Greater

Metro Atlanta

Market

125,000 Homes Sold In 2006. 60,000 Homes Sold in 2010.

2013 Closings 1.3% Behind 2012. 2014 Similar To 2013.

0

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Metro Atlanta Homes Sold

March Closings Up 17.8% Compared To February Closings

Mar. 2014 Closings Down 12.4% Compared To Mar. 2013 Closings

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Prior Year

Current Month

Metro Atlanta 2013-2014 Closings

752

1260

1494

281

42 60

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< $100K $100K-

$200K

$200K-

$500K

$500K-$1

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$1 mil - $2

Mil

$2 Mil +

Metro Atlanta Closings – March 2014 (Number Of Transactions)

Listed Inventory January 2012 - March 2014

Residential Detached, Metro Atlanta

Inventory Up 6.8% from Feb. 2014, Up 18.9% from Mar. 2013

-2500

2500

7500

12500

17500

22500

27500 Inventory Up 23.9% From

Recent Bottom Of Feb. 2013

18

42

8.35.23.73.2

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< $100K $100K-

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$200K-

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$500K-1 Mil $1 Mil - $2

Mil

$2 Mil +

Metro Atlanta Months of Inventory (March 2014, Based On Closed Sales)

Overall “Months Of Inventory” Is 4.7 Months

6 Months Supply Is Considered A Normal Market

ASP Up 8.4% From Last Month & Up 12.9% From Last Mar.

$184$201

$217$233

$241 $249 $255$240

$225 $231$222

$240$221 $226

$245

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ar

Metro Atlanta Monthly Average Sale Prices

Annual ASP Up 31.25% From Bottom Of 2011

$261 $268

$209

$189 $190$176 $183

$229 $231

$0

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$100

$150

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$250

$300

2006 2007 2008 2009 2010 2011 2012 2013 2014

Metro Atlanta Annual Average Sale Prices

Metro Atlanta Foreclosure Comparisons (Data by RealValuator)

Baby Boomers Are #1 Buyer Segment

Chart Shows Index Results January 2010 Through January 2014

Home Values Up 37% From Bottom of March 2012 – But Leveling.

80

85

90

95

100

105

110

115

Jan

Apr

Jul

Oct

Jan

Apr

July

Oct

Jan

Apr

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Oct

Jan

Apr

Jul

Oct

ober

Jan

Case-Shiller Index For Metro Atlanta (January 2014 Results - Reported March 2014)

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20

40

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1401995

1996

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2007

2008

2009

2010

2011

2012

2013

2014

Case-Shiller Home Values For Metro Atlanta

• Peak was July 2007. Current Home Values Remain Below The

Normal Trend Line. But Prices Are Correcting!

Berkshire Hathaway

HomeServices

Georgia Properties

Information Provided By Trendgraphix.

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BHHS KW AP HNR MB CB SS AFH

YTD Transactions – March 2014

FMLS Counties + Southern Crescent

Information Provided By Trendgraphix.

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BHHS KW-AP CB HNR MB AFH SS

YTD Listing Sales – March 2014

FMLS Counties + Southern Crescent

Information Provided By Trendgraphix.

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BHHS KW-AP HNR MB CB SS AFH

YTD Buyers Represented – March 2014

FMLS Counties + Southern Crescent

Information Provided By Trendgraphix and BHHS GP Internal Reports.

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BHHS HNR KW-AP MB CB AFH SS

YTD Listing Inventory – March 2014

FMLS Counties + Southern Crescent

Economic &

Housing Trends

• Georgia Lost 325,000 Jobs In The Great Recession.

• 2012 Restarted Positive Job Growth Trend!

-250,000

-50,000-25,000

63,400 66,200 76,00093,100

-300000

-250000

-200000

-150000

-100000

-50000

0

50000

100000

150000

2009 2010 2011 2012 2013 2014 2015

More Jobs In Georgia! (Reports From UGA Terry College of Business/

Georgia State Economic Forecasting Center)

3%4%

15%

4%

8%

0%

5%

10%

15%

20%

2014 2015 2016 2017 2018

Home Value Trends For Metro Atlanta Forecast By Rajeev Dhawan, GSU Economic Forecasting Center

Provided At ABR Residential Summit on 2/10/14

• Average Annual Appreciation is 6.8%. Drivers Include Job Growth,

Population Growth, Pent-Up Demand, Historically Reasonable

Mortgages, New Homes Help Drive Up Overall Values.

