Just the Facts, Ma am

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2 Just the Facts, Ma am Minorities are Growing Millennials Out-Number Boomers Drop in Marriage Rates Long Life Spans

3 Rise in Household Income Successful Buyers $90,000 $85,700 $74,000 $97,500 $88,800 $75,000 $50,000 $58, All Buyers First-time Buyers Repeat Buyers Profile of Home Buyers and Sellers

4 60% First-time Buyers Remain Suppressed 50% 30% 32% 34% Historical norm: 39% among primary residence buyers % Profile of Home Buyers and Sellers

5 55 Median Age of Home Buyers All Buyers First-time Buyers Repeat Buyers Profile of Home Buyers and Sellers

6 80% First-time Buyers: Marriage is Not Required 75% 68% 57% 27% 18% % 16% 7% 2% Married Couple Single Female Single Male Unmarried Couple Other Profile of Home Buyers and Sellers

7 Birth Rates At Lowest Level in 30 Years Child care is too expensive Worried about the economy Want more time for the children I have Can t afford more children July 5, 2018, New York Times, Morning Consult Waited because of financial instability

8 Babies With 4 Legs 99% part of family & 89% would not give up pet due to housing Important: 85% large enough home & 95% housing community ½ undertook renovations for pet Animal House: Remodeling Impact

9 Everyone Wants a Similar Home=No Inventory 2 bath 3 bed Single family home Suburbs & small towns Close friends & family w/short commute 2018 Home Buyer and Seller Generational Trends Report

10 100% Shrinking Pool of Buyers Downsizing 31% 20% 16% 28% 40% 52% 0% Trade-Up Same Size Trade Down 2017 Profile of Home Buyers and Sellers

11 1 in 5 Younger Boomers=Multi-Gen Home Burbs 1/3 aging rents Lg SF Home 1/3 adult kids Region diff. Young kids Racial divide 2017 Home Buyer and Seller Types

12 16 Expected Tenure Median Years First-time Buyers Repeat Buyers Profile of Home Buyers and Sellers

13 12 Actual Tenure in Home is Elevated: Median Years Profile of Home Buyers and Sellers

14 Low Inventory Driving Prices 77 months of price increase 4.3 months supply Inventory decreased nearly every month for 3 years July 2018 Existing Home Sales

15 Affordability Problems Increasing 76% homeowners good time to buy vs 55% renters 74% good time to sell 64% difficult qualify for a mortgage HOME 2018

16 Downpayment Knowledge Gap Wrong idea: 87% non-owners need 10% or MORE Reality: Typical for first-time buyers 5% Aspiring Home Buyers, 2017

17 Difficulty Saving for Downpayment 30% 16% 17% 17% 20% 23% 25% 26% 25% 5% 5% 7% 7% 7% 7% 6% 7% 0% First-time Buyers Repeat Buyers Profile of Home Buyers and Sellers

18 $12.0 Student Debt Massive Barrier $1.4 $8.0 $0.2 $4.0 $0.0 Mortgage HE Revolving Auto Loan Credit Card Student Loan Other NY FEDERAL RESERVE: HOUSEHOLD DEBT AND CREDIT REPORT

19 How Can You Save? Median Student Loan Debt: $41,200 Median Income: $38,800 Student Loan Debt and Housing Report

20 Non-Homeowners: Delay from Buying a Home 100% 83% Median Delay: 7 years 3% 2% 7% 5% % Yes, impacted No impact on ability to purchase No, helped ability Don't know Don't want to own Student Loan Debt and Housing Report

21 Among Homeowners: Delay Selling and Buying a New Home No, loans did not delay selling home 45% Yes, too expensive to move & upgrade to a new home Yes, problems w/loans impacted credit for a future mortgage Yes, underwater on home/ loans limited ability to pay 4% 3% 21% Median Delay: 3 years % 50% Student Loan Debt and Housing Report

22 Buyers with Student Loan Debt All Buyers First-time Buyers Repeat Buyers Have student loan debt 26% 41% 19% Median amount student loan debt $25,000 $29,000 $24,000 Profile of Home Buyers and Sellers

23 100% First-Time Buyer: Prior Living Arrangement 82% 73% 0% 12% 21% Rented Lived w/ parents, relatives or friends Profile of Home Buyers and Sellers Owned Rented the home purchased

24 Forgotten Generation: Gen Xers Longest delay: 4 yrs 17% stalled selling Highest income & in debt 13% had distressed sale $28k student loans

25 100% Buyer Use of Agents 87% 0% Real estate agent/broker Builder/builder's agent Previous owner

26 100% Agent-Assisted Sales at All-Time High 89% 15% 21% 8% 0% All FSBO (For-sale-by-owner) Agent-assisted Other Profile of Home Buyers and Sellers

27 Apple Pie and Homeownership 8 in 10 part of their American Dream Pie 9 in 10 want to own in the future Housing Opportunities and Market Experience (HOME)

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