Sept2010marketupdate

Released: September 7, 2010 Commentary 2 The Numbers That Drive Real Estate 3 Recent Government Action 10 Topics for Home Buyers, Sellers, and Owners 13

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The Numbers That Drive Real Estate Home Sales 4 Home Price 5 Inventory 6 Mortgage Rates 8 Affordability 9

Latest Data Release: August 24, 2010 Source: National Association of Realtors Home Sales In Millions For the first time in 14 months, home sales fell below year-ago levels. On a monthly basis, sales activity dropped 27% from June and 25.5% from a year earlier. Although the drop exceeded expectations, it is undoubtedly due to the expiration of the tax credit. Lawrence Yun, NAR chief economist, said, “given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.” July ‘08-’09 July ‘09-’10 Impact of Tax Credit Deadline Seasonally Adjusted Home Sales - In Millions

Home Price In Thousands ,[object Object],July ‘08-’09 July ‘09-’10 Latest Data Release: August 24, 2010 Source: National Association of Realtors Increased Stability Home Price - In Thousands

Inventory - In Millions ,[object Object],Number of homes available for sale Latest Data Release: August 24, 2010 Source: National Association of Realtors July ‘08-’09 July ‘09-’10 Number of homes available for sale - In Millions

Months Supply of Inventory - ,[object Object],Number of months it will take to sell all homes on the market if homes continue to sell at current pace and no new ones enter the market Latest Data Release: August 24, 2010 Source: National Association of Realtors July ‘08-’09 July ‘09-’10 Months Supply of Inventory

Mortgage Rates 30-Year Fixed ,[object Object],Source: Freddie Mac Average Weekly Mortgage Rates 15% drop from a year ago 1-Year Average – 4.87% 30-Year Average – 8.9%

Affordability - Percentage of Income ,[object Object],Affordability as of July every year. Calculations assume a 20% down payment. Source: National Association of Realtors The percentage of a median family’s income required to make mortgage payments on a median-priced home Historical Standard: 25%

Recent Government Action Financial Reform 11

Financial Reform What it means for consumers ,[object Object],[object Object],[object Object],Sources: The Wall Street Journal, USA Today, myfico.com

Financial Reform What it means for consumers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sources: The Wall Street Journal, USA Today, myfico.com

Topics for Home Buyers, Sellers, and Owners Build Equity Faster 14 Local Lenders Rates 15

Build Equity Faster Many are taking advantage of the incredible historically low interest rates by opting for a 15-year mortgage. These loans present a great opportunity to pay down debt on an accelerated timeline. If buyers can afford the higher monthly payment, they might want to consider taking advantage of this special time in interest rate history. Buyers can be on a fast track to equity for their next home, retirement, or simply to be debt-free. Assuming a $200,000 mortgage, the following table includes a break-down of cost and equity buildup after 7 years: Source: The Wall Street Journal Term Rates Payment Equity from Mortgage in 7 Yrs 30 year 4.2% $978 $26,763 15 year 3.5% $1,430 $80,040 Difference 0.7% $452 $53,277

Local Lender’s Rates ,[object Object],[object Object],[object Object],Source: The Wall Street Journal

Your Local Market Although it is important to stay informed about what is going on in the national economy and housing market, many different factors impact the real estate market in your own area. Talk to John Hatch for assistance interpreting the conditions in your local market . Call 503-748-8310 KW associates are equipped with the knowledge and information to help you navigate through the home-buying or selling process in this challenging market.

About Keller Williams Realty ,[object Object],[object Object],[object Object],www.kw.com

Sept2010marketupdate

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Sept2010marketupdate