View a slide show of the latest Metro Atlanta Real Estate Market Trends For January 2014. Presented by Arthur Prescott of Berkshire Hathaway HomeServices Georgia Properties.

1. Greater
Metro Atlanta
Market

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

3. Metro Atlanta 2013 Closings
6000
5000
4000
2012
2013
3000
2000
1000
0
Jan Feb Mar Apr May Jun
Jul Aug Sept Oct Nov Dec
December Closings Down 2.5% Compared To November Closings
Dec. 2013 Closings Down 6.9% Compared To Dec. 2012 Closings
2013 Annual Closings Down 1.3% Compared To 2012 Closings

4. Metro Atlanta Closings – December 2013
(Number Of Transactions)
1600
1408
1400
1246
1200
1000
800
697
600
400
251
200
44
6
$1 mil - $2
Mil
$2 Mil +
0
< $100K
$100K$200K
$200K$500K
$500K-$1
mil

5. Metro Atlanta Closings
Dec. 2013 Compared To Nov. 2013
30%
20%
15.0%
19.0%
10%
4.8%
0%
-10%
-6.9%
-14.3%
-20%
-30%
-40%
-50%
-43.8%
< $100K
$100K$200K
$200K$500K
$500K-$1
mil
$1 mil - $2
Mil
$2 Mil +

6. Metro Atlanta Closings
Dec. 2013 Compared To Dec. 2012
60%
51.7%
40%
28.1%
17.8%
20%
-0.3%
0%
-20%
-24.6%
-40%
-45.5%
-60%
< $100K
$100K$200K
$200K$500K
$500K-$1
mil
$1 mil - $2
Mil
$2 Mil +

7. Listed Inventory December 2011 - December 2013
Residential Detached, Metro Atlanta
27500
22500
Inventory Up
15% From
February 2013
17500
12500
7500
2500
-2500
Inventory Up 11% from Dec. 2012, Down 34% from Dec. 2011

8. Metro Atlanta Months of Inventory
(Based On Closed Sales)
60
50.2
50
40
6 Months Supply Is Considered A Normal Market
30
20
16.4
10.6
10
6.4
3
3.8
< $100K
$100K$200K
0
$200K$500K
$500K-1 Mil $1 Mil - $2
Mil
Overall “Months Of Inventory” Is 4.6 Months
$2 Mil +

9. Metro Atlanta 2013 Average Sale Prices
300
250
200
$184
$201
$255
$246
$241 $249
$240
$233
$225 $231 $224
$217
150
100
50
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
ASP Up 9.8% From Last Month & Up 19% From Last Dec.

10. Metro Atlanta Average Annual Sale Prices
$300
$261
$268
$250
$229
$209
$189
$200
$190
2009
2010
$176
$183
2011
2012
$150
$100
$50
$0
2006
2007
2008
2013
Average Sales Price Increasing From Bottom Of 2011

11. Metro Atlanta Foreclosure Comparisons
(Data by RealValuator)

12. Baby Boomers Are #1 Buyer Segment

13. Case-Shiller Index For Metro Atlanta
(October 2013 Results - Reported December 2013)
115
110
105
100
95
90
85
J
O ul
ct
ob
er
Ja
n
A
pr
Ju
ly
O
ct
Ja
n
A
pr
Ju
ly
O
ct
Ja
n
A
pr
O
ct
l
Ju
Ja
n
A
pr
80
Chart Shows Index Results January 2010 Through October 2013
Home Values Up 37% From Bottom of March 2012 – But Leveling.

14. Case-Shiller Home Values For Metro Atlanta
140
120
100
80
60
40
20
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
0
• Peak was July 2007. Current Home Values Remain Below The
Normal Trend Line. But Prices Are Correcting!

15. Berkshire Hathaway
HomeServices
Georgia Properties

16. 2013 Annual Closings Vs. 2012 Annual Closings
60000
50000
BHHS GP
Outperforms
The Market
By 11.2%!
40000
30000
20000
10000
0
BHHS
Market
• BHHS GP 2013 Closings Were Up 9.9% Compared To 2012.
• The Market Was Down 1.3% Compared To 2012.

17. YTD Transactions – December 2013
FMLS Counties + Southern Crescent
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
BHHS
HNR
KW-AP
CB
MB
Information Provided By Trendgraphix.
SS
AFH

18. YTD Listing Sales – December 2013
FMLS Counties + Southern Crescent
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
BHHS
KW-AP
HNR
CB
MB
Information Provided By Trendgraphix.
AFH
SS

19. YTD Buyer Sales – December 2013
FMLS Counties + Southern Crescent
4500
4000
3500
3000
2500
2000
1500
1000
500
0
BHHS
HNR
KW-AP
MB
CB
Information Provided By Trendgraphix.
SS
AFH

20. YTD Listing Inventory – December 2013
FMLS Counties + Southern Crescent
3000
2500
2000
1500
1000
500
0
BHHS
HNR
KW-AP
MB
CB
Information Provided By Trendgraphix.
AFH
SS

21. Economic &
Housing Trends

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

23. Major Group Moves
And More Coming …

24. Rustbelt To Sunbelt

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

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

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

28. U. S. Household Formation Trends
Demand For 1st Time Buyers Will Be Strong!
1400000
1200000
1000000
800000
600000
400000
200000
0
19952005
2006
2007
2008
2009
2010
2011
2012
2013
2015
Source: U.S. Census, JCHS Household Growth Projections, Goldman Sachs
• 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!

29. National Housing Affordability Index
(Combination of home prices and mortgage rates)
250
207
200
187
187
197
194
160
154
150
146
141
116
100
50
0
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Prices Improving and Mortgage Rates Rising.
But Home Affordability Remains Historically Favorable.

30. Average Rates Around 8%

31. Freddie Mac & Mortgage Bankers Association
30-Year Fixed Rate Forecast (December 2013)
2010 – 2014 Quarterly Averages
5.5
5.1
5
4.5
5.0
5
4.9
4.4
4
4.9
4.8
4.4
4.4
3.9
3.5
3
3.8
3.5
2010
2011
2012
Freddie Mac
MBA
2013
2014

32. Increasing Mortgage Rates Make A
Significant Difference In Home Affordability
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