2012 Real Estate Resulats and a look forward

1. Annual Real Estate Report 2012*
*Hint- It’s the best news in 5 years

2. Review
In 2012 we saw the real estate recovery gaining momentum in the country and locally.
Now that sales and prices are rising again, we can look back and see the bottom was in
mid to late 2010. 2011 was inconsistent at best with a few months of increases followed
by a few months of decreases. In 2012 we finally had 6 straight months of increasing
prices for the first time since 2007. The recovery is encompassing more areas nationally
which bodes well for price and sales recovery in the Carolinas as we continue to be in-
migration states. Local recovery will continue to be stronger in the radius of 20-25 miles
from Charlotte due to gas prices and the Charlotte job engine.
The Allen Tate Company continues to lead the way in the Charlotte Region and the
Carolinas. In the Charlotte Region we have closed more than 1/3 of all home sales year
to date and our closed sales increase is 10% higher than our competition average. The
Balatow Team has experienced a 31% closed sales increase largely due to an 89%
increase in our inventory of houses listed for sale. Our company and our team are out-
performing the market and we want to especially thank everyone who trusted us with
their home experience this year.
At present, interest rates are below 4% and opportunities for home buyers are still
outstanding. With new construction expected to double in spring 2013, home sellers
should be in top shape and ready to go on the market now or early in 2013 before new
construction homes are completed.
We hope you enjoy the stats and analysis. We want all our clients and friends to be the
best informed real estate owners and consumers in the market.

3. Market Trends
• New Construction- Strong Increase early 2013 = Existing home
sellers should be on the market now
• Interest Rates- Gradual rise as economy improves = future
higher cost of ownership per $1 purchased
• Rental Rates- High rents begin push back to buying = rising
demand for new and existing houses
• Home Inventories- Low levels of existing houses for sale = less
competition for good houses, shorter time on market
• Price Stabilization- Has occurred = gradual, historical, “normal”
rise in prices returning
• Foreclosure-delinquent inventories down = Less competition
from low price inventory
Please call us at 704-904-8769 or e-mail us at
Bill.Balatow@allentate.com with any questions about the
review, trends or any of the attached tables.

4. 2012 National Statistics and Trends
• Average sales price nationwide was $215,000.
• 87% of buyers financed their purchase and average amount financed was
91% of purchase price, a strong sign of a more favorable lending
environment.
• 40% of home buyers and 38% of home sellers chose their agent from a
referral from a relative, neighbor or friend.
• 39 percent of recent home buyers were first-time buyers, a slight rise from
2011, but closer to the historical norm of 40 percent.
• 65 percent of recent home buyers were married couples—the highest share
since 2001.
• For 52 percent of home buyers, the first step in the home-buying process
was taken online. Over 90% used the internet in their search process.
• The typical home buyer searched for 12 weeks and viewed 10 homes—a
decline from 12 homes in prior year, which speaks to the tightened inventory
in many areas.
• 89 percent of buyers purchased their home through a real estate agent or
broker, a share that steadily increased from 69 percent in 2001.
• 88 percent of sellers were assisted by a real estate agent when selling their
home.
Source: National Association of Realtors

5. ALLEN TATE 13 COUNTY
CHARLOTTE REGION
COMPARED TO CHARLOTTE MLS
Closed Units Listings Taken
Allen Tate
Jan. – September 2012 6,920 5,899
Percentage Change 26.7 3.6
Charlotte MLS
Jan. – September 2012 20,482 36,996
Percentage Change 17.3 -0.8
We closed one out of every 3 houses sold in the region!

6. WE‟RE ON FIRE!
COMPANYWIDE RESULTS- NC & SC
Current* Last Year Change
LISTINGS
Month to Date 877 797 10.0%
Year to Date 12,369 11,521 7.4%
SALES
Month to Date 1,382 1,078 28.2%
Year to Date 18,089 13,947 29.7%
CLOSINGS
Month to Date 1,346 900 49.6%
Year to Date 14,629 11,379 28.6%
*As of 11/30/2012

7. Tate Closed Transactions
„06 24,446
„07 22,451
„08 15,364
„09 12,610
„10 12,264
„11 12,405
„12 15,211 Estimated

8. NATIONAL PICTURE
Home Sales
Seasonally Adjusted
4.4 4.8 M
Distressed 22%
Home Prices $187,400 9%
6 Straight Months
Days on Market
8.2 Last August
6.1 This August

9. Mortgage Rate Forecast
(Average Rate of 5.5% in 2015 ?)
30-year Mortgage
7
6
5
4
3
2
1
0
Modestly higher rates could help home sales as banks re-staff mortgage work for home purchase
applications and less refinance applications.

10. 100
105
70
75
85
90
95
80
110
115
Source: NAR
2007 - Jan
2007 - Apr
2007 - Jul
2007 - Oct
2008 - Jan
2008 - Apr
2008 - Jul
2008 - Oct
2009 - Jan
2009 - Apr
Homebuyer Tax Credit
2009 - Jul
2009 - Oct
2010 - Jan
(Seasonally Adjusted)
2010 - Apr
2010 - Jul
2010 - Oct
2011 - Jan
2011 - Apr
2011 - July
Monthly Pending Home Sales Index
2011 - Oct
2012 - Jan
2012-Apr
2012 - Jul

11. Annual Existing Home Sales:
U-Shaped Recovery
In million units
8
7 7.08
6 6.52
5 5.05 5.3 5.6
4 5.02
4.12 4.34 4.18 4.26 4.65
3
2
1
0
2011
2005
2006
2007
2008
2009
2010
2013
2014
2015
2012 est.
11/20/12
11/20/12
20

