42% 23% 33 18 25 14 22 13 10 4 11 4 4 4 43 65

61 to 69 14% 10 8 7 2 3 2 78

70 to 90 11% 6 4 5 1 3 2 84

FINANCING THE HOME PURCHASE Exhibit 5-8 DIFFICULTY OF MORTGAGE APPLICATION AND APPROVAL PROCESS (Percentage Distribution Among those who Financed their Home Purchase)

Much more difficult than expected 24% Somewhat more difficult16% than expected All Buyers Not difficult/No more difficult than expected Easier than expected 15% 27% 35 and younger

16%

36 to 50

0%

10%

20%

16%

43%

30%

40%

50%

60%

21%

70%

80%

Much more difficult than expected

Somewhat more difficult than expected

Not difficult/No more difficult than expected

Easier than expected

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

16% 24% 43% 17%

21%

43%

21%

All Buyers

17%

45%

22%

15%

70 to 90

45%

21%

19%

61 to 69

AGE OF HOME BUYER 51 to 60 36 to3550and younger 13% 16% 15% 43% 21% 17% 22% 27% 45% 45% 42% 21% 17% 17% 42% 17%

61 to 69 19% 22% 43% 16%

22%

13%

51 to 60

70 to 90 15% 21% 43% 21%

90%

100%

FINANCING THE HOME PURCHASE Exhibit 5-9 BUYER PREVIOUSLY SOLD A DISTRESSED PROPERTY (SHORT SALE OR FORECLOSURE) (Percentage Distribution)

Sold distressed property Year sold distressed property (median)

All Buyers 9% 2010

35 and younger 6% 2010

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 12% 13% 2010 2010

61 to 69 8% 2009

70 to 90 9% 2009

FINANCING THE HOME PURCHASE Exhibit 5-10 BUYERS WHO HAVE STUDENT LOAN DEBT (Percenage Distribution)

All Buyers 35 and younger Have student loan debt Under $10,000 $10,000 to $24,999 $25,000 to $49,999 $50,000 to $74,999 $75,000 or more Median amount of student loan debt

25% 21% 28 22 13 16 $25,000

44% 21% 29 20 13 17 $25,000

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

AGE OF HOME BUYER 36 to 50 51 to 60 61 to 69

70 to 90

28% 19% 28 25 13 15 $28,000

2% 63% 13 25 * * $12,200

11% 21% 22 25 13 19 $29,100

6% 27% 32 32 4 5 $20,000

FINANCING THE HOME PURCHASE Exhibit 5-11 TYPE OF MORTGAGE (Percentage Distribution Among those who Financed their Home Purchase)

All Buyers 35 and younger 93% 91% 91% 92% 4% 3% 2% 1% 2% 3% 1% 1%

100% Fixed-rate mortgage 91% 91% Fixed-then adjustable rate mortgage 90% Adjustable-rate mortgage Don't know 80% Other

AGE OF HOME BUYER 36 to 50 51 to 60 93% 92% 92% 3% 4% 2% 3% 1% 1% 1% 1%

61 to 69 92% 3% 87% 3% * 1%

70 to 90 87% 5% 4% 3% 1%

* Less 70%than 1 percent

60% 50% 40% 30% 20%

10%

4%

2% 2% 1%

3%

1%

3%

1%

3% 2%

1% 1%

4% 3%

1% 1%

3% 3%

% 1%

5% 4%

3%

1%

% All Buyers

Fixed-rate mortgage

35 and younger

36 to 50

Fixed-then adjustable rate mortgage

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60

61 to 69

Adjustable-rate mortgage

70 to 90

Don't know

Other

FINANCING THE HOME PURCHASE Exhibit 5-12 TYPE OF LOAN (Percentage Distribution Among those who Financed their Home Purchase)

All Buyers 35 and younger 59% 53% 23% 29% 11% 8% 4% 5% 3% 53% 5%

70% Conventional FHA 59% VA Don't60% Know Other

1 51 to 60 62% 22% 62% 12% 2% 2%

36 to 50 60% 22% 60% 12% 3% 3%

61 to 69 67% 14% 14% 3% 3%

70 to 90 67% 66% 5% 25% 2% 2%

66%

50%

40% 29%

30%

25%

23%

22%

22%

20% 12%

11% 10% 4% 3%

8% 5% 5%

14% 14%

12%

3% 3%

3% 3%

2% 2%

5% 2% 2%

0% All Buyers

Conventional

35 and younger

36 to 50

FHA

51 to 60

VA

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

Don't Know

70 to 90

Other

FINANCING THE HOME PURCHASE Exhibit 5-13 BUYERS' VIEW OF HOMES AS A FINANCIAL INVESTMENT (Percentage Distribution)

AGE OF HOME BUYER Good financial investment Better than stocks About as good as stocks Not as good as stocks Not a good financial investment Don't know

