This document contains a variety of charts and data related to the housing market from multiple sources such as NAR, Case-Shiller, Freddie Mac, and Moody's. It is divided into three main sections. The first section contains charts on pending home sales, existing home sales projections vs actuals, and year-over-year sales changes by price point. The second section discusses mortgage rates, affordability, home price valuations, and opinions on whether the housing market could be in a bubble. The third section focuses on marketing strategies and resources for staying up-to-date on housing market trends. The document aims to provide a comprehensive overview of the current state of the housing market from both economic and real estate professional

2. KCM Divided into Three Sections

4. 90
95
100
105
110
115
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Pending Home Sales
NAR 6/2013
100 = Historically Healthy Level

5. 80
90
100
110
120
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013 2012 2011
January 2012 – December 2012
100 = Historically Healthy Level
Pending Home Sales
NAR 6/2013

6. 5000
5200
5400
5600
5800
6000
6200
2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4
ProjectedActual
Home Sales
in thousands
NAR 6/2013

7. Median Region $0-100K
$100-
250K
$250-
500K
$500-
750K
$750K-1M $1M+
$269,600 Northeast -2.7% 3.8% 17.6% 23.9% 36.3% 24.8%
$159,800 Midwest 1.5% 19.7% 35.7% 36.2% 53.8% 48%
$183,300 South -6.3% 23.2% 36.5% 34.2% 40.6% 24.9%
$276,400 West -47% .5% 23.6% 38.1% 63.9% 49.8%
$208,000 U.S. -9.3% 14.3% 28.2% 32.8% 49.8% 36.9%
Year-Over-Year Sales by Price Point
WEST MIDWEST
SOUTH
NORTHEAST
NAR 6/2013

8. Median Days on Market by Type
NAR, RCI Survey 6/2013

9. Be Able to Address the Issue
of a Possible Bubble in Housing

10. -60
-50
-40
-30
-20
-10
0
10
20
30
Last 12 Months Since Peak
Price Changes as per Case Shiller
Case Chiller

11. “Inventories of existing homes are as low as
they were in 2000. New-home inventories
have barely budged from a 50-year low. As
a consequence, there are only 5 months of
inventory for existing homes and 4 months
for new homes, compared with 6 months
when market conditions are normal…
Moreover, housing is at least fairly
valued, if not undervalued. The boom and
bust in housing left house price gains far
behind income and rent gains.”
Celia Chen
Senior Director of the Moody's Analytics Research Staff
Moody’s Economy
Are Properties Overvalued?

12. 28%
26%
0%
0%
5%
10%
15%
20%
25%
30%
Income Rent House Prices
Gains as Measured Between the
First Quarters of 2004 and 2013
Moody’s Economy

13. http://www.economist.com/blogs/graphicdetail/2013/06/us-house-prices

14. Where are mortgage rates headed?

15. Mortgage Rate ProjectionsMortgage Rate Projections
Analyst Projected Rate
3Q 2014
Mortgage Bankers Assoc 4.6%
Fannie Mae 4.6%
National Assoc of Realtors 4.8%
Freddie Mac 4.6%
7/2013

16. 30 Year Fixed Rate Mortgage History
1/2012 – 7/2013
Federal Reserve 7/2013

17. Date Price
Interest
Rate
P&I
Last Year $200,000 3.5% $898.09
This Year $220,000 4.5% $1,114.71
Difference in Payment - $216.62
The Cost of Waiting a Year

18. Over 12 Months - $2,599.44
Over 30 Year Mortgage - $77,983.20

19. 30 Year Fixed Rate Mortgage
Recent Rate Movement
3
3.25
3.5
3.75
4
4.25
4.5
4.75
1/3 1/10 1/17 1/24 1/31 2/7 2/14 2/21 2/28 3/7 3/14 3/21 3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16 5/23 5/30 6/6 6/13 6/20 6/27
Rate 3.34 3.4 3.38 3.42 3.53 3.53 3.53 3.56 3.51 3.52 3.63 3.53 3.57 3.54 3.43 3.41 3.4 3.35 3.42 3.51 3.59 3.81 3.91 3.98 4.1 4.6

