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Page 2
Page 3
1.Home Sales
2.Home Prices
3.Inventory
4.Mortgage Rates
5.AffordabilityPage 4
Page 5
Sales increased 5% in 2009, the first annual sales gain since 2005 and the tenth highest annual activity level
on record.
5.2
7.1
5.0 4.9
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Source: National Association of REALTORS®
Page 6Source: National Association of REALTORS®
CA
AZ
NV
FL
WAMT
ORID
NM
ND
SD
NE IA
MO
LA
GA
KY
IL
WIMI
OH
WV
PA
NY
VT ME
MA
AK
HI
Sales Increased
Sales Decreased
Home Sales Direction
(Year-Over-Year Change)
WY
UTCO
KS
OK
TX
AR
MS AL
TNNC
SC
VAIN
MN
Page 7Source: National Association of REALTORS®
Sales Increased
Sales Decreased
Home Sales Direction
(Year-Over-Year Change)
HI
AK
CA
NV
AZ
MN
VA
FL
Page 8
The median home price declined by 12% in 2009.
Historical appreciation rate = 4%
$198K$222K
$165K
0
50
100
150
200
250
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
$174K
$203K
Page 9
If home prices actually grew by 4% every year from 1989
the median home price would be $203,105, which is approximately 17% above where we are
today
Historical appreciation rate = 4%
Page 10
Stronger sales activity in the second half of the year helped draw down inventory of existing homes to 8.8
months in 2009
Source: National Association of REALTORS®
4.3
10.5
8.8
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Page 11
Mortgage rates averaged 5.04% in 2009, an all-time low since Freddie Mac started tracking in 1971.
Mortgage rate ranged from 4.81% to 5.59% in 2009. At the end of December, rates stood at 4.93%.
Source: Freddie Mac
5%
10%
6%
4%
8%
12%
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Page 12
And you still wouldn’t get a mortgage as cheap as you could in And you still wouldn’t get a mortgage as cheap as you could in 2009.2009.
Mortgage Rate in 1971: 7.48%Mortgage Rate in 1971: 7.48%
In 1971: In 1971: Gasoline 40 cents a gallon
Stamp 8 centsTurkey 43 cents a
poundDatsun Sports Coupe $1,866Monthly Rent $150Average New Home Price
$25,250
Dow Jones Average 890
Page 13Source: National Association of REALTORS®
2009 affordability = 2009 affordability = most favorable most favorable on recordon record
18.5%15%
40yr 40yr Average = Average =
21.9%21.9%
1.Home Sales
2.Home Prices
3.Inventory
4.Mortgage Rates
5.AffordabilityPage
14
Page 15
Sales increased 7.7% in 2009 – 4th highest annual activity level on
record
Source: Conference Board/CREA
465K
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009Page
16
The national average home price up 5% in 2009 to a record $320,333.
20-year historical appreciation rate = 4%
$304K$320K
Page 17
Page 18Source: Conference Board/CREA
Northwest Territories
Saskatchewan
Manitoba
Newfoundland & Labrador
Nova Scotia
New Brunswick
Prince Edward Island
Prices Increased
Prices Decreased
Home Price (Year-Over-Year Change)
Northwest
Territories
Yukon
British Columbia
Alberta
Ontario
Quebec
Nunavut
Page 1920-year historical appreciation rate = 4%
Page 20Source: Conference Board/CREA
Canada experienced a balanced market for Canada experienced a balanced market for most of 2009, but ended the year in a most of 2009, but ended the year in a
seller’s marketseller’s market
Page 21Source: Bank of Canada
8.35%6.93%
13.35%
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Mortgage rates hit record low, remaining under 6% in 2009.
In December, rates stood at 5.49%
5.63%
Page 22
• Canadians have been feeling the impact of high ownership costs as they experienced deteriorating affordability over the past few years.
• Having improved by an average of 5.03% in the third quarter of 2009, homes continue to be much more affordable than a year ago.
• Similar to trends seen in the U.S., the steepest market correction is occurring in provinces that were hardest hit during the downturn.
Property TypeQ3
2008
Q3
2009Change
Detached bungalow
45.7% 40.2% -5.5%
Standard two-storey
52.0% 45.8% -6.2%
Standard townhouse
36.9% 32.3% -4.6%
Standard condo
31.4% 27.6% -3.8%
Average Change -5.03%
Source: Bank of Canada
1.Gross Domestic Product
2.Inflation
3.Unemployment
Page 23
Page 24
The economy grew by 5.7% in the fourth quarter of 2009, the quickest pace since the third quarter of 2003, fueled by stronger than expected replenishment of inventory.
