WHERE REAL ESTATE IS MOVING
2017 U.S. Economic & Housing Market Update
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What We’ll Cover Today
¨ US Economic Overview
¨ Existing and New Home Sales
¨ State of the Foreclosure Market
¨ The Mortgage Market
¨ Closing Thoughts
A Brief Introduction to Ten-X
The Leading Online Real Estate Marketplace
NUMBERS
$46 BillionOf assets sold
275,000+Assets sold
INVESTORS MILESTONES2007Company founded
2016Ten-X
2009CRE platform
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The Ten-X Brand Family
Ournewname,Ten-X,reflectsexpansionoftheserviceswe’llbedelivering– andthemuchbroaderaudiencewe
plantoreachviathreedistinctlinesofbusiness.
Dedicatedtothesaleofqualitycommercial
propertiesviaauctionandmoretraditionalmethods
Anewplatformcreatedespeciallyforconsumersandagents,withafocusonmove-inreadyhomes
Thenation’slargestonlinerealestatemarketplace,nowexclusivelyfocusedonthesaleofbank-ownedandforeclosureproperties
US Economic Overview
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GDP Stable, but Still Lags Historic Averages
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Inflation in Line with Market Expectations
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Unemployment Rate Continues to Improve
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Labor Force Participation Rate Still Historically Low
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And Part Time Employment Historically High
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Wage Growth Appears to be Steady
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And Consumer Confidence Highest Since 2000
National Housing Market Overview
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Existing Home Sales Ticking Up
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New Home Sales Improving, But Uneven
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Existing Home Inventory Historically Low
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New Home Inventory Improving, But Near 40-Year Low
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Housing Starts Improving…
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But Lagging Behind Prior Recoveries…
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…and Inflated by Multifamily Numbers
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Prices Continue to Rise, Outpacing Wage Growth
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And Affordability is Becoming More of a Concern
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Homeownership Rates Still Near 50-Year Low
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Even Though Household Formation Is Picking Up
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Student Loan Debt a Factor in Household Formation
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Foreclosure Market Update
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Delinquency Rates Continue to Fall
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Foreclosure Starts Declining Rapidly
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Monthly Foreclosure Activity Trending Down
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And Overall Foreclosure Activity Approaches Normal Levels
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Percentage of Loans in Foreclosure Lowest Since 2006
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Distressed & Cash Sales Declining, but Still Above Norm
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The Mortgage Market
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Mortgage Rates are Finally Rising…
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…But are Still Near Their Historic Lows
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Refinance Activity Falling Fast
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Purchase Activity May Not be Enough to Offset Drop
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But as Rates Rise, Credit May Loosen
International Investors
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International Buyers Account for Over $100 Billion
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China, Canada Dominate Purchases
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But Interest is Strong from Around the World
Closing Thoughts
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Closing Thoughts
¨ 2017 will look very much like 2016¨ Between 5.5-5.6 million existing home sales, and 650,000-700,000 new home sales¨ Prices should rise 5-6%
¨ Inventory weak across the board¨ Lackluster construction, underwater borrowers, declining distressed inventory
¨ Affordability may become a problem¨ Prices continue to outpace wage growth
¨ Household formation slower than expected¨ Lack of starter homes, generational tendencies, and credit availability may skew numbers towards rentals¨ Latino buyers – the fastest growing segment – pose challenges for lenders
¨ Foreclosure crisis finally over¨ Activity should be at normal levels by late 2017¨ Possible that levels will dip below historical norms¨ Note sales by GSEs, major lenders accelerating recovery
¨ Unlikely to hit “full recovery” until late 2018 at the earliest