2013 real estate report
DESCRIPTION
The new 2013 Real Estate ReportTRANSCRIPT
IND
US
TR
Y F
AC
TS
SO
UR
CE
S:
NA
TIO
NA
L A
SS
OC
IAT
ION
OF
RE
AL
TO
RS
®,
BU
SIN
ES
S W
IRE
, M
AR
KE
TW
AT
CH
, W
AL
L S
TR
EE
T J
OU
RN
AL
, C
NB
C
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
1
7.1
mo
nth
s N
ov
em
be
r 2
01
11
.1 m
illi
on
in 2
01
3
1.4
mil
lio
n in
20
14
5.5
mo
nth
s N
ov
em
be
r 2
01
2
SU
PP
LY O
F L
IST
ED
IN
VE
NT
OR
Y:
EX
PE
CT
ED
HO
US
ING
STA
RT
S:
Ov
er
the
ne
xt
thre
e
yea
rs, h
om
e p
rice
s a
re
pro
ject
ed
to
ris
e
15
%
In Q
4 2
01
2, h
om
e p
rice
s
rose
in
12
0 o
ut
of
14
9
me
tro
ma
rke
ts
50
% of
co
nsu
me
rs
exp
ect
ho
me
-re
nta
l
pri
ces
to in
cre
ase
in 2
01
3
In 2
01
2, e
xist
ing
-ho
me
sa
les
we
re a
t th
e h
igh
est
lev
el
sin
ce 2
00
7 a
nd
up
9.2
% f
rom
20
11
Of
all
ho
me
pu
rch
ase
s,
ne
w h
om
es
com
pri
sed
16
%
43
%
of
Ech
o B
oo
me
rs
are
ho
me
ow
ne
rs
Bu
yin
g a
ho
me
ha
sn’t
be
en
as
aff
ord
ab
le
sin
ce 1
97
1
Av
era
ge
pro
ject
ed
ho
usi
ng
aff
ord
ab
ility
ind
ex
Av
Av
er
ing
e
e
pr
pro
jec
ect
eted
A m
ed
ian
-in
com
e f
am
ily
wo
uld
ha
ve
16
0%
of
the
inco
me
ne
ed
ed
to
pu
rch
ase
a m
ed
ian
-pri
ced
, exi
stin
g
sin
gle
-fa
mil
y h
om
e
32
%
of
ho
me
s
sold
in
No
ve
mb
er
20
12
we
re
on
th
e
ma
rke
t fo
r
less
th
an
a
mo
nth
20
%
we
re o
n t
he
ma
rke
t 6
mo
nth
s o
r
lon
ge
r
TH
E A
VE
RA
GE
HO
ME
PU
RC
HA
SE
D W
AS
:
1,9
00
squ
are
fe
et
20
yea
rs o
ld
3b
ed
roo
ms
2b
ath
roo
ms
MO
RT
GA
GE
ST
AT
S
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
2
SO
UR
CE
S:
US
CE
NS
US
BU
RE
AU
, N
AT
ION
AL
AS
SO
CIA
TIO
N O
F R
EA
LT
OR
S®
, F
RE
DD
IE M
AC
, H
OU
SIN
GW
IRE
, F
AN
NIE
MA
E
37
% o
f co
nsu
me
rs
fee
l th
at
mo
rtg
ag
e r
ate
s w
ill in
cre
ase
in t
he
ne
xt
12
mo
nth
s
At
the
en
d o
f 2
01
2, t
he
30
-ye
ar
fixe
d r
ate
mo
rtg
ag
e
av
era
ge
d
96
%
of
bu
yers
fin
an
ced
th
eir
ho
me
pu
rch
ase
91
%
Th
e m
ed
ian
pe
rce
nta
ge
of
ho
me
pri
ce
fin
an
ced
WH
AT
BU
YE
RS
SA
ID A
BO
UT
TH
E M
OR
TGA
GE
PR
OC
ES
S:
37
%
of
ho
use
ho
lds
use
mo
re t
ha
n
30
% o
f th
eir
inco
me
fo
r
ho
usi
ng
18
%
use
mo
re t
ha
n
50
% o
f th
eir
inco
me
fo
r
ho
usi
ng
com
pa
red
to
3.9
4%
a y
ea
r
pri
or
In J
an
ua
ry 2
01
3, t
he
15
-ye
ar
fixe
d r
ate
mo
rtg
ag
e
av
era
ge
d
com
pa
red
to
3.2
1%
a y
ea
r
pri
or
17
%
ea
sie
r th
an
exp
ect
ed
44
%
no
t d
ifficu
lt/n
o
mo
