SlideShare uma empresa Scribd logo
1 de 14
Baixar para ler offline
Global Communications




PRUDENTIAL REAL ESTATE
OUTLOOK SURVEY
2ND QUARTER

July 11, 2012




                                        1
Survey Background
Objective:
 Gather insight on the factors impacting buyer/seller real estate decisions in today’s economy.
Audiences:
 Respondents are aged 25-64 with a household income of at least $50,000, and either recently
  bought/sold a home or are considering buying/selling a home.
 Similar studies were conducted in February 2011 and Q1 2012 and are used as a benchmark
  periodically throughout this report.

Total Respondents: 1,250
 Targeted sample of Americans “in the market” for buying or selling a home
  – 500 “Recent Transactors” – Bought/sold home within the last year
  – 500 “Likely Transactors” – Indicated they are likely to buy/sell home within next year
  – 250 “Contemplators” – Considered buying/selling within last year, but did not

 The margin of error is ± 2.8% for all respondents and higher for subgroups.

Methodology:
 Interviews were conducted online by Penn Schoen Berland, between May 22 and June 1, 2012.




                                                                                                   2
Key Findings
 Confidence is rising in homeownership and the recovery of the U.S. real estate market
  – 69% believe that real estate is a good investment despite the market volatility of the past few years, up 6 percentage points from
    the first-quarter 2012 survey and 17 percentage points from the first-quarter 2011 survey.
  – 72% expressed confidence that the real estate market and property values will improve during the next two years, including a 6-
    point jump among those “very confident” or “confident” vs. the first quarter 2012, and a 14-point gain in this subset over the
    first quarter 2011.

 The Recession has not deterred Americans from the goal of homeownership
  – Nearly two-thirds (64%) of respondents have a favorable perception of the U.S. housing market, up from 60% in the first quarter
    2012 and 52% in first quarter 2011. However, Americans are more cautious than before – 30% strongly agree that the housing
    crisis reminded them they have to be more careful about buying or selling a home.
  – Owning a home is still very important to 78% of respondents, unchanged from the first-quarter 2011 survey.

 Belief that now is a good time to buy remains high
  – With interest rates at historically low levels, 96% of respondents at least “somewhat agree” that now is a great time to buy a
    home. That’s unchanged from the first-quarter 2012 survey.

 Emotional reasons outweigh financial reasons for owning a home
  – Survey respondents emphasized “control of living space,” “more space for family,” “safer neighborhood,” and “good place to raise
    a family” before “a good investment,” “financial security” and “tax benefits.”

 Caution remains
  – 30% of respondents “strongly agree” that the housing crisis reminds them to be more careful about buying or selling a home, up
    2 points from the first-quarter 2012 survey.
  – 65% of respondents said that securing a mortgage is more challenging that it ever was before the market crisis, a 7-point jump
    from the first quarter 2012.
  – Among those considering a real estate transaction, 39% expressed concern about selling their home, an 11-point increase from
    the first-quarter 2012 survey and 10 points higher than first quarter 2011.

 Importance of Real Estate Agents
  – Nearly three-quarters of respondents (74%) said it’s more important than every to work with a good real estate agent for best
    success in buying or selling a home, up from 71% in the first quarter 2012 survey and from 67% in first quarter 2011.

                                                                                                                                         3
Confidence in rising in real estate’s recovery
    Confidence increased among all audiences; Recent Transactors are the most confident in the
      recovery
                                                                                     All
                                                          Q2 2012            39%                      33%                                27%
                                                          Q1 2012          33%                     37%                                  30%
    Considering the U.S.                                     2011        25%                    43%                                    32%
economy’s ongoing recovery                                                   Recent Transactor
from the "Great Recession,"                               Q2 2012                48%                     26%                             25%
  how confident do you feel            Confident
                                                          Q1 2012             41%                     31%                               28%
 that the real estate market           Somewhat              2011        26%                    41%                                    33%
 and property values will at
                                                                             Likely Transactor
least begin to recover in the          Not                Q2 2012             42%                       37%                                22%
      next year or two?
                                                          Q1 2012           34%                     36%                                  29%
                                                             2011         28%                     43%                                    29%
                                                                               Contemplator
                                                          Q2 2012      18%                39%                                      44%
                                                          Q1 2012    12%                   52%                                        36%
                                                             2011     17%                   45%                                      38%

