A Message from Lawrence F. Flick, IV, Chairmanand Chief Executive Officer

Prudential Fox & Roach, Realtors®

The Chairman’s Report

OCTOBER 2010

An Independently Owned and Operated Member of the Prudential Real Estate Affiliates, Inc.

HERE’S A QUIZ...

TRUE OR FALSE:1.Home prices have come down over 50%.2.Over 6% of households are in foreclosure.3.The suspension of foreclosures by major financial institutions

will delay recovery of the real estate market.The answer for each is - IT DEPENDS.

In Las Vegas, Nevada prices have come down an average of58%. In the Prudential Fox & Roach market area, prices havedeclined an average of 7% from the peak of the market untilnow—a very moderate number.In addition to having the distinction of experiencing thegreatest price declines, Las Vegas also has the highest foreclosurerate at 6.6%. Less than ½ of 1% of households in our marketarea are in the foreclosure process—one of the lowest rates inthe country. Because foreclosures make up such a smallpercentage of households in our market, if some weresuspended the impact would be insignificant.As Prudential Fox & Roach sales associates, you understand thatreal estate markets are local, that our prices haven’t taken anosedive, and that our market isn’t flooded with foreclosures. Butyour clients may think differently. They have been inundated witha continuous stream of negative news from the press becauseextremes, whether booms or busts, get attention. Five years ago,good news about the real estate market was exaggerated. Now thestatistics from the worst market in the country are generalized as ifthey were occurring everywhere. That’s why it’s so important foryou to help your clients separate fact from fiction.

HERE’S ANOTHER QUIZ:

TRUE OR FALSE:Now is the best home buying opportunity of a lifetime.The answer for our marketplace is TRUE!

Here's why:1.The Market· We have clearly seen the bottom of the market. Unit saleshave dropped after the April 30, 2010 expiration of thehome buyer tax credit, but annual sales have been stablefor three years.

· Prices have been stable this past year.· There is a great selection of homes and sellers have becomemore realistic.

2. Interest Rates· Interest rates are at generational lows. It is hard to believethey will go much lower, and they will definitely rise as the

economy begins to improve. We would normally think of5.5% as a terrific rate but at the current rate of 4.25% isoutstanding. A buyer borrowing $250,000 over 30 yearswill save $2,700 each year over the life of the loan. That’s atotal savings of $68,000! You can be sure that The TridentGroup will follow through on the promises they make toyour clients.

3. Quality of Life· It’s not unusual to hear conversations about the rent versusbuy scenario. There are some advantages to renting but inreality, the Philadelphia area has never been a rentalmarket. The best communities are made up of owners whocare about their properties. Owning a home is one of thebest ways to take control of our future.

· Houses are more affordable than they have been in years.Stable prices and incredibly low interest rates allow buyersto purchase more for their money so they can enjoy livingin a house that better meets their lifestyle needs.

4. Long-term Investment· Owning a home has been the best long-term investment inour area, far outperforming the stock market. In the pastten years, the value of Philadelphia area housing rose anaverage of 91%, while the S&P 500 lost 22.5%.

Right now, many people are carefully considering whether ornot to buy a home. Lack of confidence in the economy and thejob market are holding them back. But there is only so long towait before this opportunity ends. If life circumstances dictate amove, it’s best to act now. I can’t imagine that conditions willimprove for potential home buyers in this area! In five or sevenyears, many of your clients will look back and either be gladthat they bought a home or be sorry they didn’t. It’s up to youto provide them with the expertise and knowledge to make theright choice now, or else they will look back and say, “I shouldhave.” After all, the true value of what you do goes beyondshowing houses or writing contracts. It is in helping peoplemake their dreams come true.

Best,Larry