- The economic recovery is gaining traction slowly, with first quarter GDP growth of 3.2% indicating a sustainable recovery, though it remains subdued compared to past recessions. High unemployment and foreclosures continue to hamper a robust recovery. - Existing home sales strengthened in March, up 6.5% from February and 16% from the previous year, with 44% of sales being first-time buyers. The median home price was up 0.4% from a year ago. - Total housing inventory rose slightly but is down 1.8% from the previous year, indicating the market may bottom out in the next few months. Fannie Mae shortened the waiting period for a new mortgage after a short sale

1. Released: May 7, 2010 Commentary 2 The Numbers That Drive Real Estate 3 Recent Government Action 9 Topics for Home Buyers, Sellers, and Owners 11

3. The Numbers That Drive Real Estate Home Sales 4 Home Price 5 Inventory 6 Mortgage Rates 7 Affordability 8

4. Latest Data Release: April 22, 2010 Source: National Association of Realtors Home Sales In Millions Existing home sales strengthened in March to 5.35 million, up 6.5 percent from February and 16 percent from last March. This is the ninth consecutive month of year-over-year increases. According to Lawrence Yun, NAR chief economist, the “home-buyer tax credit has been a resounding success,” increasing demand and stabilizing the market. In March, 44 percent of sales were from first-time buyers. Last Year This Year Above last year’s level for nine months in a row Seasonally Adjusted Home Sales - In Millions

9. Recent Government Action Fannie Mae Short-Sale Policy Change 10

11. Topics for Home Buyers, Sellers, and Owners Summer Maintenance Tips 12

13. Your Local Market Although it is important to stay informed about what is going on in the national economy and housing market, many different factors impact the real estate market in your area. Talk to your Keller Williams agents John & Melody Hatch for assistance interpreting the conditions in your local market – call 503-748-8310 or email john@hatchhomes.com Keller Williams associates are equipped with the knowledge and information to help you navigate through the process of buying or selling a home in this challenging market.