                                             All               Recent Transactor               Likely Transactor              Contemplator
                                Q2 2012 Q1 2012    2011     Q2 2012 Q1 2012   2011   Q2 2012 Q1 2012          2011     Q2 2012 Q1 2012       2011
      Very confident              16         11     5         23      16       6       16             10           5     2         2          4
      Confident                   23         22    20         25      25      20       26             24       23        16       10         13
      Somewhat confident          33         37    43         26      31      41       37             36       43        39       52         45
      Not very confident          21         24    27         19      21      27       17             24       24        35       31         34
      Not at all confident        6          6      5         6        7       6           5          5            5     9         5          4
                                                                                                                                                    4
Optimism is returning to the real estate market

    Favorability is up 12 points from 2011, and 4 points from Q1

                                                                                     All
                                                          Q2 2012                       64%                                      37%
                                                          Q1 2012                      60%                                      40%
                                                             2011                   52%                                       48%
                                                                              Recent Transactor
                                                          Q2 2012                         69%                                           31%
   Based on your personal
experience and/or what you                                Q1 2012                          71%                                           29%
 know about the process of                                   2011                     57%                                         43%
                                       Favorable                              Likely Transactor
 buying and selling homes,
    what is your overall               Unfavorable        Q2 2012                         68%                                        32%
perception of the residential                             Q1 2012                     56%                                         43%
  real estate market in the                                  2011                   53%                                          47%
        United States?                                                          Contemplator
                                                          Q2 2012               42%                                         59%
                                                          Q1 2012                     56%                                         43%
                                                             2011               41%                                        59%

                                          All                  Recent Transactor               Likely Transactor            Contemplator
                                Q2 2012 Q1 2012    2011     Q2 2012 Q1 2012   2011    Q2 2012 Q1 2012         2011   Q2 2012 Q1 2012       2011
     Favorable                    24      20       14         33      31       16          24         17       14      4          17           9
     Somewhat favorable           40      40       38         36      40       41          44         39       39      38         39       32
     Somewhat unfavorable         28      29       33         26      21       28          24         30       32      41         30       46
     Unfavorable                  9       11       15         5        8       15          8          13       15      18         13       14
                                                                                                                                                   5
Real estate is still considered a good investment
 Despite market volatility of previous years, 69% believe real estate is a good investment, up
  sharply from Q1 and from 2011
 Roughly 3 in 4 recognize the importance of working with a good real estate agent when buying
  or selling a home, a steady increase from the previous two surveys
 Financing a home remains a concern among respondents
Please indicate your level of agreement or disagreement                All            Recent Transactors      Likely Transactors
with the following statements.
IF RECENT/LIKELY TRANSACTOR                                      Q2     Q1            Q2     Q1              Q2      Q1
                                                                              2011                   2011                    2011
Showing % Strongly Agree / Agree                                2012   2012          2012   2012            2012    2012

Given the dynamics and challenges of today’s real estate
market, I think it is more important than ever to work with a   74     71     67     75      71       70    71       73       64
good realtor for the best success in buying or selling a home
Even though my house is worth less, I know I can also buy a
                                                                67     64     64     67      63       --    66       66       65
new house at a lower price
I think real estate is a good investment despite the market
                                                                69     63     52     72      63       52    65       61       53
volatility of the past few years
Financing/getting a mortgage is more challenging than it
                                                                65     58     61     67      56       62    63       60       60
ever was before the market crisis
Rationally, I understand housing prices are down and by
historical standards this might be a good time to buy real
                                                                43     36      --    42      39       --    44       33        --
estate, but my emotions and concerns hold me back from
buying or selling a home
I regret not selling my home in the past year                   19     16     12      --      --      --    19       16       12
I regret selling my home in the past year                       20     13     10     20      13       10     --       --       --


                                                                                                                                    6
Owning a home remains very important

 Owning a home is still “very important” to nearly 4 in 5 respondents

                                              How important is owning a home to you?

