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2010 12-07 international forum


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Christine Todd's powerpoint presentation from the Dec. 7, 2010 International Forum year-end celebration.

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2010 12-07 international forum

  1. 1. NVAR International <br />Year-End Celebration<br />December 7, 2010<br />
  2. 2. What’s happening in our market?<br />Northern Virginia market:<br />In some ways we are like the rest of the country<br />In others ways we are very different<br />And in many ways, we have one of the best markets in the nation!<br />
  3. 3. Have we hit the bottom?<br />-Indicators say “yes” and “no”!<br />-Recovery is slow and painful<br />-First time buyers and cash investors drove first half of 2010 recovery<br />-Prices up, inventory weak but we see fewer short sales (thank goodness)<br />
  4. 4. Today’s Real Estate Market<br />30-year mortgage rate is at generational lows, under 5%<br />National median-home price is stabilizing, $170,000<br />Inventory is still very high<br />Foreclosures more of a problem than short sales<br />Source: NAR<br />
  5. 5. The U.S. market today<br />The economy is growing….slowly<br />The private sector is finally creating some jobs, corporate profits are up<br />Consumer confidence remains low, though clearly off bottom<br />Source: NAR<br />
  6. 6. Local Signs of Recovery<br /><ul><li>Home prices stabilizing with small increases
  7. 7. Investors still purchasing inventory with cash
  8. 8. Job losses and unemployment show improvement in our region
  9. 9. Economy will continue to slowly expand in 2011</li></ul>Source: Gerald L. Gordon ,PH.D<br />President and CEO, Fairfax County Economic Development Authority <br />
  10. 10. Recent Major Economic Development Activity in Fairfax County<br />Northrop Grumman selects Fairfax County for new corporate headquarters, joining<br /> CSC<br /> Hilton Worldwide<br /> Science Applications International Corporation<br /> Volkswagen of America<br />More on the way!<br />
  11. 11. Northern Virginia Market <br />Population is growing<br />New jobs are being created<br />Unemployment around 5% and (would be lower if population were not growing)<br />Prices up, inventory steady<br />Foreclosure/Short Sales market shrinking <br />
  12. 12. Benefits of Living in Fairfax County<br />Source: Jerry Gordon, President and CEO of the Fairfax EDA<br />
  13. 13. NVAR home prices starting to rise <br /><ul><li>NVAR statistics on prices
  14. 14. Record high $569,826 June, 2007
  15. 15. Record low $376,669 Jan., 2009
  16. 16. 2010 first half average sales price - $472,762
  17. 17. October average sales price- $ 470,882</li></ul>Over 7% increase over last year<br />
  18. 18. NAR: Record number of first-time homebuyers(Survey finds most buyers applied for tax credits)<br />First-time homebuyers accounted for half of all home sales from July 2009 through June 2010 based on 8,449 responses to a survey sent nationwide. This is the highest share of first-time-buyer purchases in the history of the survey, which dates back to 1981.<br />
  19. 19. Tax Credit was Huge Success<br />1 million additional buyers<br />1 million fewer inventory units<br />Reduced months supply by <br /> 2 to 2.5 months<br />Preserved Housing Wealth by nearly<br /> $1 trillion<br />Limited future foreclosures<br />
  20. 20. Long Standing Housing Policy<br />Mortgage Interest Deduction<br />If eliminated, estimated about a 15% loss in home values<br />FHA<br />Self-financing without ever needing taxpayer funds, but threatened<br />Fannie and Freddie <br />Made big mistakes and need to be restructured <br />
  21. 21. ?<br />
  22. 22. Home Ownership Matters Campaign<br /><ul><li>Aggressive media & consumer outreach
  23. 23. Research, white papers
  24. 24. Coalition building</li></li></ul><li>
  25. 25. Support NAR's Call For Action by calling your Representatives to ask their help in defending home ownership and the Mortgage Interest Deduction.They need to hear from YOUtoday.<br />For more info, please visit<br /><br />
  26. 26. Suggested Talking Points<br /> I am a constituent and a REALTOR®. <br /> I have been on the front lines of the housing crisis.<br /> I can assure you that even talk of changing MID harms an already fragile market.<br />I am strongly opposed to the Deficit Commission's proposal to limit or eliminate the Mortgage Interest Deduction.<br />News reports saying that Congress threatens to repeal or limit MID will keep potential buyers on the sidelines and further delay the housing recovery.     <br />
