1. 2015 CALIFORNIA HOME BUYERS SURVEY 1

2. Survey Methodology 700 telephone interviews and 567 online surveys conducted in February – April 2015 Respondents are home buyers who purchased a home Feb. 2014 – Feb. 2015 Maximum sampling error: ±4.1% at a 95% confidence level. (Subsets of the total sample will have a higher sampling error.) 2

3. THE BUYING EXPERIENCE 3

4. Residence Location Q. County of most recent home purchase? 4

5. Geographical Distribution of Purchases Q. County of most recent home purchase? 5

6. Distressed Sales Continue Decline Q. Was the home you recently bought a Regular Sale, REO/Bank Owned Property, Short Sale, or another type of sale? 6

7. Most Purchases are Single Family Homes Q. Was the home …? 7

8. Vacation/2 nd Home Purchases Increase Q What was the intended use of the property? 8

9. Majority of Homes Listed > $400k Q. What was the price of the home you purchased? 9

10. Listing Price Declines 7.9% YTY Q. What was the initial listing price of the home you purchased? 10

11. Majority of Homes Sold for More than $300k Q. What was the price of the home you purchased? 11

12. Median Sale Price Declines 6.7% YTY Q. What was the price of the home you purchased? 12

13. Sale/Listing Prices Equal Q. What was the price of the home you purchased? 13

14. Listing vs. Sale Price Converge Q. What was the price of the home you purchased? Q. What was the initial listing price of the home you purchased? 14

15. Many Listing > Purchase Prices Q. What was the initial listing price of the home you purchased? Q. What was the price of the home you purchased? 15

16. Many Homes are in the Suburbs Q. Please describe the location of the home. Select all that apply. 16

17. Repeat Buyers Prefer Suburbs, First-time Buyers Prefer Urban Location Q. Please describe the location of the home. Select all that apply. 17

18. Nearly 1/2 Buyers Were Previous Home Owners Q. What was the living arrangement immediately before your recent home purchase? 18

19. More Buyers Previously Lived with Parents Q. What was the living arrangement immediately before your recent home purchase? 19

20. Buyers Spending Less Time Considering Purchase Before Contacting Agent Q. How many weeks did you consider buying a home before contacting a real estate agent? (Asked if agent was used) Average Weeks 20

21. Buyers Spending Less Time Investigating Homes & Neighborhoods Before Contacting Agent Q. How many weeks did you spend investigating homes and neighborhoods before contacting a real estate agent? Average Weeks 21

22. The Home Search is Longer than It’s Ever Been Q. Once you found your agent, about how many weeks did you spend looking for a home with your agent? (Asked if agent was used) 22

23. Decrease in Homes Viewed Reflects Tight Inventory Q. How many different homes did you preview and visit with your agent prior to making a purchase? Median 23

24. Buyers Made Fewer Offers on Other Homes Q. How many offers did you make on other homes? 24

25. Top 5 Reasons for Buying Q. What were your main reasons for buying your home? 25

26. Repeat Buyers Purchased Mainly for Job Change First-time Buyers Were Tired of Renting Q. What were your main reasons for buying your home? 26

27. Buyers Didn’t Purchase Sooner Because… Q. Why didn’t you buy a home sooner? 27

28. Repeat Buyers Didn’t Purchase Sooner Because they Didn’t Need To, First-time Buyers Needed to Save for Down Payment Q. Why didn’t you buy a home sooner? 28

29. Most Buyers Feel their Home is Worth the Price Paid Q. Do you feel the home you purchased is worth the price you paid? 29

30. Majority of Buyers Found Home through Agent Q. How did you find the home you purchased? 30

31. Majority of Buyers Found Home through Agent Q. How did you find the home you purchased? 31

32. Buyers Plan to Keep Homes Longer Q. How long do you plan to keep the property? 32

33. Buyers Optimistic About Long Term Direction of Home Prices Q Do you think home prices in the neighborhood where you purchased will go up, down, or stay flat … in one year, in five years? 33