Strong growth reported in the last two quarters of the year suggests that the U.S. economy is out of the recession but not necessarily in the clear.
Source: Bureau of Economic Analysis
Page 25
Overall in 2009, economy contracted by 2.4%
The hit really came in Q1 2009 Stronger-than-expected growth in Q3
& Q4
-2.4%
0.4%1.1%
-0.2%
-4%
-2%
0%
2%
4%
6%
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Source: Bureau of Economic Analysis
Page 26Source: Bureau of Economic Analysis
Page 27
Inflation averaged around -0.4% in 2009.
Source: Bureau of Labor Statistics
-0.4%
3.8%
-2%
0%
2%
4%
6%
1998 2000 2002 2004 2006 2008
Page 28
The U.S. was in the midst of a deflationary recession for The U.S. was in the midst of a deflationary recession for most of 2009.most of 2009.
Toward the end of the year, inflation returned to a more Toward the end of the year, inflation returned to a more typical level of 2.7% in December.typical level of 2.7% in December.
1.8%-2.1%
2.7%
-4%
0%
4%
8%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Bureau of Labor Statistics
Page 29
Unemployment increased to an average of 9.3% in 2009 from 5.8% Unemployment increased to an average of 9.3% in 2009 from 5.8% in 2008.in 2008.
Unemployment rose to 10% in the final month of the year.Unemployment rose to 10% in the final month of the year.
9.3%
-2%
2%
6%
10%
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Source: Bureau of Labor Statistics
Page 30
Traction in Canada’s Economy:
•Policy support •Increased consumer confidence •Improving credit conditions •Improved terms of trade
Metrics %
1. Real GDP (2009 estimate)
-2.5%
2. Inflation Rate (Dec) 1.3%3. Unemployment Rate (Dec)
8.5%
Page 31
1.Foreclosures and short sales continued to skew home prices downward
2.Banks continued to tighten their lending standards
3.Stimulus aid continued to gain traction
4.The available sides per agent ticked back upPage
32
Page 33
• 1 in 45 housing units received at least one foreclosure filing in 2009.
– Total number of filings: 4 million
• So far, foreclosure prevention programs have had limited impact on slowing foreclosure rates.Source: National Association of Realtors
Page 34Source: RealtyTrac
AKHI
Less than 1%
1–5%
Above 5%
Number 1: Nevada - 7% (1 in 14 houses)
Page 35Source: RealtyTrac
AKHI
Number 1: Nevada - 10% (1 in 10 houses)
Less than 1%
1–5%
Above 5%
Page 36
49%
22%
26%
17%
64%
46%
30%
29%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Q4
Q3
Q2
Q1Nontraditional
Nontraditional
Nontraditional
Nontraditional
Prime
Prime
Prime
Prime
Fewer banks tightened their
lending standards in the last quarter
Source: Federal Reserve
Page 37
Historically low interest rates and unprecedented home prices continually contributed to positive affordability conditions.
The market share of first-time home buyers rose to 47% in 2009.
42% 40% 40% 40% 36% 39% 41% 47%
2001 2003 2004 2005 2006 2007 2008 2009
Source: National Association of Realtors
Percent of First-time Home Buyers
Page 38
As NAR membership contracted by 7% in 2009, those who remained gained a larger share of the market.
Number of transactions available per agent jumped 13% from 2008, the first increase in a decade.
Source: National Association of Realtors
9.313.8 13.6 13.5 13.3 12.9 12.6 12.3 11.2 9.5 8.28.4
1998 2000 2002 2004 2006 2008
Page 39
2009 recorded the largest increase in the measure since 1983.
Source: National Association of Realtors
Page 40
4
8
12
16
1976 1980 1984 1988 1992 1996 2000 2004 2008
0
2
Annual Sales per Agent NAR Membership (in Millions)
2009
NAR Members: 1.1 Million
Annual Sales per Agent: 9.3
Source: National Association of Realtors
9.31.1 Million
1.1.Canada’s stimulus package continued to Canada’s stimulus package continued to gain tractiongain traction
2.2.Commodity prices remained low in 2009 Commodity prices remained low in 2009 while Canadian currency has strengthened while Canadian currency has strengthened
3.3.The available sides per agent increasedThe available sides per agent increased
Page 41
Page 42
• The Bank of Canada lowered the overnight interest rates to 0.25% in April, the lowest rate on record in response to highly uncertain global market outlook and deteriorating credit conditions.