                        1% 2%
                Q2
                                20%                                       78%
               2012


                        1%2%
                Q1
                                19%                                      78%
               2012

                           Not at all important   Not very important     Somewhat important         Very important



                                                              All        Recent Transactor   Likely Transactor   Contemplator
 How important is owning a home to you?
                                                      Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012

 Very Important                                          78         78     81        82        78        78      70       68
 Somewhat Important                                      20         19     17        16        19        19      26       27
 Not very important                                      2          2       1        2         2          3          4    2
 Not at all important                                    1          1       1        0         0          1          0    2

                                                                                                                                7
Reasons for homeownership favor the emotional side
 Safety, control and family continue to be more important than financial considerations

When thinking about the reasons you                    All              Recent Transactor    Likely Transactor     Contemplator
might own a home, how important are
each of the following?                       Q2 2012         Q1 2012   Q2 2012    Q1 2012   Q2 2012    Q1 2012   Q2 2012   Q1 2012
Showing % Very Important
It allows me to have more control over
                                               70              69        69          66       73          73       65        66
my living space
It allows me to have more space for my
                                               62              63        60          60       67          67       55        60
family
It allows me to live in a safer
neighborhood where people look after           61              61        61          62       63          60       57        57
each other
It gives me a good place to raise a family     59              59        58          58       62          61       54        56
It is a good investment                        56              55        58          54       57          56       51        55
It gives me a sense of pride or
                                               57              54        59          54       62          56       42        48
accomplishment
It gives me financial security and
something I can borrow against if              43              45        45          47       45          47       33        36
needed
It gives me tax benefits                       46              45        48          44       48          47       41        42
It means I can live in an area with better
                                               43              44        45          43       46          46       34        43
schools
It allows me to live in a more convenient
                                               40              43        41          44       44          44       30        38
location closer to family & friends
It allows me to live in a community
                                               45              42        47          48       48          41       35        33
where people share my values

                                                                                                                                     8
Now is a great time to buy a home
 96% agree that with interest rates at historically low levels, now is a great time to buy a home


                          With interest rates at historically low levels, now is a great
                                           time for me to buy a home

              Q2
             2012                 39%                                35%                     22%        3% 2%



              Q1
             2012                 39%                                35%                     22%        3% 1%

                          Strongly agree      Agree               Somewhat agree          Somewhat disagree       Disagree

       How strongly do you agree or                  All              Recent Transactor      Likely Transactor     Contemplator
       disagree with the following
       statement: With interest rates at
       historically low levels, now is a   Q2 2012         Q1 2012   Q2 2012   Q1 2012      Q2 2012   Q1 2012    Q2 2012   Q1 2012
       great time for me to buy a home
       TOTAL AGREE                           96              96         96         96         95         98        93        94
       Strongly agree                        39              39         40         42         42         40        29        30
       Agree                                 35              35         36         34         33         38        35        32
       Somewhat agree                        22              22         20         20         20         20        29        32
       TOTAL DISAGREE                        5               4          4          5           5          2        7         6
       Somewhat disagree                     3               3          3          3           2          1        5         5
       Disagree                              2               1          1          2           3          1        2         1
                                                                                                                                     9
Homeownership is good for the economy
 Even though it is more difficult to buy a home now than it was for our parents’ generation it
  remains an important part of the American Dream
                                                            All             Recent Transactor   Likely Transactor     Contemplator
   How strongly do you agree or disagree with
   the following statements?
   Showing % Strongly Agree                          Q2 2012      Q1 2012   Q2 2012   Q1 2012   Q2 2012   Q1 2012   Q2 2012   Q1 2012

   TOP HALF
   Homeownership is an important part of the
                                                       42           39        42        42        46        41        34        29
   American Dream
   With interest rates at historically low levels,
                                                       39           39        40        42        42        40        29        30
   now is a great time for me to buy a home

   Homeownership is good for the economy               41           38        42        40        45        37        30        33