All Buyers 35 and younger 80% 84% 43 45 25 27 12 12 6 3 14 13

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 82% 43 27 12 6 12

51 to 60 78% 40 25 13 8 15

61 to 69 78% 40 28 10 7 16

70 to 90 68% 41 19 8 11 21

NATIONAL ASSOCIATION OF REALTORS 2016 Home Buyer and Seller Generational Trends Chapter 6: Home Sellers and their Selling Experience While housing inventory is reduced in many areas, sellers see a favorable market where they receive a median of 98 percent of their asking price across all age groups. For all sellers, the median price of the home sold was $240,000 and they traded down to a home that was $220,000 with a difference of $20,000. Older sellers above 61 years tended to trade down and purchase less expensive homes; whereas sellers under 60 years bought more expensive homes. This year, home sellers cited that they sold their homes for a median of $40,000 more than they purchased it, up from $30,100 the year prior. Gen Y sellers gained the least at $28,500 in equity compared to Silent Generation sellers that gained $64,000 in equity as they likely had lived in their homes for a longer period of time. Sixty-one percent of sellers were ‘very satisfied’ with the selling process, up from 58 percent the year prior. HOME SELLER CHARACTERISTICS Exhibits 6-1 through 6-6 The typical age of home sellers was 54 this year, the same as in the 2013 report but up from 46 in the 2009 report. Sellers 36 to 50 years made up 25 percent of all sellers this year with a median age of 42 years, followed by sellers 61 to 69 years at 24 percent with a median age of 65 years. The median income in 2014 for the typical household was $104,100, a jump from $96,700 in 2013. Sellers 36 to 50 years had the highest income of $121,300 and sellers over 70 years had the lowest income of $69,500. Married couples selling their home jumped back up to 77 percent again this year after a slight dip last year at 74 percent, which has been the historical norm. Married couples were the highest for Gen X sellers at 85 percent and the lowest for Younger Boomer sellers at 71 percent. Single female sellers made up the next highest category at 16 percent for all ages above 51 years. Of all homes sold on the market, 65 percent did not have children under the age of 18 residing in the home. For sellers 61 to 69 years, 98 percent did not have children living at home and for sellers 36 to 50 years 59 percent reported have at least two children at home. For all sellers, 91 percent identified as white or Caucasian and 98 percent of households speak English as their primary language. This was consistent across each age group. HOME SELLING SITUATION Exhibits 6-7 and 6-8 Repeat sellers made up 63 percent of all sellers, with 37 percent accounting for first-time home sellers. Among sellers 35 years and younger, 79 percent were first-time sellers. For sellers 51 to 60 years, 77 percent were repeat sellers. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Seventy percent of all sellers sold their home in the same state as the home they recently purchased. For sellers 35 years and younger, 79 percent purchased in the same state compared to 57 percent of sellers 61 to 69 years. HOME SOLD VS. HOME PURCHASED Exhibits 6-9 through 6-14 Half of the homes sold (49 percent) were located in the suburbs or a subdivision. Fifty-six percent of sellers 36 to 50 years sold in suburbs or a subdivision compared to only 41 percent of sellers 70 years or older. Eighty- two percent of all homes sold were detached single-family homes. Sellers 35 years and younger were the largest group to sell townhomes at 10 percent and apartments or condos at eight percent. For all sellers, the median size of the home sold was 2,000 square feet and they traded down to purchase a home that was 1,900 square feet. Buyers 50 and under tended to trade up and purchase a home that 600 square feet more than what they sold. Buyers over 51 year tended to trade down by 100-200 square feet. For all sellers of all ages, they bought and sold a home with a median of three bedrooms and two bathrooms. For all sellers, the median price of the home sold was $240,000 and they traded down to a home that was $220,000 with a difference of $20,000. Older sellers above 61 years tended to trade down and purchase less expensive homes; whereas sellers under 60 years bought more expensive homes. For all sellers, the most commonly cited reason for selling their home was that it was too small (16 percent), followed by a job relocation (14 percent), and the desire to move closer to friends and family (13 percent). For sellers 35 and under, they cited that the home was too small (31 percent), which was higher than any other age group. For sellers 70 years and over, they cited they wanted to be closer to friends and family (33 percent). Sellers 36 to 50 years were split between selling a home that was too small (25 percent) and selling for a job relocation (26 percent). SELLER STALLED HOME SALE AND TENURE IN HOME Exhibits 6-15 and 6-16 Fourteen percent of recent sellers stalled or delayed their home sale because their home was worth less than their mortgage, down from 17 percent in the year prior. Nineteen percent of sellers 36 to 50 years were stalled compared to seventeen percent of sellers 70 years and over. The median number of years a seller remained in their home was nine, down from 10 years in the past report. That number is still higher than reported in 2001 to 2008 reports where the tenure in the home was only six years. Gen Y sellers stayed in their home for five years compared to 15 years for Silent Generation sellers. DISTANCE MOVED Exhibits 6-17 The purchasing habits of sellers lead them to buy close to where they previously lived, moving a median of 20 miles away. Sellers 60 years and younger typically moved only 15 miles away and sellers 61 to 69 moved the greatest distance of 75 miles. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

METHOD OF SALE Exhibits 6-18 Eighty-nine percent of home sellers worked with a real estate agent to sell their home, which is consistent across all age groups. For-Sale-By-Owner (FSBO) was low at eight percent this year, which is the lowest recorded in this data set. FSBO sellers 35 years and younger were only seven percent compared to ten percent of sellers 70 years and over. The method of sale tends to differ in conjunction with the relationship between the buyer and seller. If the buyer and seller know each other, the sale can be either an arms-length transaction consistent with local market conditions or it may involve considerations that would be not be relevant in the absence of a prior relationship. SALES PRICE AND TIME ON THE MARKET Exhibits 6-19 through 6-21 For recently sold homes, the final sales price was a median 98 percent of the final listing price, which is also consistent across all age groups. For all sellers, time on market was a median of four weeks, again consistent across all age groups. Fifty-seven percent of all sellers did not reduce their asking price, whereas 22 percent reduce once and 12 percent reduce the asking price twice. Sixty-six percent of sellers 35 years and younger did not reduce their asking price at all compared to 38 percent of sellers over 70 years that reduced at least twice. INCENTIVES TO PROSPECTIVE BUYERS Exhibits 6-22 Thirty-seven percent of all sellers offered incentives to attract buyers. This varies across age groups where it was the most common for sellers 70 years and over to offer incentives and less likely for sellers under 35 years. Home warranty policies followed by assistance with closing costs were the top two listed incentives when selling a home across all age groups. SATISFACTION WITH THE SALES PROCESS Exhibit 6-23 Sixty-one percent of sellers were ‘very satisfied’ with the selling process, up from 58 percent the year prior. Fifty-eight percent of sellers 50 years and under were very satisfied with the selling process compared to 67 percent over the age of 70 years. EQUITY BY TENURE Exhibit 6-24 This year, home sellers cited that they sold their homes for a median of $40,000 more than they purchased it, up from $30,100 the year prior. This accounts for a 23 percent price gain up from 17 percent the year before. Generally, the longer a seller is in the home the greater the increase attributable to price appreciation. Gen Y sellers gained the least at $28,500 in equity compared to Silent Generation sellers that gained $64,000 in equity as they likely had lived in their homes for a longer period of time.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-1 Exhibit 6-2 Exhibit 6-3 Exhibit 6-4 Exhibit 6-5 Exhibit 6-6 Exhibit 6-7 Exhibit 6-8 Exhibit 6-9 Exhibit 6-10 Exhibit 6-11 Exhibit 6-12 Exhibit 6-13 Exhibit 6-14 Exhibit 6-15 Exhibit 6-16 Exhibit 6-17 Exhibit 6-18 Exhibit 6-19 Exhibit 6-20 Exhibit 6-21 Exhibit 6-22 Exhibit 6-23