• The central bank also made a conditional commitment to keep rates low until the end of the second quarter in 2010.
• Canada’s economic leaders are now worried that low interest rates are luring consumers into taking on huge amount of debt that they may not be able to pay back when interest rates rise from their historic low levels.
Page 43
• Commodity prices have recovered, but remain low.
• The loonie is rising on the back of world markets losing faith in the US dollar, usually considered a safe reserve, and looking for havens elsewhere.
• A high Canadian dollar hurts manufacturing and export industries because it makes Canadian goods more expensive on world markets, especially in the US, which is Canada's largest trading partner.
2008:
C$1 0.83 USD
2009:
C$1 0.95 USD
Exchange rates (Dec. 31)
Page 44
In 2009, home sales increased 7.7% and CREA membership expanded further by 1%. Available sides per agent increased to 9.5 transactions.
Source: Conference Board/CREA
9.2 10.1 10.5 12.2 12.6 12.2 12.0 11.7 10.9 11.1 8.9 9.5
1998 2000 2002 2004 2006 2008
Page 45
9.5
98K
4
8
12
16
1980 1984 1988 1992 1996 2000 2004 2008
0
60
120
Source: Conference Board/CREA
2009 CREA Members: 98K Annual Sales per Agent: 9.5
Annual Sales per Agent CREA Membership (In Thousands)
Page 46
1.Extended First-Time Home Buyer Tax Credit
2.Extended Higher Loan Limits
3.Continued Federal Reserve MBS Purchases
4.Implemented Foreclosure Prevention Program
5.Tightened Requirements for FHA
6.Lifted FHA 90-Day Seasoning Requirement Lifted
7.Addressed Home Valuation Code of Conduct (HVCC)
Page 47
Page 48
• Extended through April 30, 2010
• Includes first-time buyers and qualifying existing homeowners
• The original first-time buyer tax credit stimulated lower price points, this could stimulate mid-to-upper price points.
Page 49
• Higher loan limits in the 2009 Stimulus bill were extended through December 31, 2010.
• The limit is 125% of local median home price, up to an overall cap of $729,750.
Page 50
• Federal Reserve committed to purchasing $500 billion in mortgage backed securities (MBS) in late 2008
• An additional $750 billion was added to that in March 2008.
• This has helped keep mortgage rates low this year.
• Program set to expire in March 2010.
Page 51
• Has helped 67,000 homeowners get into permanent loan modifications.
• Key Changes:–Second mortgages were added. –Those up to 125% underwater can refinance.–The program was extended to include FHA. –Short Sale provisions were added. –Streamlined paperwork requirements.
Page 52
• FHA has grown from less than 2% of loans three years ago to 30% of new purchases and 20% of refinances in 2009.
• FHA’s market share has skyrocketed to 17% in the third quarter of 2009, a nearly six-fold increase in the last two years.
• It will:–Raise insurance fees –Cap seller contribution to buyer’s closing costs–Require higher down payments for those
with poor credit.
Page 53
• With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days.
• This temporary change in policy will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties, as a result, stabilizing home values and revitalizing communities where foreclosure activity is high.
• The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner and will come with strict conditions and guidelines to prohibit predatory practices by sellers.
Page 54
• Effective: May 2009
• Intended to promote fair appraisals but caused trouble when first implemented.
• Changes have been made since, prohibiting inexperienced appraisers.
• Agents can now speak directly with appraiser and provide supportive materials, like “comps”.
1.1.The stimulus bill known as the “Economic The stimulus bill known as the “Economic Action Plan”Action Plan”
2.2.Competition Bureau versus CREACompetition Bureau versus CREA
Page 55
Page 56
• In 2009 the stimulus, known officially as the Economic Action Plan, was incorporated into the 2009 budget last February.
• The plan totals $40 billion dollars in new spending and tax cuts during 2009 and 2010.
• Approximately three-quarters of this stimulus was allocated towards new spending on infrastructure investments, communities, skills, and work-transition strategies.
• 95% of the funds have been committed.
