Return on Investment

50

January 2000 May 2012

34.2

30

20.8
10

-10

-30

-22.7

-50

Dow

S&P

NASDAQ

Real Estate
MSN Money.com, Case Shiller

Existing Home Sales

12,474 Homes Sell Every Day

and 8,346 Buyers Receive a Mortgage

NAR 3/2012

Percentage of Distressed Property Sales

50%

40%

40%
37% 31% 30% 31% 30% 32%

35%
29%

34% 29%

30%

28%

29%

20%

10%

0%
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

NAR

Pending Home Sales

110.0

100.0

90.0

80.0

70.0
Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

NAR 3/2012

Pending Home Sales

102.0 97.0

92.0

87.0

82.0 Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

NAR 04/2012

Paul Diggle, property economist, Capital Economics The increase in households confidence in the outlook for the housing market, coupled with a gradual improvement in the pace of the economic recovery, should drive a rise in home sales later this year. Doug Duncan, chief economist, Fannie Mae Conditions are coming together to encourage people to want to buy homes. Americans rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.

Celia Chen, director of housing economics, Moodys The residential property market is recovering, as the factors underlying demand and supply strengthen. Even after accounting for unusual seasonal patterns brought on by the unusually warm winter, conditions have not been this strong since the government ended homebuyer tax credits in 2010. Mark Fleming, chief economist, CoreLogic Since the peak in home prices, mortgages rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990s While real estate professionals often say that now is a good time to buy, it is clear today that April 2006 was probably not a good time to buy, while now may well be the time.

I was one of the most negative on housing. I finally came to the conclusion housing looks like a decent place to put money over the next several yearsFor those of you renting or on the sidelines, I recommend you at least consider getting back in and buying a house.
Mark Kiesel, the PIMCO managing director who just purchased a home.

We very much believe weve hit bottom.

Ivy Zelman, renowned housing analyst nicknamed Poison Ivy for her harsh positions on housing over the last several years.

Bears Turn Bull

Industry Analyst
Christopher Thornberg John Talbott Ivy Zelman Mark Kiesel

2006-2007
Declares:Housing is by no means done. The worst is in front of us, not behind us. Authors the best-seller Sell Now: the End of the Housing Bubble Nicknamed Poison Ivy for her harsh positions on housing.

Today
Now is a great time to buy a home. It is now time to buy a home. We very much believe weve hit bottom. Suggests others do what he just did: buy a home

Declares: Housing is the next Nasdaq bubble. Sold his home.

Mortgage Rates 30 Year Fixed

5.25 5

4.75

4.5

4.25

3.75

1/01/2011

Today
Federal Reserve

S&P Case-Shiller Home Price Indices

S&P Case Shiller 3/2012

Resources
Slide 2 3, 4, 5, 6 9 Slide Title Return on Investment Existing Home Sales, Percentage of Distressed Property Sales, Pending Home Sales Mark Kiesel Quote Link www.msnmoney.com http://www.realtor.org http://www.pimco.com/EN/Insights/Pages/Global-Credit-Perspectives-May-2012.aspx

10
12 13 15, 16 18 19 20 22 25

Ivy Zelman Quote

Mortgage Rates 30 Year Fixed S&P Case Shiller Home Price Indices Percent of Contract Failures, Months Inventory of Home Sales Americans Brace for Next Foreclosure Wave Flood of Foreclosures to hit the Housing Market More Foreclosures Drag on Home Prices Percentage of Distressed Property Sales Percentage Discount

http://online.wsj.com/article/SB10001424052702304723304577366294046658820.html
http://www.realtor.org http://www.standardandpoors.com http://www.realtor.org http://www.reuters.com/article/2012/04/05/us-foreclosure-idUSBRE83319E20120405 http://money.cnn.com/2012/04/13/real_estate/foreclosures/index.htm http://abcnews.go.com/blogs/business/2012/04/more-foreclosures-drag-on-home-prices http://www.realtor.org http://www.lpsvcs.com/LPSCorporateInformation/NewsRoom/Pages/20120405.aspx

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