4,000,000

4,500,000

5,000,000

5,500,000

Existing Home Sales

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 renting

% Cheaper

RETURN ON INVESTMENT

January 2000 – September 2013

MSN Money.com, Case Shiller

$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 greater

than 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

30 Year Fixed Rate

Freddie Mac 9/2013

Recent Rate Movement

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 Rate Payment

(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

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

30 Year Fixed Rate

Mortgage History

January 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%