re d
ifficu
lt
tha
n e
xpe
cte
d
23
%
som
ew
ha
t
mo
re d
ifficu
lt
tha
n e
xpe
cte
d
OF
BU
YE
RS
WIT
H A
MO
RT
GA
GE
:
92
%
cho
se a
fixe
d-r
ate
loa
n
49
%ch
ose
a
con
ve
nti
on
al
loa
n
33
%
cho
se a
n
FH
A lo
an
10
%
cho
se a
VA
loa
n
SO
UR
CE
S F
OR
A B
UY
ER
’S D
OW
N P
AY
ME
NT
:
65%
25%
14%
Sa
vin
gs
Pro
cee
ds
fro
m t
he
sale
of
an
oth
er
ho
me
Gif
t fr
om
a
rela
tiv
e o
r fr
ien
d
51
% o
f co
nsu
me
rs s
ay
it’s
ea
sie
r to
ob
tain
a m
ort
ga
ge
no
w t
ha
n in
th
e p
ast
SO
UR
CE
S:
??
DIS
TR
ES
SE
D P
RO
PE
RT
IES
PR
ICE
IN
FO
RM
AT
ION
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
3
SO
UR
CE
S:
NA
TIO
NA
L A
SS
OC
IAT
ION
OF
RE
AL
TO
RS
®,
CL
EA
R C
AP
ITA
L®
, M
AR
KE
TW
AT
CH
, C
NN
MO
NE
Y,
RIS
ME
DIA
As
of
Oct
ob
er
20
12
, fo
recl
osu
res
we
re a
t a
5-y
ea
r lo
w
Th
rou
gh
20
13
na
tio
na
l ho
me
pri
ces
are
fo
reca
ste
d t
o
gro
w b
y
2.1
%
In 2
01
2,
the
me
dia
n
pri
ce o
f n
ew
an
d e
xist
ing
ho
me
s
rose
5
%
Me
dia
n p
rice
of
a n
ew
ho
me
pu
rch
ase
dM
ed
ian
pri
ce o
f a
n e
xist
ing
ho
me
pu
rch
ase
d
Na
tio
na
l ye
ar-
ov
er-
yea
r
pri
ce g
ain
s p
icke
d u
p
ste
am
in D
ece
mb
er,
com
ing
in a
t
4.9
%
33
% o
f h
om
e s
ale
s
in 2
01
2 w
ere
RE
Os
an
d s
ho
rt s
ale
s
RE
O P
RO
PE
RT
Y C
OM
PAR
ISO
N:
In 2
00
9:
67
0,0
00
In 2
01
2:
50
0,0
00
$2
32
,00
0$
17
9,9
00
Av
era
ge
pri
ce d
isco
un
t
on
a f
ore
clo
sure
Av
era
ge
pri
ce d
isco
un
t
on
a s
ho
rt s
ale
20
%
16%
TO
DA
Y’S
BU
YE
R
SO
UR
CE
S:
NA
TIO
NA
L A
SS
OC
IAT
ION
OF
RE
AL
TO
RS
®
TOP
5 R
EA
SO
NS
BU
YE
RS
WA
NT
TO
MO
VE
:
45
% T
o li
ve
in a
larg
er
spa
ce
44
% T
o li
ve
in a
ho
me
be
tte
r su
ite
d t
o
the
ir li
fe p
ha
se
42
% T
o li
ve
in a
ho
me
be
tte
r su
ite
d t
o
the
ir s
tyle
30
% To
liv
e in
a b
ett
er
ne
igh
bo
rho
od
27
% F
or
a g
ree
ne
r,
mo
re
en
vir
on
me
nta
lly
sust
ain
ab
le h
om
e
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
4
ME
DIA
N H
OM
E P
UR
CH
AS
ED
:
Bu
ilt in
19
92
11
mil
es
fro
m p
rev
iou
s re
sid
en
ce TOP
FA
CTO
RS
TH
AT
INF
LUE
NC
E
NE
IGH
BO
RH
OO
D C
HO
ICE
:
Qu
alit
y o
f n
eig
hb
orh
oo
d
Co
nv
en
ien
ce t
o jo
b
Ov
era
ll a
ffo
rda
bili
ty o
f h
om
es
Co
nv
en
ien
ce t
o f
rie
nd
s/fa
mily
Co
nv
en
ien
ce t
o s
ho
pp
ing
90
%
of
bu
yers
use
d t
he
Inte
rne
t to
he
lp t
he
m
fin
d a
ho
me
51
%
use
d t
he
ir
ag
en
t’s
we
bsi
te
42
%fi
rst
saw
th
e
ho
use
th
ey
pu
rch
ase
d o
