The Future of Affiliated Business Arrangements: How to Protect Mortgage, Title, Insurance...
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Transcript of The Future of Affiliated Business Arrangements: How to Protect Mortgage, Title, Insurance...
The Future of Affiliated Business Arrangements:How to Protect Mortgage, Title, Insurance Revenue…and More
Keynote Speaker:• Ken Trepeta – Director of Real Estate Services, National Association of REALTORS®
Moderator:• Ed Krafchow – Chairman & CEO, Better Homes and Gardens Real Estate
Mason-McDuffiePanelists:• Merle Whitehead, President & CEO, Realty USA• Joan Docktor, President, Berkshire Hathaway HomeServices Fox & Roach,
REALTORS®• Richard L. (Dick) Schlott, Chairman & CEO, Gloria Nilson & Co. Real Estate
THE CALIFORNIA MARKETTo infinity and beyond!!!
Ed KrafchowCEO
Better Homes and Gardens/Mason-McDuffie Real Estate
California Housing Market Outlook
SERIES: CA Housing Market OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
• Sales should improve in 2015• Interest rates up in 2015, but economic growth should help push sales up• The demographic demand for housing is not going to lessen
• Prices will increase at a more moderate pace• 2014: up 10% from 2013• 2015: up single-digit from 2014
• Inventory should improve but remains tight• Lack of housing turnover due to mortgage “lock-in” effect• More homes need to be built
• Affordability will continue to be a challenge in 2015• Student debt drags on home sales, especially for first-time buyers• Financial constraints weigh heavily on perceptions, keeping some out of market
Fannie & Freddie are the Market: 85%; 24% of first-time buyers used FHA loans
Source: LPS, C.A.R. 2013 Annual Housing Market Survey
CA: Dollar Volume Steadily Improving, Projected to be Up 5.2% in 2014
$ in Billion
SERIES: CA Housing Market OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
SERIES: CA Housing Market OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
CA: SFH Sales UnitsProjected to be Down 4.4% in 2014
DUI EXERCISE
• POINTS OF LIGHT FROM THE CALIFORNIA MARKET• THE GRAY ECONOMY
• LOCKED IN AND LOCKED OUT
• THE FONZI EFFECT
• DISPARITY DEVELOPING BETWEEN URBAN AND SUBURBAN MARKETS
• 25,000 HOMES A MONTH (WHAT HAPPENED?)
• THE COUCH REPORT
• THE REAL ESTATE INDUSTRY LEAD THE COUNTRY OUT OF THE DOWNTURN BUT IS NOW A LAGGING INDICATOR OF THE ECONOMY
REALITY LEVEL SET
• REAL ESTATE INDUSTRY
• HIGHT POINT 7.5m
• LOW POINT 4.3m
• 2014 PROJECTED 5.1
• 2015 PROJECTED 5.2
• THE AUTOMOBILE INDUSTRY
• HIGHPOINT 16m
• LOWPOINT 9.6M
• 2014 PROJECTED 17.2M
CONCLUSION
• THE AUTO INDUSTRY HAS RETURNED TO HEALTH AND SNAPPED BACK
• INTEREST RATES ARE GREAT
• TECHNOLOGY IS BOOMING
• EMPLOYMENT IS NORMAL AND GETTING BETTER
• THERE ARE VAST SUMS OF MONEY FOR INVESTMENT INTO BUSINESSES
• THE STOCK MARKET IS REACHING RECORD HIGHS
• FOREIGN INVESTMENT INTO USA REAL ESTATE CONTINUES ON
• NEW HOME BUILDING IS BACK BUT AT AN UNEVEN PACE
• AND THE REAL ESTATE INDUSTRY IS IN STASIS
QUESTIONS FOR THE PANEL
• HOW HAS THE VERTICAL BUSINESSES IN PARTICULAR THE MORTGAGE BUSINESS AFFECTED YOUR BUSINESS?
• WHAT ARE YOU DOING INTERNALLY TO AFFECT YOUR BUSINESS AND MAKE IT BETTER?
• IF YOU HAD A MAGIC WAND HOW WOULD YOU CHANGE THIS INDUSTRY?