A few things to consider as you think about buying a home in today's market.

1. Is this really the right
time to buy real estate?

2. Shouldn’t we wait to buy a home?

3. 4 Things You Should Know
1. It Make Sense Financially
2. Buying Is More Affordable Than Renting
3. A Short Sale Can Be a Great Deal
4. The Experts Are Saying Buy Now

4. It Make Sense Financially

5. Return on Investment
50
January 1, 2000 – March 1, 2012
36.7
30
18.4
10
-10
-1
-30 -24.4
-50
Dow S&P NASDAQ Real Estate
MSN Money.com, Case Shiller

6. The Key: Sell High and Buy Low
2000-2005 2006 2007-2010 TODAY 2012-2015
Optimism
Euphoria Fear
Point of maximum
opportunity
Point of maximum
risk in investment
Optimism
Depression

7. Projected Appreciation & Depreciation
Annual Price Change
3.75
3.23 3.32
3.25
2.71
2.75
2.25
1.75
1.75
1.25
0.75
0.25 - .18
-0.25 2012 2013 2014 2015 2016
Home Price Expectations Survey 12/2011

8. Mortgage Rates – 30 year fixed
5.25
5
4.75
4.5
4.25
4
3.75
1/01/2011 Today
Federal Reserve

9. Case Shiller Pricing Index
2000 2003 TODAY

10. Same Price, Major Difference in Cost
Price Rate* P&I**
2003 250,000 5.83 1,471.66
TODAY 250,000 4.00 1,193.54
Monthly Savings 278.12
* Freddie Mac 30 Year Rate **Principal and Interest

11. Buying Is More Affordable
Than Renting

12. Rent vs. Buy Best to Rent
“Certainly prices have 2%
continued to fall nationally,
but rents have been rising
so this would be the
lowest price-to-rent
ratio that we’ve seen.”
- Jed Kolko,
Trulia chief economist Best to Buy
98%
Source: Forbes 03/23/2012

13. Rents Rising Rapidly
$1,200
National Average Rent
$1,175
$1,150
$1,125
$1,100
$1,075
$1,050
$1,025
$1,000
2009 2010 2011 2012* 2013* 2014*
* projected
Source: Marcus & Millichap 1/26/2012

14. Rents Rising Rapidly
“Vacancies in the
home-rental
market will push
average rental
rates up as
much as 5%
by early 2013.”
Source: HousingWire 3/16/2012

15. A Short Sale Can
Be a Great Deal

16. Short Sales Surging
600 Short Sales in thousands
500
500
397
400
354
300 274
200
103
100
0
2008 2009 2010 2011 2012

17. Value by Sale Category
Type of Sale % of Value
Non-Distressed Sale 100%
Short Sale 79%
Foreclosure Sale 71%
RealtyTrac 02/2012

18. The Experts Are
Saying Buy Now

19. Buy Rent
Housing Cost Over
Next 30 Years*
* Assuming payment of $1,500 for both rent and mortgage; a fixed
rate mortgage and an annual rent increase of 3.2% for inflation.
Forbes.com 10/13/2011

20. Buy Rent
Retirement Fund
Created from
Homeowner Equity
After 30 Years*
* Assuming $300,000 current value with a 1% annual appreciation
rate for residential property.
Forbes.com 10/13/2011

21. Chris Thornberg
Chris Thornberg is a former UCLA economist and
a founding principal of Beacon Economics.
2007 -“What’s the point of
buying today when you can
buy it for 10 percent less in
a year? For the life of me, I
can’t figure out that logic.”
2012 -“Even if you’ve been
thinking about buying a condo
in Vegas or buying a condo in
Miami, buy now. Now is a
great time to buy a home.”
Source: Orange County Register 1/12/2012

22. John R. Talbott
2003 2006
Huffington Post 12/20/2011
Today

23. Warren Buffett Speaks Out
“If I had a way of
buying a couple
hundred thousand
single-family
homes I would
load up on them.”

24. This Week’s Cover
Barron’s
Magazine

25.
Are you ready to buy a home?
Contact me today!
I would love to be your guide
throughout the home-buying process.