Presentation on the Current State of The Real Estate Market 3 10-2011

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Presentation on the Current State of The Real Estate Market 3 10-2011

Transcript of Presentation on the Current State of The Real Estate Market 3 10-2011

Phillip Auguste University Office

Charlotte, NC

“Committed To Your Goals!”

Phillip Auguste

Moblile: 704-426-7985Office: 704-547-8900eFax: 704-323-7399E-mail: phillip.auguste@allentate.com

Member Of:n CharlotteRegional Association of Realtors®

n National Association of Realtors®

n North Carolina Association of Realtors®

Experience:n Over 7 years experience in customer servicen Listing And Sales of new and existing homesn Investment Sales and Purchases

Credentials:n Full-Time Realtor® And Licensed Brokern Specializes in : Relocation, 1st time buyer, Short Sales, REO (Foreclosure), Investment, New Construction, Luxury Homes, and Real Estate consultation.

Return on Investment(January 1, 2000 – March 1, 2011)

MSN Money.com, Case Shiller

Calculated Risk Blog 2/2011

Delinquencies and Foreclosures

Delinquency and Foreclosure Rates

LPS 2/2011

CNN Money 2/10/2011

Bank Repossessions

"Large supplies of foreclosed properties will continue to be the biggest downside risk for home prices and metro area housing markets. Foreclosure activity declined at the end of 2010, but sales activity of bank-owned homes increased.”

- David Stiff, chief economist of Fiserv.

Fiserv 2/2011

Prices

32%

65%

The broader security and lifestyle benefits of homeownership, such as providing a good and secure place for your family,

where you have the control to make renovations and updates

if you want, and in a place that’s in a community and location

that you prefer.

The financial benefits of homeownership, such as its value as an investment (especially compared to paying rent), its value as a way to build up wealth for retirement or to pass on to your family, and the tax benefit.

Fannie Mae 2/2011

National Housing Survey

Cost vs. Price

Mortgage Rates – 30 year fixed

Federal Reserve

4/01/2010 Today

Difference in monthly payments

Price is the Same, it Just Costs More

Date Loan Amount

Interest Rate

MonthlyPayment

(P&I)

Today $200,000 4.87 $1,057.81

Nov 2010 $200,000 4.17 $974.54

$83.27Difference in Mortgage Payments

Difference in monthly payments

Additional Cost Over 30 Years

Monthly $83.27

Yearly $999.24

Over 30 Years $29,977.20

I’m pretty sure this is a great time to go out and buy a

house. And if you do, in 10 years you’re going to look

back and say, ‘You know, I‘m glad I listened to Donald

Trump.’- January 2011

Donald Trump

“If you don’t own a home, buy one.

If you own one home, buy another one.

If you own two homes, buy a third.

And, lend your relatives the money to buy a

home.”

John Paulson

Prices

Reuters 2/2011

A pick-up in home sales in the past six months will soon hit a wall as foreclosures are dragged out, creating a supply overhang that will push prices down 2.3 percent this year, a Reuters poll predicts.

…economists now expect home prices will fall 2.3 percent in 2011, and then begin a slight recovery in 2012, according to the median forecast of the 26 economists who gave a price outlook in the Reuters poll.

National home prices fell 4.1% during the last three months of 2010, compared with 12 months earlier, according to the latest report from the S&P/Case-Shiller home price index, a closely watched indicator of market trends. They were down 1.9% compared with three months earlier.

Prices

“There's a substantial risk of home prices falling

another 15%, 20% or 25% more.”

- Robert Shiller, Case-Shiller Index co-founder

CNN Money 2/2011

On a $200,000 house, a family could lose $384.62 /weekover the next 6 months.

Assuming a 5% fall in prices…

Foreclosures: The Eye of the Storm

- Simon Wiesenthal

abyss

Between knowledge and action, there is an…

Phillip Auguste University Office

Charlotte, NC

“Committed To Your Goals!”

Phillip Auguste

Moblile: 704-426-7985Office: 704-547-8900eFax: 704-323-7399E-mail: phillip.auguste@allentate.com

Member Of:n CharlotteRegional Association of Realtors®

n National Association of Realtors®

n North Carolina Association of Realtors®

Experience:n Over 7 years experience in customer servicen Listing And Sales of new and existing homesn Investment Sales and Purchases

Credentials:n Full-Time Realtor® And Licensed Brokern Specializes in : Relocation, 1st time buyer, Short Sales, REO (Foreclosure), Investment, New Construction, Luxury Homes, and Real Estate consultation.