The The “Real “Real State” State” of Real Estateof Real Estate

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The Value of Home The Value of Home OwnershipOwnership

Facts about Home OwnershipFacts about Home Ownership

The typical homeowner’s net worth has ranged between 31 & 46 times that of a renter’s*

43 percent of the average homeowners’ wealth comes from the equity in their home*

Tax advantages for home ownership provide unmatched advantages • Capital Gains Tax

Exemption• Mortgage Interest

Deduction* Source – Federal Reserve: 2007 Survey of Consumer Finances

Facts about Home Facts about Home OwnershipOwnership

Over the past 42 years, home values have risen an average of 5.5 percent

annually

Home ownership promotes stable communities. Only 5.2% of homeowners moved from 2008 to 2009 compared to 30% of renters changing locations.

Owners are 25 percent more likely to vote, and they volunteer time for political and charitable causes more frequently than renters

Social Benefits of OwnershipSocial Benefits of Ownership

Source: “Social Benefits of Homeownership and Stable Housing” – NAR 2010

Home sales generate more than 2.5 million jobs. For every two home sold, a job is created.

Every home purchased pumps $60,000 into the economy for furniture, home improvements and related items

Housing is more than 15% of the GDP, making it a key driver in our national economy

Home Ownership Helps The Home Ownership Helps The US EconomyUS Economy

Source: NAR 2011

Home owners and renters overwhelming say that owning a home is a smart decision over the long term.

95% of owners and 72% of renters believe that over a period of several years, it makes more sense to own a home.

Rent vs. OwnRent vs. Own

Source: “American Attitudes About Homeownership Survey” – NAR 2011

Chester County home owners have realized average returns of 3% per year over the last seven years.

The typical home in Chester County has increased 9% in value over the last seven years – compared to drop of 4% nationally.

Home Ownership Trends in Home Ownership Trends in Chester CountyChester County

Source: TREND MLS Data; January 2011

Montgomery County home owners have realized average returns of 2.5% per year over the last seven years.

The typical home in Montgomery County has increased 8.5% in value over the last seven years – compared to drop of 4% nationally.

Home Ownership Trends in Home Ownership Trends in Montgomery CountyMontgomery County

Source: TREND MLS Data; January 2011

Delaware County home owners have realized average returns of nearly 4.5% per year over the last seven years.

The typical home in Delaware County has increased 15% in value over the last seven years – compared to drop of 4% nationally.

Home Ownership Trends in Home Ownership Trends in Delaware CountyDelaware County

Source: TREND MLS Data; January 2011

2012 Trends for the 2012 Trends for the Delaware ValleyDelaware Valley

Local economic conditions continue to make home ownership an excellent decision

Compelling housing affordability aided by low interest rates and healthy job creation should help stabilize the 2012 market in the region.

Home Mortgage RealitiesHome Mortgage Realities

Home Mortgage RealitiesHome Mortgage Realities

Today’s borrowers need better credit scores, more substantial down payments, and better debt-to-income ratios

New guidelines seek to ensure that consumers receive cost disclosures earlier in the mortgage process and have time to understand any changes before a loan closes

Nationally, FHA mortgage applications rose 63% helped by increased loan limits and more flexible products

Home Mortgage OptionsHome Mortgage Options

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The Truth About Today’s Market

Unprecedented Opportunity Exists

OpportunitiesOpportunities

Extensive inventories mean more choices for buyers

OpportunitiesOpportunities

Interest Rates are at 50-Year Lows

OpportunitiesOpportunities

The 30-year fixed rate mortgage is about 4.7 percent in the Delaware Valley

Home Prices Have Moderated

OpportunitiesOpportunities

Modest decline of home prices has increased affordability and negotiating flexibility

Home Ownership Home Ownership MattersMatters

Home Ownership: Benefits

individuals and families

Strengthens our communities

Is integral to our nation’s economy

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