American Dream of Homeownership

AMERICAN DREAM OF HOMEOWNERSHIP ALIVE & WELL WINTER 2012 Americans More Bullish on Buying Homes Housing Market Looking Up Heading Into 2013 FORECLOSURE Asking Homes Prices Existing-Home Sales Construction Delinquency + Foreclosures Starts Up 3.8% Y-0-Y Nov '12 Up 42% Y-o-Y Oct '12 Up 10.9% Y-0-Y Oct '12 Down 11.88% Y-o-Y Oct '12 Source: Trulia Source: Census Source: NAR Source: LPS First Look More than 1 in 4 (27%) Americans are more positive about homeownership than they were 6 months ago, versus 19% who feel more negative about homeownership. % of renters planning to buy a home in the next two years 31% Nov 2012 31% of today's renters want to buy a home by 2015 May 2012 28% Jan 2011 22% Millennials + the Housing Bust: Shaken, Not Scarred Despite low employment rates and having to double up with roommates or their parents during the recession, 72% of young adults (18-34 year olds) say homeownership is part of their personal American Dream % of Renters Who Plan To Buy A Home Some Day 93% 75% 72% 39% 18-34 Years Old 35-45 Year Olds 46-55 Year Olds 55+ Unlike older generations who've experienced slow, but steady home price growth and 7-8% mortgage rates, young adults expect home prices to rise and mortgage rate to remain low. % of consumers who expect home prices to rise % of consumers who expect mortgage rates to rise 37% 43% 49% 55% 22% 15% 19% 18% LEGEND 18-34 Years Old 135-45 Years Old 46-55 Years Old 55+ Rising Prices Will Encourage Sales in 2013 Among current homeowners, 22% said they are somewhat likely, fairly likely, or extremely likely to sell their home in 2013. This sentiment was highest among people who bought their homes between 2010 and 2012, whose home are more likely worth more than at purchase. 98% 72% 49% 33% 23% 20% 20% '02 or earlier *03-'06 *07-'09 10-'12 LEGEND % at least "somewhat likely" to sell in 2013 (survey response) % whose homes today are worth more than at purchase (Trulia estimate) But prices and market trends aren't the only driving factor in home sales. In fact, family is the top reason why homeowners might sell next year. But economics still matter. A stronger economy could give more people reason to sell since they might find a new job worth moving for. Top Reason for Selling in 2013 % giving that reason, among homeowners who would possibly sell home next year Need to move for family reasons 32% #1 Reason in 55+ Age Group Need to move for new job 26% #1 Reason in 45-54 Age Group Want to move to a larger home 22% #1 Reason in 18-34 & 35-44 Age Group Want to move to a smaller home 18% Want to move to a less expensive area 14% Want to take advantage of rising prices 13% No longer having negative equity / being “underwater" 9% Want to move to a more expensive area 6% Note: Among homeowners who might sell in the next year Source: Survey conducted online via Haris Interactive, Nov. 15-19, 2012 among 2,083 U.S. adults. For full survey methodology, contact [email protected]. Ytrulia