AGE OF HOME SELLERS HOUSEHOLD INCOME OF HOME SELLERS ADULT COMPOSITION OF HOME SELLER HOUSEHOLDS NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOME SELLER HOUSEHOLD RACE/ETHNICITY OF HOME SELLERS PRIMARY LANGUAGE SPOKEN IN HOME SELLER HOUSEHOLD FIRST-TIME OR REPEAT SELLER PROXIMITY OF HOME SOLD TO HOME PURCHASED LOCATION OF HOME SOLD TYPE OF HOME SOLD SIZE OF HOME PURCHASED COMPARED TO HOME RECENTLY SOLD NUMBER OF BEDROOMS AND BATHROOMS PRICE OF HOME PURCHASED COMPARED TO HOME RECENTLY SOLD PRIMARY REASON FOR SELLING PREVIOUS HOME SELLER WANTED TO SELL EARLIER BUT WAITED OR STALLED BECAUSE HOME WAS WORTH LESS THAN MORTGAGE TENURE IN PREVIOUS HOME DISTANCE BETWEEN HOME PURCHASED AND HOME RECENTLY SOLD METHOD USED TO SELL HOME SALES PRICE COMPARED WITH LISTING PRICE NUMBER OF WEEKS RECENTLY SOLD HOME WAS ON THE MARKET NUMBER OF TIMES ASKING PRICE WAS REDUCED INCENTIVES OFFERED TO ATTRACT BUYERS, BY NUMBER OF WEEKS HOME WAS ON THE MARKET SATISFACTION WITH THE SELLING PROCESS

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-1 AGE OF HOME SELLERS (Percentage Distribution)

Millennials/Gen Y/Gen Next: Gen X: Younger Boomers: Older Boomers: Silent Generation:

Year Born: 1980-1995 1965-1979 1955-1964 1946-1954 1925-1945

Age in 2015: 35 and younger 36 to 50 51 to 60 61 to 69 70 to 90

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Percent in Category 19% 25 19 24 13

Median Age in Group 31 42 55 65 74

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-2 HOUSEHOLD INCOME OF HOME SELLERS (Percentage Distribution)

AGE OF HOME BUYER Less than $25,000 $25,000 to $34,999 $35,000 to $44,999 $45,000 to $54,999 $55,000 to $64,999 $65,000 to $74,999 $75,000 to $84,999 $85,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 or more Median income (2014)

All Sellers 2% 4 5 6 6 8 8 10 18 12 7 4 11 $104,100

35 and younger 1% 3 5 4 5 9 11 10 25 11 10 2 6 $102,000

36 to 50 1% * 2 3 5 4 7 11 20 14 8 10 16 $121,300

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 2% 3 3 6 6 4 7 10 16 11 8 5 18 $114,100

61 to 69 4% 5 7 8 7 10 9 9 13 15 5 2 7 $85,000

70 to 90 4% 11 12 8 10 11 7 10 14 5 3 1 6 $69,500

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-3 ADULT COMPOSITION OF HOME SELLER HOUSEHOLDS (Percentage Distribution)

90%

All Sellers 82% 77% 12% 6% 4% 2%

Married couple 77% 80% female Single Single male Unmarried couple 70% Other

35 and85% younger 82% 8% 4% 5% 1%

AGE OF HOME BUYER 36 to 50 51 to 60 61 to 69 85% 71% 73% 6% 16% 16% 4% 7% 73% 8% 71% 5% 6% 2% 2% * 1%

70 to 90 72% 16% 72% 6% 2% 3%

60% 50%

40% 30% 16%

20%

16%

16%

12% 10%

6%

8% 4%

2%

4% 5%

6% 1%

4% 5%

8%

7% 6%

2%

6%

2% 1%

%

2% 3%

0% All Sellers

35 and younger Married couple

36 to 50 Single female

51 to 60 Single male

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

Unmarried couple

Other

70 to 90

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-4 NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOME SELLER HOUSEHOLD (Percentage Distribution of Home Seller Households)

All Sellers 65% 13% 16% 6%

100% None One 90% Two Three or more 80%

35 and younger 36% 25% 29% 9%

AGE OF HOME BUYER 36 to 50 51 to 60 23% 81% 21% 13% 38% 81%5% 18% 1%

98% 61 to 69 98% 2% * *

70 to 90 98% 2% * *

98%

* Less than 1 percent

70%

65%

60% 50%

29% 25%

30% 20%

38%

36%

40%

23% 21%

18%

16% 13%

13% 6%

10%

9% 5% 1%

2%

% %

2%

% %

0% All Sellers

35 and younger

36 to 50 None

One

51 to 60 Two

Three or more

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-5 RACE/ETHNICITY OF HOME SELLERS (Percent of Respondents)

All Sellers White/Caucasian 91% Hispanic/Latino 4 Asian/Pacific Islander 3 Black/African-American 2 Other 1

