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BRIAN BUFFINI’SREAL ESTATEREPORTUS EDITION2nd BIANNUAL 2022
The current real estatemarket is experiencingunprecedented levels ofactivity. With so muchinformation, shifts anduncertainty, it’s easy toget overwhelmed. Thisbiannual publication is fullof well-researched statisticsand data to provide youwith useful insights. Usethis guide to gain theknowledge and peace ofmind you need in an everchanging market.It’s a Good Life! Table of ContentsState of the Market3Regional Market Snapshot4Recession Proof Your Money5Mortgage Stats6Today’s Buyer7Today’s Seller8The Best Investment9Why I Work by Referral2Brian Buffini’s Real Estate ReportUS EDITION10
State of the MarketNew HomeConstructionWhile the market may be shifting, housing inventory remainstight. Buyers are still facing challenges as they try to successfullybuy their desired home.New Home Builds:April 2022Housing InventoryApril 2022ExistingHome Sales5.6million5.61million 19.1% Year-Over-Year-5.4% Year-Over-YearMedian HomeSales Price 375,000 13.3% Year-Over-Year3Brian Buffini’s Real Estate ReportUS EDITION1.72millionSingle Family Homes:1.1 million-7.3% Year-Over-YearLumber prices fell30% from 2021 asmortgage rates hita 13-year high. Theaverage price of a newhome has increasedby more than 18.7%over the past year dueto extremely volatilelumber prices.SOURCES: National Association of REALTORS , U.S. Census Bureau, RISMedia, Business Insider, www.nahb.org
RegionalMarketSnapshotAlthough national trends may hit close tohome, at the end of the day, real estate islocal. Here’s a look at the post-pandemicmarket rebound in each region.MIDWESTExisting Home Sales1.31 million-1.5% Year-Over-YearMedian Sales Price 282,000 8.7% Year-Over-YearNORTHEASTExisting Home SalesMedian Sales Price670,000 412,000-10.7% Year-Over-Year 8.1% Year-Over-YearSOUTHExisting Home Sales2.49 million-5.7% Year-Over-YearMedian Sales Price 352,100 22.2% Year-Over-YearWESTExisting Home Sales1.14 million-8.1% Year-Over-Year4Brian Buffini’s Real Estate ReportUS EDITIONMedian Sales Price 523,000 4.3% Year-Over-YearSOURCES: 2021 NAR Profile of Home Buyers and Sellers, U.S. Census Bureau
Recession ProofYour MoneyRecessionsare causedby a lossof business.Many leading economists believe we are heading towarda recession. Here are some tactics you can put into placenow to control the impact on your finances.Review your personaland business budgets.Cancel subscriptionsor other services youno longer need.Set a goal to saveat least six monthsof personal reservesand three months ofbusiness reserves.Be informedby listeningto trusted advisorsand experts tohelp makesound decisions.Why 2022 is Different Unemployment is low(3.6%) yet companiesstruggle to fill 11.4million vacancies. A high demand forhousing exists.5Brian Buffini’s Real Estate ReportUS EDITION Consumers are stillspending. There is pent-updemand for travel.A recession is a periodof significant economicdecline during whichtrade and industrialactivity are reduced,after a fall in two ormore consecutivequarters of the GrossDomestic Product(GDP), which is the totalgoods produced andservices provided in acountry during one year.A recession typicallybegins just after theeconomy reaches a peakof activity and ends asthe economy reaches itstrough (lowest point).SOURCES: Bureau of Labor Statistics, Center on Policy and Budget Priorities, FederalReserveHistory.org, Market Watch, National Bureau of Economic Research, TSA.gov
Mortgage StatsLive in thePayment,Not the Price.Despite mortgage ratesincreasing from lastyear, the demand is stillhigh for those eager tobuy a new home.Example: 30-Year FixedRate MortgageHome Price: 330,000Down Payment:20%Average Mortgage Rate atTime of Purchase (2008):6.03%Current AverageMortgage Rate (2022):Average Interest Rate on a 30-Year Fixed .23%Monthly MortgageSavings When Refinancingat Today’s Current Rate200862010Brian Buffini’s Real Estate Report2012US EDITION20142016201820202022 161.00*As of May 2022SOURCES: Freddie Mac, National Association of REALTORS
