State of Real Estate - June 2012

2. Pending Home Sales
110.0
100.0
90.0
80.0
70.0
Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
NAR 5/2012

4. Existing Home Sales
12,658 Homes
Sell Every Day
and 8,987 Buyers
Receive a Mortgage
NAR 5/2012

5. Return on Investment
50
January 2000 – June 2012
34.2
30
14.3
10
-10 5.8
-30
-28
-50
Dow S&P NASDAQ Real Estate
MSN Money.com, Case Shiller

6. “Until house prices are consistently rising,
the economic recovery won’t fully engage.”
-Mark Zandi, Chief Economist for Moody’s Analytics
Housing Wire 5/9/2012

7. Mortgage Rates – 30 Year Fixed
5.25
5
4.75
4.5
4.25
4
3.75
1/01/2011 Today
Federal Reserve

8. Rent vs. Buy
“In the chart, the red line
shows the mortgage
payment you’d have to
make if you took out a
standard 30-year mortgage
for the median asking
sales price for vacant sale
units… That number is
now lower than the median
national rental price. This
is the first time that’s
happened since 1988, and
probably for quite some
time before that, too.”
Reuters-Felix Salmon 5/8/2012

9. Young Renters Plan to Buy a Home
A Home Buyer Poll Young Renters
released recently by TD Plan to Buy Don't
Bank revealed aspirations
of homeownership are
16%
still very much alive.
The majority (84%) of
today's younger renting
generation (ages 18-34) 84%
responded that they
intend to buy a home.
TD Bank 5/21/2012

10. Non-Financial Value of Homeownership
“We’re seeing a psychological shift.
Instead of looking at homes through
the eyes of an economist, we’re
realizing that a home doesn’t solely
equate to a financial return…Instead
the home is the emotional center of
our lives, and it remains a critical
component of who we are…The
feeling you get when you step through
your front door or pull into your
driveway is indescribable and
priceless and the same holds true
for our children who crave stability.”
- Psychotherapist Dr. Robi Ludwig
DS News 5/31/2012

11. Supply & Demand

12. http://web.realestateconsulting.com/us-housing-summary-2012/Default.aspx

13. Month’s Inventory of Homes for Sale
10.0
9.0
8.0
7.0
6.0
5.0
4.0
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
NAR

14. Impact of Coming Foreclosures
“As lenders begin processing their distressed
inventories and releasing them for sale at the local
level, we look to them
to move carefully and
monitor conditions so
recently gained home
values aren't diminished.“
- Move.com
Move, Inc. 5/30/2012

15. Short Sales Skyrocketing
“Foreclosure-related sales picked up in the first quarter,
particularly pre-foreclosure sales where a distressed
homeowner is selling to avoid foreclosure - typically via short
sale. Those pre-foreclosure sales hit a three-year high in the
first quarter (up 25%). Lenders are approving more
aggressively priced short sales,
which in turn is resulting in more
successful short sales.”
- Brandon Moore, CEO of RealtyTrac
RealtyTrac 5/29/2012

16. Resources
Slide Slide Title Link
http://www.reuters.com/article/2012/05/31/housing-data-tealeaves-idUSL1E8GU54520120531
2, 3, 4 Reuters Quotes
6, 8 Pending Home Sales, Existing Sales Report http://www.realtor.org
9 S&P Case Shiller Home Price Indices http://www.standardandpoors.com
http://housingwire.com/news/zandi-foreclosure-crisis-biggest-impediment-full-us-employment
11 Mark Zandi Quote
13 Mortgage Rates – 30 Year Fixed http://www.freddiemac.com/pmms
14 Rent vs. Buy http://blogs.reuters.com/felix-salmon/2012/05/08/chart-of-the-day-lets-go-buy-a-house
http://www.marketwatch.com/story/us-homeownership-aspirations-arent-dead-owning-a-home-r
15 Young Renters Plan to Buy a Home
http://www.dsnews.com/articles/homeownership-still-holds-high-emotional-value-2012-05-31
16 Non-Financial Value of Homeownership
19 Month’s Inventory of Home Sales http://www.realtor.org
20 Continued Pressure on Prices http://www.radarlogic.com/rlresearch
21,22 Percentage of Distressed Property Sales http://www.realtor.org
23 Foreclosure Inventory in Judicial States http://www.lpsvcs.com/LPSCorporateInformation/NewsRoom/Pages/default.aspx
KEEPINGCURRENTMATTERS.COM

17. Resources
Slide Slide Title Link
25 Judicial and Non-Judicial States http://www.corelogic.com/about-us/researchtrends/asset_upload_file896_15255.pdf
http://www.calculatedriskblog.com/2012/05/freddie-mac-lower-reo-expense-in-q1-due.html
26 Judicial and Non-Judicial States
27 Impact of Coming Foreclosures http://news.move.com/index.php?s=11609&item=128978
http://www.realtytrac.com/content/foreclosure-market-report/q1-2012-us-foreclosure-sales-repor
28 Short Sales Skyrocketing
KEEPINGCURRENTMATTERS.COM

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