Slides from the Q1 2017 US Economic and Housing Market Update webinar with Rick Sharga. Learn more about the key factors driving the US housing market in 2017 and beyond.

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

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

3. A Brief Introduction to Ten-X

4. The Leading Online Real Estate Marketplace
NUMBERS
$46 Billion
Of assets sold
275,000+
Assets sold
INVESTORS MILESTONES
2007
Company
founded
2016
Ten-X
2009
CRE platform

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The Ten-X Brand Family
Our new name, Ten-X, reflects expansion of the services
we’ll be delivering – and the much broader audience we
plan to reach via three distinct lines of business.
Dedicated to the sale of
quality commercial
properties via auction and
more traditional methods
A new platform created especially
for consumers and agents, with a
focus on move-in ready homes
The nation’s largest online
real estate marketplace, now
exclusively focused on the
sale of bank-owned and
foreclosure properties

6. US Economic Overview

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GDP Stable, but Still Lags Historic Averages

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Inflation in Line with Market Expectations

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Unemployment Rate Continues to Improve

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Labor Force Participation Rate Still Historically Low

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And Part Time Employment Historically High

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Wage Growth Appears to be Steady

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And Consumer Confidence Highest Since 2000

14. National Housing Market Overview

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Existing Home Sales Ticking Up

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New Home Sales Improving, But Uneven

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Existing Home Inventory Historically Low

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New Home Inventory Improving, But Near 40-Year Low
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Housing Starts Improving…

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But Lagging Behind Prior Recoveries…

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…and Inflated by Multifamily Numbers

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Prices Continue to Rise, Outpacing Wage Growth

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And Affordability is Becoming More of a Concern
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Homeownership Rates Still Near 50-Year Low

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Even Though Household Formation Is Picking Up
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Student Loan Debt a Factor in Household Formation
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27. Foreclosure Market Update

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Delinquency Rates Continue to Fall

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Foreclosure Starts Declining Rapidly

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Monthly Foreclosure Activity Trending Down
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And Overall Foreclosure Activity Approaches Normal Levels

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Percentage of Loans in Foreclosure Lowest Since 2006

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Distressed & Cash Sales Declining, but Still Above Norm
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34. The Mortgage Market

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Mortgage Rates are Finally Rising…

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…But are Still Near Their Historic Lows

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Refinance Activity Falling Fast

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Purchase Activity May Not be Enough to Offset Drop

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But as Rates Rise, Credit May Loosen

40. International Investors

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International Buyers Account for Over $100 Billion
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China, Canada Dominate Purchases

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But Interest is Strong from Around the World

44. Closing Thoughts

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Closing Thoughts
¨ 2017 will look very much like 2016
¨ Between 5.5-5.6 million existing home sales, and 650,000-700,000 new home sales
¨ Prices should rise 5-6%
¨ Inventory weak across the board
¨ Lackluster construction, underwater borrowers, declining distressed inventory
¨ Affordability may become a problem
¨ Prices continue to outpace wage growth
¨ Household formation slower than expected
¨ Lack of starter homes, generational tendencies, and credit availability may skew numbers towards rentals
¨ Latino buyers – the fastest growing segment – pose challenges for lenders
¨ Foreclosure crisis finally over
¨ Activity should be at normal levels by late 2017
¨ Possible that levels will dip below historical norms
¨ Note sales by GSEs, major lenders accelerating recovery
¨ Unlikely to hit “full recovery” until late 2018 at the earliest

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