Metro Atlanta Real Estate Market Trends April 2014. Provided courtesy of Arthur Prescott of Berkshire Hathaway HomeServices Georgia Properties in Cumming on Lake Lanier.

1. Greater
Metro Atlanta
Market

2. 125,000 Homes Sold In 2006. 60,000 Homes Sold in 2010.
2013 Closings 1.3% Behind 2012. 2014 Similar To 2013.
0
20000
40000
60000
80000
100000
120000
140000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Metro Atlanta Homes Sold

3. March Closings Up 17.8% Compared To February Closings
Mar. 2014 Closings Down 12.4% Compared To Mar. 2013 Closings
0
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6000Jan-13
Feb
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Prior Year
Current Month
Metro Atlanta 2013-2014 Closings

4. 752
1260
1494
281
42 6
0
200
400
600
800
1000
1200
1400
1600
< $100K $100K-
$200K
$200K-
$500K
$500K-$1
mil
$1 mil - $2
Mil
$2 Mil +
Metro Atlanta Closings – March 2014
(Number Of Transactions)

5. Listed Inventory January 2012 - March 2014
Residential Detached, Metro Atlanta
Inventory Up 6.8% from Feb. 2014, Up 18.9% from Mar. 2013
-2500
2500
7500
12500
17500
22500
27500 Inventory Up 23.9% From
Recent Bottom Of Feb. 2013

6. 18
42
8.35.23.73.2
0
5
10
15
20
25
30
35
40
45
< $100K $100K-
$200K
$200K-
$500K
$500K-1 Mil $1 Mil - $2
Mil
$2 Mil +
Metro Atlanta Months of Inventory
(March 2014, Based On Closed Sales)
Overall “Months Of Inventory” Is 4.7 Months
6 Months Supply Is Considered A Normal Market

7. ASP Up 8.4% From Last Month & Up 12.9% From Last Mar.
$184
$201
$217
$233 $241 $249 $255
$240
$225 $231 $222
$240
$221 $226
$245
0
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100
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300
Jan-13
Feb
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Jan-14
Feb-1414-M
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Metro Atlanta Monthly Average Sale Prices

8. Annual ASP Up 31.25% From Bottom Of 2011
$261 $268
$209
$189 $190
$176 $183
$229 $231
$0
$50
$100
$150
$200
$250
$300
2006 2007 2008 2009 2010 2011 2012 2013 2014
Metro Atlanta Annual Average Sale Prices

9. Metro Atlanta Foreclosure Comparisons
(Data by RealValuator)

10. Baby Boomers Are #1 Buyer Segment

11. Chart Shows Index Results January 2010 Through January 2014
Home Values Up 37% From Bottom of March 2012 – But Leveling.
80
85
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105
110
115
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A
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JulO
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Jan
Case-Shiller Index For Metro Atlanta
(January 2014 Results - Reported March 2014)

12. 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
2014
Case-Shiller Home Values For Metro Atlanta
• Peak was July 2007. Current Home Values Remain Below The
Normal Trend Line. But Prices Are Correcting!

13. Berkshire Hathaway
HomeServices
Georgia Properties

14. Information Provided By Trendgraphix.
0
200
400
600
800
1000
1200
1400
1600
BHHS KW AP HNR MB CB SS AFH
YTD Transactions – March 2014
FMLS Counties + Southern Crescent

15. Information Provided By Trendgraphix.
0
100
200
300
400
500
600
700
800
900
BHHS KW-AP CB HNR MB AFH SS
YTD Listing Sales – March 2014
FMLS Counties + Southern Crescent

16. Information Provided By Trendgraphix.
0
100
200
300
400
500
600
700
BHHS KW-AP HNR MB CB SS AFH
YTD Buyers Represented – March 2014
FMLS Counties + Southern Crescent

17. Information Provided By Trendgraphix and BHHS GP Internal Reports.
0
500
1000
1500
2000
2500
3000
3500
BHHS HNR KW-AP MB CB AFH SS
YTD Listing Inventory – March 2014
FMLS Counties + Southern Crescent

18. Economic &
Housing Trends

19. • Georgia Lost 325,000 Jobs In The Great Recession.
• 2012 Restarted Positive Job Growth Trend!
-250,000
-50,000
-25,000
63,400 66,200 76,000
93,100
-300000
-250000
-200000
-150000
-100000
-50000
0
50000
100000
150000
2009 2010 2011 2012 2013 2014 2015
More Jobs In Georgia!
(Reports From UGA Terry College of Business/
Georgia State Economic Forecasting Center)

20. 3%
4%
15%
4%
8%
0%
5%
10%
15%
20%
2014 2015 2016 2017 2018
Home Value Trends For Metro Atlanta
Forecast By Rajeev Dhawan, GSU Economic Forecasting Center
Provided At ABR Residential Summit on 2/10/14
• Average Annual Appreciation is 6.8%. Drivers Include Job Growth,
Population Growth, Pent-Up Demand, Historically Reasonable
Mortgages, New Homes Help Drive Up Overall Values.

21. Major Group Moves
And More Coming …

22. Rustbelt To Sunbelt

23. 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

24. 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

25. Atlanta is 56%
Cheaper To Buy!
Metro Atlanta Is 56%
Better To Buy Than Rent
Rental Bubble May Be Looming With Over 13,000
Multi-Family Rental Units Under Construction Or Proposed

26. • 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

27. Prices Improving and Mortgage Rates Rising.
But Home Affordability Remains Historically Favorable.
207
187 187
197 194
160 154
146 141
116
0
50
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250
Q1
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)

28. Average Rates Around 8%

29. 3.9
3.4
3.7
3.5
5.0
3.9
3.5
3.8
5.5
4.5
5.3
5.2
5.1
3
3.5
4
4.5
5
5.5
Freddie Mac & Mortgage Bankers Association
30-Year Fixed Rate Forecast (April 2014)
2010 – 2014 Quarterly Averages
2011 2012 2013 2014 2015
Freddie Mac
MBA

30. 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