   Finding the right home and community is
                                                       33           31        34        36        36        31        27        21
   crucial to helping my family be happy
   The housing crisis reminded me that I have to
   be more careful about buying or selling a           30           28        24        26        31        27        41        34
   home
   It’s more difficult to buy a home now than it
                                                       34           27        31        26        34        27        37        29
   was for my parents’ generation
   Having a good realtor can help me make the
   right choices about the type of home and            28           26        29        29        29        27        23        17
   community I want
   Having a realtor when buying or selling a
                                                       22           19        25        22        23        19        14        12
   home is worth the fee
   I trust my realtor’s advice                         18           16        25        22        16        15        9         6
                                                                                                                                        10
Homeownership is part of the American Dream
 42% strongly agree that homeownership is an important part of the American Dream, up 3
  points from the first quarter

                        Homeownership is an important part of the American Dream


             Q2
            2012                 42%                                  35%                    19%       3% 1%



             Q1
            2012               39%                                  35%                     22%        3% 1%

                         Strongly agree         Agree            Somewhat agree          Somewhat disagree        Disagree

       How strongly do you agree or                 All              Recent Transactor      Likely Transactor     Contemplator
       disagree with the following
       statement: Homeownership is an
       important part of the American     Q2 2012         Q1 2012   Q2 2012   Q1 2012      Q2 2012   Q1 2012    Q2 2012   Q1 2012
       Dream
       TOTAL AGREE                          96              96         97         95         97         97        95         95
       Strongly agree                       42              39         42         42         46         41        34         29
       Agree                                35              35         37         34         31         33        38         42
       Somewhat agree                       19              22         18         19         20         23        23         24
       TOTAL DISAGREE                       4               4          4          5           3          4        5          5
       Somewhat disagree                    3               3          2          3           3          3        4          4
       Disagree                             1               1          2          2           0          1        1          1
                                                                                                                                    11
Contemplators are waiting for the right time to buy
or sell
 Lingering economic uncertainty and fears of being unable to sell current home are holding back
  Contemplators
            IF CONTEMPLATOR: Earlier in the survey, you indicated that you’ve been considering buying or selling a
          home for the past year. For what reasons, if any, have you not yet bought or sold a home? Select all that
                                                            apply.
                                                                                                                                 47%
                           Waiting for right opportunity                                                                         47%
                                                                                                                           43%
                                                                                                                     39%
     I’m worried I won’t be able to sell my current home                                              28%
                                                                                                       29%
                                                                                                                    38%
                              Instability of U.S. economy                                                          37%
                                                                                                     27%
                                                                                                                    38%
                I just haven’t found the home I want yet                                               29%
                                                                                                                   37%
                                                                                                             34%
 I’m worried that home values haven’t stopped dropping                                         24%
                                                                                                25%
                                                                                                       29%
                             Trying to save more money                                                         36%
                                                                                                       29%
                                                                                               24%
                                Not sure about finances                                          26%                 Q2 2012
                                                                                         20%
                                                                                               24%                   Q1 2012
  I’m not confident I can set the right price for my home                          15%
                                                                                         20%
                                                                                         20%                         2011
              I’m nervous about having a new mortgage                              16%
                                                                                 15%
                                                                                     18%
                 I’m worried about my job/employment                                 18%
                                                                               13%
                                                                   6%
                                                  Others                8%
                                                                             11%

                                                                                                                                       12
Potential buyers and sellers have to be more careful
 93% agree that the housing crisis reminded them to be more careful about buying or selling a
  home, unchanged from the previous wave

                       The housing crisis reminded me that I have to be more careful
                                      about buying or selling a home

