KCM Divided intoThree Sections

4,000,000

4,500,000

5,000,000

5,500,000

Jan2012

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan2013

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan2014

Feb Mar Apr May Jun July

EXISTING Home Sales

NAR 8/2014

100 = Historically Healthy Level

NAR 8/2014

PENDING Home Sales

“Unit sales are currently down 5 percent year-over-year, but we

expect 2014 to end up close to last year’s totals at a little more than

5 million units sold.”

Lawrence YunNAR’s Chief Economist

“Our June data shows monthly inventory picking up in markets already experiencing price increases and fast property turnover. These dynamics will result in strong home sales and extend the buying season past the usual June/July peak to later in the third quarter.”

Jonathan SmokeChief Economist for realtor.com

reator.org

Foot Traffic (indicator of future sales)

Searches for Real Estate Related Terms

Google Data, Indexed Search Query Volume, U.S.

July 2008 Jan 2009 July 2009 Jan 2010 July 2010 Jan 2011 July 2011 Jan 2012 July 2012 Jan 2013 July 2013 Jan 2014 July 2014

PRICES

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013App/Dep 4.2% 4.5% 3.6% 7.4% 7.1% 1.9% -1.6% -8.9% -7.0% 0.4% -1.8% 1.9% 6.8%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Annual Home Price Gains

Source: Wall Street Journal

Prices Back to 2005 1Q Prices

Case Shiller 8/2014

100

110

120

130

140

150

160

170

180

190

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

The Impact of Monthly Housing Inventory on Home Prices

LESS THAN 6 MONTHS

BETWEEN6-7 MONTHS

GREATER THAN7 MONTHS

SELLERS MARKETHomes prices will appreciate

NEUTRAL MARKETHomes prices

will only appreciate with

inflation

BUYERS MARKETHomes prices will depreciate

4.6

4.95.0

5.2

5.75.5 5.5 5.5

4.0

4.5

5.0

5.5

6.0

Dec Jan Feb Mar Apr May Jun Jul

Months Inventory of HOMES FOR SALE

NAR 8/2014

S&P Case Shiller 8/2014

Year-Over-Year

PRICECHANGES

CaseShiller

13.2% 12.9% 12.4%

10.8%

9.3%8.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Jan Feb Mar Apr May Jun

S&P Case Shiller 8/2014

Year-Over-Year PRICE CHANGESCase Shiller

“For the first time since February 2008, all cities

showed lower annual rates than the previous month.”

David M. BlitzerChairman of the Index Committee at S&P Dow Jones Indices

“We’re lowering that forecast to 4% year-over-year in light of the

latest slowdown, but we’re sticking with our existing forecast

of 4% in subsequent years.”

Paul DiggleProperty Economist with Capital Economics

"This reversion to normality that we are finally experiencing is expected to continue across the country and

should further alleviate concern over diminishing affordability and the risk

of another asset bubble."

Mark FlemingChief Economist for CoreLogic

“The simple visualization of complex data for things like real estate trends empower the real estate professional

to educate their consumer and positions the agent as THE reliable

source for this information.”

Matt DollingerPresident and Founder, Gearbox Consulting

Prices 2Q 2014 vs. 2Q 2013

FHFA 2014 2Q Home Price Index

Prices 2Q 2014 vs. 2Q 2013

FHFA 2014 2Q Home Price Index

12-Month Home Price Change

CoreLogic Market Pulse 8.2014

1-Month Home Price Change

CoreLogic Market Pulse 8.2014

Prices & Time Since The Peak

CoreLogic Market Pulse 8.2014

Home Price Expectation

SurveyA nationwide panel

of over one hundred economists, real

estate experts and investment & market

strategists.

Home Price Expectation Survey 2014 3Q

Average Annual % APPRECIATION

Pre-Bubble

Bubble

Bust

RecoveryTo Date

Home Price Expectation Survey 2014 3Q

PROJECTEDMean Percentage Appreciation

Home Price Expectation Survey 2014 3Q

Cumulative House Appreciation by 2018

19.4%

27.8%

19.5%

11.2%Pre-BubbleTrend

Bulls All Projections

Bears

S&P Case-Shiller Home Price Indices

S&P Case Shiller 8/2014

Freddie Mac 9/2014

Freddie Mac Actual Rates

January 2013 – August 2014

30 Year Fixed Rate Mortgages

% Change in Sales from last year

by Price Range

NAR 8/2014

Months Inventory of HOMES FOR SALE

NAR 8/2014

Months Inventory of HOMES FOR SALE

NAR 7/2014

NAR 8/2014

Year-over-Year Inventory Levels

RETURN ON INVESTMENTJanuary 2000 – September 2014

Yahoo & Case Shiller

0%

5%

10%

15%

20%

25%

30%

35% Percentage of Distressed Property

Sales

35%

9%

15%

NAR 8/2014

Resources

KEEPINGCURRENTMATTERS.COM

Slide Slide Title Link

4, 5, 14, Existing Home Sales, Pending Home Sales, Months Inventory,

www.realtor.org/

6 Lawrence Yun Quote http://realtormag.realtor.org/daily-news/2014/08/08/2014-expected-have-strong-finish

7 Jonathan Smoke Quote http://www.realtor.com/news/realtor-com-report-surging-home-sales-predicted-10-metro-markets/

8 Foot Traffic https://magic.piktochart.com/output/2318478-foot-traffic-june-2014

9 Google Study http://www.thinkwithgoogle.com/articles/house-hunting-season.html

11 Annual Home Price Gains https://pbs.twimg.com/media/BttrHkxCcAEREHB.jpg

12, 15, 16, 17,

Prices Back to 2005 1Q, Year-over-Year Price Changes, David Blitzer Quote

http://us.spindices.com/index-family/real-estate/sp-case-shiller

18 Paul Diggle Quote http://www.housingwire.com/articles/31210-heres-why-home-price-growth-will-slow-to-4-in-2015

19 Mark Fleming Quote http://www.housingwire.com/articles/30915-home-price-gains-slow-to-75-as-forecast-calls-for-further-decline

21 FHFA 2Q Regional, 2Q State, http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-House-Price-Index-Shows-Gains-for-Twelve-Consecutive-Quarters.aspx

Resources

KEEPINGCURRENTMATTERS.COM

Slide Slide Title Link

23-2512-Month Change, 1-Month Change, Price & Time Since Peak

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

27-29Average Annual Appreciation, Projected Mean Appreciation, Cumulative Appreciation

https://www.pulsenomics.com/Q3_2014_HPE_Survey.php

31 Case Shiller HPI http://us.spindices.com/index-family/real-estate/sp-case-shiller

32 30-Year Fixed Rate http://www.freddiemac.com/pmms

33-35, 38

% Change in Sales, Months Inventory, Year-over-Year Inventory, % Distressed HomeSales

http://www.realtor.org

37 Return on Investment http://us.spindices.com/index-family/real-estate/sp-case-shillerhttp://finance.yahoo.com/

42 Marc Davison Quote http://1000watt.net/2014/08/real-estates-golden-prize/

58 Google Study http://www.thinkwithgoogle.com/articles/house-hunting-season.html

If people gravitate to your brand, not just your

listings, you’ve got leverage against any portal.

Marc DavisonCo-Founder 1000watt Consulting

Alexa Silva typically has about a dozen pieces up telling a story. Three years ago she wasn't in real estate. She will sell 50-60 homes this year. alexasellshomes@gmail.com 772-245-9158

“Two in three people researched prospective agents extensively online prior to working with them.” - Google