KCM Divided into
Three Sections
5,500,000

5,000,000

4,500,000

4,000,000

Existing Home Sales
"It seems like Americans'
love affair with real estate
has returned."

Greg McBride
Bankrate.com's senior financial analys...
Top 5 Reasons Americans Buy a Home
A better place to raise their children
A place their family can feel safe
Ability to ha...
Owning is still…

35

% Cheaper
than renting

Homeownership remains cheaper than
renting in all of the 100 largest metro a...
RETURN ON INVESTMENT
January 2000 – September 2013

MSN Money.com, Case Shiller
RETURN ON INVESTMENT
The Last Twelve Months

MSN Money.com, Case Shiller
Breakdown of the American Family’s

Net Worth
$77,300
$47,500
$29,800
Total Wealth

Home Equity

Other Assets
Federal Rese...
Breakdown of the American Family’s

Net Worth
Home Equity

38.6%

61.4%

Other Assets

Federal Reserve 2012
Homeowners Net Worth…

OVER 30X

greater
than renters

Federal Reserve 2012
An American Family’s

Net Worth
$174,500

$5,100
Homeowner

Renter
Federal Reserve 2012
The two best ways to invest money not
needed for more than 10 years

CASH

REAL ESTATE

Bankrate.com 8/2013
Home Prices over the Next 12 Months
Prices Going Up

Prices Falling

36%

Remain the Same/Not Sure

29%
6%

9%

55%

All A...
Window of

OPPORTUNITY
ta·per
ˈtāpər/
Verb – to diminish
or reduce
Recent Rate Movement

30 Year Fixed
Rate

Freddie Mac 9/2013
“If the data confirms our
basic outlook, then we could
move later this year.”

Ben Bernanke
Chairman of the Fed
Mortgage Rate
Projections
Analyst

Projected Rate
4Q 2014

Fannie Mae

5.3%

National Assoc of Realtors

5.5%

Freddie Mac...
Buyer’s Purchasing Power
Mortgage

Interest Rate

Payment
(P&I)

Today

$250,000

4.22%

1,225.46

Next Year

$250,000

5....
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...
“In the meantime, higher home prices
are bringing out trade-up demand
from existing homeowners who are
experiencing rising...
Months Inventory
of Homes for Sale
5-6 Months = Normal Market Inventory

NAR 9/2013
Year-over-Year Change in Prices

S&P Case Shiller 9/2013
“This rapid growth is not normal and
cannot and should not be expected to
last. We are already beginning to see
moderation...
30 Year Fixed Rate
Mortgage History
January 2012 – October 2013

Federal Reserve 9/2013
115

Pending Home Sales

110

105

100

100 = Historically Healthy Level

95

90
Jan Feb Mar Apr May Jun Jul Aug Sep Oct N...
Months Inventory of Homes for Sale

5-6 Months = Normal Market Inventory

NAR 9/2013
Percentage of Distressed Property Sales
35%

12%
NAR 92013
S&P Case-Shiller Home Price Indices

S&P Case Shiller 9/2013
How will budgets
change in 2014?

marketingsherpa 9/2013
http://jenniferlistens.wordpress.com/
Top 5 Reasons Americans Buy a Home
A better place to raise their children
A place their family can feel safe
Ability to ha...
Owning is still…

35

% Cheaper
than renting

Homeownership remains cheaper than
renting in all of the 100 largest metro a...
Breakdown of the American Family’s

Net Worth

Federal Reserve 2012
Breakdown of the American Family’s

Net Worth
Home Equity

38.6%

61.4%

Other Assets

Federal Reserve 2012
Homeowners Net Worth…

OVER 30X

greater
than renters

Federal Reserve 2012
An American Family’s

Net Worth

Federal Reserve 2012
Resources
Slide

Slide Title

Link

6

Greg McBride
BankRate.com

http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol...
Resources
Slide

Slide Title

Link

26

Months Inventory of Homes for Sale

http://www.realtor.org

28

Stan Humphries Quo...
COLLEGE
EDUCATION

PRIVATE
BUSINESS
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  • http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/
  • http://www.spindices.com/index-family/real-estate/sp-case-shiller
  • http://www.spindices.com/index-family/real-estate/sp-case-shiller
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=
  • http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-newsArticle&ID=1856909&highlight=
  • http://www.freddiemac.com/pmms
  • http://www.mortgagebankers.org/files/Bulletin/InternalResource/84813_.pdf
    http://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdf
    http://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-6-27-hgbfjnv/july-2013-outlook-2013-6-27.pdf
    http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_061313.pdf
  • http://www.housingwire.com/articles/26818-move-up-buying-activity-rises-with-home-equity-gains
  • http://www.fncrpi.com/press_releases.aspx?pr=69
  • http://www.realtor.org/
  • http://www.zillowblog.com/2013-09-22/u-s-home-values-continue-to-surge-in-august-pace-expected-to-slow-as-summer-season-ends/
  • http://www.freddiemac.com/pmms
  • http://www.realtor.org/
  • http://www.realtor.org/
  • http://www.realtor.org/
  • https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/19529_cshomeprice-release-0730.pdf?force_download=true
  • http://www.marketingsherpa.com/article/chart/tactics-budget-2014-investment
  • http://jenniferlistens.wordpress.com/
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf
  • Naea 10-13