Page 57
1. Home buyer tax relief
2. Increase in withdrawal limits from retirement savings plan
3. Home renovation tax credit
4. ecoENERGY Retrofit program
5. Social housing investments
Page 58
• On Feb 8, 2010, the Competition Bureau filed a case against CREA in the Competition Tribunal, alleging that CREA had restricted access to MLS in ways that were anti-competitive.
• The legal challenge to strike down some of CREA’s rules relating to the MLS System in Canada came after discussions aimed at a negotiated settlement failed.
– In October 2009, The Competition Bureau announced that it wanted key sections of CREA’s access rules removed based on findings of its three-year investigation into CREA’s access rules which started in 2007.
• No date has yet been set for the Competition Tribunal hearing.
Page 59
Page 60
Page 60
USA• Bad Case of the Flu• Paying for our “Excesses”• 2 years behind Residential Shift• In Denial Stage moving towards Acceptance
CANADA• A Bad Cold• Impacted by Global Recession• Soft Recovery
Overall -70%Hotel -88%
Office -66%
Retail -76%
Industrial -50%
Multi-Family -61%
Health -42%
Page 61
USA – Inv. Sales CANADA• Investment Sales Activity is
down 55%. • Office Vacancy Rate jumped
from 6.3% to 9%.• Industrial Vacancy Rate
increased from 5% to 6.3%.
Page 61
Commercial Sales/Leasing Activity 2008 vs. Commercial Sales/Leasing Activity 2008 vs. 20092009
Just 14% of the Level vs.
2007
Source: MBA Source: Avison Young
Page 62
Page 62
USA• Disconnect in Values –
“Negative Equity”• Extend and Pretend –
“Kicking the default can further down the road…”
• Sam Zell – “Grave Dancer”
CANADA• Foreign Investment Infusion • Valuations down 20%• Canadian Government’s $200
Billion program to support lending to businesses
CRE ValuationsCRE Valuations
Page 63
Page 63
• CRE is Cyclical – 10 year boom 1998-2008
• Lack of Job Growth:
Unemployment (2007 to Present)
USA: 4.5% to 10%
CANADA: 6% to 8.3%
• Easy Credit Lax Lending Standards – CMBS Markets Excess in Valuations – 3-4% Cap Rates
Page 64
Page 64
USA• $1.4 Trillion Commercial Debt coming due over the Next 3 Years…• 6,500 Banks effected – Local, Regional & National• Residential Shift – 10 major Banks/Institutions• 1980’s RTC - $153 billion
CANADA• Banks Held and Serviced their Loans• World’s Soundest Financial System
CRE LendingCRE Lending
Page 65
• Markets of the Moment Distressed Assets Venture Equity Property Management Tenant Representation Owner Occupied Transactions - SBA
• Focus on Business Development Networking Foot on the accelerator
• Get Lean – Cut Expenses – JOIN KW COMMERCIAL Page
65
SHIFT Your CRE Practice!SHIFT Your CRE Practice!
Page 66
Page 67
Page 68
Page 69
42%40% 40% 40%
36%39%
41%
47%
2001 2003 2004 2005 2006 2007 2008 2009
Page 70
All Buyers First-time Buyers
Repeat Buyers
Desire to own a home 35% 62% 11%
Job-related relocation or move 9 2 16
Desire for larger home 9 2 16
Change in family situation 9 8 10
Affordability of homes 8 10 6
Desire for a home in a better area 4 1 7
Desire to be closer to family/friends/relatives
4 1 7
Desire to be closer to job/school/transit
3 1 5
First-time home buyer tax credit 3 6 1
Desire for smaller home 3 * 5
Retirement 3 1 4
Establish household 2 2 1
Page 71
1 year or less 4%2 to 3 years 184 to 5 years 216 to 7 years 128 to 10 years 1511 to 15 years 1216 to 20 years 821 years or more
11
Median 7
Page 72
1 year or less 1%2 to 3 years 34 to 5 years 126 to 7 years 38 to 10 years 1411 to 15 years 516 to 20 years 22Don’t Know 39
Median 10
Page 73
All Buyers First-time Buyers
Repeat Buyers
Looked online for properties for sale 36% 31% 40%
Contacted a real estate agent 18 14 21
Looked online for information about the home buying process
11 16 7
Contacted a bank or mortgage lender
8 11 6
