Pat Turner

1
Pat Turner

• 2005 Chairman of the Board
• San Antonio Board of REALTORS

2
Real Estate Boom or Bust?

• The current real estate boom will not bust

3
Why the Market Should Thrive in 2005

• Home price appreciation
• Low interest rates
• Strong consumer confidence in the real estate
  market
• Job growth
• Moderate housing supply..and
• Innovations in housing finance programs

4
Number of Sales
Source San Antonio Board of REALTORS MLS
5
Dollar Volume (in billions)
Source San Antonio Board of REALTORS MLS
6
Average Price
Source San Antonio Board of REALTORS MLS
7
Price Distribution of MLS Homes Sold
Source San Antonio Board of REALTORS MLS
8
Largest Price Range Categories

• 100,000 - 120,000 (12)
• 120,000 - 140,000 (12)
• 140,000 - 160,000 (8.7)

9
Texas Residential MLS Activity Average Price
Texas Residential MLS ActivityAverage Price
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                    
San Antonio Average Sales Price 144,000
10
Median Price Comparison

• San Francisco Bay area (646,300)
• Anaheim Orange County, California (643,000)
• San Diego, California (578,300)
• Honolulu (469,000)
• Boston (399,000)
• Seattle (303,000)
• Chicago (270,000)

11
Trends and Issues Impacting the Real Estate
Industry

• 40 of all homebuyers first time purchasers
• The median age for first-time purchasers was 32,
  while that for repeat buyers was 45
• 24 of first-time homebuyers identified
  themselves as a minority.and this appears to be
  an increasing trend
• 21 of buyers purchased a new home
• The majority of buyers rated neighborhood quality
  as the most important factor in choosing a home

12
INTERNET REACH AND GROWTH
Homebuyers Use of the Internet Newspapers in
Home Searches
74
Newspaper
71
51
51
43
41
49
49
41
37
Internet
18
2
1995 1997
1999 2001 2003
2004
Source 2004 National Association of REALTORS
Profile of Home Buyers Sellers
13
Technology Internet Impacting the Real Estate
Business

• The internet is everywhere
• In 2004 75 of American households were on-line
• In 2007 90 of American households will have
  on-line access
• 65 of adults have purchased a product on-line
• 35 of the American population send e-mail

14
Technology Internet Impacting the Real Estate
Business

• 99 of REALTORS report using e-mail
• 35 of client communication is conducted via
  e-mail
• The average REALTOR spends 4.6 hours per week
  checking or sending e-mail
• The most productive REALTORS average 6.4 hours
  per week checking or sending e-mail

15
E-Mail Demands of Internet Buyers

• 25 of buyers expect an instant response
• 50 of buyers expect a response within two hours
• Nearly 2/3 expect a response in four hours
• 84 expect a response by the end of the day

16
REALTOR? Websites

• The latest polls show that 50 of REALTORS? have
  a website up from 43 in 2001 and 23 in 1999
• 87 of REALTORS? are associated with a firm that
  has a website, up from 74 in 1999

17
The Role of Real Estate Professionals

• Home buyers and sellers continue to rely on the
  assistance and expertise of the REALTOR?

18
Top Five Information Sources Used by Buyers in
Home Search
Source NAR Research
19
Top Five Information Sources Used by Buyers in
Home Search

• 43 of buyers found their REALTOR? through a
  referral
• 57 selected the REALTOR? first to respond to
  their inquiry

Source NAR Research
20
What Do Buyers Want to See?

• Agent Contact Information.29
• Multiple Photos84
• Virtual Tours..58
• Detailed Property Information..84
• Neighborhood Information...36
• Interactive Maps....45

Source 2004 NAR Profile of Home Buyers and
Sellers
21
Home Sellers

• 38 found their REALTOR? through a referral from
  a friend, neighbor or family member
• 54 thought an agents reputation was the most
  important factor

22
For Sale By Owners

• For Sale by Owners (FSBOs) represent only 14
  of the market
• 32 of FSBO sellers knew their buyers in advance
• Median selling price of a FSBO was 15.4 less
  than REALTOR? assisted transactions

23
What does all of this mean for the Real Estate
Industry?

• Collaboration and Innovation
• The internet is the first point of reference
• The mind set of our audience is NOW
• Computer technology for knowledge and information

24
Key Consumer Change
Consumer Controlled Process Information
Gathering Learning Process Selection of Homes to
See Selection of Neighborhoods Pre-approval of
Loans One Stop Shopping Agent as Trusted
Advisor Not Process Controller
Agent Controlled Process
Source NAR Research
25
Future Industry Changes

• Diversity

Source NAR Research
26
Minority Home Buyers and Sellers

• Represent a large percent of new home purchases
• Stay in their homes longer
• Use REALTORS? who understand their cultural
  differences
• Gather information through contacts less
  reliant on technology as a source of information

27
Market Share in 2010
Source NAR Research
28
Future Industry Changes

• Consolidation By 2010, there will be a
  decline in the number of firms and REALTORS?

29
Future Industry Changes

• Business Models One stop shopping

30
Future Industry Changes

• MLS and Data Delivery Data Protection

31
Impact of Development in the San Antonio Economy
32
Economic Impact of Real Estate Development

• 9.4 billion in economic activity.
• 2.6 billion in labor income.
• 96.7 million in tax revenue.
• 86,100 jobs.

33
Economic Impact of Real Estate Development

• Healthcare
• Real Estate Development
• Tourism
• Toyota

• 11.5 billion
• 9.4 billion
• 7.2 billion
• 1.5 billion

Source Texas Perspectives, Inc.
34
The Importance of Relationships