Greater

Metro Atlanta

Market

125,000 Homes Sold In 2006. 60,000 Homes Sold in 2010. 2013 Closings Down Due To Low Inventory And Higher Fallout Rates.

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

Metro Atlanta Homes Sold

Listed Inventory June 2011 – June 2013

Residential Detached - Metro Atlanta

• Inventory Levels Down 19% from June 2012, 48.7% from June 2011

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6.2

4.9 5.0

4.34.0 4.1

3.8

4.4

3.9 4.0 3.9

4.64.2

3.5 3.4 3.3

3.8

7.4

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Metro Atlanta – Months Of Supply

(Based Upon Closed Sales)

6 Months Is Considered A Normal Market

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< $100K $100K-

$200K

$200K-

$500K

$500K-

$750K

$750K-$1

Mil

$1 mil - $2

Mil

$2 Mil +

Metro Atlanta Months of Inventory (Based On Closed Sales)

It Is A Sellers Market Below $500K In Most Areas.

6 Months Supply Is Considered A Normal Market

Investors See The Opportunity To Buy Low, Lease & Sell High For Single Family Properties!

This Is Causing A Shortage Of Inventory Under $200,000.

Average Sales Price Up 38.5% In 2013

$184$201

$217$233

$241$255

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Jan Feb Mar Apr May Jun

Metro Atlanta 2013 Average Sale Prices

Average Sales Price Increasing From Bottom Of 2011

$241$253

$261$268

$209

$189 $190$176 $183

$221

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Metro Atlanta Average Annual Sale Price Trend

Chart Shows Index Results January 2010 Through April 2013 (As Reported June 2013)

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105

110Jan

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Case-Shiller Index For Metro Atlanta

Up 20.8% in Last 12 Months!

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1401995

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2010

2011

2012

2013

Case-Shiller Home Values For Metro Atlanta

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

Normal Trend Line. But Prices Are Slowly Correcting!

-0.3 -0.3

2.41.8

2.11.8

-1.0

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2.6

1.72.0 2.1

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2008 2009 2010 2011 2012 2013

U.S. GDP

Georgia GSP

Georgia Economy Outperforming

The National Economy In 2013 (Terry College of Business – University of Georgia)

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

• 2012 Restarted Positive Job Growth Trend!

-250,000

-50,000-25,000

68,400 63,30076,500

94,400

-300000

-250000

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-150000

-100000

-50000

0

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100000

150000

2009 2010 2011 2012 2013 2014 2015

More Jobs In Georgia! (Data From Terry College of Business/ UGA& Georgia State Economic Forecasting Center)

Major Group Moves

And More Coming …

Rustbelt To Sunbelt

4,944,939

7,377,951

8,256,323

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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

• 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!

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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

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

Average Rates Around 8%

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Freddie Mac & Mortgage Bankers Association

30-Year Fixed Rate Forecast (June 2013)

2010 – 2014 Quarterly Averages

2010 2011 2012 2013 2014

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

Metro Atlanta

New Homes

Charts Provided By SmartNumbers and ViaSearch

Metro Atlanta Closings

Blue – Resale Red – New Homes

New Homes Closings Up 55% From Last Year. Resale Units In 2012 At Levels Not

Seen Since 2006. But Almost 50% Of Resale Units From Investors Under $200k.

Buyer Types For New Homes

First Time Buyers And Baby Boomers Remain Most Active Segments.

We Are Looking To See The 1st & 2nd Move-Up Buyers Return.

New Home Permits

New Home Starts Growing Steadily!

Metro Atlanta Inventory (Black Arrow Is Population Trend)

Population Trends Growing Faster Than Inventory

Prudential

Georgia

Realty

Ranked #1 In Homes Sold – 2009, 2010, 2011, 2012 and YTD 2013

876

4540

719

5299

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PGR Market

June 2013 Closings Vs. June 2012 Closings

• PGR Closings Were Up 21.8% Compared To June 2012.

• The Market Was Down 14.3% Compared To June 2012.

• PGR Pendings Were Up 33.4% Compared To June 2012!

PGR

Outperforms

The Market

By 36.1%!

4161

25600

3711

26718

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PGR Market

YTD 2013 Closings Vs. YTD 2012 Closings

(Data As of June 2013)

PGR

Outperforms

The Market

By 16.3%!

• PGR Closings Were Up 12.1% Compared To YTD 2012.

• The Market Was Down 4.2% Compared To YTD 2012.

• PGR Pendings Were Up 25.3% Compared To YTD 2012!

Information Provided By Trendgraphix. PGR Numbers Internal.

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PGR HNR KW-AP CB MB SS AFH

YTD Transactions – June 2013

FMLS Counties + Southern Crescent

6%

4.8% 4.5%

3.9% 3.6%

2.4%

1.6%

Information Provided By Trendgraphix.

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YTD Listing Sales – June 2013

FMLS Counties + Southern Crescent

Information Provided By Trendgraphix.

Buyer Sales Units – June 2013

FMLS Counties + Southern Crescent

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PGR HNR KW-AP MB CB SS AFH

Information Provided By Trendgraphix. PGR Numbers Internal.

Current Listing Inventory – June 2013

FMLS Counties + Southern Crescent

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PGR HNR KW-AP MB CB AFH SS