A TIME FOR LEADERSHIP

INSURANCE REAL ESTATE

INVESTMENT

NORTONINTELLIGENCE.COM

UPHEAVAL

RESALE HOMES REACHED 13.85 MONTHS SUPPLY

HOMES LOST 29% OF VALUE 2006-2010

75-85 PERCENT OF BUILDERS EVAPORATED (2011)

DEVELOPED LOT INVENTORIES SWELLED TO 149,000 (2012) 225,000 IN GEORGIA

ANNUAL FORECLOSURES PEAKED AT 37,156 (2011)

65 GA BANKS FAILED (2007-2013)

METRO ATLANTA LOST 125,000 JOBS (2007-2011) GEORGIA 200,000

MARKET COMPARISON

JULY 2006 • SF HOME SUPPLY

• SF PERMITS

• LOT SUPPLY

• JOB GROWTH

• INTEREST RATE

• REO

• TOP 10 BUILDER

JULY 2014 • 4.2 MONTHS

• 15100 an

• 132,199

• 55,000

• 4.23%

• 1100

• 39%

• 8.9 MONTHS

• 55,000 an

• 125,000

• 75,000

• 6.7%

• 1250

• 19%

METROSTUDY 2014

THREE PACES OF RECOVERY

MAJOR JOB ANNOUNCEMENTS

2007-2014

GOVERNORS OFFICE OF ECONOMIC DEVELOPMENT

THE FUTURE WILL BE ABOUT INVENTORY

SHORTAGE

FACTORS TO CONSIDER

• RECOVERY

– FORECLOSURES

– BANK CLOSURES

– CONSUMER CONFIDENCE

• CONTINUED POPULATION GROWTH

• EMPLOYMENT & JOB GROWTH

• HOUSING SHORTAGE

– FMLS INVENTORY 34% OFF

METRO ATLANTA POPULATION TREND

• 1970 2,036,000 PEOPLE

• 1980 2,550,000 PEOPLE

• 1990 3,317,000 PEOPLE

• 2000 4,548,000 PEOPLE

• 2010 5,475,213 PEOPLE

US CENUS 29 COUNTY REGION

METRO ATLANTA HOUSING TRENDS

• FROM 1970-1979 166,900 PERMITS

• FROM 1980-1989 264,000 PERMITS

• FROM 1990-1999 359,000 PERMITS

• FROM 2000-2009 425,000 PERMITS

• FROM 2010-2013 33,744 PERMITS*

METROSTUDY 2013

* INCLUDES PROJECTED 12000 PERMITS IN 2013

WITHOUT A SINGLE FAMILY CONSTRUCTION

BOOM WE WILL BE 300-350,000

HOUSING UNITS SHORT BY 2020

IN GEORGIA 430,000

AFFECTS OF ZERO

• SCRATCHING THE FARM YARD FOR LISTINGS

• PRICES SOAR

• PUBLIC ADVERTIZING FROM DIRECT BUYERS

• HOME RENTAL WILL REMAIN STRONG

• RENOVATION AS AN ALTERNATIVE STRENGHTENS

4.0

4.5

5.0

5.5

6.0

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

Months Inventory of

HOMES FOR SALE

NAR 7/2014

ATLANTA HOME INVENTORY PRICE POINT BREAKDOWN

Source: GAMLS / FMLS - 22 COUNTIES INCLUDED: Banks, Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson,

DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Hall, Henry, Jackson, Newton, Paulding, Rockdale, Spalding and Walton

0

15000

30000

45000

60000

75000

2006 2007 2008 2009 2010 2011 2012 2013 2014 (thru 6/30)

750+400-749250-399150-2490-149

ATLANTA SF HOME SALES PRICE POINT BREAKDOWN

Source: GAMLS / FMLS - 22 COUNTIES INCLUDED: Banks, Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson,

DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Hall, Henry, Jackson, Newton, Paulding, Rockdale, Spalding and Walton

0

22500

45000

67500

90000

2006 2007 2008 2009 2010 2011 2012 2013 2014 (thru 6/30)

750+400-749250-399150-2490-149

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

App/Dep 4.2% 4.5% 3.6% 7.4% 7.1% 1.9% -1.6% -8.9% -7.0% 0.4% -1.8% 1.9% 6.8% 3.0%

Annual Home Price Gains

Wall Street Journal

MONTHS OF SUPPLY

• CHEROKEE 4.3 3.0

• CLAYTON 4.3 3.0

• COBB 3.6 2.7

• DEKALB 4.1 2.7

• FORSYTH 4.0 2.8

• FULTON 4.6 3.3

• GWINNETT 3.9 2.4

• WALTON 7.2 4.8

JULY 2014 JULY 2013

AVERAGE SINGLE FAMILY DETACHED SALE PRICE YTD

2011 $182,220

2012 $174,662

2013 $223,090

2014 $243,300

THE REO WAVE IS OVER

0%

5%

10%

15%

20%

25%

30%

35%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Percentage of

Distressed Property

Sales

35%

11%

15%

NAR 7/2014

Foreclosures by State as a percentage of all homes with a mortgage

GEORGIA BANK CLOSURES

DEMOGRAPHICS ARE MORPHING

TEACH THE VALUE OF HOMEOWNERSHIP

0

10

20

30

40

50

60

70

80

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

PER

CEN

TAG

E

UNITED STATES

GEORGIA

HOMEOWNERSHIP RATES

Source: U.S. Census Bureau

$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

The Increasing Cost of Renting

Median Asking Rent

1988-2013

Census Bureau 2014

0

50,000

100,000

150,000

200,000

250,000

300,000

Renter Owner

1998

2001

2004

2007

2010

2014

Bubble Crash

Wealth Distribution (Federal Reserve data on median net worth)

WE MUST TAKE CONTROL AND LEAD