Why Today's Real Estate Consumer NEEDSNEEDS an Expert AdvisorExpert Advisor

Pending Home SalesPending Home Sales

NAR 8/2012

New Home Starts & SalesNew Home Starts & Sales

Fannie Mae 7/2012

in thousands

Fannie Mae 7/2012

Existing Home SalesExisting Home Sales

in thousands

Where Are the Opportunities?Where Are the Opportunities?

Reuters 5/31/2012

“Recent conflicting housing data has confused consumers and economists alike…With so much fluctuating data, how can home buyers possibly figure out whether it's the right time to buy or sell?

…2012 will be a very confusing year for consumers.”

Confusion Leads to IndecisionConfusion Leads to Indecision

PRICES Going ForwardPRICES Going Forward

OC Register 6/26/2012

NAR: Home PricesNAR: Home Prices

“This time next year, there could be a 10% price appreciation. I would not be surprised to see that.”-NAR Chief Economist Lawrence Yun at the National Association of Real Estate Editors conference in Denver

Mish 5/23/2012

Gary Shilling: Home PricesGary Shilling: Home Prices

“Excess inventories are the mortal enemy of prices…I’m looking for another 20% decline ”

- Gary Schilling, president A. Gary Shilling & Co

Creating confidence Creating confidence from fearfrom fear

Does your knowledge inspire confidence and certainty?

It's not the number of people you talk to but the depth of the conversations you have.

Do you know what is happening?

Do you know why it is happening?

Do you know how to communicate it?

Three QuestionsThree Questions

“When getting help with money, whether it is insurance, real estate or investments you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Dave Ramsey Dave Ramsey – financial guru – financial guru

Retention After 3 DaysRetention After 3 Days

Source: Effective Presentation Skills 2011

It’s starting to make

sense now.

SALESSALES

2006

The Key: Sell High and Buy LowThe Key: Sell High and Buy Low

2011

EuphoriaOptimism

Optimism

Point of maximum risk in investment

Point of maximum opportunity

Fear

Depression

Better Off Than 4 Years Ago?Better Off Than 4 Years Ago?

* Freddie Mac 30 Year Rate **Principal and Interest

Date Median Sales Price*

30 Year Mortgage Interest Rate** P&I Payment

August 2008 $210,900 6.48 $1,330.26

August 2012 $188,100 3.59 $854.13

Savings $476.13

Time SavingsMonthly 476.13

Annually 5713.56

Over 30 Years $171,407

Over the Next 30 YearsOver the Next 30 Years

Home Price Expectation SurveyHome Price Expectation Survey

Home Price Expectation Survey 6/27/2012

SourceSource 20122012 20132013 20142014Home Price

Expectation Survey -.4-.4 1.31.3 2.62.6Urban Land

Institute FlatFlat 2.02.0 3.53.5Demand Institute

Study 1.01.0 1.751.75 2.52.5

Projected Annual % Change in Home PricesProjected Annual % Change in Home Prices

Prices Year-Over-Year (FHFA)Prices Year-Over-Year (FHFA)

9/2012

LISTINGSLISTINGS

“There is a clear seasonal pattern. In recent years the seasonal pattern has been exaggerated by the large number of foreclosures - foreclosures tend to be fairly steady all year, but conventional sales are stronger in the spring and early summer, and weaker in the fall and winter. This leads to more downward pressure from foreclosures in the fall and winter.”

Future Home PricesFuture Home Prices

Calculated Risk 8/2012

- Calculated Risk

Historic Price FluctuationHistoric Price Fluctuation

Calculated Risk 8/2012

Judicial and Non-Judicial StatesJudicial and Non-Judicial States

Highest Foreclosure InventoryHighest Foreclosure Inventory

Home Price Expectation SurveyHome Price Expectation Survey

Home Price Expectation Survey 6/27/2012

The Value of Getting on with Their Life