naea 10-13

KCM Divided into Three Sections

4,000,000

4,500,000

5,000,000

5,500,000

Existing Home Sales

"It seems like Americans' love affair with real estate

has returned."

Greg McBride Bankrate.com's senior financial analyst

Bankrate.com 8/2013

Top 5 Reasons Americans Buy a Home

Fannie Mae

A better place to raise their children

A place their family can feel safe

Ability to have more space

Freedom to renovate to their taste

Owning is a better investment

Owning is still…

Homeownership remains cheaper than renting in all of the 100 largest metro areas

Trulia 9/2013

than renting35%Cheaper

RETURN ON INVESTMENTJanuary 2000 – September 2013

MSN Money.com, Case Shiller

RETURN ON INVESTMENT

MSN Money.com, Case Shiller

The Last Twelve Months

$77,300

$47,500

$29,800

Total Wealth Home Equity Other Assets

Breakdown of the American Family’s

Net Worth

Federal Reserve 2012

Federal Reserve 2012

61.4%

38.6%Home Equity

Other Assets

Breakdown of the American Family’s

Net Worth

Federal Reserve 2012

OVER 30X greaterthan renters

Homeowners Net Worth…

$174,500

$5,100

Homeowner Renter

An American Family’s

Net Worth

Federal Reserve 2012

The two best ways to invest money not needed for more than 10 years

CASH REAL ESTATE

Bankrate.com 8/2013

55% 65%

9%

6%

36% 29%

All Americans Upper Middle Class Households

Prices Going Up Prices Falling Remain the Same/Not Sure

Home Prices over the Next 12 Months

Window of

OPPORTUNITY

ta·perˈtāpər/Verb – to diminish or reduce

30 Year Fixed Rate

Freddie Mac 9/2013

Recent Rate Movement

“If the data confirms our basic outlook, then we could

move later this year.”

Ben BernankeChairman of the Fed

Mortgage Rate Projections

Analyst Projected Rate 4Q 2014

Fannie Mae 5.3%

National Assoc of Realtors 5.5%

Freddie Mac 5.2%

Mortgage Bankers Assoc 5.1%

9/2013

Mortgage Interest RatePayment

(P&I)

Today $250,000 4.22% 1,225.46

Next Year $250,000 5.3% 1,388.26

Monthly Difference $162.80

Buyer’s Purchasing Power

What About the Move-Up Seller?

“8.3 million homeowners are on the equity fence, and should have at least 20% equity in the next

15 months… If 5% of these 8.3 million homeowners list their homes for sale, that’s an

additional 415,000 homes that will be available for sale in the coming months.”

Daren BlomquistVice President of RealtyTrac

HousingWire 8/2013

Yanling Mayer Director of Research, FNC Inc.

HousingWire 8/2013

“In the meantime, higher home prices are bringing out trade-up demand

from existing homeowners who are experiencing rising home equity,

which supports a down payment on their next bigger house.”

Months Inventory of Homes for Sale

NAR 9/2013

5-6 Months = Normal Market Inventory

S&P Case Shiller 9/2013

Year-over-Year Change in Prices

“This rapid growth is not normal and cannot and should not be expected to last. We are already beginning to see

moderation in the monthly pace of home value appreciation, which will be good for the market overall and in the long

term.”

Stan HumphriesZillow Chief Economist

Zillow 9/2013

30 Year Fixed Rate Mortgage HistoryJanuary 2012 – October 2013

Federal Reserve 9/2013

90

95

100

105

110

115

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

Pending Home Sales

NAR 9/2013

100 = Historically Healthy Level

Months Inventory of Homes for Sale

NAR 9/2013

5-6 Months = Normal Market Inventory

NAR 92013

Percentage of Distressed Property Sales

35%

12%

S&P Case Shiller 9/2013

S&P Case-Shiller Home Price Indices

How will budgets change in 2014?

marketingsherpa 9/2013

http://jenniferlistens.wordpress.com/

Top 5 Reasons Americans Buy a Home

Fannie Mae

A better place to raise their children

A place their family can feel safe

Ability to have more space

Freedom to renovate to their taste

Owning is a better investment

Owning is still…

Homeownership remains cheaper than renting in all of the 100 largest metro areas

Trulia 9/2013

than renting35%Cheaper

Breakdown of the American Family’s

Net Worth

Federal Reserve 2012

Federal Reserve 2012

61.4%

38.6%Home Equity

Other Assets

Breakdown of the American Family’s

Net Worth

Federal Reserve 2012

OVER 30X greaterthan renters

Homeowners Net Worth…

An American Family’s

Net Worth

Federal Reserve 2012

Resources

KEEPINGCURRENTMATTERS.COM

Slide Slide Title Link

6Greg McBrideBankRate.com

http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=

7 Top 5 Reasons Americans Buy a Home http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf

8 Owning is still… http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/

9, 10 Return on Investment http://www.spindices.com/index-family/real-estate/sp-case-shiller

11, 12, 13, 14

Breakdown of the American Family’s Net Worth

http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf

15, 16The 2 Best Ways to Invest, Home Prices Over the Next 12 Months

http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=

19 Recent Rate Movement http://www.freddiemac.com/pmms

21 Mortgage Rate Projections

http://www.mortgagebankers.org/files/Bulletin/InternalResource/84813_.pdfhttp://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdfhttp://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-6-27-hgbfjnv/july-2013-outlook-2013-6-27.pdfhttp://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_061313.pdf

24 Daren Blomquist Quote http://www.housingwire.com/articles/26818-move-up-buying-activity-rises-with-home-equity-gains

25 Yanling Mayer Quote http://www.fncrpi.com/press_releases.aspx?pr=69

Resources

Slide Slide Title Link

26 Months Inventory of Homes for Sale http://www.realtor.org

28 Stan Humphries Quote http://www.zillowblog.com/2013-09-22/u-s-home-values-continue-to-surge-in-august-pace-expected-to-slow-as-summer-season-ends/

30 30 Year Fixed Rate Mortgage History http://www.freddiemac.com/pmms

31, 32, 33

Pending Home Sales, Months Inventory, Distressed Properties

http://www.realtor.org

34 S&P Case-Shiller Home Price Indices https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/19529_cshomeprice-release-0730.pdf?force_download=true

36 How will budgets change in 2014? http://www.marketingsherpa.com/article/chart/tactics-budget-2014-investment

37 Jennifer Listens Blog http://jenniferlistens.wordpress.com

KEEPINGCURRENTMATTERS.COM

PRIVATEBUSINESS

COLLEGE EDUCATION