Game Plan

• Real Estate in the News• Key Economic Numbers • Sales Volume & Inventory • Sales Prices • Forecast

Real Estate in the News

• Home Prices Sink Further Declines Reported in All 28 Major Metro Areas Wall Street Journal Jan. 2011

• U.S. Home Prices Keep Weakening as Nine Cities Reach New Lows According to the S&P/Case Shiller Home Price Indices Standard and Poor’s Press Release Jan. 2011

• Louisville Foreclosures up again in 2010 courier-journal.com Jan 2011

• Boom’s Home Ownership Gains Lost Wall Street Journal Jan 2011

• Price Drop Points to Likely Double Dip in Housing Market cnbc.com Jan. 2011

Market Highlights Rates

Market Highlights Sales Volume

How to Calculate Months of Inventory

• Find number of active listings in a competitive price range, say $ 300,000-$500,000, say 44.

• Find the annual sales volume in the subject market, of similar priced units, say 30 units.

• Divide the annual figure by 12 to get monthly average, to get 2.5 sales per month

• 44 actives 2.5 s/p/m 17.6 m/inventory

Market Highlights Days on Market

Market Highlights Sales Prices

Glen Oaks Sold Comments

• ABSOLUTELY FABULOUS! HUGE PRICE REDUCTION

• Two houses for the price of one.• HURRY...PRICE REDUCED $60,000. • Major Price reduction • INCREDIBLE NEW PRICE REDUCTION

Equity Mo rate Ann rateLake Forest 2008 1st Sale Date Re-sale Date No Mos Gain/loss

1 113 Forest Place Court 393,500$ 6/1/2006 340,000$ 11/7/2008 29.00 -13.50% -0.46 -5.522 506 Oak Branch Road 338,000$ 7/19/2005 410,000$ 6/2/2008 35.00 21.00% 0.60 7.203 1116 Lake Bluff Circle 288,000$ 5/20/2002 335,000$ 10/21/2008 67.00 16.00% 0.23 2.854 1112 Lake Bluff Circle-RELO 319,000$ 9/27/2004 324,900$ 7/22/2008 34.00 1.80% 0.05 0.605 14603 Woodbluff Trace 327,500$ 4/19/2006 312,000$ 5/8/2008 25.00 -5.00% -0.20 -2.406 1311 Isleworth Drive 423,000$ 1/30/2002 565,000$ 9/12/2008 80.00 33.00% 0.41 4.907 15212 Abington Ridge Place 296,000$ 9/23/2003 310,000$ 8/15/2008 59.00 4.70% 0.08 0.958 814 Lake Forest Parkway 275,900$ 7/30/1999 300,000$ 12/22/2008 113.00 8.70% 0.08 0.919 14502 Ashmont Place 279,950$ 8/31/2000 297,333$ 6/19/2008 94.00 6.20% 0.07 0.78

10 605 Oak Branch Road 284,000$ 7/9/2004 287,500$ 1/23/2008 42.00 1.20% 0.03 0.3611 15405 Crystal Springs Way 875,000$ 6/22/2005 930,000$ 4/1/2008 34.00 6.30% 0.19 2.22

Average 55.64 0.10 1.17

Equity Mo rate Ann rateLake Forest 2009 1st Sale Date Re-sale Date No Mos Gain/loss

1 15122 Abington Ridge Plc 315,000$ 6/30/2005 290,000$ 1/22/2009 43.00 -8% -0.18 -2.202 2411 Galloway Court 337,000$ 8/30/2004 317,500$ 6/2/2009 58.00 -6% -0.10 -1.243 14209 Willow Grove Circle 330,000$ 6/17/2003 339,500$ 6/1/2009 72.00 2.7 0.03 0.454 1603 Greensbrook Palce 385,000$ 12/18/2006 339,900$ 6/12/2009 30.00 -12% -0.40 -4.805 2306 Claymore Circle 399,900$ 9/25/2003 359,000$ 4/9/2009 67.00 -10% -0.14 -1.796 905 Elm Hill Place 375,000$ 11/7/2007 360,000$ 5/27/2009 18.00 -4% -0.22 -2.607 1604 Majestic Woods Place 453,000$ 4/14/2005 437,250$ 5/14/2009 49.00 -3% -0.06 -0.738 1904 Arnold Palmer Blvd 575,000$ 10/31/2007 570,000$ 6/5/2009 20.00 -0.8% 0.00 -0.05