35 and younger 89% 6 4 1 1

AGE OF HOME BUYER 36 to 50 51 to 60 85% 94% 6 2 7 2 3 2 1 *

* Less than 1 percent Note: Respondents were permitted to select as many races and ethnicities as they felt applicable. The percentage distribution may therefore sum to more than 100 percent.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 96% 2 1 2 2

70 to 90 96% 1 1 1 1

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-6 PRIMARY LANGUAGE SPOKEN IN HOME SELLER HOUSEHOLD (Percentage Distribution)

100% English Other 90%

98% All Sellers 98% 2%

98% 35 and younger 98% 2%

AGE OF HOME BUYER 99% 96% 36 to 50 51 to 60 96% 99% 4% 1%

99% 61 to 69 99% 1%

99%

70 to 90 99% 1%

80% 70% 60% 50% 40% 30% 20% 10%

2%

4%

2%

1%

1%

1%

0% All Sellers

35 and younger

36 to 50

English

51 to 60

Other

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-7 FIRST-TIME OR REPEAT SELLER (Percentage Distribution)

90% First-time seller Repeat seller 80% 70%

All Sellers 37% 63%

AGE OF HOME BUYER 36 to 50 51 to 60 47% 23% 53% 77%77%

35 and younger 79% 79% 21%

70 to 90 17% 83% 83%

63%

60%

53% 47%

50% 40%

61 to 69 19% 81% 81%

37%

30%

23%

21%

19%

20%

17%

10% 0% All Sellers

35 and younger

36 to 50 First-time seller

51 to 60 Repeat seller

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-8 PROXIMITY OF HOME SOLD TO HOME PURCHASED (Percentage Distribution)

79% 80%

All Sellers Same state 70% 70% Same 13% 70% region Other region 17%

AGE OF HOME BUYER 35 and younger 75% 36 to 50 51 to 60 72% 79% 75% 72% 9% 10% 14% 12% 15% 14%

61 to 69 57% 17% 26%

70 to 90 64% 18% 64% 19%

57%

60% 50% 40%

26%

30% 20%

17%

15%

13%

12%

17%

18% 19%

14% 14%

10%

9% 10% 0% All Sellers

35 and younger

36 to 50

Same state

Same region

51 to 60

Other region

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-9 LOCATION OF HOME SOLD (Percentage Distribution)

All Sellers Suburb/Subdivision Small town Urban area/Central city Rural area Resort/Recreation area

49% 19 16 14 3

35 and younger 50% 16 22 11 1

AGE OF HOME BUYER 36 to 50 51 to 60 56% 53% 14 18 18 14 12 14 * 2

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 44% 24 13 15 4

70 to 90 41% 21 11 20 7

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-10 TYPE OF HOME SOLD (Percentage Distribution)

Detached single-family home Townhouse/row house Apartment/condo in a building with 5 or more units Duplex/apartment/condo in 2 to 4 unit building Other

AGE OF HOME BUYER 36 to 50 51 to 60

All Sellers

35 and younger

61 to 69

70 to 90

82% 6 5

76% 10 8

85% 6 5

85% 5 3

83% 5 4

77% 5 8

2 6

3 4

1 4

1 6

1 7

1 10

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-11 SIZE OF HOME PURCHASED COMPARED TO HOME RECENTLY SOLD (Median Square Feet)

All Buyers 35 and younger 36 to 50 51 to 60 61 to 69 70 to 90

Size of home sold

Size of home purchased

2,000 1,600 2,000 2,200 2,100 2,100

1,900 2,200 2,600 2,100 2,000 1,900

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Difference -100 600 600 -100 -100 -200

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-12 NUMBER OF BEDROOMS AND BATHROOMS (Percentage Distribution)

One bedroom Two bedrooms Three bedrooms or more Median number of bedrooms One full bathroom Two full bathrooms Three full bathrooms or more Median number of full bathrooms

All Sellers 35 and younger 1% 1% 12 15 88 85 3 3 13 22 58 63 29 15 2 2

AGE OF HOME BUYER 36 to 50 51 to 60 61 to 69 * 1% 1% 10 8 12 89 92 88 3 3 3 12 10 10 57 57 56 33 32 33 2 2 2

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

70 to 90 1% 17 83 3 13 59 29 2

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-13 PRICE OF HOME PURCHASED COMPARED TO HOME RECENTLY SOLD (Median)

All Buyers 35 and younger 36 to 50 51 to 60 61 to 69 70 to 90

Price of home sold

Price of home purchased

$240,000 $192,400 $243,300 $265,900 $259,900 $255,000

$220,000 $265,000 $312,000 $276,000 $220,000 $224,300

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Difference -$20,000 $72,600 $68,700 $10,100 -$39,900 -$30,700

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-14 PRIMARY REASON FOR SELLING PREVIOUS HOME (Percentage Distribution)

Home is too small Job relocation Want to move closer to friends or family Change in family situation (e.g., marriage, birth of a child, divorce) Neighborhood has become less desirable Home is too large Moving due to retirement Upkeep of home is too difficult due to health or financial limitations Want to move closer to current job Can not afford the mortgage and other expenses of owning home To avoid possible foreclosure Other

All Sellers 35 and younger 31% 16% 17 14 5 13

AGE OF HOME BUYER 36 to 50 51 to 60 25% 9% 26 18 4 9

61 to 69 5% 4 20

70 to 90 6% 2 33

10 10 9 7

10 14 3 *

11 10 4 1

12 11 13 5

7 9 10 21

7 6 15 11

6 5

2 11

1 6

4 5

14 2

12 1

2 * 8

2 * 7

2 * 9

4 * 10

2 * 7

3 * 6

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-15 SELLER WANTED TO SELL EARLIER BUT WAITED OR STALLED BECAUSE HOME WAS WORTH LESS THAN MORTGAGE (Percentage Distribution)

100% Yes, and lived in home Yes, but rented home to others and90% lived elsewhere 87% No, sold home when I wanted to sell 80%

