This map outlines the total expenditures that result from a single home sale.

Total Economic Impact of a Home Sale

KCM Divided into Three Sections

Existing Home Sales

NAR 4/2014

100 = Historically Healthy Level

Pending Home Sales

NAR 4/2014

Bill McBride Calculated Risk

A decline in existing home sales doesn't mean the housing recovery is over. Far from

it! We need to look at the composition of sales (distressed vs. conventional).

The percent of conventional sales are increasing.

That is a positive sign.

Total Sales Year-Over-Year: 12 Month Sum

% increase or decrease in current 12 months of total sales over the prior 12 months of total sales

FreddieMac

Housing is stronger today than at any point since the

Great Recession began and hit bottom in 2009.

50%

16% 13%

Housing Starts House Prices Home Sales

Improvement inHousing sincebottom in 2009

FreddieMac 4/2014

FreddieMac 4/2014

20%

3%0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Housing Starts Home Sales

Projections for Housing in 2014

Has your interest in purchasing a home increased over the last year?

Millennial BuyersYes – 59%

Move-up BuyersYes – 45%

Pulte 5/2014

Americans still aspire to buy second homes and have contributed to the growth of the

market consistently since its bottom in 2009... As the population continues to age, we expect people to continue to use their savings to buy

second homes, thereby contributing to a segment of the mortgage market that will

continue to grow in the years to come.

FannieMae

30%

24% 24%

14%

6%

0%

10%

20%

30%

Real Estate Gold Stocks/Mutual Funds Savings Accounts/CDs Bonds

Best Long Term Investment

Gallup 4/2014

Gallup 4/2014

25% 24% 23%21%

7%

0%

10%

20%

30%

Real Estate Stocks/Mutual Funds Savings Accounts/CDs Gold Bonds

Best Long Term Investment18-29 year olds

Gallup 4/2014

30%28%

23%

10%7%

0%

10%

20%

30%

Real Estate Gold Stocks/Mutual Funds Savings Accounts/CDs Bonds

Best Long Term Investment50-64 year olds

Gallup 4/2014

Best Long Term InvestmentBy Income Category

28%26%

38%

31%

26%

18%

13%

25%

30%

17%16%

7%7%6%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than $30K $30K-$74,999 $75K and over

Real Estate Gold

Stocks/Mutual Funds Savings Accounts/CDs

Bonds

Gallup 4/2014

PRICES

“We leave our 2014 projections for home prices (up 5-7% for the year) unchanged.” Morgan Stanley

“Our base case projection for 2014 US home price appreciation is unchanged at 7%.”Barclays

HousingWire 4/2014

Home PricesGoing Forward

CoreLogic 3/2014

“Home prices nationwide remain 16.9% below their peak, which

was set in April 2006.”

Prices Compared to Peak w/ Date of Peak

% of Respondents Reporting Appraisal Problems

34%31% 29%

24%

0%

5%

10%

15%

20%

25%

30%

35%

2011 2012 2013 2014

Realtors Confidence Index 4/2014

Appraisal Issues/ProblemsMarch 2014

Realtors Confidence Index 4/2014

Distressed Properties

10%

15%

20%

25%

30%

35%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Percentage of Distressed Property Sales

35%

14%

21%

NAR 4/2014

Foreclosure Inventory by State

Months of Shadow Inventory

Share of Mortgages with Negative Equity

RETURN ON INVESTMENT

51.3

34.9

4.3

65.4

Dow S&P NASDAQ Real Estate

January 2000 – May 2014

MSNMoney.com, Case Shiller

-24%

-20.8%

-16.8%

-14%-13%

-7.6%

-5%-6.2%

1.8% 0.9%

5%

1.6%

7.3%

5.3%

3.2%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Jan Feb March April May June July Aug Sept Oct Nov Dec Jan Feb Mar