34. Fewer Buyers Believe Prices Will Rise in 5 Years Q Do you think home prices in the neighborhood where you purchased will go up in one year, in five years? 34

35. School Quality More Important to First-time Buyers in Choosing a Neighborhood Q Please rate the importance of the following in your decision to purchase a home in the neighborhood where you purchased. (Scale 1-10, 1=not at all important, 10=extremely important) CategoryAll BuyersFirst-timeRepeat Safety8.3 8.2 Walkability6.56.96.3 Quality of schools6.17.25.8 Entertainment/cultural activities nearby5.96.45.8 Short commute to work5.66.85.4 Great restaurants nearby5.56.05.5 35

36. Ideal Neighborhood is Suburban for 1/3 Buyers Q 21.Please select which of the following characteristics describe your ideal neighborhood. Select all that apply. 36

37. More First-time Buyers Prefer Ethnic Neighborhood Q 21.Please select which of the following characteristics describe your ideal neighborhood. Select all that apply. 37

38. Majority of Buyers are Satisfied with Purchase Q Are you satisfied with the home you purchased or do you feel like you had to compromise? 38

39. Technology Use 39

40. Zillow & Realtor.com are Most Useful Websites in Buying Process Q. What was the single most useful website that you visited during your home buying process? Agent 40

41. Realtor.com & Zillow Most Useful Websites Q. What was the single most useful website that you visited during your home buying process? 41

42. Buyers Using Mobile Q. Did you use a mobile device in the home buying process? 42

43. 85% of Buyers Used Mobile Device in Buying Process Q. How did you use your mobile device in the home buying process? N = 1269 43

44. Zillow is Most Useful App Q. What was the most useful app that you used during the home buying process? 44 40% 22% 16%

45. Zillow Remains Most Useful App Q. What was the most useful app that you used during the home buying process? 45

46. ½ Buyers Who Found Home Online Found it on Zillow or Redfin Q. On which website did you find your home? 46

47. Zillow Remains #1 Website where Buyers Found Home Q. On which website did you find your home? 47

48. 35% of Buyers use Social Media in Buying Process Q. How did you use social media (such as Facebook, Twitter, YouTube, etc.) in your home buying process? 48

49. Buying Tips & Neighborhood Info Remain Popular on Social Media Q. How did you use social media (such as Facebook, Twitter, YouTube, etc.) in your home buying process? 49

50. 35% of Buyers Used Social Media in Buying Process Q. Which social media websites did you use during your home buying process ? 50 61% 30% 36%

51. 36% of Buyers Searched for Agent Ratings Q. On which agent rating sites did you search for your agent’s ratings? 51

52. 28% of Buyers Rated their Agent Online Q. On which agent rating sites did you rate your agent? 52

53. Financing 53

54. More Buyers Obtained Financing Q. Did you obtain financing for your home purchase? 54

55. Nearly ¼ Buyers Paid Cash Q. How did you pay for the home you purchased? 55

56. Most Cash Buyers Used Personal Savings or Proceeds from Sale of Previous Residence Q. If all cash, where did the funds come from? N = 367 56

57. Most Cash Buyers Used Personal Savings or Proceeds from Sale of Previous Residence Q. If all cash, where did the funds come from? N = 367 57

58. Average Down Payment Remains Above 20% Q. What was your down payment for the home purchased, in percent of the home value? 58

59. Most Buyers Obtain Fixed Rate Loans Q. What type of loan do you have? 59

60. Fixed Rate Loans Remain Majority Q. What type of loan do you have? 60

61. ¾ Loans are for 30 Years Q. What was the duration of your loan? 61

62. Buyers Have Less Difficulty With Financing Q. Please rate how easy or difficult it was to obtain financing on a scale of 1 to 10 with 1 being very easy and 10 being very difficult. 62

63. Repeat Buyers Have Less Difficulty Obtaining Financing Q. Please rate how easy or difficult it was to obtain financing on a scale of 1 to 10 with 1 being very easy and 10 being very difficult. 63