20. “I don’t think the Fed ultimately
would be troubled with a 6.5%
mortgage rate.”
Doug Duncan
Chief Economist for Fannie Mae
Inman News

21. "As the economy continues to improve, we expect
to see continued upward movement in long-term
interest rates… At today’s house prices and
income levels, mortgage rates would have to be
nearly 7 percent before the U.S. median priced
home would be unaffordable
to a family making the
median income in most
parts of the country.”
Frank Nothaft
Freddie Mac VP and Chief Economist
Freddie Mac

22. Rate $100,000 $200,000 $300,000 $400,000 $500,000
6.00 599.55 1,199.10 1,798.65 2,398.20 2,997.75
5.75 583.57 1,167.15 1,750.72 2,334.29 2,917.86
5.50 567.79 1,135.58 1,703.37 2,271.16 2,838.95
5.25 552.20 1,104.41 1,656.61 2,208.81 2,761.02
5.00 536.82 1,073.64 1,610.46 2,147.29 2,684.11
4.75 521.65 1,043.29 1,564.94 2,086.59 2,608.24
4.50 506.69 1,013.37 1,520.06 2,026.74 2,533.43
Mortgage Amount

23. NAR 6/2013
15%
20%
25%
30%
35%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Percentage of Distressed Property Sales
35%
18%

24. Campbell/Inside Mortgage Finance HousingPulse Tracking Survey 6/2013
43.8%
36%
20.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Current Homeowners First Time Buyers Investors
Breakdown of Today’s Purchasers

25. WSJ 6/2013
Agents Who Specialize…
in a small geographic area compared to
agents who list homes in a large area:
1.Were 4% more likely to sell the home
2.Sell homes for 1.21% more
3.Sell homes above the median price for
1.71% more
4.Sell the home in 5.5 fewer days

27. Return on Investment
37.1
16
-12.8
52.4
-30
0
30
60
Dow S&P NASDAQ Real Estate
January 2000 – July 2013
MSN Money.com, Case Shiller

28. Months Inventory of Homes for Sale
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May
NAR 6/2013
5-6 Months = Normal Market Inventory

29. S&P Case Shiller 6/2013
S&P Case-Shiller Home Price Indices

30. -3.9%
-3.5%
-2.5%
-1.7%
-0.5%
0.6%
1.1%
2.0%
3.6%
4.3%
5.5%
6.8%
8.1%
9.3%
10.2%
12.1%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Year-over-Year Change in Prices
Jan Feb Mar Apr May
S&P Case Shiller 6/2013
S&P Case-Shiller Home Price Indices

31. Metropolitan Area Year-over-Year
Atlanta 20.8%
Boston 8.1%
Charlotte 7.3%
Chicago 9.3%
Cleveland 4.8%
Dallas 7.4%
Denver 9.9%
Detroit 19.8%
Las Vegas 22.3%
Los Angeles 18.8%
Metropolitan Area Year-over-Year
Miami 13.0%
Minneapolis 14.8%
New York 3.2%
Phoenix 21.5%
Portland 12.9%
San Diego 14.7%
San Francisco 23.9%
Seattle 11.4%
Tampa 11.3%
Washington 7.2%
S&P Case-Shiller Home Price Indices
S&P Case Shiller 5/2013

32. MARKETING

33. Opening Doors with
POWERFUL
MARKETING

34. 8.69
Average
Mortgage
% Rate
1972-2012
HISTORICALLY
4.29
Today’s
Mortgage
% Rate
CURRENTLY In the FUTURE?
“I don’t think the Fed
ultimately would be
troubled with a 6.5%
mortgage rate.”
- Doug Duncan,
Chief Economist at
Fannie Mae 6/2013
before the financial crisis
6.06 Average
after the financial crisis
4.78 Average
$3,761.52
The annual difference in mortgage
payment (P&I) on a $250,000 home
loan if rates go from 4.5 to 6.5%.
HOME MORTGAGE INTEREST
RATES (30 YEAR FIXED)
Freddie Mac Rates
KCM
%