n
the
Inte
rne
t
34
%
he
ard
ab
ou
t
the
ho
me
fro
m
the
ir r
ea
l est
ate
ag
en
t
On
av
era
ge
, a h
om
e b
uye
r
sea
rch
ed
fo
r
12
we
ek
sa
nd
vie
we
d 1
0 h
om
es
Th
e d
esi
re t
o o
wn
a h
om
e
rem
ain
s th
e m
ost
po
pu
lar
rea
son
fo
r a
ho
me
pu
rch
ase
89
% o
f b
uye
rs
use
d a
re
al
est
ate
ag
en
t o
r b
roke
r
78
%
of
all
bu
yers
se
e
the
ir h
om
e a
s a
go
od
fin
an
cia
l
inv
est
me
nt
46
% o
f b
uye
rs
exp
an
de
d
the
ir h
om
e s
ea
rch
to
incl
ud
e
ne
w a
rea
s b
eca
use
of
low
inv
en
tory
38
% to
ok
a b
rea
k
un
til m
ore
listi
ng
s ca
me
on
th
e m
ark
et
He
ati
ng
an
d
coo
ling
co
sts
En
erg
y e
ffici
en
t
ap
plia
nce
s
En
erg
y e
ffici
en
t
ligh
tin
g
EN
VIR
ON
ME
NTA
LLY
FR
IEN
DLY
FE
AT
UR
ES
CO
NS
IDE
RE
D V
ER
Y
IMP
OR
TAN
T:
Th
e a
ve
rag
e b
uye
r
pla
ns
to s
tay
in t
he
ir
ho
me
fo
r
15 y
ea
rs
66600
%%d
esi
re t
o o
wn
ho
ho
me
me
11
%%
aff
aff
ord
ab
ililitytyty
o of
ho
me
s
9%%
cha
ng
e in
fam
ily s
itu
ati
on
40
%
Mid
we
st
37
%
So
uth
39
%
We
st
45
%
No
rth
ea
st
FIR
ST
TIM
E H
OM
E B
UY
ER
FA
CT
S
TH
E T
YP
ICA
L
FIR
ST–
TIM
E
BU
YE
R:
SO
UR
CE
S:
BE
TT
ER
HO
ME
S A
ND
GA
RD
EN
S R
EA
L E
ST
AT
E,
NA
TIO
NA
L A
SS
OC
IAT
ION
OF
RE
AL
TO
RS
®,
NB
CN
EW
S.C
OM
31
ye
ars
old
pu
rch
ase
d a
1,6
00
sq
ua
re
foo
t h
om
e f
or
$1
54
,10
0
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
5
FIR
ST-
TIM
E B
UY
ER
S B
Y R
EG
ION
:
SA
CR
IFIC
ES
RE
NT
ER
S A
RE
WIL
LIN
G T
O M
AK
E F
OR
HO
ME
OW
NE
RS
HIP
:
62
% ea
t o
ut
less
40
% ta
ke o
n a
seco
nd
job
23
% m
ov
e b
ack
in w
ith
th
eir
pa
ren
ts
82
%
see
th
eir
ho
me
as
a g
oo
d fi
na
nci
al
inv
est
me
nt
75
%
of
firs
t-ti
me
bu
yers
be
liev
e
tha
t o
wn
ing
a h
om
e is
a
key
ind
ica
tor
of
succ
ess
71
% co
nsi
de
r h
om
eo
wn
ers
hip
som
eth
ing
th
ey
ha
ve
to
ea
rn,
rath
er
tha
n b
elie
vin
g it
is s
om
eth
ing
th
ey
de
serv
e
39
% o
f re
cen
t h
om
e
bu
yers
we
re
firs
t-ti
me
bu
yers
Th
e a
ve
rag
e fi
rst-
tim
e b
uye
r
pla
ns
to s
tay
in t
he
ir h
om
e f
or
10
ye
ars
Firs
t-ti
me
bu
yers
co
nta
cte
d
an
ag
en
t a
fte
r se
arc
hin
g f
or
a
ho
me
fo
r
3 w
ee
ks
3/4
o
f fi
rst-
tim
e
bu
yers
use
d
the
ir s
av
ing
s
for
a d
ow
n
pa
ym
en
t
1/4
use
d a
gif
t fr
om
a
rela
tiv
e o
r
frie
nd
Fin
din
g t
he
rig
ht
pro
pe
rty
& t
he
pa
pe
rwo
rk w
ere
th
e
mo
st d
ifficu
lt s
tep
s in
th
e
ho
me
bu
yin
g p
roce
ss
PR
IMA
RY
RE
AS
ON
S F
OR
BU
