Post on 12-Nov-2014
description
transcript
4,000,000
4,500,000
5,000,000
5,500,000
Existing Home Sales
Top 5 Reasons Americans Buy a Home
Fannie Mae
A better place to raise their children
A place their family can feel safe
Ability to have more space
Freedom to renovate to their taste
Owning is a better investment
Owning is still…
Homeownership remains cheaper than
renting in all of the 100 largest metro areas
Trulia 9/2013
than renting
% Cheaper
RETURN ON INVESTMENT
January 2000 – September 2013
MSN Money.com, Case Shiller
$77,300
$47,500
$29,800
Total Wealth Home Equity Other Assets
Breakdown of the American Family’s
Net Worth
Federal Reserve 2012
Federal Reserve 2012
61.4%
38.6% Home Equity
Other Assets
Breakdown of the American Family’s
Net Worth
Federal Reserve 2012
OVER 30X greater
than renters
Homeowners Net Worth…
$174,500
$5,100
Homeowner Renter
An American Family’s
Net Worth
Federal Reserve 2012
The two best ways to invest money not
needed for more than 10 years
CASH REAL ESTATE
Bankrate.com 8/2013
55%65%
9%
6%
36% 29%
All Americans Upper Middle Class Households
Prices Going Up Prices Falling Remain the Same/Not Sure
Home Prices over the Next 12 Months
30 Year Fixed Rate
Freddie Mac 9/2013
Recent Rate Movement
Mortgage Rate
Projections
Analyst Projected Rate
4Q 2014
Fannie Mae 5.3%
National Assoc of Realtors 5.5%
Freddie Mac 5.2%
Mortgage Bankers Assoc 5.1%
9/2013
Mortgage Interest Rate Payment
(P&I)
Today $250,000 4.22% 1,225.46
Next Year $250,000 5.3% 1,388.26
Monthly Difference $162.80
Buyer’s Purchasing Power
Months Inventory
of Homes for Sale
NAR 9/2013
5-6 Months = Normal Market Inventory
S&P Case Shiller 9/2013
Year-over-Year Change in Prices
30 Year Fixed Rate
Mortgage History
January 2012 – October 2013
Federal Reserve 9/2013
90
95
100
105
110
115
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Pending Home Sales
NAR 9/2013
100 = Historically Healthy Level
Months Inventory of Homes for Sale
NAR 9/2013
5-6 Months = Normal Market Inventory
NAR 92013
Percentage of Distressed Property Sales
35%
12%