Drove-by homes/neighborhoods 8 6 10
Talked with a friend or relative about home buying process
7 11 3
Visited open houses 4 2 5
Looked in newspapers, magazines, or home buying guides
3 2 3
Contacted builder/visited builder models
2 1 2
Attended a home buying seminar 1 3 *
Page 74
2001 7
2003 8
2004 8
2005 8
2006 8
2007 8
2008 10
2009 12
Page 75
Internet 90%
Real estate agent 87
Yard sign 59
Open house 46
Print newspaper advertisement
40
Home book or magazine 26
Home builder 18
Relocation company 4
Television 8
Billboard 6
Page 76
2001 2003 2004
2005
2006
2007
2008
2009
Real estate agent 48% 41% 38% 36% 36% 34% 34% 36%
Internet 8 11 15 24 24 29 32 36
Yard sign/open house sign 15 16 16 15 15 14 15 12
Friend, relative or neighbor 8 7 7 7 8 8 7 6
Home builder or their agent 3 7 7 7 8 8 7 5
Print newspaper advertisement 7 7 5 5 5 3 3 2
Directly from sellers/Knew the sellers
4 4 5 3 3 3 2 2
Home book or magazine 2 1 2 1 1 1 1 *
Other 3 6 4 * * * * *
Page 77
Very Useful
Somewhat Useful
Not Useful
Did not use/Not
Avail
Photos 84% 13% 1% 2%
Detailed information about properties for sale
82 15 1 2
Virtual tours 63 26 4 7
Real estate agent contact information 46 33 10 11
Interactive maps 43 32 10 14
Neighborhood information 40 42 9 9
Pending sales/contract status 30 35 16 19
Detailed information about recently sold properties
28 38 16 18
Information about upcoming open houses 20 33 21 26
Page 78
Multiple Listing Service (MLS) website 60%
Real estate company website 46
REALTOR.com 46
Real estate agent website 45
Other website with real estate listings 30
For-sale-by-owner website 17
Newspaper website 9
Real estate magazine website 4
Social networking websites (e.g. Facebook, Myspace, etc.)
1
Video hosting websites (e.g. YouTube, etc.) *
Page 79
2001 2003 2004
2005
2006
2007
2008
2009
Through a real estate agent or broker
69% 75% 77% 77% 77% 79% 81% 77%
Directly from builder or builder’s agent
15 14 12 12 13 12 10 8
Directly from the previous owner
15 9 9 9 9 7 6 5
Through a foreclosure or trustee sale
1 1 1 * 1 1 3 10
Page 80
Yes, a written arrangement
43%
Yes, an oral arrangement 19No 28Don’t Know 11
Page 81
Help with the price negotiations
13%
Help buyer negotiate the terms of sale
16%
Help with paperwork
9%
Determine what comparable homes
were selling for8%
Help determining how much home buyer can afford
4%
Help find and arrange
financing2%
Other2%
Page 82
Referred by (or is) a friend, neighbor or relative 44%
Used agent previously to buy or sell a home 10
Internet website 10
Saw contact information on For Sale/Open House sign
7
Visited an open house and met agent 6
Referred by another real estate agent or broker 5
Referred through employer or relocation company
4
Walked into or called office and agent was on duty
4
Personal contact by agent (telephone, email, etc.)
3
Newspaper, Yellow Pages or home book ad 1
Direct mail (newsletter, flyer, postcard, etc.) *
Advertising specialty (calendar, magnet, etc.) *
Other 6
Page 83
One 66%
Two 19
Three 10
Four or more 6
Page 84
Reputation of agent23%
Agent is friend or family member
16%
Agent’s knowledge of the
neighborhood11%
Agent has caring personality/good
listener10%
Agent’s association with a particular firm
3%
Professional designations held by real estate agent
1%
Other4%
Page 85
Good financial investment 87% Better than stocks 54 About as good as stocks 26 Not as good as stocks 7
Not a good financial investment
3
Don’t know 10
Page 86
66%
22%
6% 5% 2%
Definitely Probably Probably Not Definitely Not Don't Know
Page 87
Referred by (or is) a friend, neighbor or relative 40%
Used agent previously to buy or sell a home 24
Referred through employer or relocation company
5
Visited an open house and met agent 5
Personal contact by agent (telephone, email, etc.)
