Shorewest KCM Event - Keeping Current Matters

Market Share
in Units
MLS vs. ShoreWEST
Category
MLS
Difference
$176,334
$205,495
+ 16.5%
SP to LP
93.31%
95.71%
+ 2.6%
D-O-M
122
102
- 16.4%
Average SP
Existing Home Sales
S&P Case Shiller 12/2013
Year-Over-Year % Change in House Sales
NORTHEAST
WEST
Up 6.6%
Down 10.1%
MIDWEST
Unchanged
NAR’s Existing Homes
Sales Report 12.2013
SOUTH
Up 1%
BUYERS
Impact of Increasing
INTEREST
RATES
A government stimulus
package…
for the
HOUSING
INDUSTRY
ta·per
ˈtāpər/
Verb – to diminish
or reduce
2013
30 Year Fixed
Mortgage Rates
Federal Reserve 12/2013
Mortgage Rate
Projections
Analyst
Projected Rate
4Q 2014
Fannie Mae
4.8%
5.4%
5.0%
5.3%
National Assoc of Realtors
Freddie Mac
Mortgage Bankers Assoc
Date
November
2012
November
2013
Average Interest
Price*
Rate**
$227,900
3.32
$1,000.61
$244,500
4.29
$1,208.53
Difference in Monthly Payment
Monthly
P&I***
Annually
$207.92 $2,495.04
$207.92
Over 30 Years
$74,851.20
Date
November
2014
Average Interest
Price*
Rate**
$254,280
5.3
P&I***
$1,412.03
* Assuming a 4% Appreciation as projected by the latest Home Price Expectation Survey
** Based on projection from the Mortgage Bankers’ Association
*** Principal & Interest Payment
Monthly
Annually
Over 30 Years
$203.50
$2,442
$73,260
RATE
Buyer’s Purchasing Power
6.00 $
1,079
$
1,109
$
1,139
$
1,169
$
1,199
5.75 $
1,050
$
1,080
$
1,109
$
1,138
$
1,167
5.50 $
1,022
$
1,050
$
1,079
$
1,107
$
1,136
5.25 $
994
$
1,022
$
1,049
$
1,077
$
1,104
5.00 $
966
$
993
$
1,020
$
1,047
$
1,074
4.75 $
939
$
965
$
991
$
1,017
$
1,043
4.50 $
912
$
937
$
963
$
988
$
1,013
$ 180,000
-10%
$ 185,000
-7.5%
$ 190,000
-5%
$ 195,000
$ 200,000
-2.5%
Principal and Interest Payments
rounded to the nearest dollar amount.
RATE
Buyer’s Purchasing Power
6.00 $
2,158
$
2,218
$
2,278
$
2,338
$
2,398
5.75 $
2,100
$
2,160
$
2,218
$
2,276
$
2,334
5.50 $
2,044
$
2,100
$
2,158
$
2,214
$
2,272
5.25 $
1,988
$
2,044
$
2,098
$
2,154
$
2,208
5.00 $
1,932
$
1,986
$
2,040
$
2,094
$
2,148
4.75 $
1,878
$
1,930
$
1,982
$
2,034
$
2,086
4.50 $
1,824
$
1,874
$
1,926
$
1,976
$
2,026
$ 360,000
-10%
$ 370,000
-7.5%
$ 380,000
-5%
$ 390,000
$ 400,000
-2.5%
Principal and Interest Payments
rounded to the nearest dollar amount.
Rate deemed
SIGNIFICANT
threat*
*on the 30-Year fixed rate mortgage
Pulsenomics
Calculated Risk 7/2013
1983
1993
$2,812.47
$1,715.63
Monthly payment on a
2003
$1,471.66
$250,000
MORTGAGE
(Principal & Interest)
2013
$1,266.71
The Increasing Cost of Renting
Median Asking Rent
1988-2012
Census Bureau 2013
5
Financial Reasons to Buy
Reason
Quote from Harvard Report
Housing is the one
leveraged investment
available
“Homeownership allows households to
amplify any appreciation on the value of their
homes by a leverage factor.”
You're paying for housing
whether you own or rent
“Homeowners pay debt service to pay down
their own principal while households that rent
pay down the principal of a landlord.”
Owning is usually a form
of “forced savings”
“Having to make a housing payment one way
or the other, owning a home can overcome
people’s tendency to defer savings.”
There are substantial tax
benefits to owning
“Homeowners are able to deduct mortgage
interest and property taxes from income.”
Owning is a hedge
against inflation
“Housing costs and rents have tended over
most time periods to go up at or higher than
the rate of inflation, making owning an
attractive proposition.”
Joint Center for Housing Studies, Harvard University12/2013
Homeowners Net Worth…
OVER 30X
greater
than renters
Federal Reserve
An American Family’s
Net Worth
Federal Reserve
LISTINGS
Pieces of the Puzzle
Home
Prices
Year-over-Year Price Changes by Region
FHFA 3Q Home Price Index11/2013
Year-over-Year Price Changes by State
FHFA 3Q Home Price Index11/2013
Milwaukee
Waukesha
West Allis
FHFA Qtr-Over-Qtr
+ .87%
Home Price
Expectation
Survey
A nationwide panel
of over one hundred
economists, real
estate experts and
investment & market
strategists.
PROJECTED
Percentage Appreciation
Home Price Expectation Survey 2013 4Q
Month-Over-Month Price Changes
12/2013
2013 Available Inventory
in millions
Typical Sold Price*
FSBO vs. Agent
$230K
$184K
By FSBO
By AGENT
*The ‘typical’ price is actually the average price in the survey. However, studies have shown that people
are more likely to FSBO in markets with lower price points.
2014 Will be the year that real estate
marketing shifts to effectively and
consistently answering the one question
every real estate pro gets asked:
How’s the market?
Nobu Hata
NAR’s Director of Digital Engagement
Frivolous content will
“
sink in 2014 as the
gems of true insight
continue to rise.
Marc Davison
1000Watt Consulting
Jayson DeMers in Forbes
Content Marketing Will Be Bigger Than Ever
“One of the main ways that companies are
establishing authority and gaining trust
with consumers is by consistently creating valuable
content through a variety of channels.
This typically involves relevant
industry information that provides
insight to an audience. Doing so
allows a company to steadily build
rapport with its demographic and
develop a loyal following.”
Jayson DeMers in Forbes
Image-Centric Content Will Rule
“As consumers are hit with an increasing number of
advertisements, it’s becoming more important to make
content easily and quickly digestible. If you look at the social
media sites that are on the rise, three of the four have a
common characteristic…
they place
an emphasis
on images ”
.