    1. 1. KCM Divided into Three Sections
    2. 2. 5,500,000 5,000,000 4,500,000 4,000,000 Existing Home Sales
    3. 3. "It seems like Americans' love affair with real estate has returned." Greg McBride Bankrate.com's senior financial analyst Bankrate.com 8/2013
    4. 4. Top 5 Reasons Americans Buy a Home 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 Fannie Mae
    5. 5. Owning is still… 35 % Cheaper than renting Homeownership remains cheaper than renting in all of the 100 largest metro areas Trulia 9/2013
    6. 6. RETURN ON INVESTMENT January 2000 – September 2013 MSN Money.com, Case Shiller
    7. 7. RETURN ON INVESTMENT The Last Twelve Months MSN Money.com, Case Shiller
    8. 8. Breakdown of the American Family’s Net Worth $77,300 $47,500 $29,800 Total Wealth Home Equity Other Assets Federal Reserve 2012
    9. 9. Breakdown of the American Family’s Net Worth Home Equity 38.6% 61.4% Other Assets Federal Reserve 2012
    10. 10. Homeowners Net Worth… OVER 30X greater than renters Federal Reserve 2012
    11. 11. An American Family’s Net Worth $174,500 $5,100 Homeowner Renter Federal Reserve 2012
    12. 12. The two best ways to invest money not needed for more than 10 years CASH REAL ESTATE Bankrate.com 8/2013
    13. 13. Home Prices over the Next 12 Months Prices Going Up Prices Falling 36% Remain the Same/Not Sure 29% 6% 9% 55% All Americans 65% Upper Middle Class Households
    14. 14. Window of OPPORTUNITY
    15. 15. ta·per ˈtāpər/ Verb – to diminish or reduce
    16. 16. Recent Rate Movement 30 Year Fixed Rate Freddie Mac 9/2013
    17. 17. “If the data confirms our basic outlook, then we could move later this year.” Ben Bernanke Chairman of the Fed
    18. 18. 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
    19. 19. Buyer’s Purchasing Power 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
    20. 20. What About the Move-Up Seller?
    21. 21. “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 Blomquist Vice President of RealtyTrac HousingWire 8/2013
    22. 22. “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.” Yanling Mayer Director of Research, FNC Inc. HousingWire 8/2013
    23. 23. Months Inventory of Homes for Sale 5-6 Months = Normal Market Inventory NAR 9/2013
    24. 24. Year-over-Year Change in Prices S&P Case Shiller 9/2013
    25. 25. “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 Humphries Zillow Chief Economist Zillow 9/2013
    26. 26. 30 Year Fixed Rate Mortgage History January 2012 – October 2013 Federal Reserve 9/2013
    27. 27. 115 Pending Home Sales 110 105 100 100 = Historically Healthy Level 95 90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug NAR 9/2013
    28. 28. Months Inventory of Homes for Sale 5-6 Months = Normal Market Inventory NAR 9/2013
    29. 29. Percentage of Distressed Property Sales 35% 12% NAR 92013
    30. 30. S&P Case-Shiller Home Price Indices S&P Case Shiller 9/2013
    31. 31. How will budgets change in 2014? marketingsherpa 9/2013
    32. 32. http://jenniferlistens.wordpress.com/
    33. 33. Top 5 Reasons Americans Buy a Home 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 Fannie Mae
    34. 34. Owning is still… 35 % Cheaper than renting Homeownership remains cheaper than renting in all of the 100 largest metro areas Trulia 9/2013
    35. 35. Breakdown of the American Family’s Net Worth Federal Reserve 2012
    36. 36. Breakdown of the American Family’s Net Worth Home Equity 38.6% 61.4% Other Assets Federal Reserve 2012
    37. 37. Homeowners Net Worth… OVER 30X greater than renters Federal Reserve 2012
    38. 38. An American Family’s Net Worth Federal Reserve 2012
    39. 39. Resources Slide Slide Title Link 6 Greg McBride BankRate.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, 16 The 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_.pdf http://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdf http://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-6-27-hgbfjnv/july-2013-outlook-2 http://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 KEEPINGCURRENTMATTERS.COM
    40. 40. 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 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_cshomepric 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
    41. 41. COLLEGE EDUCATION PRIVATE BUSINESS
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