12. Visible Housing Inventory For Sale
(Existing home inventory at 8-year low)
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

13. 100
200
300
500
600
700
400
0
1964 - Jan
1966 - Jan
1968 - Jan
1970 - Jan
1972 - Jan
1974 - Jan
1976 - Jan
1978 - Jan
1980 - Jan
1982 - Jan
1984 - Jan
1986 - Jan
1988 - Jan
1990 - Jan
1992 - Jan
1994 - Jan
1996 - Jan
1998 - Jan
Visible Housing Inventory For Sale
2000 - Jan
2002 - Jan
2004 - Jan
2006 - Jan
(Newly Constructed Homes Inventory at 50-year low)
2008 - Jan
2010 - Jan
2012 - Jan

14. 0.5
3.0
0.0
1.0
1.5
2.0
2.5
3.5
4.0
4.5
5.0
2000 - Q1
2000 - Q3
2001 - Q1
2001 - Q3
2002 - Q1
2002 - Q3
2003 - Q1
2003 - Q3
2004 - Q1
2004 - Q3
2005 - Q1
2005 - Q3
2006 - Q1
2006 - Q3
2007 - Q1
2007 - Q3
2008 - Q1
2008 - Q3
2009 - Q1
million units
2009 - Q3
2010 - Q1
2010 - Q3
2011 - Q1
2011 - Q3
2012 - Q1
Shadow Inventory … Falling
(Seriously delinquent mortgage + homes in foreclosure process)
2015 … 5%
2014 … 8%
2011 … 33%
2013 … 15%
2010 … 33%
2012 … 25%
Market Share
Distressed Sales

15. 12000
14000
16000
10000
2000
6000
8000
4000
0
2000 - Q1
2000 - Q3
2001 - Q1
2001 - Q3
In $ billion
2002 - Q1
2002 - Q3
2003 - Q1
2003 - Q3
2004 - Q1
2004 - Q3
2005 - Q1
2005 - Q3
2006 - Q1
2006 - Q3
2007 - Q1
2007 - Q3
2008 - Q1
2008 - Q3
Bubble growth
Net Equity in Real Estate
2009 - Q1
2009 - Q3
2010 - Q1
2010 - Q3
2011 - Q1
2011 - Q3
If 4% annual gain
2012 - Q1

16. 25,000
27,000
29,000
31,000
33,000
37,000
39,000
41,000
35,000
1980 - Q1
1981 - Q1
1982 - Q1
1983 - Q1
1984 - Q1
1985 - Q1
In thousands
1986 - Q1
1987 - Q1
1988 - Q1
1989 - Q1
1990 - Q1
1991 - Q1
1992 - Q1
1993 - Q1
1994 - Q1
1995 - Q1
1996 - Q1
1997 - Q1
1998 - Q1
1999 - Q1
2000 - Q1
Renter Households
2001 - Q1
2002 - Q1
2003 - Q1
2004 - Q1
2005 - Q1
2006 - Q1
2007 - Q1
2008 - Q1
2009 - Q1
2010 - Q1
2011 - Q1
2012 - Q1

17. 50,000
55,000
60,000
65,000
70,000
75,000
80,000
1980 - Q1
1981 - Q1
1982 - Q1
1983 - Q1
1984 - Q1
1985 - Q1
In thousands
1986 - Q1
1987 - Q1
1988 - Q1
1989 - Q1
1990 - Q1
1991 - Q1
1992 - Q1
1993 - Q1
1994 - Q1
1995 - Q1
1996 - Q1
1997 - Q1
1998 - Q1
1999 - Q1
2000 - Q1
2001 - Q1
2002 - Q1
2003 - Q1
2004 - Q1
2005 - Q1
2006 - Q1
Homeowner Households
2007 - Q1
2008 - Q1
2009 - Q1
2010 - Q1
2011 - Q1
2012 - Q1

18. 59
60
61
62
63
64
66
67
68
69
70
65
1965 -…
%
1966 -…
1967 -…
1968 -…
1969 -…
1970 -…
1971 -…
1972 -…
1973 -…
1974 -…
1975 -…
1976 -…
1977 -…
1978 -…
1979 -…
1980 -…
1981 -…
1982 -…
1983 -…
1984 -…
1985 -…
1986 -…
1987 -…
1988 -…
1989 -…
1990 -…
(Lowest in 15 years)
1991 -…
1992 -…
1993 -…
1994 -…
1995 -…
1996 -…
1997 -…
1998 -…
1999 -…
2000 -…
2001 -…
2002 -…
2003 -…
Homeownership Rate at 65.5%
2004 -…
2005 -…
2006 -…
2007 -…
2008 -…
2009 -…
2010 -…
2011 -…
2012 -…

19. 2011 2012 2013 2014
History Forecast Forecast Forecast
GDP Growth +1.8% +2.1% +2.5% 3.1%
Existing Home 4.26 million 4.64 million 5.05 million 5.3 million
Sales
New Home 301,000 368,000 575,000 650,000
Sales
Housing Starts 612,000 776,000 1,128,000 1,300,000
Existing Home $166,100 $176,100 $185,200 $195,000
Price
Fed Funds 0.1% 0.1% 0.1% 0.1%
Rate
30-yr Mortgage 4.7% 3.7% 4.0% 4.6%

20. Thanks for the opportunity to present
our report and please call or e-mail
with any questions.