Major Group Moves

And More Coming …

Rustbelt To Sunbelt

4,944,939

7,377,951

8,256,323

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

ARC 20-Cty Population

Forecast Population Growth 20-County Forecast Area

Baby Boomers Are Coming To Be Close

To Their Children & Grandchildren.

Source :Census Bureau

Total Population

Rank of Share

Under 20 20-64 65+ 25-39 45-59

Dallas 6,144,489 3 9 25 1 24

Atlanta 5,271,550 5 6 27 2 19

Phoenix 4,179,427 4 24 15 3 26

Denver 2,466,591 11 5 24 4 12

Riverside 4,081,371 1 27 22 5 27

Houston 5,629,127 2 10 26 6 21

Portland 2,174,631 19 4 19 7 7

Seattle 3,309,347 22 1 20 8 3

Sacramento 2,091,120 12 13 14 9 20

Washington 5,306,125 14 3 23 10 11

Los Angeles 12,875,587 6 17 18 11 23

San Diego 2,974,859 8 14 16 12 25

San Francisco 4,203,898 26 2 10 13 4

Orlando 2,032,496 18 15 8 14 22

Minneapolis 3,208,212 10 7 21 15 6

Chicago 9,522,879 7 16 17 16 18

New York 18,815,988 21 12 6 17 15

Boston 4,482,857 23 8 9 18 10

Cincinnati 2,134,864 9 19 13 19 14

Baltimore 2,668,056 17 11 11 20 9

Detroit 4,467,592 13 18 12 21 5

Philadelphia 5,827,962 16 21 5 22 13

St. Louis 2,802,282 15 20 7 23 8

Miami 5,413,212 24 26 3 24 17

Tampa 2,723,949 25 25 1 25 16

Cleveland 2,096,471 20 23 4 26 2

Pittsburgh 2,355,712 27 22 2 27 1

Metro Atlanta Has The:

•#2 Population Age 25-39

•#5 Population Under 20

Atlanta is 56% Cheaper To Buy!

Metro Atlanta Is 56% Better To Buy Than Rent

Rental Bubble May Be Looming With Over 13,000

Multi-Family Rental Units Under Construction Or Proposed

• New Household Formation Dropped From 1.2 Mil (2006) To 400,000 (2008)

• Growing To 1.2 Million In 2013. Lots Of Pent-Up Demand.

• 4 Million Students Per Year Graduate From College For Next 10 Years!

0

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1400000

1995-

2005

2006 2007 2008 2009 2010 2011 2012 2013 2015

U. S. Household Formation Trends Demand For 1st Time Buyers Will Be Strong!

Source: U.S. Census, JCHS Household Growth Projections, Goldman Sachs

Prices Improving and Mortgage Rates Rising. But Home Affordability Remains Historically Favorable.

207

187 187197 194

160 154146 141

116

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National Housing Affordability Index (Combination of home prices and mortgage rates)

Average Rates Around 8%

3.9

3.4

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3.9

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Freddie Mac & Mortgage Bankers Association

30-Year Fixed Rate Forecast (April 2014)

2010 – 2014 Quarterly Averages

2011 2012 2013 2014 2015

Freddie Mac

MBA

Amount Of

Mortgage

3.5%

Mortgage

30-Year

Cost

5%

Mortgage

30-Year

Cost

8%

Mortgage

30-Year

Cost

$200,000 $898 $323,280 $1,073 $386,280 $1,467 $528,120

$300,000 $1,347 $484,920 $1,610 $579,600 $2,201 $792,360

$400,000 $1,796 $646,560 $2,147 $772,920 $2,935 $1,056,600

$500,000 $2,245 $808,200 $2,684 $966,240 $3,668 $1,320,480

$1 million $4,490 $1,616,400 $5,368 $1,932,480 $7,337 $2,641,320

Increasing Mortgage Rates Make A

Significant Difference In Home Affordability