Tidewater Builders Association

Builder Breakfast Presentation:

The Regional Housing Market and

Strategies for 2009

•

Current Supply in the Marketplace

•Total Number of Homes sold in the last 12 months: 18,622

•Monthly Absorption Rate 1,551

•Number of homes on the market 14,753

Months Supply on the market: 9.5

6 Month Market Trend•Total Number of Homes sold in the last 6 months: 9, 907

•Monthly Absorption Rate 1,651

•Number of homes on the market 14,753

Months Supply on the market: 8.93 Month Market Trend

Total Number of Homes sold in the last 3 months: 4, 405

Monthly Absorption Rate 1, 468

Number of homes on the market 14,753

Months Supply on the market: 10

•Sold Homes in last 12 months 2328

•Monthly Absorption Rate 194

•Number of homes on the market 1,813

Months Supply on the market 9.3

Chesapeake

•Sold Homes in the last 6 months 1,476

•Monthly Absorption Rate 246

•Number of homes on the market 1,813

Months Supply on the market 7.4

•Sold Homes in last 3 months 610

•Monthly Absorption Rate 203

•Number of homes on the market 1,813

Months Supply on the market 8.9

•Sold homes in last 12 months 1,782

•Monthly Absorption Rate 149

•Number of homes on the market 1,626

Months Supply on the Market 11

•Sold homes in last 6 months 1,104

•Monthly Absorption Rate 184

•Number of homes on the market 1,626

Months Supply on the Market 8.8

•Sold homes in the last 3 months 508

•Monthly Absorption Rate 169

•Number of homes on the market 1,626

Months Supply on the Market 9.6

Norfolk

Suffolk

Sold homes in the last 12 months 985

Monthly Absorption Rates 82

Number of homes on the market 1283

Months Supply on the market 16Sold homes in the last 6 months 586

Monthly Absorption Rate 98

Number of homes on the market 1283

Months Supply on the market 13

Sold homes in the last 3 months 267

Monthly Absorption Rate 89

Number of homes on the market 1283

Months Supply on the market 14

Virginia Beach

•Sold homes in the last 12 months 4,915

•Monthly Absorption Rate 409

•Number of homes on the market 3,376

Months Supply on the market 8.2

•Sold homes in the last 6 months 2,961

•Monthly Absorption Rate 493

•Number of homes on the market 3,376

Months Supply on the market 6.8

•Sold homes in the last 3 months 1,332

•Monthly Absorption Rate 444

•Number of homes on the market 3,376

Months Supply on the market 7.6

Sampling of Sites by City

Chesapeake: 2007 2008

# Sold Avg $ # Sold Avg $

Eagle Point 48 $ 348,300 19 $343,200

Edinburgh 15 $1,023,100 5 $964,800

Hampshires 44 $ 285,900 27 $281,000

Olde Mill Run 23 $ 401,600 21 $419,100

Oneford Place 12 $ 276,100 5 $257, 200

Vance Level 11 $ 581,900 10 $519, 700

Sampling of Sites by City

Suffolk: 2007 2008

# Sold Avg $ # Sold Avg $

Belleharbour 11 $374, 200 6 $343,300

Governor’s Pt 16 $608, 200 6 $602,500

Harbour Breeze 6 $460,200 3 $389,600

Kings Fork Farm 20 $350, 700 13 $303, 300

Riverfront 15 $940, 900 17 $831, 600

Saddlebrook 19 $520, 900 1 $535, 000

Sampling of Sites by City

Virginia Beach: 2007 2008

# Sold Avg $ # Sold Avg $

Heritage Park 52 $729, 600 34 $662,100

Lake Archway 8 $391, 700 6 $360, 600

Lexington 83 $326,700 36 $298, 000

Ridgely 243 $282, 800 172 $246, 700

Woodbridge 70 $396, 500 59 $390, 600

Sampling of Sites by City

Isle of Wight 2007 2008

# Sold Avg $ # Sold Avg $

Eagle Harbor 22 $537, 700 12 $476, 300

Charthouse 39 $225, 800 15 $229, 900

Villas of Smithfield 30 $264, 500 8 $265, 800

Wellington 19 $371, 000 32 $356, 900

NorfolkEast Beach 35 $777, 700 13 $707, 800

Harbor Walk 2 $406, 000 4 $367, 700

PortsmouthNew Port 15 $309, 400 51 $238, 600

Strategies for 2009

There will always be a certain amount of buyers in the market place who are going to buy and are going to buy “new” versus “used”.

Position yourself to get your share. How?

• Be sure your site does not look neglected: Your competing with resale and you must make your house look like a “home”

• Have competitive pricing…we saw the inventory and know the price points that are selling…as best you can get in line with that range

• Have tools for your sales team to demonstrate the value of your product and how living in your house will improve their lives

We conducted a survey of all our (363) buyers that purchased a home in 2008 from our New Homes Division

Here is some of the information we found from the respondants

Here’s what we found…

•Location is still a huge factor over price

•Our prospects are not only buyers but co-broke agents

•No surprise, buyers are taking longer to decide and looking at more homes before they buy and re-sale is our number one competition

•41% looked at over 16 homes before they bought

•79% considered a “used” home before they bought

•26% took over (10) months to make their decision

•Buyers are looking for functional space-to live LARGER than their present home

•Most buyers that visit your sites are “be backs” as has they have visited your site online before they came in person

•55% of the buyers visited williamewood.com before they visited our sites

Here’s what we found…

Top features that caused them to choose one model versus another…in order…

•Location

•Overall Design

•Price

•Builder Reputation

•Ability to Customize

Bottom Line

When asked the “main reason for your move”? The responses in order were:

• LARGER home

•Military Transfer

•Closer to work

•Retirement

•School District

The best strategy you can take in 2009 is to recognize that the buyer will move in order to

IMPROVE THEIR LIFE!

If you don’t believe that…reflect on our election

Be sure that you have a script that shows your unique selling position and how the functional features of your house will make their life better. Figure out what they don’t like about their home now and show them how your product is better.

"The secret of success is to do the common things uncommonly well."

~ John D. Rockefeller