% -24% -20.8 -16.8 -14% -13% -7.6% -5% -6.2% 1.8% 0.9% 5.0% 1.6% 7.3% 5.3% 3.2%

Year-over-Year Inventory Levels

NAR 4/2014

4.0

4.3

4.5

4.8

5.0

5.3

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar

Months Inventory of Homes for Sale

5-6 Months = Normal Market Inventory

NAR 4/2014

4.0

4.3

4.5

4.8

5.0

5.3

Dec Jan Feb Mar

Months Inventory of Homes for Sale

5-6 Months = Normal Market Inventory

NAR 4/2014

Months Inventory of Homes for Sale

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

5-6 Months = Normal Market Inventory

NAR 4/2014

Year-over-Year Change in Prices

S&P Case Shiller 4/2014

S&P Case-Shiller Home Price Indices

S&P Case Shiller 4/2014

3.25

3.5

3.75

4

4.25

4.5

4.75 2013 - 2014 30 Year Fixed Mortgage Rates

Freddie Mac 4/2014

Mortgage Rate Projections

Analyst Projected Rate 2015 2Q

Fannie Mae 4.9%

Freddie Mac 5.3%

Mortgage Bankers Assoc 5.2%

National Assoc of Realtors 5.5%4/2014

ResourcesSlide Slide Title Link

2 Total Economic Impact of a Home Sale http://www.realtor.org/reports/state-by-state-economic-impact-of-real-estate-activity

5,6,9,27, 33,34,35, 36

Existing Home Sales, Pending Home Sales, 12,575 Homes Sell, % Distressed Property, Year-over-Year Inventory, Months Inventory, Homes for Sale,

http://www.realtor.org/

7 Bill McBride Quote http://www.calculatedriskblog.com/2014/04/comments-on-housing-and-existing-home.html

8,28,29, 30Total Sales Year-Over-Year, Foreclosure Inventory, Months Shadow Inventory, Share of Mortgages

http://www.corelogic.com/about-us/researchtrends/the-marketpulse.aspx#

10,11,12 Freddie Mac Datahttp://www.freddiemac.com/blog/research_and_analysis/20140410_springforward_housingforecast.html

13 Interest in Purchasing - Pulte Homes Surveyhttp://pultegroupinc.com/investors/press-releases/press-release-details/2014/PulteGroup-Home-Index-Survey-Americans-Appetite-To-Buy-New-Homes-Increases-As-View-On-Economy-Trends-More-Positive/default.aspx

14 Fannie Mac Quote http://www.fanniemae.com/resources/file/research/datanotes/pdf/housing-insights-040714.pdf

15 – 19, 49 Best Long Term Investment - Gallup Poll Slides http://www.gallup.com/poll/168554/americans-sold-real-estate-best-long-term-investment.aspx

21 Morgan Stanley & Barclays Quoteshttp://www.housingwire.com/articles/29815-wall-street-home-price-appreciation-still-expected-to-hit-7

22, 23, Corelogic Quote, Prices Compared to Peak http://www.corelogic.com/research/hpi/corelogic-hpi-february-2014.pdf

24, 25% Reported Appraisal Problems, Appraisal Issues March 2014

http://www.realtor.org/sites/default/files/MARCH-2014-RCI.pdf

KEEPINGCURRENTMATTERS.COM

ResourcesSlide Slide Title Link

32 Return on Investmenthttp://www.spindices.com/index-family/real-estate/sp-case-shiller http://money.msn.com/

37,38 Year-over-Year Change in Price, Case-Shiller HPIhttps://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/83930_cshomeprice-release-0325.pdf?force_download=true

39 30 Year Fixed Mortgage Rates http://www.freddiemac.com/pmms

40 Mortgage Rate Projections

http://fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_011314.pdf http://www.freddiemac.com/finance/docs/Jan_2014_public_outlook.pdf http://www.mortgagebankers.org/files/Bulletin/InternalResource/86783_.pdf http://www.realtor.org/sites/default/files/reports/2013/embargoes/phs-12-30-illtratatb/forecast-1-2014-us-economic-outlook-12-30-2013.pdf

44,47 Guy Kawasaki & Seth Godin Quote LeadingRE Conference 2014

KEEPINGCURRENTMATTERS.COM

To provide value, real estate agents must not only provide information but also insights

into that information.

Guy Kawasaki

Silicon Valley Author, Speaker, Investor and Business Advisor

It not about having the dots.

It’s about connecting the dots!!

Seth Godin Author, Entrepreneur,

Marketer and Public Speaker

Gallup 4/2014