            Q2
           2012             30%                             37%                         26%         4% 2%



            Q1
           2012            28%                             37%                        28%           5% 2%

                        Strongly agree      Agree               Somewhat agree          Somewhat disagree        Disagree
      How strongly do you agree or                 All              Recent Transactor      Likely Transactor     Contemplator
      disagree with the following
      statement: The housing crisis
      reminded me that I have to be      Q2 2012         Q1 2012    Q2 2012   Q1 2012     Q2 2012   Q1 2012    Q2 2012   Q1 2012
      more careful about buying or
      selling a home
      TOTAL AGREE                          93              93         92         93           94       94        99         92
      Strongly agree                       30              28         24         26           31       27        41         34
      Agree                                37              37         38         33           38       42        36         35
      Somewhat agree                       26              28         50         34           25       25        22         23
      TOTAL DISAGREE                       6               7          8          6            6         5        2          8
      Somewhat disagree                    4               5          5          4            5         4        1          7
      Disagree                             2               2          3          2            1         1        1          1
                                                                                                                                   13
Having a good agent is important
 28% strongly agree that having a good agent can help them make the right choices when it
  comes to buying a home, up 2 points from the first quarter

                          Having a good realtor can help me make the right choices
                               about the type of home and community I want

            Q2
           2012              28%                         34%                     28%                6%       3%



            Q1
           2012             26%                          36%                        29%             6%        3%

                       Strongly agree     Agree             Somewhat agree          Somewhat disagree               Disagree
      How strongly do you agree or                 All             Recent Transactor       Likely Transactor         Contemplator
      disagree with the following
      statement: Having a good realtor
      can help me make the right         Q2 2012         Q1 2012   Q2 2012   Q1 2012      Q2 2012    Q1 2012       Q2 2012   Q1 2012
      choices about the type of home
      and community I want
      TOTAL AGREE                          90              91        90        92           90           93          90        86
      Strongly agree                       28              26        29        29           29           27          23        17
      Agree                                34              36        35        35           35           37          30        36
      Somewhat agree                       28              29        26        28           26           29          37        33
      TOTAL DISAGREE                       9               9         9          8            9           8           9         15
      Somewhat disagree                    6               6         6          5            6           5           8         10
      Disagree                             3               3         3          3            3           3           1         5
                                                                                                                                       14

Mais conteúdo relacionado

Último

Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 

Último (20)

Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 

Prudential 2012 consumer attitudes survey q2 findings final

  • 1. Global Communications PRUDENTIAL REAL ESTATE OUTLOOK SURVEY 2ND QUARTER July 11, 2012 1
  • 2. Survey Background Objective:  Gather insight on the factors impacting buyer/seller real estate decisions in today’s economy. Audiences:  Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home.  Similar studies were conducted in February 2011 and Q1 2012 and are used as a benchmark periodically throughout this report. Total Respondents: 1,250  Targeted sample of Americans “in the market” for buying or selling a home – 500 “Recent Transactors” – Bought/sold home within the last year – 500 “Likely Transactors” – Indicated they are likely to buy/sell home within next year – 250 “Contemplators” – Considered buying/selling within last year, but did not  The margin of error is ± 2.8% for all respondents and higher for subgroups. Methodology:  Interviews were conducted online by Penn Schoen Berland, between May 22 and June 1, 2012. 2
  • 3. Key Findings  Confidence is rising in homeownership and the recovery of the U.S. real estate market – 69% believe that real estate is a good investment despite the market volatility of the past few years, up 6 percentage points from the first-quarter 2012 survey and 17 percentage points from the first-quarter 2011 survey. – 72% expressed confidence that the real estate market and property values will improve during the next two years, including a 6- point jump among those “very confident” or “confident” vs. the first quarter 2012, and a 14-point gain in this subset over the first quarter 2011.  The Recession has not deterred Americans from the goal of homeownership – Nearly two-thirds (64%) of respondents have a favorable perception of the U.S. housing market, up from 60% in the first quarter 2012 and 52% in first quarter 2011. However, Americans are more cautious than before – 30% strongly agree that the housing crisis reminded them they have to be more careful about buying or selling a home. – Owning a home is still very important to 78% of respondents, unchanged from the first-quarter 2011 survey.  Belief that now is a good time to buy remains high – With interest rates at historically low levels, 96% of respondents at least “somewhat agree” that now is a great time to buy a home. That’s unchanged from the first-quarter 2012 survey.  Emotional reasons outweigh financial reasons for owning a home – Survey respondents emphasized “control of living space,” “more space for family,” “safer neighborhood,” and “good place to raise a family” before “a good investment,” “financial security” and “tax benefits.”  Caution remains – 30% of respondents “strongly agree” that the housing crisis reminds them to be more careful about buying or selling a home, up 2 points from the first-quarter 2012 survey. – 65% of respondents said that securing a mortgage is more challenging that it ever was before the market crisis, a 7-point jump from the first quarter 2012. – Among those considering a real estate transaction, 39% expressed concern about selling their home, an 11-point increase from the first-quarter 2012 survey and 10 points higher than first quarter 2011.  Importance of Real Estate Agents – Nearly three-quarters of respondents (74%) said it’s more important than every to work with a good real estate agent for best success in buying or selling a home, up from 71% in the first quarter 2012 survey and from 67% in first quarter 2011. 3
  • 4. Confidence in rising in real estate’s recovery  Confidence increased among all audiences; Recent Transactors are the most confident in the recovery All Q2 2012 39% 33% 27% Q1 2012 33% 37% 30% Considering the U.S. 2011 25% 43% 32% economy’s ongoing recovery Recent Transactor from the "Great Recession," Q2 2012 48% 26% 25% how confident do you feel Confident Q1 2012 41% 31% 28% that the real estate market Somewhat 2011 26% 41% 33% and property values will at Likely Transactor least begin to recover in the Not Q2 2012 42% 37% 22% next year or two? Q1 2012 34% 36% 29% 2011 28% 43% 29% Contemplator Q2 2012 18% 39% 44% Q1 2012 12% 52% 36% 2011 17% 45% 38% All Recent Transactor Likely Transactor Contemplator Q2 2012 Q1 2012 2011 Q2 2012 Q1 2012 2011 Q2 2012 Q1 2012 2011 Q2 2012 Q1 2012 2011 Very confident 16 11 5 23 16 6 16 10 5 2 2 4 Confident 23 22 20 25 25 20 26 24 23 16 10 13 Somewhat confident 33 37 43 26 31 41 37 36 43 39 52 45 Not very confident 21 24 27 19 21 27 17 24 24 35 31 34 Not at all confident 6 6 5 6 7 6 5 5 5 9 5 4 4
