This document summarizes housing market trends in the Greater Metro Atlanta area from 2000 to 2013. It shows that home sales peaked in 2006 at 125,000 but fell to 60,000 in 2010 due to low inventory and higher fallout rates. Inventory levels are down 19% from June 2012 and 48.7% from June 2011. The average sales price has increased 38.5% in 2013 and is up 20.8% in the last 12 months according to the Case-Shiller index. Prudential Georgia Realty outperformed the overall market in both June 2013 and year-to-date 2013 closings.

1. Greater
Metro Atlanta
Market

2. 125,000 Homes Sold In 2006. 60,000 Homes Sold in 2010. 2013
Closings Down Due To Low Inventory And Higher Fallout Rates.
0
20000
40000
60000
80000
100000
120000
140000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Atlanta Homes Sold

3. Listed Inventory June 2011 – June 2013
Residential Detached - Metro Atlanta
• Inventory Levels Down 19% from June 2012, 48.7% from June 2011
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40000

4. 6.2
4.9 5.0
4.3
4.0 4.1
3.8
4.4
3.9 4.0 3.9
4.6
4.2
3.5 3.4 3.3
3.8
7.4
0
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8
Jan
Feb
M
ar
A
pr
M
ay
Jun
Jul
A
ug
Sept
O
ct
N
ov
D
ec
Jan
Feb
M
ar
A
pr
M
ay
Jun
Metro Atlanta – Months Of Supply
(Based Upon Closed Sales)
6 Months Is Considered A Normal Market

5. 0
5
10
15
20
25
30
35
40
45
< $100K $100K-
$200K
$200K-
$500K
$500K-
$750K
$750K-$1
Mil
$1 mil - $2
Mil
$2 Mil +
Metro Atlanta Months of Inventory
(Based On Closed Sales)
It Is A Sellers Market Below $500K In Most Areas.
6 Months Supply Is Considered A Normal Market

6. Investors See The Opportunity
To Buy Low, Lease & Sell High
For Single Family Properties!
This Is Causing A Shortage Of
Inventory Under $200,000.

7. Average Sales Price Up 38.5% In 2013
$184
$201
$217
$233
$241
$255
0
50
100
150
200
250
300
Jan Feb Mar Apr May Jun
Metro Atlanta 2013 Average Sale Prices

8. Average Sales Price Increasing From Bottom Of 2011
$241
$253
$261 $268
$209
$189 $190
$176 $183
$221
0
50
100
150
200
250
300
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Atlanta Average Annual Sale Price Trend

9. Chart Shows Index Results January 2010 Through April 2013
(As Reported June 2013)
80
85
90
95
100
105
110 Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
July
Sept
Nov
Jan
Mar
May
July
Sept
Nov
Jan
Mar
Case-Shiller Index For Metro Atlanta
Up 20.8% in Last 12 Months!

10. 0
20
40
60
80
100
120
140 1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Case-Shiller Home Values For Metro Atlanta
• Peak was July 2007. Current Home Values Remain Below The
Normal Trend Line. But Prices Are Slowly Correcting!

11. -0.3 -0.3
2.4
1.8
2.1
1.8
-1.0
-6.2
2.6
1.7
2.0 2.1
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
2008 2009 2010 2011 2012 2013
U.S. GDP
Georgia GSP
Georgia Economy Outperforming
The National Economy In 2013
(Terry College of Business – University of Georgia)

12. • Georgia Lost 325,000 Jobs In The Great Recession.
• 2012 Restarted Positive Job Growth Trend!
-250,000
-50,000
-25,000
68,400 63,300
76,500
94,400
-300000
-250000
-200000
-150000
-100000
-50000
0
50000
100000
150000
2009 2010 2011 2012 2013 2014 2015
More Jobs In Georgia!
(Data From Terry College of Business/ UGA& Georgia State Economic Forecasting Center)

13. Major Group Moves
And More Coming …

14. Rustbelt To Sunbelt

15. 4,944,939
7,377,951
8,256,323
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
ARC 20-Cty Population
Forecast Population Growth
20-County Forecast Area

16. Baby Boomers Are Coming To Be Close
To Their Children & Grandchildren.
Source :Census Bureau
Total Population
Rank of Share
Under 20 20-64 65+ 25-39 45-59
Dallas 6,144,489 3 9 25 1 24
Atlanta 5,271,550 5 6 27 2 19
Phoenix 4,179,427 4 24 15 3 26
Denver 2,466,591 11 5 24 4 12
Riverside 4,081,371 1 27 22 5 27
Houston 5,629,127 2 10 26 6 21
Portland 2,174,631 19 4 19 7 7
Seattle 3,309,347 22 1 20 8 3
Sacramento 2,091,120 12 13 14 9 20
Washington 5,306,125 14 3 23 10 11
Los Angeles 12,875,587 6 17 18 11 23
San Diego 2,974,859 8 14 16 12 25
San Francisco 4,203,898 26 2 10 13 4
Orlando 2,032,496 18 15 8 14 22
Minneapolis 3,208,212 10 7 21 15 6
Chicago 9,522,879 7 16 17 16 18
New York 18,815,988 21 12 6 17 15
Boston 4,482,857 23 8 9 18 10
Cincinnati 2,134,864 9 19 13 19 14
Baltimore 2,668,056 17 11 11 20 9
Detroit 4,467,592 13 18 12 21 5
Philadelphia 5,827,962 16 21 5 22 13
St. Louis 2,802,282 15 20 7 23 8
Miami 5,413,212 24 26 3 24 17
Tampa 2,723,949 25 25 1 25 16
Cleveland 2,096,471 20 23 4 26 2
Pittsburgh 2,355,712 27 22 2 27 1
Metro Atlanta Has The:
•#2 Population Age 25-39
•#5 Population Under 20

