1. Current State of the Real Estate Market
TALKING POINTS
We appreciate this opportunity to present to you the strong fit we see between [prospect] and Cartus. We’d like this to be an interactive discussion today, so at any point in the process, please interrupt – and we’ve built the presentation so we can quickly link to topics that are important to you.
Note: please see optional cover images deck; also feel free to customize with a high-quality image of your servicing team.
Note: throughout, do not place punctuation in your header, as this can break links.
Jack Craven, SGMS, SCRP
Vice President, Strategic Business Solutions
Cartus

2. Overall Market Housing market in 2017 proved to be strong in Q1
Indicators are all positive
Housing market in 2017 proved to be strong in Q1
Stabilization in the high-end markets
Job growth is strong
Home sale programs affected by increased values/lower inventory
Low inventory is for rent & purchase

3. Real Estate Market Support
Median Home Price
Unemployment
Underwater
First-time Buyers
Listing Inventory
Total Sales
Median Home Price: $234,900
Up 5.1% YOY
Unemployment: 4.8%
October 2009:
10% at peak
Percentage of underwater homes: 10%
2010: 27.3%
at peak
Percentage of first-time buyers: 33%
Typically
represents 40%
Months of listing inventory:
4.9 months
6 month’s supply equals a balanced market
Total home sales: 5.61 million seasonally adjusted
Up 1.9% YOY
Source: RealtyTrac; Zillow; NAR; Bureau of Labor 3

4. United States Job Growth
The driver of real estate activity
8.7 Million Jobs Lost
Payroll changes 000’s
Source: US Census Bureau 4

5. 10 National Rental Rates 1 BEDROOM MEDIAN RENT PRICES January 2017 TOP
North East
New York, NY
Boston, MA
Washington, DC
West Coast
San Francisco, CA
San Jose, CA
Oakland, CA
Los Angeles, CA
Seattle, WA
January 2017
Midwest
Chicago, IL
South
Miami, FL
Source: Zumper 5

6. Surplus/Shortage of Vacant Homes
Rental Rates & Vacancies
Surplus/Shortage of Vacant Homes
Numbers in Millions
Source: Freddie Mac 6

7. Rental Rates & Vacancies
Transferee challenges
Extremely low inventory levels
Cost benefits of owning vs. renting
Low supply will drive increased rents
Assistance may be needed 7

8. First-Time Home Buyers
What does this mean for your transferees?
Most states are below the 40% first-time homebuyers
Student debt
Dodd-Frank 8

9. Student Loan Debt
The cause of the missing first-time home buyers? 9

10. Student Debt & The Market
70% more students
are getting loans
Tripled in size in the last decade to $1.3 trillion
First-time homebuyers historically average 40% of the market
Typical student taking on twice as much debt
Source: CFPB 10

11. Number of Borrowers (in Millions)
Student Debt & The Market
Number of Borrowers (in Millions)
Source: CFPB 11

12. Mortgage Delinquency Rate
Great Recession
Percent # of Loans
Source: Corelogic 12

13. Home Price Performance by State
Q – Q4 2016
United States 7%
Source: Freddie Mac 13

14. Top 10 Hottest Suburbs
Source: NAR 14

15. Supply & Demand Over 6 months supply 4 to 6 month supply
Drives the market
Over 6 months supply
4 to 6 month supply
Under 4 month supply
Oversupply
Balanced Market
Undersupply 15

16. Existing-Home Sales Sink 2.3 Percent
April, 2017
2.3% decrease from March, 2017
Expected due to strong March sales
New and existing inventory is NOT keeping up with the fast pace
Demand is outstripping supply
Inventory in April is at 3.8 month supply
New heights in California: Statewide Median Value $537K (up 5.4%)

17. Housing Supply & Demand
Tight housing supply levels
Levels have shifted
Sellers’ market
Undersupply
Limited supply increases values
Corporate inventory
Increased AV/BVO activity
Appraisers having trouble keeping up 16

18. Appraiser Issues… Heavy decline in licensed real estate appraisers
72,000 licensed appraisers with 40,000 being active in residential appraisals (50% drop)
Licensing standards rising, keeping new entrants from entering the profession
Appraisers being stretched
Appraisal management companies (AMC’s)
Appraisal fees: doing more for less
Turnaround times: everyone is rushed
Technology/big data: the automated appraisal
Forecasting 17

19. Forecasted Home Price by State
2017 Projections
Source: Corelogic 18

20. 2017 Projected Top 10 Metros 3 4 1 2 8 10 6 5 7 9 Boston- Cambridge
Price: 6.1%
Sales Growth: 6.3%
Boston- Cambridge
Price: 6.6%
Sales Growth: 5.0%
Portland- Vancouver 3 4
Price: 7.2%
Sales Growth: 4.9%
Sacramento- Roseville 1
Price: 4.2%
Sales Growth: 7.6%
Raleigh 2 8
Price: 6.9%
Sales Growth: 6.0%
Los Angeles- Anaheim 10
Price: 5.7%
Sales Growth: 6.9%
Riverside- San Bernardino 6 5
Price: 5.7%
Sales Growth: 6.1%
Jacksonville 7
Price: 5.9%
Sales Growth: 7.2%
Phoenix-Mesa- Scottsdale
Price: 6.1%
Sales Growth: 5.5%
Tucson 9
Price: 5.6%
Sales Growth: 6.1%
Orlando- Kissimmee 19

21. Forecasted Appreciation
Source: Home Price Expectation Survey 20

22. 2017 Trends That Could Reshape Housing
Expected to fuel demand for at least the next decade in the housing market.
Millennials expected to make up 33 percent of buyers.
Millennials now leaning towards renting vs. buying
Baby boomers expected to make up 30 percent of buyers.
33% Millennials
30% Baby Boomers
Midwestern cities will get more attention from millennials.
Midwest 15/19 Strong Affordability
Western markets continue to dominate top housing
markets list
GO WEST!
The following metros have an average millennial market share of 42 percent or higher:
Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, Minn. .
Source: FHFA, NAR 23

23. 2017 Trends That Could Reshape Housing
Better Affordability
Smaller House
Public Transportation
Driving To Work
Rental affordability will improve as incomes rise and growth in rents slows
Cities will focus on denser development of smaller homes
A new focus on housing close to public transit and urban centers
The % of people who drive to work will rise for the first time in a decade
Source: Zillow 24

24. QA

25. THANK YOU TALKING POINTS
If needed: remove the thank you in the tab, and replace with whatever is applicable to the presentation.
THANK YOU