2. Share of Home Sales 2014 Investment and Vacation Home Buyers Survey

3. Consumer and REALTOR ® Confidence

4. Buyers’ View of Homes All Buyers Married couple Single female Single male Unmarried couple Good financial investment79% 78%81%83% 2014 Profile of Home Buyers and Sellers

5. Pent Up Demand 20002013 Existing Home Sales 5.2 m5.1 m Population282 m316 m

6. Online Agent Recommendations 2014 Profile of Home Buyers and Sellers

7. Call Them Back! Number of Agents Buyer Interviewed Before Picking Agent Used 2014 Profile of Home Buyers and Sellers

8. Consumer Satisfaction Process: –89% of buyers are satisfied with the buying process –88% of sellers are satisfied with the selling process 2014 Profile of Home Buyers and Sellers

9. Consumer Satisfaction With the agent: –88% of buyers would use agent or recommend to others Since buying typically have recommended 3+ times - 28% –83% of sellers would use agent again or recommend to others Since selling typically have recommended 3+times—28% 2014 Profile of Home Buyers and Sellers

10. Real Estate Trends and 2015 Outlook Lawrence Yun, Ph.D. Chief Economist NATIONAL ASSOCIATION of REALTORS ® Presentation at NAR Annual Residential Forum New Orleans, LA

11. Expectations of Firm Profitability (over the next 12-months)

12. Consumer and REALTOR ® Confidence

13. Monthly Pending Sales Index … Making Upward U-Turn (Seasonally Adjusted) Source: NAR

14. Existing + New Home Sales

15. Homebuilder Confidence (NAHB Market Index)

16. Single Family Housing Starts … ½ the Normal Thousand units

17. Multifamily Housing Starts … Back to Normal Thousand units

18. Nationwide Home Price Recovery (Almost Doubled over 20 years) FHFA Home Price Index

19. Home Price Growth from 1995 San Francisco, Miami, Dallas San Francisco Miami Dallas

20. Household Net Worth ($5,500 vs. $195,500) Source: Federal Reserve Survey of Consumer Finances

21. From 2010 to Today Homeowners –Recovering Wealth for those who bought during the bubble years –Accumulating Wealth for those who bought since 2010 Renters –No progress

22. Homeowner Households from 2010 (Decreased by 1 million) In thousands

23. Renter Households from 2010 (Increased by 4 million) In thousands

24. Homeownership Rate

25. Homeownership Rate by Age Group

26. Harvard Elderly Housing Study One in Five Americans will be 65 or over by 2030 Homeowners who have paid off mortgages before retirement have lower housing costs and have equity cushion health care expenses Renters face high housing costs and force millions of low-income older adults to sacrifice spending other necessities, including food and health care

27. Annual Income by Age

28. Do Elderly have Mortgage?

29. First-time Buyer Share (Less than 30% of All Buyers for 18 months) Among only primary owner-occupants (excluding investors) = 33% in 2014 … Lowest since 1987

30. 30-year Mortgage Rates

31. Where Are Young People Hiding? 57 million Americans or 18.1% of the population live in a multi-generational family household in 2012, –double the number who lived in such households in 1980 Of those who are 25-34: –20% of the unemployed live with parents –12% of employed live with parents Pew Research, Federal Reserve Bank of New York

32. failure to launch Pew Research, Federal Reserve Bank of New York

33. Student Loan (in $billion)

34. Student Loans and Homeownership

35. Desire of Gen Y to Buy a Home? 75% believe home ownership is an important long-term goal 73% believe ownership is an excellent investment 59% of young renters (18 to 39) believe owning a home makes more sense 73% of young renters also believe it would be difficult to get a mortgage today Many young people think 20 percent down payment is needed ! Fannie Mae, 2013 Demand Institute Housing and Community Survey

36. Opening the Credit Box FICO New Method Thank You Director Mel Watt –But, please clarify put-back risk so that lenders can be confident Not Yet a Thank You Secretary Julian Castro –FHA premiums need to come down commensurate with falling default rate Historic low mortgage default rates on recent vintages (2010-2014)