All Sellers 35 and younger 12% 12% 2% 3% 85% 87% 85% 81%

AGE OF HOME BUYER 36 to 50 51 to 60 17% 10% 2% 89% 1% 81%

61 to 69 11% 88% 2%

70 to 90 6% 93% 1%

88%

93%

89%

* Less than 1 percent

70% 60%

50% 40%

30% 17%

20%

12%

12%

10% 2%

11%

10% 3%

6% 2%

1%

2%

1%

0%

All Sellers Yes, and lived in home

35 and younger

36 to 50

51 to 60

Yes, but rented home to others and lived elsewhere

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

No, sold home when I wanted to sell

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-16 TENURE IN PREVIOUS HOME (Percentage Distribution)

All Sellers 1 year or less 2 to 3 years 4 to 5 years 6 to 7 years 8 to 10 years 11 to 15 years 16 to 20 years 21 years or more Median

4% 10 13 14 15 19 9 16 9

35 and younger 4% 17 31 24 14 6 3 1 5

AGE OF HOME BUYER 36 to 50 51 to 60 5% 4% 9 10 15 7 14 12 26 11 23 27 7 15 2 16 8 11

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 3% 7 5 14 12 20 12 26 13

70 to 90 6% 7 4 6 13 16 8 40 15

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-17 DISTANCE BETWEEN HOME PURCHASED AND HOME RECENTLY SOLD (Median Miles)

AGE OF HOME BUYER 80 Distance

All Sellers 20

35 and younger 15

36 to 50 15

51 to 60 15

7561 to 69 75

70 to 90 35

70

60

50

40

35

30

20 20

15

15

15

10

0 All Sellers

35 and younger

36 to 50

51 to 60

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-18 METHOD USED TO SELL HOME (Percentage Distribution)

AGE OF HOME BUYER Sold home using an agent or broker Seller used agent/broker only Seller first tried to sell it themselves, but then used an agent For-sale-by-owner (FSBO) Seller sold home without using a real estate agent or broker First listed with an agent, but then sold home themselves Sold home to a homebuying company Other * Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

All Sellers 89% 85 4 8 7 1 1 2

35 and younger 90% 89 1 7 7 * * 1

36 to 50 90% 89 1 8 7 1 1 2

51 to 60 90% 89 1 8 7 1 1 2

61 to 69 89% 88 1 8 7 1 1 2

70 to 90 88% 87 1 10 9 1 * 2

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-19 SALES PRICE COMPARED WITH LISTING PRICE (Percentage Distribution of Sales Price as a Percent of List Price)

Less than 90% 90% to 94% 95% to 99% 100% 101% to 110% More than 110% Median (sales price as a percent of listing price)

All Sellers 9% 15 41 24 8 3 98%

35 and younger 8% 10 43 24 11 5 98%

AGE OF HOME BUYER 36 to 50 51 to 60 8% 11% 13 19 47 36 21 24 10 8 3 3 98% 98%

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 11% 17 36 30 5 2 98%

70 to 90 10% 15 42 22 9 3 98%

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-20 NUMBER OF WEEKS RECENTLY SOLD HOME WAS ON THE MARKET (Percentage Distribution)

AGE OF HOME BUYER Less than 1 week 1 to 2 weeks 3 to 4 weeks 5 to 6 weeks 7 to 8 weeks 9 to 10 weeks 11 to 12 weeks 13 to 16 weeks 17 to 24 weeks 25 to 36 weeks 37 to 52 weeks 53 or more weeks Median weeks

All Sellers 35 and younger 6% 6% 36 36 12 15 6 5 7 6 5 5 7 8 4 6 6 3 5 4 5 3 3 2 4 4

36 to 50 5% 36 14 7 8 5 7 3 6 6 4 2 4

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 5% 36 11 6 8 3 7 5 7 5 4 3 4

61 to 69 6% 38 11 5 6 5 5 4 6 6 5 5 4

70 to 90 8% 34 11 7 4 6 6 5 7 3 5 3 4

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-21 NUMBER OF TIMES ASKING PRICE WAS REDUCED (Percentage Distribution)

All Sellers 35 and younger None, did not reduce the asking price One Two Three Four or more

57% 22 12 6 4

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

66% 20 7 5 2

AGE OF HOME BUYER 36 to 50 51 to 60 56% 20 13 4 6

52% 23 13 10 3

61 to 69

70 to 90

53% 25 12 5 6

58% 22 16 3 2

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-22 INCENTIVES OFFERED TO ATTRACT BUYERS, BY NUMBER OF WEEKS HOME WAS ON THE MARKET (Percent of Respondents)

AGE OF HOME BUYER None Home warranty policies Assistance with closing costs Credit toward remodeling or repairs Other incentives, such as a car, flat screen TV, etc. Assistance with condo association fees Other

All Sellers 63% 21 16 7 4 1 3

35 and younger 65% 18 18 8 3 1 2

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 61% 23 20 5 5 1 2

51 to 60 61% 20 16 9 6 * 5

61 to 69 61% 27 12 8 3 1 3

70 to 90 71% 14 14 6 1 1 4

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-23 SATISFACTION WITH THE SELLING PROCESS (Percentage Distribution)

Very70% Satisfied Somewhat Satisfied 61% Somewhat Dissatisfied 60% Very Dissatisfied

All Sellers 35 and younger 61% 58% 27% 30% 8% 7% 58% 58% 5% 5%

AGE OF HOME BUYER 36 to 50 51 to 60 58% 61% 63% 28% 26% 61% 8% 9% 6% 4%

61 to 69 67% 63% 23% 8% 6%

70 to 90 67% 25% 4% 3%

50%

40% 30% 30%

27%

28%

26%

25%

23% 20%

10%

8%

9%

8%

7%

8% 4%

0% All Sellers Very Satisfied

35 and younger

36 to 50

Somewhat Satisfied

51 to 60 Somewhat Dissatisfied

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90 Very Dissatisfied

HOME SELLERS AND THEIR SELLING EXPERIENCE Exhibit 6-24 EQUITY EARNED IN HOME RECENTLY SOLD (Median)