  • 5. Optimism is returning to the real estate market  Favorability is up 12 points from 2011, and 4 points from Q1 All Q2 2012 64% 37% Q1 2012 60% 40% 2011 52% 48% Recent Transactor Q2 2012 69% 31% Based on your personal experience and/or what you Q1 2012 71% 29% know about the process of 2011 57% 43% Favorable Likely Transactor buying and selling homes, what is your overall Unfavorable Q2 2012 68% 32% perception of the residential Q1 2012 56% 43% real estate market in the 2011 53% 47% United States? Contemplator Q2 2012 42% 59% Q1 2012 56% 43% 2011 41% 59% All Recent Transactor Likely Transactor Contemplator Q2 2012 Q1 2012 2011 Q2 2012 Q1 2012 2011 Q2 2012 Q1 2012 2011 Q2 2012 Q1 2012 2011 Favorable 24 20 14 33 31 16 24 17 14 4 17 9 Somewhat favorable 40 40 38 36 40 41 44 39 39 38 39 32 Somewhat unfavorable 28 29 33 26 21 28 24 30 32 41 30 46 Unfavorable 9 11 15 5 8 15 8 13 15 18 13 14 5
  • 6. Real estate is still considered a good investment  Despite market volatility of previous years, 69% believe real estate is a good investment, up sharply from Q1 and from 2011  Roughly 3 in 4 recognize the importance of working with a good real estate agent when buying or selling a home, a steady increase from the previous two surveys  Financing a home remains a concern among respondents Please indicate your level of agreement or disagreement All Recent Transactors Likely Transactors with the following statements. IF RECENT/LIKELY TRANSACTOR Q2 Q1 Q2 Q1 Q2 Q1 2011 2011 2011 Showing % Strongly Agree / Agree 2012 2012 2012 2012 2012 2012 Given the dynamics and challenges of today’s real estate market, I think it is more important than ever to work with a 74 71 67 75 71 70 71 73 64 good realtor for the best success in buying or selling a home Even though my house is worth less, I know I can also buy a 67 64 64 67 63 -- 66 66 65 new house at a lower price I think real estate is a good investment despite the market 69 63 52 72 63 52 65 61 53 volatility of the past few years Financing/getting a mortgage is more challenging than it 65 58 61 67 56 62 63 60 60 ever was before the market crisis Rationally, I understand housing prices are down and by historical standards this might be a good time to buy real 43 36 -- 42 39 -- 44 33 -- estate, but my emotions and concerns hold me back from buying or selling a home I regret not selling my home in the past year 19 16 12 -- -- -- 19 16 12 I regret selling my home in the past year 20 13 10 20 13 10 -- -- -- 6
  • 7. Owning a home remains very important  Owning a home is still “very important” to nearly 4 in 5 respondents How important is owning a home to you? 1% 2% Q2 20% 78% 2012 1%2% Q1 19% 78% 2012 Not at all important Not very important Somewhat important Very important All Recent Transactor Likely Transactor Contemplator How important is owning a home to you? Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Very Important 78 78 81 82 78 78 70 68 Somewhat Important 20 19 17 16 19 19 26 27 Not very important 2 2 1 2 2 3 4 2 Not at all important 1 1 1 0 0 1 0 2 7
  • 8. Reasons for homeownership favor the emotional side  Safety, control and family continue to be more important than financial considerations When thinking about the reasons you All Recent Transactor Likely Transactor Contemplator might own a home, how important are each of the following? Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Showing % Very Important It allows me to have more control over 70 69 69 66 73 73 65 66 my living space It allows me to have more space for my 62 63 60 60 67 67 55 60 family It allows me to live in a safer neighborhood where people look after 61 61 61 62 63 60 57 57 each other It gives me a good place to raise a family 59 59 58 58 62 61 54 56 It is a good investment 56 55 58 54 57 56 51 55 It gives me a sense of pride or 57 54 59 54 62 56 42 48 accomplishment It gives me financial security and something I can borrow against if 43 45 45 47 45 47 33 36 needed It gives me tax benefits 46 45 48 44 48 47 41 42 It means I can live in an area with better 43 44 45 43 46 46 34 43 schools It allows me to live in a more convenient 40 43 41 44 44 44 30 38 location closer to family & friends It allows me to live in a community 45 42 47 48 48 41 35 33 where people share my values 8
  • 9. Now is a great time to buy a home  96% agree that with interest rates at historically low levels, now is a great time to buy a home With interest rates at historically low levels, now is a great time for me to buy a home Q2 2012 39% 35% 22% 3% 2% Q1 2012 39% 35% 22% 3% 1% Strongly agree Agree Somewhat agree Somewhat disagree Disagree How strongly do you agree or All Recent Transactor Likely Transactor Contemplator disagree with the following statement: With interest rates at historically low levels, now is a Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 great time for me to buy a home TOTAL AGREE 96 96 96 96 95 98 93 94 Strongly agree 39 39 40 42 42 40 29 30 Agree 35 35 36 34 33 38 35 32 Somewhat agree 22 22 20 20 20 20 29 32 TOTAL DISAGREE 5 4 4 5 5 2 7 6 Somewhat disagree 3 3 3 3 2 1 5 5 Disagree 2 1 1 2 3 1 2 1 9
