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Dave Magua

Dave Magua. tee Expectation Survey . " —"" ....tot Pricing 1,,d„„ _ . ; ems . le the Sarne, it Jest Costs Lee Months Loan ...to paymcni Amnon Rat. wail . 70% Say Time to Buy is Now National Hotalno Sonny' 70% of respondents think it is a good We to buy a house. And

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Dave Magua

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  1. Dave Magua tee Expectation Survey " —"" ....tot Pricing 1,,d„„ _ ;ems le the Sarne, it Jest Costs Lee Months Loan ...to paymcni AmnonRat.wail 70% Say Time to Buy is Now National Hotalno Sonny' 70% of respondents think it is a good We to buy a house. And of those 36% think it is a very good pr.' time to buy.di! 79 79 71 70 Beak Of America Pricing Forecast

  2. Existing Home Sales 12,575 Homes Sell Every Day and 8,300 Buyers Receive a Mortgage NAR 3/2012

  3. 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 NAR 3/2012 Jan NAR eb 3/2012 Pending Home Sales

  4. S&P Case Shiller 3/2012 S&P Case-Shiller Home Price Indices

  5. 5.25% 4.75% 4.00% 3.75% Federal Reserve Mortgage Rates – 30 Year Fixed 1/01/2011 Today

  6. Case Shiller Pricing Index 2000 Jan 2003 TODAY 225.00 175.00 150.00 100.00

  7. Forbes 03/23/2012 Rent vs. Buy Best to Rent 2% “Certainly prices have continued to fall nationally, but rents have been rising so this would be the lowest price-to-rent ratio that we’ve seen.”Best to Buy 98% Jed Kolko, Trulia Chief Economist

  8. $1200 $1100 $1,000 Marcus & Millichap 1/26/2012 Rents Rising Rapidly * projected National Average Rent

  9. HousingWire 3/16/2012 Rents Rising Rapidly “Vacancies in the home-rental market will push average rental rates up as much as 5% by early 2013.”

  10. HOUSING ON THE REBOUND “If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.” Lawrence Yun NAR Chief Economist NAR 03/2012

  11. Housing on the Rebound B. of A. Merrill calls housing bottom this year • Bank of America Merrill Lynch says housing prices • will begin rising this year • Inventories have fallen and policy moves have • helped stoke demand for homes, according • to the firm • Firm's long-term view unchanged, • but now says housing recovery will • start earlier, be more gradual MarketWatch 03/22/2012

  12. Housing on the Rebound “ Stabilization in U.S. housing fundamentals is creating an attractive investment opportunity. Many of the ingredients are in place for continued improvement in housing.” - Goldman Sachs Group BusinessWeek 3/29/2012

  13. Housing on the Rebound We see stabilizing and then gradually increasing prices “ Pro Teck Valuation Services Pro Teck 03/29/2012

  14. Housing on the Rebound "I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green...Homes for sale are about half what they were four years ago. You could come up with a pretty bullish case." Jamie Dimon, Morgan Chase CEO CNBC 03/28/2012

  15. Housing on the Rebound “ Even the housing market is showing some signs of shaking off the depression- like conditions that have plagued it for much of the past few years.” - Frank Nothaft Freddie Mac Chief Economist Freddie Mac 03/28/2012

  16. NAR, Wall Street Journal 03/29/2012 Investment and Vacation Homes “Sales of investment and vacation homes surged last year, the latest evidence that investors and higher income households are taking advantage of low home prices to scoop up bargains.”

  17. DSNews 03/26/2012 More Investors Buying Short Sales September 2011 February 2012

  18. 2012 2011 2010 2009 2008 HousingWire 3/2012 Short Sales Surging

  19. Supply & Demand Lowest supply in 5 Years Demand Is Steady

  20. 10 Months 9 Months 6 Months 4 Months Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb NAR Month’s Inventory of Homes for Sale

  21. Completed Foreclosures 186,854 HIGH 168,256 157,733 132,625 116,060 LOW95,067 OCC Mortgage Metrics Report 3/2012 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011

  22. 1st Q 2012 Will Increase 1,350,000 1,200,000 1,000,000 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 201 2Q 2011 3Q 2011 4Q 2011 OCC and OTS Mortgage Metrics Report 3/2012 Foreclosures in Process

  23. Shadow Inventory Resolved in 2012 Foreclosure Sales 900K – 1M Short Sales 500K Principal Reductions 500K HAMP Modifications 360K Other Modifications 270K REO-to-Rental Program 100,000 Housing Wire

  24. 40% 20% 0 % Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb NAR Percentage of Distressed Property Sales

  25. 33% 9% NAR Percentage of Contract Failures 35% 20% 5% Aug 2010 July 2011 Sept 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 “Contract failures – cancellations caused largelyby declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price.” 31%

  26. Home Price Expectations Survey 3/2012 4 Future Home Prices Average 3% Per Year 2012 0 3 2 - .72 1

  27. xerito..'°" ice Expectation Survey uniner Pilcing Index-rabbi Bank Of America Pricing Forecast uy is Now the sem., it Just Coats Lea MaMnly Leto term. Pa PCI) 7"0;n:f_,H;;Pristid'ke'riYt' house.th'rkit is a good thinK f 10000 o g°° very c1 • s a vo ittime to NY' 79 72 Dave Magua

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