CANADIAN EDITION

We create Brian Buffinis Real Estate Report to give you a snapshot of todays market and to help you educate your clients on the process of buying or selling a home. I recommend that you lean into this piece when giving a presentationuse it to help set expectations and position yourself as your clients trusted advisor. I hope you enjoy this comprehensive report and put it to use in your business. Its a good life!

Contents
Industry Facts Mortgage Stats Price Information Consumer Stats Todays Buyer First-Time Home Buyer Facts Todays Real Estate Professional Why Working by Referral Works
Page 1 Page 2 Page 3 Page 4 Page 4 Page 5 Page 6 Page 7

2013 Buffini & Company. All rights reserved.

Brian Buffinis Real Estate Report

Page 1 3

industry faCts
By mid-2013, housing starts are expected to fall

more than 17%

HouSINg INvENToRy:

National home sales are expected to remain stable in 2013 In 2011, renovation spending grew

5.8 months December 2011 6.7 months December 2012

In 2012, the number of homes sold is projected to match or exceed 2011 levels in most markets From November to December, the number of newly listed homes dropped

461,500 sales

3%

through the MLS are forecast for 2013

453,372 homes

were sold over the MLS in 2012. This number is 1.4% below the 2002 through 2011 average

At the end of 2012, the Toronto and vancouver markets were cooling, while the housing markets of Saskatchewan and Alberta were taking off

1.3%

From December 2012 to January 2013, the number of newly listed homes rose

1.6% 2%

(the first monthly increase since September 2012) In 2013, the economy is expected to grow

The sales-tonew listings ratio remained balanced in December

SOURCES: REUTERS, RE/MAX, SCOTIABANK, CANADIAN REAL ESTATE ASSOCIATION, CANADA MORTGAGE AND HOUSING CORPORATION

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mortgage stats

1/3 32% 72% 81%

of homeowners have a mortgage

CANADIANS AgED 18-34 PLAN To PAy oFF THEIR MoRTgAgE: By age 35

Since June 2012, the five-year posted mortgage interest rate has been stable and stands at

of Canadians say they will carry their mortgage into retirement are trying to become mortgage-free faster

12% 26%
of buyers who used a lender, said that their lender was the single most influential person in their mortgage decision

By age 45

56%

feel it is important to become mortgage-free as soon as possible Prior to meeting with their mortage professional, the majority of recent buyers: prepared a list of questions organized their personal information prepared a list of their assets

CANADIANS AgED 35-54 PLAN To PAy oFF THEIR MoRTgAgE: By age 55

In 2013, home sales are expected to decrease by 5% because of Canadas new mortgage rules

39% 39%

45%

By age 65

of buyers who used a broker indicated that their broker was the single most influential person

29%

of homeowners increase the frequency of their payments in order to pay off their mortgage faster

oF HoMEoWNERS WNERS WITH A M MoRTgAgE:

79%

10%

have a fixed rate mortgage

have a variable rate mortgage

SOURCES: LONDON FREE PRESS, SCOTIABANK, CBC NEWS, CANADA MORTGAGE AND HOUSING CORPORATION, TD ECONOMICS, ROYAL BANK OF CANADA

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PriCe information
yEAR-ovER-yEAR PRICE CHANgE By HoME TyPE: By REgIoN, SHARE oF MoNTHLy INCoME SPENT oN HouSINg:

one-storey single family homes

two-storey single family homes

town homes

apartments

83%

38% 40% 52%

Home prices are than their low in March 2009

23% higher

Vancouver

Calgary

NATIoNAL AvERAgE PRICE By HoME TyPE (Q2 2012): AvERAgE HoME PRICE By REgIoN: vancouver
Toronto

Montreal

$914,500
Detached bungalow

$365,200
(up 5% from Q2 2011)

$412,600
(up 5% from Q2 2011)

Standard two-storey

Standard Condo

$237,300

Calgary

(up 3.2% from Q2 2011)

$488,304
Toronto

7.1%

In 2011, the average resale price of a home in Canada increased

47% of Canadians
to remain stable

30% expect prices

believe housing prices will be higher in 2013

National housing affordability has remained the same or is better than 20 years ago In 2013, the average price of a Canadian home is forecast to rise to

$608,672
Montreal

In 2013, the national average home price is expected to increase 0.3% to

$366,500

$277,000
SOURCES: ??