Dollar Value Percent

All Sellers $40,000 23%

35 and younger $28,500 17%

AGE OF HOME BUYER 36 to 50 51 to 60 $30,000 $43,000 15% 24%

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 $65,700 29%

70 to 90 $64,000 40%

NATIONAL ASSOCIATION OF REALTORS® 2016 Home Buyer and Seller Generational Trends Chapter 7: Home Selling and Real Estate Professionals The need for a trusted real estate agent is still paramount. Personal relationships and connections remain the most important feature of the agent-buyer/seller bond. Sixty-six percent of recent home sellers used a referral or the same real estate agent they had worked with in the past to purchase their next home, which is up from 60 percent of all sellers last year. That number jumps to 70 percent for home Gen Y sellers. Finding an agent had some variations by generation. Most commonly, real estate agents are referred by a friend, neighbor, or relative. For sellers 70 and older, they found their agent through referral 33 percent of the time but were also likely to find one by walking into a real estate office or through personal contact by agent more than any other generation. Gen X sellers were also more likely to get a referral through their employer. Younger Boomers were the most likely to recommend their agent (86 percent) compared to Gen X sellers (82 percent). The typical seller has recommended their agent once since selling their home. Thirty-two percent of sellers recommended their agent three or more times since selling their home. That number jumps to 37 percent for Older Boomer sellers. FINDING A REAL ESTATE AGENT Exhibit 7-1 through Exhibit 7-3 Sixty-six percent of recent home sellers used a referral or the same real estate agent they had worked with in the past to purchase their next home, which is up from 60 percent of all sellers last year. That number jumps to 70 percent for home Gen Y sellers. For Silent Generation sellers, they found their agent through referral 33 percent of the time but were also likely to find one by walking into a real estate office or through personal contact by agent more than any other generation. Gen X sellers were also more likely to get a referral through their employer. Seven in 10 recent sellers contacted only one agent before finding the right agent they worked with to sell their home, the same as last year. For Gen Y and Older Boomer sellers, that number was almost eight in 10. Fifty percent of sellers used the same agent to buy and sell their homes. Using the same agent is most common among sellers under 60 years as they are moving shorter distances. As distance and age increases, using the same agent declines. HOME LISTED ON MULTIPLE LISTING SERVICE AND LEVEL OF SERVICE Exhibits 7-4 through Exhibit 7-5 Consistent with last year, 91 percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home. Only four percent opted not to list on a MLS. Ninety-four percent of sellers 36 to 50 years listed on the MLS and only 88 percent for sellers 70 and over. 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

Real estate agents provide a wide range of services and conduct the management of most aspects of the home sale. Seventy-nine percent of sellers reported that their agents provided the lion’s share of these services, which is the same as in the year prior. Nine percent of sellers note that their agent only provided a limited set of services and 12 percent said their agent listed the home on a MLS but performed few other services. All are consistent with last year’s report. For sellers 70 years and over, 87 percent of their agents provided the broad range of services and management. For sellers 35 year and younger, 16 percent only listed on the MLS and performed few additional services. WHAT SELLERS MOST WANT AND LEVEL OF SERVICE Exhibit 7-6 through 7-7 Sellers place high priority on the following five tasks: market the home to potential buyers (21 percent), sell the home within a specific timeframe (21 percent), find a buyer for home (17 percent), price the home competitively (16 percent), and help fix the home to sell better (14 percent). For Gen Y sellers, they prioritized the following: price home competitively (23 percent), sell the home within a specific timeframe (22 percent), and market the home to potential buyers (17 percent). Sellers 36 to 50 years also prioritized finding ways to fix up their home to sell it for more (18 percent). For Baby Boomer sellers also valued finding a buyer for their home (26 and 17 percent respectively). The reputation of the real estate agent was by far the most important factor when sellers selected an agent to sell their home (34 percent). Sellers also place value on the agent’s trustworthiness and honesty (18 percent) and knowledge of the neighborhood at (15 percent). Reputation was at the top of the list for sellers 51 to 60 years (42 percent) but not as important for sellers 61 to 69 years (28 percent), who valued that the agent was a friend of family member (24 percent) more than other generations. METHODS USED TO MARKET THE HOME Exhibit 7-8 Real estate agents list homes on MLSs first and foremost (89 percent). They also display yard signs (69 percent), list the home on their website (51 percent), host an open house (51 percent), list on Realtor.com (50 percent), and list on their company’s website (43 percent). Real estate agents also list homes on social media (12 percent), which is up from nine percent from last year. This was consistent for all generations. Listing on a real estate magazine website (19 percent) was important for sellers 61 to 69 years and listing in online classified ads (10 percent) was important for sellers over 70 years. AGENT’S PERFORMANCE AND COMPENSATION Exhibit 7-9 through 7-11 The real estate agent most often initiated the discussion of compensation (46 percent), which is consistent with the year before. The client initiated the discussion and the agent negotiated 20 percent of the time, which was the same with the year prior at 21 percent. In 16 percent of cases, the client did not know that commissions and fees 2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

could be negotiated. Sellers 35 years and younger were the most likely not to know that commissions and fees could be negotiated (18 percent) and more likely to know they could be negotiated but did not bring up the topic (14 percent). Sellers 70 years and over brought up the topic of compensation but found their agents unable or unwilling to negotiate (10 percent) more than other generations. Client referrals and repeat business are the predominant sources of business for real estate agents. Most sellers — 84 percent — said that they would definitely (67 percent) or probably (17 percent) recommend their agent for future services. Younger Boomers were the most likely to recommend their agent (86 percent) compared to Gen X sellers (82 percent). The typical seller has recommended their agent once since selling their home. Thirty-two percent of sellers recommended their agent three or more times since selling their home. That number jumps to 37 percent for Older Boomer sellers.

