American Dream Survey Summer 2012 The survey found that while optimism about the housing market recovery is growing, with more sales and lower foreclosure rates, reality does not always match expectations. Most renters still plan to buy a home someday but want to wait longer than in previous years. Many homeowners also expect home prices to return to peak levels within 10 years, which is unlikely in the hardest-hit areas. The recovery is ongoing but slow, and full return to normal conditions is not expected until 2016 due to remaining risks.

1. American Dream Survey
Summer 2012

2. Optimism Outpaces Reality
• Interest in supersized homes (3,200+ square feet)
up to 11%, from 6% in 2011
• 78% of renters plan to buy someday
• 58% think prices will return to peak within 10 years

3. Early Signs of Recovery Fuel Optimism
Key optimism drivers* Where the recovery stands now
Lower foreclosures and • Down 24% from worst.
delinquencies • Increasingly localized.
More sales • Up 10% vs. year ago.
• Up 23% vs. worst.
Lower vacancy rates • Owner-occupied: down to
2.2%, same as early 2006.
• Rental: down to 8.8%, lowest since
early 2002.
* “Key optimism drivers” based on Trulia 2011 Q4 survey

4. Prices Have Turned the Corner
• Asking prices
stabilized in
Sept, rose in
Feb
• Quarterly
growth in 86 of
100 largest
metros

5. Supersized Homes Make Comeback

6. Inventory Can’t Fulfill Big Dreams
Ideal Home Size Current Inventory Mix
Square footage
(survey) (Trulia listings)
800-1,400 8% 29%
1,401-2,000 29% 29%
2,001-2,600 25% 17%
2,601-3,200 16% 10%
More than 3,200 11% 12%

7. First House Won’t be Dream Home
First-Time Homeowner
Amenity Renter Dreams
Realities
En-suite master bathroom 62% 26%
Walk-in closet 56% 35%
Gourmet kitchen 50% 9%
Outdoor deck 50% 28%
Wood floors 47% 35%
Pre-wired entertainment
31% 7%
system
Pool 24% 10%
Hot tub 22% 6%

8. Most Renters Want to Buy… Later
When will you buy? 2011 Survey 2012 survey
Within 6 months 4% 3%
7 to 12 months 7% 8%
13 to 24 months 11% 16%
More than 2 years 50% 51%
Never 28% 22%

9. Return to Bubble Prices? C’mon!
• 61% expect local prices to rise in next 12 months
– Totally reasonable
• 58% expect local prices to return to peak in next 10
years
– Healthy markets, sure.
– Hardest-hit markets? Don’t bet on it.

10. Still Far From Normal
• Each month we compare
key metrics to the worst
and normal
– New Construction Starts
– Existing Home Sales
– Foreclosures &
delinquencies
• Now 37% back to normal

11. Recovery: Slow, With Risk of Bumps
• At this
rate, normal
comes in
early 2016
• Risks from
Europe, budg
et, foreclosur
es

12. Thank You!
More questions? Email pr@trulia.com

13. Methodology
The May-June 2012 survey was conducted online within the United States by Harris Interactive
via its QuickQuery omnibus product on behalf of Trulia between May 22 -24 among 2,205 U.S.
adults, of whom 1,402 were homeowners and 731 were renters and June 4-6, 2012 among 2,230
U.S. adults (aged 18 and over), of whom 1,486 were homeowners and 693 were renters.
The August 2011 survey was conducted online within the United States by Harris Interactive via
its QuickQuery omnibus product on behalf of Trulia between Aug 30-Sept 1, 2011 among 2,207
adults (aged 18 and over), of whom 1,392 were homeowners and 758 were renters.
The January 2012 survey was conducted online within the United States by Harris Interactive via
its Quick Query omnibus product on behalf of Trulia between January 30- February 2, 2012
among 2,236 adults (aged 18 and over), of whom 1,486 were homeowners and 693 were renters.
Figures for age, sex, race/ethnicity, education, region and household income were weighted
where necessary to bring them into line with their actual proportions in the population.
Propensity score weighting was used to adjust for respondents’ propensity to be online. These
online surveys are not based on a probability sample and therefore no estimate of theoretical
sampling error can be calculated. For complete survey methodologies, including weighting
variables, click here.