5
Referred by another real estate agent or broker 4
Saw contact information on For Sale/Open House sign
3
Direct mail (newsletter, flyer, postcard, etc.) 3
Internet website 3
Walked into or called office and agent was on duty
3
Newspaper, Yellow Pages, or home book ad 2
Advertising specialty (calendar, magnet, etc.) 1
Other 5
Page 88
64%
20%
10%3% 3%
One Two Three Four Five or more
Page 89
Help price home competitively 22%
Help find a buyer for home 21
Help seller market home to potential buyers 19
Help sell the home within specific timeframe 19
Help seller find ways to fix up home to sell it for more
10
Help with negotiations and dealing with buyers 5
Help with paperwork/inspections/preparing for settlement
3
Help seller see homes available to purchase 1
Other 1
Page 90
Reputation of agent 36%
Agent is honest and trustworthy 21
Agent is friend or family member 16
Agent’s knowledge of the neighborhood
13
Agent has caring personality/good listener
6
Agent’s association with a particular firm
4
Professional designations held by agent
1
Agent’s commission *
Other 3
Page 91
Real estate agent initiated discussion of compensation
44%
Client brought up the topic and the real estate agent was willing to negotiate their commission or fee
25
Client brought up the topic and the real estate agent was not willing to negotiate their commission or fee
9
Client did know commissions and fees could be negotiated but did not bring up the topic
10
Client did not know commissions and fees could be negotiated
13
Page 92
59%
22%
10% 7%2%
Definitely Probably Probably Not Definitely Not Don't Know
Page 93
2001 2003 2004
2005
2006
2007
2008
2009
Sold home using an agent or broker
79% 83% 82% 85% 84% 85% 84% 85%
For-sale-by-owner (FSBO) 13 14 14 13 12 12 13 11
Sold to home buying company
1 1 1 1 1 1 1 1
Other 7 3 3 2 3 2 2 3
Page 94
Less than 90% 23%90% to 94% 2195% to 99% 35100% 15101% to 110% 3More than 110% 2
Median Sales-to-Listing Price
95%
Page 95
None 58%Home warranty policies 21%Assistance with closing costs 18%Credit toward remodeling or repairs 6%Other incentives, such as a car, flat screen TV, etc.
3%
Assistance with condo association fees 1%Other 5%
Page 96
Page 97
Page 97
22% Less
21% Less
34% Less 27%
Less 11% Less
Source: KWRI Internal MLS Studies
Page 98
Page 98
1% Mor
e
11% Mor
e
14% Mor
e
11% Mor
e
16% Mor
e
Source: KWRI Internal MLS Studies
Page 99
Page 99
5% Slower
2% Faster
5% Faster 13%
Faster
5% Faster
Source: KWRI Internal MLS Studies
Page 100
Page 100Source: KWRI Internal MLS Studies
Page 101
Page 101
7% Increas
e34%
Decrease
18% Decreas
e4%
Decrease
Source: KWRI Internal MLS Studies
Page 102
Page 103
5.33%
5.59%
5.09%5.10%5.12%5.20%5.21%5.19%
2002 2003 2004 2005 2006 2007 2008 2009
Commission rates rose by more than a quarter of a percentage point in 2009.
Source: KWRI Internal Commission Studies
Page 104
2.50%2.59%
2.40%2.40%2.40%2.43%2.44%
2.42%
2002 2003 2004 2005 2006 2007 2008 2009
Seller side commission rates increased slightly by a tenth of a point.
Source: KWRI Internal Commission Studies
Page 105
3.00%
2.83%
2.68%2.70%2.71%2.78%2.77%2.77%
2002 2003 2004 2005 2006 2007 2008 2009
Buyer side commission rates increased more than a tenth of a point to 3% in 2009.
Source: KWRI Internal Commission Studies
Page 106
Median commission amount on the seller side decreased by 24% due to a 21.7% drop in home prices.
Source: KWRI Internal Commission Studies
$3,575$3,872
$4,200
$4,650 $4,756 $4,780$4,550
$3,450
2002 2003 2004 2005 2006 2007 2008 2009
Page 107
On the buyer side, commission amounts declined by approximately 10% due to a 9.3% decline in home prices.
Source: KWRI Internal Commission Studies
$4,128
$4,410
$4,730
$5,155$5,325 $5,350
$5,145
$4,650
2002 2003 2004 2005 2006 2007 2008 2009
Page 108
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Page 110
Page 111
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Page 112
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Page 114
“Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.”Page
115
- Calvin Coolidge
PRESS ON!Page 116