17. Atlanta is 56%
Cheaper To Buy!
Metro Atlanta Is 56%
Better To Buy Than Rent

18. • New Household Formation Dropped From 1.2 Mil (2006) To 400,000 (2008)
• Growing To 1.2 Million In 2013. Lots Of Pent-Up Demand.
• 4 Million Students Per Year Graduate From College For Next 10 Years!
0
200000
400000
600000
800000
1000000
1200000
1400000
1995-
2005
2006 2007 2008 2009 2010 2011 2012 2013 2015
U. S. Household Formation Trends
Demand For 1st Time Buyers Will Be Strong!
Source: U.S. Census, JCHS Household Growth Projections, Goldman Sachs

19. Prices Improving and Mortgage Rates Rising.
But Home Affordability Remains Historically Favorable.
207
187 187
197 194
160 154
146 141
116
0
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Q1
2012
Q2
2012
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2012
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2012
Q1
2013
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2013
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2013
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2013
Q1
2014
Q2
2014
National Housing Affordability Index
(Combination of home prices and mortgage rates)

20. Average Rates Around 8%

21. 4.9 4.9
3.9
4.9
4.4
3.8
4.7
5.0
4.4
4.8
3.5
4.6
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4.2
3
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4
4.5
5
5.5
Freddie Mac & Mortgage Bankers Association
30-Year Fixed Rate Forecast (June 2013)
2010 – 2014 Quarterly Averages
2010 2011 2012 2013 2014
Freddie Mac
MBA

22. Amount Of
Mortgage
3.5%
Mortgage
30-Year
Cost
5%
Mortgage
30-Year
Cost
8%
Mortgage
30-Year
Cost
$200,000 $898 $323,280 $1,073 $386,280 $1,467 $528,120
$300,000 $1,347 $484,920 $1,610 $579,600 $2,201 $792,360
$400,000 $1,796 $646,560 $2,147 $772,920 $2,935 $1,056,600
$500,000 $2,245 $808,200 $2,684 $966,240 $3,668 $1,320,480
$1 million $4,490 $1,616,400 $5,368 $1,932,480 $7,337 $2,641,320
Increasing Mortgage Rates Make A
Significant Difference In Home Affordability

23. Metro Atlanta
New Homes
Charts Provided By SmartNumbers and ViaSearch

24. Metro Atlanta Closings
Blue – Resale Red – New Homes
New Homes Closings Up 55% From Last Year. Resale Units In 2012 At Levels Not
Seen Since 2006. But Almost 50% Of Resale Units From Investors Under $200k.

25. Buyer Types For New Homes
First Time Buyers And Baby Boomers Remain Most Active Segments.
We Are Looking To See The 1st & 2nd Move-Up Buyers Return.

26. New Home Permits
New Home Starts Growing Steadily!

27. Metro Atlanta Inventory
(Black Arrow Is Population Trend)
Population Trends Growing Faster Than Inventory

28. Prudential
Georgia
Realty
Ranked #1 In Homes Sold – 2009, 2010, 2011, 2012 and YTD 2013

29. 876
4540
719
5299
0
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5000
6000
PGR Market
June 2013 Closings Vs. June 2012 Closings
• PGR Closings Were Up 21.8% Compared To June 2012.
• The Market Was Down 14.3% Compared To June 2012.
• PGR Pendings Were Up 33.4% Compared To June 2012!
PGR
Outperforms
The Market
By 36.1%!

30. 4161
25600
3711
26718
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PGR Market
YTD 2013 Closings Vs. YTD 2012 Closings
(Data As of June 2013)
PGR
Outperforms
The Market
By 16.3%!
• PGR Closings Were Up 12.1% Compared To YTD 2012.
• The Market Was Down 4.2% Compared To YTD 2012.
• PGR Pendings Were Up 25.3% Compared To YTD 2012!

31. Information Provided By Trendgraphix. PGR Numbers Internal.
0
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1000
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PGR HNR KW-AP CB MB SS AFH
YTD Transactions – June 2013
FMLS Counties + Southern Crescent
6%
4.8%
4.5%
3.9%
3.6%
2.4%
1.6%

32. Information Provided By Trendgraphix.
0
500
1000
1500
2000
2500
PGR HNR KW-AP CB MB SS AFH
YTD Listing Sales – June 2013
FMLS Counties + Southern Crescent

33. Information Provided By Trendgraphix.
Buyer Sales Units – June 2013
FMLS Counties + Southern Crescent
0
500
1000
1500
2000
2500
PGR HNR KW-AP MB CB SS AFH

34. Information Provided By Trendgraphix. PGR Numbers Internal.
Current Listing Inventory – June 2013
FMLS Counties + Southern Crescent
0
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3500
PGR HNR KW-AP MB CB AFH SS