  • 10. Homeownership is good for the economy  Even though it is more difficult to buy a home now than it was for our parents’ generation it remains an important part of the American Dream All Recent Transactor Likely Transactor Contemplator How strongly do you agree or disagree with the following statements? Showing % Strongly Agree Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 TOP HALF Homeownership is an important part of the 42 39 42 42 46 41 34 29 American Dream With interest rates at historically low levels, 39 39 40 42 42 40 29 30 now is a great time for me to buy a home Homeownership is good for the economy 41 38 42 40 45 37 30 33 Finding the right home and community is 33 31 34 36 36 31 27 21 crucial to helping my family be happy The housing crisis reminded me that I have to be more careful about buying or selling a 30 28 24 26 31 27 41 34 home It’s more difficult to buy a home now than it 34 27 31 26 34 27 37 29 was for my parents’ generation Having a good realtor can help me make the right choices about the type of home and 28 26 29 29 29 27 23 17 community I want Having a realtor when buying or selling a 22 19 25 22 23 19 14 12 home is worth the fee I trust my realtor’s advice 18 16 25 22 16 15 9 6 10
  • 11. Homeownership is part of the American Dream  42% strongly agree that homeownership is an important part of the American Dream, up 3 points from the first quarter Homeownership is an important part of the American Dream Q2 2012 42% 35% 19% 3% 1% Q1 2012 39% 35% 22% 3% 1% Strongly agree Agree Somewhat agree Somewhat disagree Disagree How strongly do you agree or All Recent Transactor Likely Transactor Contemplator disagree with the following statement: Homeownership is an important part of the American Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Dream TOTAL AGREE 96 96 97 95 97 97 95 95 Strongly agree 42 39 42 42 46 41 34 29 Agree 35 35 37 34 31 33 38 42 Somewhat agree 19 22 18 19 20 23 23 24 TOTAL DISAGREE 4 4 4 5 3 4 5 5 Somewhat disagree 3 3 2 3 3 3 4 4 Disagree 1 1 2 2 0 1 1 1 11
  • 12. Contemplators are waiting for the right time to buy or sell  Lingering economic uncertainty and fears of being unable to sell current home are holding back Contemplators IF CONTEMPLATOR: Earlier in the survey, you indicated that you’ve been considering buying or selling a home for the past year. For what reasons, if any, have you not yet bought or sold a home? Select all that apply. 47% Waiting for right opportunity 47% 43% 39% I’m worried I won’t be able to sell my current home 28% 29% 38% Instability of U.S. economy 37% 27% 38% I just haven’t found the home I want yet 29% 37% 34% I’m worried that home values haven’t stopped dropping 24% 25% 29% Trying to save more money 36% 29% 24% Not sure about finances 26% Q2 2012 20% 24% Q1 2012 I’m not confident I can set the right price for my home 15% 20% 20% 2011 I’m nervous about having a new mortgage 16% 15% 18% I’m worried about my job/employment 18% 13% 6% Others 8% 11% 12
  • 13. Potential buyers and sellers have to be more careful  93% agree that the housing crisis reminded them to be more careful about buying or selling a home, unchanged from the previous wave The housing crisis reminded me that I have to be more careful about buying or selling a home Q2 2012 30% 37% 26% 4% 2% Q1 2012 28% 37% 28% 5% 2% Strongly agree Agree Somewhat agree Somewhat disagree Disagree How strongly do you agree or All Recent Transactor Likely Transactor Contemplator disagree with the following statement: The housing crisis reminded me that I have to be Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 more careful about buying or selling a home TOTAL AGREE 93 93 92 93 94 94 99 92 Strongly agree 30 28 24 26 31 27 41 34 Agree 37 37 38 33 38 42 36 35 Somewhat agree 26 28 50 34 25 25 22 23 TOTAL DISAGREE 6 7 8 6 6 5 2 8 Somewhat disagree 4 5 5 4 5 4 1 7 Disagree 2 2 3 2 1 1 1 1 13
  • 14. Having a good agent is important  28% strongly agree that having a good agent can help them make the right choices when it comes to buying a home, up 2 points from the first quarter Having a good realtor can help me make the right choices about the type of home and community I want Q2 2012 28% 34% 28% 6% 3% Q1 2012 26% 36% 29% 6% 3% Strongly agree Agree Somewhat agree Somewhat disagree Disagree How strongly do you agree or All Recent Transactor Likely Transactor Contemplator disagree with the following statement: Having a good realtor can help me make the right Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 choices about the type of home and community I want TOTAL AGREE 90 91 90 92 90 93 90 86 Strongly agree 28 26 29 29 29 27 23 17 Agree 34 36 35 35 35 37 30 36 Somewhat agree 28 29 26 28 26 29 37 33 TOTAL DISAGREE 9 9 9 8 9 8 9 15 Somewhat disagree 6 6 6 5 6 5 8 10 Disagree 3 3 3 3 3 3 1 5 14