MARKET PULSESeptember 2015

1

Survey Methodology

• Monthly online survey of 300+ CA REALTORS®

• Respondents are asked about their last closedtransaction and business activity in their market areafor the previous month and the last year.

2

LASTTRANSACTION

3

Overbidding HasCooled Down in Recent Months, asFewerTransactionsWere SoldAboveTheirAsking Price

Q: Did your last closed transaction sell over, at or below asking price?

23%

46%

31%

0%

10%

20%

30%

40%

50%

60%

Jan

-14

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Over Below At

4

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Premium Paid OverAsking Price Increased

Q: At what percentage was your last closed transaction sold over asking price?

8.1% 8.2%

11.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Jan

-14

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Average

5

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Percent Paid BelowAsking Price Decreased Slightly

Q: At what percentage was your last closed transaction sold below asking price?

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Average -5.8 -5.6 -5.8 -6.3 -12% -13% -11% -11% -11% -11% -7.0 -11% -9.6 -11% -10%

6

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

63% of Properties Receiving MultipleOffers

Q: How many offers did the seller in your last closed transaction receive?

58% 58%63%

0%

10%

20%

30%

40%

50%

60%

70%

80%Ja

n-1

4

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

7

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Number ofOffers Received RemainedThe Same

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan

-14

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

2.22.4 2.4

Average

Q: How many offers did your last closed transaction receive?

8

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Proportion of Properties with Listing Price ReductionsDecrease

Q: Were there any listing price reductions before escrow opened in your last closed transaction?

28%30%

27%

0%

5%

10%

15%

20%

25%

30%

35%Ju

n-1

4

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

9

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Two-Fifths of theTransactionsWere Sold to Renters

Q: Was the buyer of your last closed transaction a renter immediately prior to purchasing the property?

0%

10%

20%

30%

40%

50%

60%

42%45%

41%

10

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Sellers Becoming Renters Increased Slightly

Q: Did the seller of your last closed transaction become a renter immediately after selling the property?

0%

5%

10%

15%

20%

25%

17%16%

18%

11

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Share of First-time Buyers Remain Steady

Q: Was the buyer of your last closed transaction a first-time buyer?

30% 30%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Ja

n-1

4

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

% First-time Buyers Long Run Average

12

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

An Increasing Number of PropertiesWerePurchased as Investment

Q: What was the intended use of the property?

79%

60% 62%

14%

27%28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan

-14

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Primary residence Investment Vacation home Other

13

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

International Buyers Fluctuate

Q: Was the buyer an international client (one who was not a citizen or permanent resident of the U.S.)?

6.0%

3.0%

7.0%

0%

2%

4%

6%

8%

10%

12%

Jan

-14

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

% International Buyers Long Run Average

14

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

MARKET CONDITIONS

15

Floor Calls from Potential Clients Declining

Q: Compared to last month, the number of floor calls from potential clients in your market area this month was …

0%

10%

20%

30%

40%

50%

60%

70%

Feb

-14

Mar

-14

Ap

r-14

May

-…

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-…

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Last MonthDown Flat Up

16

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

ListingAppointments/Presentations toClientsSlowing Down

Q: Compared to last month, the number of listing appointments and presentations to clients in yourmarket area this month was …

0%

10%

20%

30%

40%

50%

60%

70%

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Last Month

Down Flat Up

17

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Open HouseTraffic Continue to Dip

Q: Compared to last month/year, open house traffic in your market area this month was …

0%

10%

20%

30%

40%

50%

60%

70%

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15

Down Flat Up

18

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Auctions Steady

Q: Compared to last month/year, the number of auctions in your market area this month was …

48%

40%

12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15

Down Flat Up

19

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

All Cash Purchases Up Slightly

Q: Compared to last month/year, the number of all cash purchases in your market area this month was …

41%

35%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15

Down Flat Up

20

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Half of REALTORS® Expect Similar MarketConditionsOver the NextYear

Q: What are your expectations for market conditions over the next year?

15%

50%

35%

0%

10%

20%

30%

40%

50%

60%

70%

Jan

-14

Feb

-14

Mar

-14

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-15

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Worsen Same Improve

21

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Why REALTORS® Expect MarketConditions toWorsen

Rise in interest rates

Tight lending

Lack of inventory

Wages not raising

Q: Why do you expect real estate market conditions to worsen over the next year?

22

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

REALTORS®AreConcernedAboutAffordability andInventory

23

4%

4%

2%

6%

6%

8%

12%

15%

21%

22%

0% 5% 10% 15% 20% 25%

No Concerns

Other

Policies & Regulations

Housing bubble

Rising Interest Rates

Lending & financing

Home prices overinflated

Slow down in economic growth

Decline in housing affordability

Lack of Inventory

Q: What is your biggest concern about the current real estate market?SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

What are REALTORS® Saying?

Overbidding has cooled, buyers aren’t going dramatically overasking, and the number of offers decreased – Santa Clara

Market seems pretty stable with property prices seem to betrue to value - Kern

Drought and fires creating an erratic and unpredictable buyingand selling patterns - Madera

Concerns over TRID – San Diego

Q: Do you have any specific comments, professional observations, or information that you would like to sharewith us--such as information on multiple bidding, changing buyer preferences, mortgage credit issues, orother topics?

24

Top 10 Counties

Q: In which county do you live?

25

SERIES: Market Pulse SurveySOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

August 2015 September 2015

1 Los Angeles Los Angeles

2 San Diego San Diego

3 San Bernardino Orange

4 Riverside Riverside

5 Orange Santa Clara

6 Sacramento Ventura

7 Alameda San Bernardino

8 Contra Costa Fresno

9 San Luis Obispo Alameda

10 Ventura Contra Costa