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MARKET FACTS

Sales Meeting – August 4, 2015Chambersburg

Chambersburg Office

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Market Facts

Chambersburg Office

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Absorption Analysis

# Listings ÷ # Sales = Months of Inventory(NOTE: Use #’s in a given price range for a specific period)

It’s not that complicated

Chambersburg Office

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< 5 months inventory – Prices increasing (Seller’s Market)5-7 months inventory – Prices stable> 7 months inventory – Prices decreasing (Buyer’s Market)

Absorption Analysis

Franklin County, PAJune 2015

Mon

ths

of In

vent

ory

Chambersburg Office

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Absorption Analysis

“Mr. & Mrs. Seller, what this means is that if no other properties come on the market in your price range, it would take _____ months to clear out the existing inventory.”

Chambersburg Office

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Pricing Your Property

2005-2008 Danger Zone

Chambersburg Office

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Homebuyers’ Perceptions

Federal Reserve

Chambersburg Office

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Homebuyers’ Perceptions

Federal Reserve

Chambersburg Office

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Homebuyers’ Perceptions

PERCEPTION: 45% think a good credit score of over 780 is required to buy a home

FACT:

Ellie Mae, June 2015

Chambersburg Office

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Homebuyers’ Perceptions

PERCEPTION: 36% think a down payment of over 20% is always required

FACT:

Realty Trac

Chambersburg Office

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Homebuyers’ Perceptions

PERCEPTION: Buyers think Foreclosures and Short Sales are prevalent and can get a great ‘Deal’

FACT:

National Association of REALTORS®, June 2015

Chambersburg Office

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Homebuyers’ Perceptions

Loan: $149,900Rate: 3.7%Term: 30 yearsPymt: $689.96/mo.

Loan: $149,900Rate: 4.05%Term: 30 yearsPymt: $719.97/mo.

$30.01/mo.

$10,803.60 over life of loan

Waiting for the ‘right time’ to buy cost

Buyers $10,000 during the last four

months

Chambersburg Office

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Homebuyers’ Perceptions

Loan: $149,900Rate: 3.7%Term: 30 yearsPymt: $689.96/mo.

Loan: $143,650Rate: 4.05%Term: 30 yearsPymt: $689.96/mo.

$6,250decrease in

purchasing power

Waiting for the ‘right time’ to buy cost

Buyers over $6,000 during the last four

months