35. Rate $100,000 $200,000 $300,000 $400,000 $500,000
6.00 599.55 1,199.10 1,798.65 2,398.20 2,997.75
5.75 583.57 1,167.15 1,750.72 2,334.29 2,917.86
5.50 567.79 1,135.58 1,703.37 2,271.16 2,838.95
5.25 552.20 1,104.41 1,656.61 2,208.81 2,761.02
5.00 536.82 1,073.64 1,610.46 2,147.29 2,684.11
4.75 521.65 1,043.29 1,564.94 2,086.59 2,608.24
4.50 506.69 1,013.37 1,520.06 2,026.74 2,533.43
Mortgage Amount

36. z
Year-Over-Year change
from NAR June 2013
Single Family Residential
Condominiums & Co-ops
UP
15.8%
UP
12.7%
UP
11.8%
UP
13.7%

37. % Year-Over-Year Sales Increases by Price Point

38. Current % Price Change:

39. Source: WSJ 6/2013
4 REASONS to USE an AGENT4 REASONS to USE an AGENT
who SPECIALIZES inwho SPECIALIZES in YOURYOUR AREAAREA
HOMES SELL
QUICKER
HOMES SELL FOR
1.21% MORE
HOMES OVER MEDIAN PRICE
SELL FOR 1.71% MORE
HOMES ARE MORE
LIKELY TO SELL

40. http://terribuseman.wordpress.com/2013/06/13/are-we-approaching-another-housing-bubble/

41. Resources
KEEPINGCURRENTMATTERS.COM
Slide Slide Title Link
4,5
Pending Home Sales, Month’s Inventory
of Homes for Sale
http://www.realtor.org
7 Year-Over-Year Sales by Price Point http://economistsoutlook.blogs.realtor.org/page/4/
8 Median Days on Market by Type
http://economistsoutlook.blogs.realtor.org/2013/06/25/median-days-on-the-market-down-to-41-days-in
10 Price Changes as per Case Shiller http://www.housingviews.com/2013/06/25/how-the-cities-did-in-april/
11,12
Are Properties Overvalued, Gains as
Measured Between the First Quarters of
2004 and 2013
http://www.economy.com/dismal/pro/article.asp?cid=240711 (Paid Service)
13 The Economist Index of US House Prices http://www.economist.com/blogs/graphicdetail/2013/06/us-house-prices
15 Mortgage Rate Projections
http://www.mortgagebankers.org/files/Bulletin/InternalResource/84813_.pdf
http://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdf
http://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-6-27-hgbfjnv/july-2013-outlook-2
http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_061313.pdf
16,19
30 Year Fixed Rate Mortgage History,
Recent Rate Movement
http://www.freddiemac.com/pmms
20 Doug Duncan Quote
http://www.inman.com/2013/06/24/experts-doubt-surge-in-mortgage-rates-will-derail-housing-recover

42. Resources
Slide Slide Title Link
21 Frank Nothaft Quote http://www.freddiemac.com/news/finance/docs/Jun_2013_public_outlook.pdf
23 Percentage of Distressed Property Sales http://www.realtor.org
24 Breakdown of Today’s Purchasers http://www.dsnews.com/articles/investor-activity-falls-sharply-in-may-2013-06-24
25 Agents Who Specialize
http://online.wsj.com/article/SB10001424127887323844804578531554168068278.html?
mod=WSJ_RealEstate_MansionWeekly
28 Months Inventory of Homes for Sale http://www.realtor.org
29,30,31 S&P Case-Shiller Home Price Indices
http://www.housingviews.com/wp-content/uploads/2013/05/CSHomePrice_Release_March-
Qtr1-Results.pdf
37
% Year-Over-Year Sales Increases by
Price Point
http://economistsoutlook.blogs.realtor.org/page/4/
38 Current % Price Change http://www.housingviews.com/2013/06/25/how-the-cities-did-in-april
39
4 Reasons to Use an Agent who
Specializes in Your Area
http://online.wsj.com/article/SB10001424127887323844804578531554168068278.html?
mod=WSJ_RealEstate_MansionWeekly
40
Are We Approaching Another Housing
Bubble?
http://terribuseman.wordpress.com/2013/06/13/are-we-approaching-another-housing-bubble
KEEPINGCURRENTMATTERS.COM

43. Build TRUST!