64. Nearly 2/3 Buyers Think Interest Rates Have Bottomed Q. Do you think mortgage interest rates have bottomed? 64

65. BUYER/AGENT RELATIONSHIP 65

66. Most Buyers Find Agents through Relationship/Contacts Q. How did you find your real estate agent? 66

67. Majority of Buyers Interviewed > 1 Agent Q. How many agents did you interview prior to selecting the agent you used in your recent home purchase? 67

68. Buyers Continue Interviewing Multiple Agents Q. How many agents did you interview prior to selecting the agent you used in your recent home purchase? 68

69. Being Responsive is Important to Buyers in Selecting an Agent Q. What was the single most important reason for selecting the agent that you used in your recent home purchase?. 69

70. Fewer Buyers Googling their Agent Q. Did you Google your agent? 70

71. Agents Communicate According to Buyer Preference Q. What was your preferred method of communicating with your agent? Q. How did your agent actually communicate with you? 71

72. Q. What was the typical response time you expected from your agent to return any form of communication to you? Fewer Buyers Expect Instant Response from Agents 72

73. Agent Response Time Meets Buyer Expectations Q. What was the typical response time you expected from your agent to return any form of communication to you? Q. On average, what was the actual response time of your agent to return any form of communication to you? 73

74. Agent Satisfaction Ratings Improve - Average Ratings on 1-5 Scale - 20142015 Your real estate agent’s negotiating skills3.44.3 Overall process of finding a home3.34.1 Overall satisfaction with your real estate agent3.34.4 Q. Please rate your degree of satisfaction with the following aspects of your home buying experience on a scale of 1-5, where 1 is “least satisfied” and 5 is “most satisfied”. 74

75. Buyer Satisfaction Improves Q. Please rate your degree of satisfaction with the following aspects of your home buying experience on a scale of 1-5, where 1 is “least satisfied” and 5 is “most satisfied”. 75

76. Top 5 Reasons for Satisfaction With Agent Q. Why do you have that level of satisfaction with your agent? 76

77. Reasons for Dissatisfaction With Agent Q. Why do you have that level of satisfaction with your agent? 77

78. Most Buyers Would Work with Agent Again Q. Would you work with the same agent again? 78

79. Most Buyers Would Recommend Agent to Others Q. Would you recommend your agent to others? 79

80. Buyers Need Most Agent Assistance in Negotiating Q. In which part(s) of the transaction did you need the most assistance from your agent? 80

81. Advice to Agents from Buyers Q. What advice would you give to real estate agents to improve the process or the level of service? 81

82. What Buyers Would Change About the Home Buying Experience Q. If there was one thing you could change about the home buying experience, what would it be? 82

83. WHO IS THE 2014 BUYER? Demographics 83

84. Typical CA Home Buyer 84

85. Typical CA Household 85

86. Percent of First-time Buyers Rebounds Q. Was this your first home purchase? 86

87. Most Buyers have Not Experienced a Distressed Sale Q. Have you ever gone through a foreclosure or short sale? 87

88. 79% of Distressed Sales Occurred After 2007 Q. What year was the foreclosure or short sale? 88

89. More Repeat Buyers Previously Under Water Q. Was the outstanding loan balance on your previous home higher than the sale price? 89

90. Buyer Gender Q. What is your gender? 90

91. Majority of Buyers are Over 35 Q. What is your age? 91

92. Buyer Age Slightly Declines Q. What is your age? 92

93. Majority of Buyers are White Q. How would you describe your ethnic background? 93

94. Whites are Majority of Home Buyers *Source: U.S. Census Bureau 2013 American Community Survey Q. How would you describe your ethnic background? 94

95. Majority of Buyers are Married 95

96. Married Buyers are the Majority Q. What is your marital status? 96

97. More than Half of Buyers have College Degrees Q. What is the highest level of education you have completed? 97

98. Majority of Buyers are Well Educated Q. What is the highest level of education you have completed? 98

99. Majority of Buyers have Annual Household Income > $75K Q. Which of the following categories best represents you total annual income from all sources? 99

100. Buyers’ Annual Household Income Declines Q. Which of the following categories best represents you total annual income from all sources? 100