37. 10 best cities for millennials to buy a home By MarketWatchMarketWatch Published: Aug 3, 2014 8:14 a.m. ET

38. Millennial Housing Demand Returns Austin Dallas-Ft. Worth Denver Des Moines Grand Rapids Minneapolis New Orleans Ogden Salt Lake City Seattle-Tacoma

39. The Economist – July 19, 2014

40. Annual GDP Growth (9 straight years of subpar growth)

41. Jobs (8 million lost … 10 million gained) In thousands

42. Percent Change in Non-farm Employment (Sept 2014/Sept 2013)

43. REALTORS ® Confidence Index*: Outlook in Next Six Months for Single-Family Homes Based on July 2014-September 2014 RCI Surveys *An index above 50 means there are more respondents having “moderate” or “strong” outlook than respondents with “weak” outlook.

44. Unemployment Rate

45. Weekly New Unemployment Insurance Claims In thousands

46. Employment Rate

47. “Take This Job and Shove It … I ain’t working here no more” Quit Rate in thousands

48. Monetary Policy by Federal Reserve (zero rate policy for 6 years!) %

49. Non-worrisome CPI Inflation – Yet COLA of 1.7% in 2015

50. Rising Renters’ and Homeowners’ Rent Growth (Above 3%)

51. Monetary Policy Quantitative Easing … Finished Fed Funds Rate … hike in 2015 Q1/Q2 Earlier Move to Tighten because of Inflation Pressure Long-term Steady State Rate (2016 onwards).. 10 year Treasury at 5.0% Mortgage Rates reaching 6% by 2016

52. Inventory of Homes for Sale

53. Shrinking Shadow Inventory (but not in CT, NY, NJ)

54. Distressed Property Sales (% of total sales)

55. Household Net Worth at All-Time High

56. Vacation Home Sales

57. Falling Birth Rate in the U.S.

58. U.S. Legal Immigration

59. Next China? … Mexico + Latin America!

60. Sales to International Buyers Increased Both in Terms of Transactions and Price

61. Canada Leads in Number of Transactions China Leads in Dollar Volume

62. Florida—First Choice for International Buyers

63. Economic Forecast 20132014 Likely 2015 Forecast 2016 Forecast GDP Growth2.2% 2.7%2.9% Job Growth+2.3 million+2.5 million +2.6 million CPI Inflation1.5%1.6%2.7%3.3% Consumer Confidence 73879598 10-year Treasury 2.5%2.6%3.2%4.3%

64. Median Expected Price Change of REALTORS ® in Next 12 Months, By State Based on July 2014-September 2014 RCI Surveys July 2014-September 2014 RCI Surveys

65. Housing Forecast 20132014 Likely 2015 Forecast 2016 Forecast Housing Starts925,0001.0 million1.3 million1.4 million New Home Sales 430,000440,000620,000700,000 Existing Home Sales 5.1 million4.9 million5.3 million5.4 million Median Price Growth + 11.5%+ 5.3%+ 4% 30-year Rate4.0%4.2%4.9%6.0% Underwriting Standards Strict TransitionNormal

66. Let’s Spin the Bottle !

67. How Young Are REALTORS ® ?

68. Spin the Globe … Find the Source of Improving Standard of Living

69. When, How, What, Why? British Glorious Revolution of 1688 –William and Mary arrive to say … –Power not with King but with people via Parliament –No Taxation with Representation –Life, Liberty, and (Acquire) Property American Revolution of 1776 –Power resides not with King but with people –No Taxation with Representation –Life, Liberty, and the Pursuit of Happiness

70. Participants in Democracy to Protect Property Rights!

71. Fayetteville Regional Association of REALTORS® 2412 Raeford Road 1-910-323-1421 www.FayettevilleNCRealtors.com www.FayettevilleNCRealtors.com