Average 45.00 -0.13 -1.62

Equity Mo rate Ann rate

Lake Forest 2010 1st Sale Date Re-sale Date No Mos Gain/loss1 601 Lake Forest Pkwy 292,500$ 4/26/2004 310,000$ 1/4/2010 69 5% 0.070 0.842 14409 Forest Glenn Ct 432,500$ 6/15/2007 372,500$ 8/13/2010 38 -16% -0.420 -5.043 15301 Crystal Springs Wy 728,000$ 3/23/2007 680,000$ 9/3/2010 42 -6.5% -0.150 -1.804 14605 Woodlake Trace 644,000$ 1/6/2006 550,000$ 11/12/2010 58 -14% -0.240 -2.885 11212 Oakhurst Road 434,750$ 12/28/2004 444,000$ 8/23/2010 68 2% 0.029 0.356 911 Woodland Heights Dr 374,500$ 8/12/2005 380,000$ 6/18/2010 58 1% 0.017 0.207 2105 Highland Springs 675,000$ 9/13/2005 675,000$ 1/27/2010 52 0% 0.000 0.008 2111 Arnold Palmer Blvd 720,000$ 6/15/2006 635,000$ 11/10/2010 53 -12% -0.230 -2.769 2228 Highland Springs Dr 677,000$ 6/28/2006 590,000$ 7/29/2010 49 -13% -0.265 -3.18

10 1309 Isleworth Drive 510,000$ 6/2/2004 505,000$ 7/8/2010 73 -1% -0.014 -0.16Average 56.00 -0.120 -1.44

Hillcrest MLS

• Sold new in June of 2006 for $723,000 which was under appraised value then. (List $619,000).

• OVER $95,000, PRICE REDUCTION!! LOOKING FOR A GREAT VALUE (List $529,000).

• GREAT VALUE. SOLD NEW IN 2007 for $619,000!! (List $ 518,300).

MLS Comments Re: Pricing

• WOW!!!Sellers have Lowered the price!!! Instant Equity according to most recent appraisal.

• Seller decided to LOWER THE PRICE immediately for a quicker sale.

• Do NOT miss at this NEWLY SLASHED price of $264,900 -- was $318,800.

• Huge Price reduction on this new listing !

Market Highlights Forecasting

Peering into 2011: Five Features of Next Year’s Housing and Mortgage Markets. (Source Freddie Mac Dec. 2010 Economic Outlook)

Here are five features that will likely characterize the 2011housing and mortgage markets:

Low Mortgage Rates. By November, fixed-rate mortgage rates had drifted down to their lowest level since the early 1950s. This laid the foundation for a substantial refinance boom, with refinance accounting for four out of every five single-family loan applications.With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. While some rise in fixed rates is expected, 30-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates on 5/1 hybrid ARMs will likely remain below 4percent in 2011.

House-Price Recovery. Softness in house prices generally occurs in the autumn and winter months related to the seasonal slowdown in home purchases, and this season is little different from past ones in that respect. Those local markets that have relatively large inventories of for-sale homes and real estate owned (REO) dispositions will continue to see home-value weakness in 2011. However, price indexes for the U.S. as a whole are likely close to bottoming out. Most experts look for single-family U.S.indexes to bottom out in the first half of 2011, with a gradual (but sustained) recovery after that: The Wall Street Journal’s Economic Survey for November found that economists expected the Federal Housing Finance Agency’s U.S. Purchase-Only House Price Index to rise by an average of about 1 percent over 2011.

Homebuyer Affordability. The three main ingredients that affect buyer affordability are mortgage rates, house prices, and income. With the first two at or near cyclic lows, buyer affordability is at the highest level in decades.

The National Association of Realtors’ Affordability Index for the third quarter reported one of the most affordable buying markets since the inception of the index in 1971.

Fewer Mortgage Originations. More sales in 2011 generally mean more purchase money originations, and that should be a feature of next year’s market. However, refinance activity will likely dwindle.

Lower Delinquency Rates. Single-family mortgage delinquency rates remain extraordinarily high but have begun to decline in the aggregate Look for the seriously delinquent rate in theoverall market to gradually decline further during 2011, reflecting employment gains andfamily income growth, additional loan modifications and other foreclosure alternatives,and the transition of foreclosed homes to REO.

SOURCE: FREDDIE MAC 2010 Economic Outlook

Thanks for your Attention