  27. 27. Suggested Talking Points<br />Please oppose any efforts to reduce or eliminate the Mortgage Interest Deduction in any future deficit reduction proposals or legislation.<br /> Thank you for helping to ensure the ongoing recovery of the housing market.<br /> As a member of the National Association of REALTORS®, I appreciate your belief that home ownership matters.<br />If you call outside of office hours, please leave a voice mail communicating the message above.<br /> <br />
  28. 28. Public Awareness Campaign: What Matters Most ?<br />“What Matters Most ?” reminds homeowners, buyers and sellers alike that homeownership remains the foundation of the American Dream. The advertising materials underscore the value that REALTORS® bring to communities and their clients, and explain that REALTORS® are prepared—to show you options, answer your questions and guide you home.<br />
  29. 29.
  30. 30. NAR Real TV ad let’s watch<br />
  31. 31.
  32. 32.
  33. 33.
  34. 34.
  35. 35. Why Buy?<br /><ul><li>Get a good deal now
  36. 36. Low mortgages
  37. 37. Save on taxes
  38. 38. It’s yours!
  39. 39. A better home
  40. 40. Forced savings
  41. 41. A lot to choose from
  42. 42. Sooner or later -- the market will clear</li></li></ul><li>Homeownership Rate for Selected Years (1900 – 2010)<br />
  43. 43. First-time Buyers<br />Median<br />Household <br />Income<br />$59,900<br />Median <br />Square Feet<br />1540<br />Median<br />Age<br />30<br />
  44. 44. Home Owners' Net Worth Is More Than 40 Times That of Renters<br />
  45. 45. Housing Wealth Gains<br />
  46. 46. Economists Expect Price Increases in Upcoming Years<br />Northern Virginia Region already beyond these national estimates<br />
  47. 47. Sample Markets with Price Increases<br />% change from one year ago <br />Source: Lawrence Yun, Ph.D.,Chief Economist and Senior Vice-President of NAR <br />
  48. 48. Home SalesDipping in 3rd quarter of 2010, then rising<br />
  49. 49. Pending Contracts on Existing Homes<br />Tax Credit Impact<br />
  50. 50. Existing Home Sales<br />Source: NAR<br />
  51. 51. Housing StartsGradually rising<br />
  52. 52. New Homes Construction<br />2.1 million<br />In 2006<br />500,000<br />new starts in 2010<br />VS<br />
  53. 53. Future Housing Shortage?<br />Source: Lawrence Yun, Ph.D.,Chief Economist and <br />Senior Vice-President of NAR <br />
  54. 54. Dr. Yun’s predictions<br />“Over the next 12 months, I will be watching Lexington, KY and Washington, DC to outperform the rest of the country”!<br />May, 2010<br />
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  58. 58.
  59. 59.
  60. 60. NVAR Counties- October, 2010 Stats<br />
  61. 61. Supply and Demand (NVAR)<br />
  62. 62. 2010 Sold Listings October<br />
  63. 63. 2010 Under Contracts October<br />
  64. 64. 2010 Ave. Sales Price (NVAR) October<br />Record High- $578,689 (June 2006)<br />Record Low- $376,669 (January 2009)<br />
  65. 65. Economic GrowthSlow growth, but still positive<br />
  66. 66. NAR Challenges in the Coming Years<br />Ensure flow of capital into the Real Estate market<br />Creating access to affordable property insurance<br />Preserving the value of homeownership<br />Improving professionalism of REALTORS®<br />Fighting the attack on Home Ownership<br />MID……are you ready for the fight?<br />
  67. 67. Take advantage of this new member benefit for all 2011 members by learning how to make use of these form fillable documents.  Please visit <br /><br />
  68. 68. The IdentitySecure® Program for REALTORS® is the newest offering from NAR's REALTOR Benefits® Program and is among the most comprehensive fraud security solutions available today<br />Find out about all the protection benefits of IdentitySecure®. Your first month is just $1.<br />Visit the IdentitySecurewebsite for more information and to sign up.<br /><br />
  69. 69. NEW! Auto Loan Offer <br />Get a fixed low rate on a new or used vehicle with a 20% down payment.<br />NEW! Individual Retirement Accounts (IRAs) -Plan for your future today with Traditional, Roth and SEP Savings & Certificate accounts<br /><br />
  70. 70. Health Insurance<br />Realtors® Core Health Insurance Plan<br />Guaranteed acceptance<br />Low cost starting at $70.69 per month<br />Choose any provider<br /><br />
  71. 71. Dental Insurance<br />For more information: visit us online at<br />
  72. 72. REALTOR.ORG<br />
  73. 73.<br />
  74. 74.
  75. 75. Happy Holidays<br />