Today’s BuyerTop Buyer CompromisesIn this competitive marketplace, buyers will need to be flexiblein order to secure their dream home. When a buyer knows whatto expect, they are set up for a smooth, successful process. 21% of buyers compromisedon the condition of the home. 27% of buyers compromisedon the price of the home.First-Time HomebuyerStatisticsA Quicker Home Buying ProcessHome BuyingProcess 2022:56 Days-28.57% Year-Over-Year 19% of buyers compromisedon the size of the home. 34% of all buyers compared to31% year-over-year.40 DaysLess 81% of Millennials ages 23-31and 48% of Millennials ages32-41 were first-time buyers.than 2021What Buyers WantBuyers touredan average of8 Homesin 2021. They toured14 in 2020.Environmentally-friendly featuresare important for most buyers. Heating and cooling systems. Commuting costs. Energy-efficient appliances. Drought-friendly landscaping.7Brian Buffini’s Real Estate ReportUS EDITIONSOURCE: National Association of REALTORS
Today’s SellerTop Reasonsfor Selling.It’s been a seller’s market! Whether you’re thinking of upgrading,downsizing or moving to a new area, these latest insights willhelp you make the most informed decision possible. A desire to live closer tofriends and family: 18% Home was too small: 17% Current neighborhoodbecame less desirable: 11%88%Homes spent amedian ofof recently soldhomes spent lessthan a monthon the market.17 dayson the market.Sellers receivedan average of6 offerscompared to the2021 average of5 offers.8Brian Buffini’s Real Estate ReportUS EDITION90%of all homes sold in2022 used a broker orreal estate agent.Even in this hot market,an overpriced property will stilltake longer to sell.25% of sellersreduce their asking price at least once.SOURCES: National Association of REALTORS , cdn.nar.realtor
The Best InvestmentBuying a home is one of the most expensive investmentsyou will ever make. But as your home appreciates in value,it will build up equity which contributes to your net worth.Total Year-Over-YearNational HomeownerEquity Increase in 2022 3.8 trillionPer homeowner, theyear-over-year equityincrease was 64,00086%88%of all buyers believeowning a homeis a good financialinvestment.of Millennialsbelieve owning ahome is a goodfinancial investment.71%of homeowners believebuying property intheir zip code was agood investment.9Brian Buffini’s Real Estate ReportUS EDITIONA Year-Over-Yearincrease of32.2%In most markets, amonthly payment isnearly the same forowning as it is to rent. Typical rent is 1,295per month. Typical monthly mortgagepayment on a 368,200home is 1,383.SOURCES: National Association of REALTORS , Statista.com, Core Logic
Why I Work by Referral“There is no lead morepowerful than onereferred from someoneyou know — someonewho knows you, trustsyou and will put theirname to you.”BRIAN BUFFINI,Founder & Chairman ofBuffini & Company80% or more ofall transactions wereconducted through anexisting relationshipthat leads to sale.You are the backboneof my business.Your referrals are thefoundation of my business,so I aim to exceed yourexpectations every stepof the way.10Brian Buffini’s Real Estate ReportUS EDITIONRelationships aremore important thantransactions.My business is built onrelationships, so I work toprovide my clients withoutstanding service andcare during and long aftera transaction.Service that continuesafter the sale.I am devoted to servingyour needs even after thesale is complete. If you needa referral for a contractor,helpful advice or an agentfor your friend or familymember, I am here to help.90% of buyers and89% sellers would usetheir agent again orrefer them to others.SOURCE: 2021 NAR Profile of Home Buyers and Sellers
The Best Investment 9 Brian Buffini's Real Estate Report US EDITION 86% of all buyers believe owning a home is a good financial investment. 88% of Millennials believe owning a home is a good financial investment. 71% of homeowners believe buying property in their zip code was a good investment. Total Year-Over-Year National Homeowner