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-1 Exhibit 7-2 Exhibit 7-3 Exhibit 7-4 Exhibit 7-5 Exhibit 7-6 Exhibit 7-7 Exhibit 7-8 Exhibit 7-9 Exhibit 7-10 Exhibit 7-11

METHOD USED TO FIND REAL ESTATE AGENT NUMBER OF AGENTS CONTACTED BEFORE SELECTING ONE TO ASSIST WITH SALE OF HOME DID SELLER USE THE SAME REAL ESTATE AGENT FOR THEIR HOME PURCHASE? HOME LISTED ON MULTIPLE LISTING SERVICE LEVEL OF SERVICE PROVIDED BY THE REAL ESTATE AGENT WHAT SELLERS MOST WANT FROM REAL ESTATE AGENTS, BY LEVEL OF SERVICE PROVIDED BY THE AGENT MOST IMPORTANT FACTOR IN CHOOSING A REAL ESTATE AGENT TO SELL HOME, BY LEVEL OF SERVICE PROVIDED BY THE AGENT METHODS REAL ESTATE AGENT USED TO MARKET HOME NEGOTIATING THE COMMISSION RATE OR FEE WITH THE REAL ESTATE AGENT WOULD SELLER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS HOW MANY TIMES SELLER RECOMMENDED TYPICAL AGENT

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-1 METHOD USED TO FIND REAL ESTATE AGENT (Percentage Distribution)

AGE OF HOME BUYER All Sellers 35 and younger

36 to 50

51 to 60

61 to 69

70 to 90

Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a home Internet website (without a specific reference Personal contact by agent (telephone, email, etc.) Referred by another real estate or broker Visited an open house and met agent Saw contact information on For Sale/Open House sign

42% 24 4 4 4 3

44% 26 6 3 4 1

44% 22 5 3 3 4

45% 24 4 4 2 2

43% 23 3 3 4 2

33% 24 2 9 6 4

3

3

4

2

2

3

Referred through employer or relocation company Direct mail (newsletter, flyer, postcard, etc.)

3 1

3 2

7 1

3 1

1 1

1 3

Walked into or called office and agent was on duty Newspaper, Yellow pages or home book ad Advertising specialty (calendar, magnet, etc.) Crowdsourcing through social media/knew the person through social media Saw the person's social media page without a connection Other

1 1 1

1 * 1

1 * *

1 1 *

1 3 2

5 1 2

*

*

*

*

*

*

* 9

* 6

* 6

* 11

* 12

* 7

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-2 NUMBER OF AGENTS CONTACTED BEFORE SELECTING ONE TO ASSIST WITH SALE OF HOME (Percentage Distribution)

AGE OF HOME BUYER One Two Three Four Five or more

All Sellers 72% 15 9 2 1

35 and younger 77% 16 5 2 1

36 to 50 68% 19 11 2 1

51 to 60 73% 15 7 3 2

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69 76% 11 8 5 1

70 to 90 70% 18 10 1 *

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-3 DID SELLER USE THE SAME REAL ESTATE AGENT FOR THEIR HOME PURCHASE? (Percentage Distribution Among Sellers Who Used an Agent to Purchase a Home)

AGE OF HOME BUYER 70%

Yes No 60%

All Sellers 35 and younger 62%62% 50% 50% 39%

36 to 50 58% 58% 42%

51 to 60 55% 45%

61 to 69 34% 66% 55%

66% 70 to 90 44% 57%

57%

50% 50% 50%

45%

44%

42% 39%

40%

34%

30%

20%

10%

0% All Sellers

35 and younger

36 to 50 Yes

51 to 60 No

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-4 HOME LISTED ON MULTIPLE LISTING SERVICE (Percentage Distribution)

AGE OF HOME BUYER 100% Yes No 90% Don't know

91%

All Sellers 35 and younger 93% 91% 93% 4% 2% 4% 5%

36 to 50 94% 94% 3% 3%

51 to 60 92% 92% 3% 5%

61 to 69 93% 93% 4% 4%

70 to 90 88% 5% 7%

88%

80% 70% 60% 50% 40%

30% 20%

10%

4% 4%

2%

5%

3% 3%

3%

5%

4% 4%

5%

0% All Sellers

35 and younger

36 to 50

Yes

No

51 to 60

Don't know

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

61 to 69

70 to 90

7%

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-5 LEVEL OF SERVICE PROVIDED BY THE REAL ESTATE AGENT (Percentage Distribution)

AGE OF HOME BUYER A broad range of services and management of most aspects of the home sale A limited set of services as requested by the seller The agent listed the home on the MLS and performed few if any additional services

All Sellers

35 and younger

36 to 50

51 to 60

61 to 69

70 to 90

79%

72%

78%

81%

82%

87%

9

12

12

7

8

4

12

16

10

13

11

9

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-6 WHAT SELLERS MOST WANT FROM REAL ESTATE AGENTS, BY LEVEL OF SERVICE PROVIDED BY THE AGENT (Percentage Distribution)

AGE OF HOME BUYER Help seller market home to potential buyers Help sell the home within specific timeframe Help find a buyer for home Help price home competitively Help seller find ways to fix up home to sell it for more Help with negotiation and dealing with buyers Help with paperwork/inspections/preparing for settlement Help seller see homes available to purchase Help create and post videos to provide tour of my home Other

All Sellers 35 and younger 21% 17% 21 22 17 11 16 23

36 to 50 16% 22 13 19

51 to 60 24% 21 17 15

61 to 69 22% 17 26 12

70 to 90 29% 20 22 12

14 5

14 6

18 8

14 3

13 3

9 4

3 2

3 3

2 *

3 3

3 2

4 *

* 1

* 1

1 1

1 *

* 1

* *

* Less than 1 percent

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-7 MOST IMPORTANT FACTOR IN CHOOSING A REAL ESTATE AGENT TO SELL HOME, BY LEVEL OF SERVICE PROVIDED BY THE AGENT (Percentage Distribution)

