The Northern Virginia Association of Realtors held its 2010 year-end press conference. Key highlights included: - The real estate market contributed nearly $24 billion to the local economy in 2010. - First-time homebuyer assistance programs provided up to $8,000 and long-time buyers up to $6,500. - Home prices have stabilized at new, lower levels while smaller, appropriately-priced homes sell quickly. - The real estate market in 2011 is expected to continue the trends seen in 2010 with modest price increases.

1. Northern Virginia Association of Realtors®

2. 2010 Chairman
of the Board
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

3.  $8,000 – First-time buyers
 $6,500 – Long-time buyers
 Economy Contributed – nearly $24 billion
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

4. Number of Claims
Housing Act
45,684
Recovery Act (49%) 11,758
(12%)
Assistance Act
31,409
(First-time) (34%)
4,459
Assistance Act (5%)
(Long-time)
Total: 93,310
Source: GAO analysis of IRS data. Northern Virginia Association of Realtors®
2010 Year-End Press Conference

5. Northern Virginia Association of Realtors®
2010 Year-End Press Conference

6. Northern Virginia Association of Realtors®
2010 Year-End Press Conference

7.  Decline in Sales Volume in 3rd Quarter
 Increased Inventory
 Home Prices Stabilizing at New Levels
 Smaller, Appropriately-Priced Homes Sell Quickly
 Strong Market for Investors w/Cash
 All-Cash Offers Accepted Over Financing
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

8. Oct/Nov - 2009 vs. 2010
1,800
1,600
1,604 1,567
1,400
1,200 1,260
1,229
1,000
800
600
400
200
0
Oct. 2009 Nov. 2009 Oct. 2010 Nov. 2010
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

9. Pending Homes vs. Home Sales
Month of November 2009 & 2010
1800
1600
1400 Sales Pending
1,534 1,538
1200
1000
800
600
400
200
0
Nov. 2009 Nov. 2010
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

10. 2,500
2,000
1,500
1,000
500
0
JAN '08 JAN '09 JAN '10
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

11. Nov. 2007 to Nov. 2010
2007
2008
2009
2010
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

12.  Nov. 2010 – 63 days
 Nov. 2009 – 50 days
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

13. MBA Mortgage Finance Forecast
November 24, 2010
6
5.7
5 5.4 5.5
5.1 5 5.2 5 5.1 5.2
4.9 4.9 4.7 4.8 4.9
4 4.4 4.5
3.8 4
3 3.3 3.5 3.5 3.7 3.5 3.5 3.7
3 3.1 3.3
2.7 2.8 2.8 2.9
2
1 30-Year Fixed Rate Mortgage % 10-Year Treasury Yield %
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 2011 2012
Northern Virginia Association of Realtors®
Source: Mortgage Bankers Association (MBA)
2010 Year-End Press Conference

14. Source: Mortgage Bankers Association (MBA)
Virginia Mortgage Loans in Foreclosure
15,000
12,500
Subprime
10,000
Prime &
Govt. ARM
7,500
Prime & Govt.
Fixed Rate
5,000
2,500
High and Low Scenarios
0
20 -2
20 -3
20 -4
20 -1
20 -2
20 -3
20 -4
20 -1
20 -2
20 -3
20 -4
20 -1
20 -2
20 -3
20 -4
20 -1
20 -2
20 -3
20 -4
20 -1
20 -2
20 -3
20 -4
20 -1
20 -2
20 -3
-4
Northern Virginia Association of Realtors®
06
06
06
07
07
07
07
08
08
08
08
09
09
09
09
10
10
10
10
11
11
11
11
12
12
12
12
20
2010 Year-End Press Conference

15.  Metro area added 43,700 new jobs
 Northern VA rate: >/= 5% for each jurisdiction
 Arlington rate: 3.9%
 National rate: 9.8 %
 Virginia rate: 6.8 %
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

16.  Easy access to
global markets
 Excellent
quality of life
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

17. Northern Virginia Association of Realtors®
2010 Year-End Press Conference

18.  A new normal
 Consumer uncertainty
 No sense of buyer urgency
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

19.  Expect 2011 to look like 2010
 All real estate is local,
sometimes hyper-local
 Sustainable lending practices
 Average and median prices rise modestly
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

20.  Oct. – 77 Home Sales < $900,000
 3 - $2,500,000 – 4,999,999
 1 - $5,000,000 & Over
 Nov. – 80 Home Sales < $900,000
 3 - $2,500,000 - $4,999,999
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

21. Loudon County, VA $110,643
Fairfax County, VA $106,785
Howard County, MD $101,710
City of Fairfax, VA $98,133
Arlington County, VA $96,390
Montgomery County, MD $93,999
Stafford County, VA $89,536
Calvert County, MD $89,049
Prince Williams, VA $88,675
Charles County, VA $86,586
City of Alexandria, VA $85,135
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

22. Northern Virginia Association of Realtors®
2010 Year-End Press Conference

23. Northern Virginia Association of Realtors®
2010 Year-End Press Conference

24.  Spring Forecast – March 24
 Economic Summit – September 15
Northern Virginia Association of Realtors®
2010 Year-End Press Conference

25. For more information, visit NVAR.com
or contact NVAR at 703.207.3200
Northern Virginia Association of Realtors®
2010 Year-End Press Conference