YIN
G A
HO
ME
:
66666 de
a 1 aff
aff
ho 99 ch fa
ho
me
fo
r
3 w
ee
kss
33/44
of
of
firsrs
t-t-ti
me
me
bu
yeyersrs
use
d
the
ie
ir s
av
ing
s
11/4
use
d a
gi
gif
tft f
rorom
a
rerelala
titiv
e o
r
Fin
pr
PR
BU
4%
31%
10%
13%
8%
10%
8%
8%
WE
EK
S O
N T
HE
MA
RK
ET
:
1-4
5-8
9-1
2
13
-16
17
-24
25
-36
37
or
mo
re
WE
WE
WE
EK
EK
EK
EK
S
S O
NO
NO
N
SE
LL
ER
ST
AT
S &
TR
EN
DS
SO
UR
CE
: N
AT
ION
AL
AS
SO
CIA
TIO
N O
F R
EA
LT
OR
S®
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
6
WH
AT
SE
LL
ER
S B
OU
GH
T:
46
%
a la
rge
r, h
igh
er-
pri
ced
ho
me
62
%
a n
ew
er
ho
me
68
%
a h
om
e w
ith
in
the
sa
me
sta
te
Th
e t
yp
ica
l se
lle
r liv
es
in t
he
ir h
om
e f
or
9 y
ea
rs
40
%
of
sell
ers
off
ere
d in
cen
tiv
es
incl
ud
ing
ass
ista
nce
wit
h
ho
me
wa
rra
nty
po
licie
s
an
d c
losi
ng
co
sts
On
av
era
ge
,
sell
ers
so
ld t
he
ir
ho
me
fo
r
95
%
of
the
list
ing
pri
ce
$2
0,0
00
T
he
me
dia
n a
mo
un
t
of
eq
uit
y e
arn
ed
on
a h
om
e s
ale
25
%
red
uce
d it
on
ce
17
%
red
uce
d it
twic
e
40
%
of
sell
ers
did
no
t re
du
ce
the
ir a
skin
g
pri
ce
18%
re
du
ced
it
thre
e o
r
mo
re t
ime
s
88
%
of
sell
ers
use
d a
re
al
est
ate
ag
en
t to
se
ll
the
ir h
om
e
les
s
tha
n 1
CO
NS
UM
ER
CO
NF
IDE
NC
E
Bri
an
Bu
ffin
i’s R
ea
l E
sta
te R
ep
ort
PA
GE
7
SO
UR
CE
S:
RE
DF
IN,
MA
RK
ET
WA
TC
H,
HO
US
ING
WIR
E,
BU
SIN
ES
S W
IRE
57
% o
f h
om
eb
uye
rs p
lan
to
bu
y
no
w t
o t
ake
ad
va
nta
ge
of
low
inte
rest
ra
tes
67
%
of
con
sum
ers
wo
uld
bu
y if
the
y h
ad
to
mo
ve
in t
he
ne
ar
futu
re
31
%
of
ren
ters
pla
n t
o
bu
y a
ho
me
wit
hin
the
ne
xt
two
ye
ars
,
up
fro
m 2
2%
in
Jan
ua
ry 2
01
1
Mo
re t
ha
n 7
0%
o
f b
uye
rs b
elie
ve
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ell
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Be
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he
ma
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he
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on
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thin
ks a
bo
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the
po
ssib
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bu
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r se
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me
fo
r
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o 1
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