AGE OF HOME BUYER Reputation of agent Agent is honest and trustworthy Agent is friend or family member Agent’s knowledge of the neighborhood Agent has caring personality/good listener Agent’s association with a particular firm Agent's commission Agent seems 100% accessible because of use of technology like tablet or smartphone Professional designations held by agent Other

All Sellers 35 and younger 34% 28% 18 22 16 18 15 11 4 4 4 1 4 8 2 2 3

3 2 3

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

36 to 50 36% 18 14 16 3 4 4

51 to 60 42% 20 12 14 2 4 1

61 to 69 28% 14 24 14 4 5 3

70 to 90 38% 13 10 20 5 5 1

2 1 3

1 2 3

1 3 4

4 1 1

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-8 METHODS REAL ESTATE AGENT USED TO MARKET HOME (Percent of Respondents Among Sellers Who Used an Agent)

AGE OF HOME BUYER Multiple Listing (MLS) website Yard sign Real estate agent website Open house Realtor.com Real estate company website Third party aggregators Social networking websites Print newspaper advertisement Direct mail (flyers, postcards, etc.) Video Newspaper website Real estate magazine Other Web sites with real estate listings Online Classified Ads Real estate magazine website Other Video hosting Web sites Television

All Sellers 35 and younger 89% 90% 69 67 51 51 51 48 50 47 43 42 40 46 12 14 11 6 10 9 9 6 9 6 9 3 8 6 6 3 2 1

36 to 50 91% 70 54 56 56 43 51 14 12 10 6 10 5

51 to 60 88% 72 57 51 52 49 38 11 13 12 11 8 9

61 to 69 91% 67 53 50 52 46 38 17 10 11 12 12 19

70 to 90 86% 70 41 49 45 42 26 4 15 9 11 12 11

6 6 4 3 1 *

6 5 10 2 3 2

7 7 6 2 3 1

5 10 8 4 2 1

6 7 3 4 1 1

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-9 NEGOTIATING THE COMMISSION RATE OR FEE WITH THE REAL ESTATE AGENT (Percentage Distribution)

Real estate agent initiated discussion of compensation Client brought up the topic and the real estate agent was able and willing to negotiate their commission or fee Client brought up the topic and the real estate agent was unwilling or unable to negotiate their commission or fee Client did know commissions and fees could be negotiated but did not bring up the topic Client did not know commissions and fees could be negotiated

AGE OF HOME BUYER 36 to 50 51 to 60

All Sellers

35 and younger

46%

44%

43%

20

17

8

61 to 69

70 to 90

49%

50%

45%

21

21

22

19

7

9

5

7

10

10

14

11

10

8

10

16

18

16

16

13

17

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-10 WOULD SELLER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS (Percentage Distribution)

AGE OF HOME BUYER All Sellers 35 and younger 67% 61% 17% 23% 7% 7% 7% 8% 1%61% 1%

80% Definitely Probably Probably 70% Not67% Definitely Not Don't Know/ Not Sure

36 to 50 64% 18% 9% 64% 7% 1%

51 to 60 73% 73% 14% 7% 6% 1%

61 to 69 69% 16% 6% 9% 1%

69%

70 to 90 72% 14% 8% 6% %

72%

60%

50%

40%

30% 23% 20%

18%

17%

16%

14% 10%

9%

7% 8%

7% 7% 1%

7%

1%

7% 6% 1%

14% 9%

8%

6% 1%

1%

%

0% All Sellers Definitely

35 and younger Probably

36 to 50 Probably Not

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

51 to 60 Definitely Not

61 to 69 Don't Know/ Not Sure

6%

70 to 90

HOME SELLING AND REAL ESTATE PROFESSIONALS Exhibit 7-11 HOW MANY TIMES SELLER RECOMMENDED TYPICAL AGENT (Percentage distribution)

None One time Two times Three times Four or more times Times recommended since buying (median)

All Sellers 35 and younger 38% 39% 13 15 17 16 12 10 20 20 1

AGE OF HOME BUYER 36 to 50 51 to 60 36% 36% 14 14 17 19 11 6 22 25

1

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends

1

2

61 to 69 34% 12 17 20 17

70 to 90 50% 7 13 10 20

2

0

Methodology In July 2015, NAR mailed out a 128-question survey using a random sample weighted to be representative of sales on a geographic basis to 94,971 recent home buyers. The recent home buyers had to have purchased a primary residence home between July of 2014 and June of 2015. A total of 6,406 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 6.7 percent. Respondents had the option to fill out the survey via hard copy or online. The online survey was available in English and Spanish. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent home buyers derived from county records. Information about sellers comes from those buyers who also sold a home. All information in this Profile is characteristic of the 12-month period ending June 2015, with the exception of income data, which are reported for 2014. In some sections comparisons are also given for results obtained in previous surveys. Not all results are directly comparable due to changes in questionnaire design and sample size. Some results are presented for the four U.S. Census regions: Northeast, Midwest, South and West. The median is the primary statistical measure used throughout this report. Due to rounding and omissions for space, percentage distributions may not add to 100 percent. The definitions of the generations used to distinguish home buyers and sellers were based on a study published in the REALTOR® University’s Center for Real Estate Studies journal article titled, Generational Trends in Homeownership: An Era of Renters? by Glenn E. Crellin. Additional splitting of older baby boomer age groups and younger baby boomer age groups was modeled on research from the Pew Research Center, Generations 2010. Millennials/Gen Y/Gen Next: Gen X: Younger Boomers: Older Boomers: Silent Generation:

Year Born: 1980-1995 1965-1979 1955-1964 1946-1954 1925-1945

Age in 2015: 35 and younger 36 to 50 51 to 60 61 to 69 70 to 90

2016 National Association of REALTORS® Home Buyer and Seller Generational Trends