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Residential Real Estate Market Update
1. Residential Real Estate Market Update
June 2012
Jeff Detwiler, President/COO, The Long & Foster Companies
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2. Market Overview
“A Mixed Bag”
Momentum
Mortgage rates are below 3.75%
Affordability is 200 plus
Significant percentage of all transactions are cash (~20%)
Investors are buying at a record rate (~27%)
Housing market activity is elevated in 2012 vs. 2011
Multi year low in inventory
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3. Market Overview
“A Mixed Bag”
Challenges
Unemployment rate is 8.2%
Many home owners are underwater on their mortgage (~25% at YE 2011)
Consumer debt levels remain very high, but have started declining
New & existing home sales remain at or near decade lows
Distressed properties remain a significant part of the market
High fallout of ratified contracts (~20%)
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4. Housing Market Projections
2012 existing home sales equal to or better than 2011
2012 stabilized to slightly improving home prices
2013 and 2014 gradual improvement in existing and new home sales
2013 and 2014 home prices start appreciating
2015 return to a more normalized housing market
Likely mplementation of a broad-based refinance program over the
next 12 months
Generally up-trending rates that start slowly but pick up pace over the
course of the next 2 years
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5. Jeffrey S. Detwiler, President/COO,
The Long & Foster Companies
Jeffrey S. Detwiler is president and chief
operating officer of The Long & Foster
Companies, the parent company of the
largest independent residential real estate
company in the United States, Long &
Foster® Real Estate, Inc. The group of
companies is the Mid-Atlantic region’s
leading provider of homeownership services.
In addition to its real estate arm, The Long &
Foster® Companies consist of Prosperity
Mortgage® Company; Long & Foster®
Insurance; and Long & Foster® Settlement
Services. The total 2011 sales volume and
sales equivalents for all The Long & Foster
Companies was in excess of $42.7 billion.
Visit longandfoster.com for more information
and complimentary industry-leading market
data.
Contact: media@longandfoster.com
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