SOURCES: CANADIAN REAL ESTATE ASSOCIATION, REUTERS, ROYAL BANK OF CANADA, GLOBE AND MAIL, RE/MAX, MACLEANS, CANADIAN MORTGAGE AND HOUSING CORPORATION

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Consumer stats

todays Buyer
HoME BuyERS By AgE: WHy HoMEoWNERS ARE DECIDINg To MovE: 50% wanting a change
Age 25-34

28%

of consumers get the urge to move every five years

14%

of consumers get the urge at least once a year

18% retirement 14% came into money 14% home needed renovating

CoNSuMERS WHo FEEL A HoME IS AN INvESTMENT RATHER THAN AN ExPENSE:

25%

Age 35-44

28%
Age 45-54

62% change in family size 37% job relocation

80%

Women

73%

Men

The largest source of savings for Canadians is their home, which accounts for almost 70% of household assets

25% 19%

Age 55+

Most families move within the same province, however 13% move to another province and 4% move outside the country It is expected that repeat buyers will drive homebuying activity in 2013

housing as a good investment, up 2% from 2011 believe the value of their home has increased over the past two years

88% see 68%

PERCENTAgE oF BuDgET FoR gooDS & SERvICES SPENT oN SHELTER:

6% of

households bought a home in 2011

ToP REASoNS FoR A MovE: work-related upgrading their home family

SOURCES: HOMES-EXTRA.CA, ROYAL BANK OF CANADA, SCOTIABANK, TD ECONOMICS, STATISTICS CANADA, LONDON FREE PRESS, RE/MAX

26.7%

Homeowners

30.4%

Renters

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first-time home Buyer faCts

WHAT FIRST-TIME BuyERS WouLD HAvE DoNE DIFFERENTLy:

60% 1/3 of buyers in

be more thorough when budgeting for all costs of homeownership

60%

make a bigger down payment

55%

buy a home sooner

Many potential buyers who stayed on the sidelines in 2012 will likely enter the marketplace over the next year of consumers who dont own a home plan to buy within the next year

2011 were first-time buyers

55%

12%

oF FIRST-TIME BuyERS:

of first-time home buyers with a mortgage were worried about affording the home if interest rates were to increase

29%
didnt budget for on-going costs (maintenance and utilities)

FIRST-TIME BuyER HoME PREFERENCES: 54% a detached home 18% a condo 15% a townhome 13% a semi-detached home WHy FIRST-TIME BuyERS PuRCHASED A HoME: 48% tired of paying rent 31% got a full-time job 31% wanted to start a family and needed more space BuyERS MoST IMPoRTANT CoNSIDERATIoNS: price layout number of bedrooms features size of backyard or garden

13% 29%

6% 13% 29% overlooked one-time fees associated with buying 6% a home (e.g., inspection fees13% and land transfer costs) 6%
didnt budget for anything other than the down payment and monthly mortgage payment

40%

of buyers have withdrawn money from their RRSP to buy their first home

SOURCES: LONDON FREE PRESS, TD CANADA TRUST, SCOTIABANK, BRITISH COLUMBIA REAL ESTATE ASSOCIATION

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todays reaL estate ProfessionaL

The majority of agents are between 40 & 60 years old

32% 29%

complete between 20-39 transactions per year

46%

complete between 10-19 transactions per year

of agents use a combination of traditional marketing with social media

27%

are only using social media tools for their marketing

have a personal website

44% 78%

use a smartphone

7%

The amount of gross commissions spent on an annual marketing budget

42%

of agents take additional training and further education outside of whats required for licensing In 2012, Buffini & Company Canadian one2one Coaching Members earned an average gross commission of

Nearly 44% 51% of agents charge 2.5% commission on average

claim they never reduce commissions

In 2012, the average Canadian real estate professional earned

$44,182
in commissions

$206,822

SOURCES: BUFFINI & COMPANY, PROPERTY WIRE, LIvING IN CANADA

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Why Working By referraL Works

WoRkINg WITH THE SAME PRoFESSIoNAL AgAIN:

60%

of mortgage consumers totally agreed they would use their lender or broker again

83%

of broker clients and 82% of lender clients totally agreed they will use the same professional again

90%

of those who renewed their mortgage worked with a lender they used in a previous transaction

There is no lead more powerful than one referred from someone you knowsomeone who knows you, trusts you and will put their name to you.
Brian Buffini

Family member

Financial Planner

58%
29%
oF BuyERS:

of consumers will pay more to buy from a trusted company or service provider

Real estate agent

THE MOST COMMON REFERRAL SOURCES:

Friend

reported receiving a recommendation to use a specific lender

46% 55% 42%

of mortgage customers were contacted by their mortgage professional after the transaction

of consumers who used a broker were contacted after the transaction of consumers who worked directly with a lender reported being contacted after the transaction

reported receiving a recommendation to use a specific mortgage broker

25%

SOURCES: BUFFINI & COMPANY, CANADA MORTGAGE AND HOUSING CORPORATION