Slides from Ten-X's 2017 Midyear U.S. Economic and Housing Market update with Rick Sharga.

1. WHERE REAL ESTATE IS MOVING
2017 Midyear U.S.
Economic & Housing
Market Update

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What We’ll Cover Today
¨ US Economic Update
¨ Existing and New Home Sales
¨ State of the Foreclosure Market
¨ The Mortgage Market
¨ Closing Thoughts

3. US Economic Overview

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GDP Stable, but Still Lags Historic Averages

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Inflation Continues to Lag Behind Market Expectations

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Unemployment Rate Suggests Nearly Full Employment

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But Labor Force Participation Rate Still Historically Low

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And Many Wage-Earners are Employed Part Time

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Wage Growth Steady, but Lower than Expected

10. National Housing Market Overview

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Existing Home Sales Slowing, but Exactly on Target

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Inventory Historically Low, and Declining

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Limited Inventory Continues to Drive Prices Higher

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Home Prices Have Hit All Time High
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New Home Sales Stuck in Neutral

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And Recovering More Slowly than from Prior Recessions
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Lack of Inventory Stalls Sales, Inflates Prices
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Housing Starts Improving…

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But Lagging Behind Prior Recoveries…

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But Permit Activity is Showing Promise

21. Are We in Bubble
Territory?

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No. We are Not.

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Affordability is Still Good, by Historical Standards
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Homeownership Rates Still Near 50-Year Low

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And REAL Home Prices are Way Below Peak
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But Household Formation Is Picking Up
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And More New Households are Owner-Occupied
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28. Foreclosure Market Update

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Delinquency Rates Continue to Fall

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And Negative Equity Numbers are Improving

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Foreclosure Starts Declining Rapidly

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Quarterly Foreclosure Activity Trending Down
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33. The Mortgage Market

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Mortgage Rates are Higher than Last Year…

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…But are Still Near Their Historic Lows

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Refinance Activity Continues to Fall

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But Purchase Activity is Increasing

38. Closing Thoughts

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Closing Thoughts
¨ 2017 is on track to repeat what we saw in 2016
¨ Between 5.5-5.6 million existing home sales, and 600,000-650,000 new home sales
¨ Prices should rise 5-6%...or more
¨ Inventory weak across the board
¨ Lackluster construction, underwater borrowers, declining distressed inventory
¨ Affordability is a problem…but mostly for down payments
¨ Prices continue to outpace wage growth
¨ Not all markets are recovering at the same pace
¨ Household formation beginning to gain steam
¨ Consecutive quarters of owner-occupied household growth could mark a new trend
¨ Foreclosure crisis finally over
¨ Activity should be at normal levels by late 2017
¨ Possible that levels will dip below historical norms
¨ Unlikely to hit “full recovery” until late 2018 at the earliest

40. Thank You!
Rick Sharga
Executive Vice President, Ten-X
rsharga@ten-x.com
@ricksharga