fall housing outlook webinar with rick sharga
TRANSCRIPT
![Page 1: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/1.jpg)
WHERE REAL ESTATE IS MOVING WHERE REAL ESTATE IS MOVING
2015 Fall Real Estate Update Rick Sharga Executive Vice President October 15, 2015
![Page 2: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/2.jpg)
What We’ll Cover Today
• A Few Words About Auction.com
• Existing and New Home Sales Trends
• Delinquencies and Foreclosures
• Investor Activity
• Closing Thoughts
• Q & A
2
![Page 3: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/3.jpg)
WHERE REAL ESTATE IS MOVING
About Auction.com
![Page 4: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/4.jpg)
Auction.com: The Leading Online Real Estate Marketplace
4
NUMBERS
INVESTORS
MILESTONES
$32 Billion Of assets sold
165,000 Assets sold
2 Million Unique Monthly
Visitors
2007 Company founded
2008 Online platform
2015 Auction.com Select
![Page 5: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/5.jpg)
Real Estate is Moving Online
5
91% Sold rate
88% Sold first 3 weeks
SPEED
65% Owner occupants
53% Financed
3.4 Unique bidders/asset
BUYER MIX
RESULTS
96% List Price
![Page 6: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/6.jpg)
Real Estate is Going Mobile
6
TRANSPARENT FAST RESULTS
![Page 7: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/7.jpg)
WHERE REAL ESTATE IS MOVING
Existing & New Home Trends
![Page 8: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/8.jpg)
Existing Home Sales Roughly Flat Compared to 2014
![Page 9: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/9.jpg)
Prices Continue to Increase, But Still Off Peak
![Page 10: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/10.jpg)
Top Metro Areas Outpace National Prices
10
![Page 11: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/11.jpg)
Low Inventory Driving Price Gains, Stalling Recovery
![Page 12: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/12.jpg)
And Rising Interest Rates Could Impact Affordability
12
![Page 13: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/13.jpg)
But the Number of Underwater Homes is Declining…
13
![Page 14: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/14.jpg)
…And Largely Concentrated in a Few States
14
![Page 15: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/15.jpg)
New Home Sales Sluggish, and Far Off Peak Levels
![Page 16: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/16.jpg)
New Home Inventory Still Near 40-year Low…
![Page 17: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/17.jpg)
Housing Starts Continue to Lag…
![Page 18: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/18.jpg)
…And Are Still Skewed Toward Multifamily
![Page 19: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/19.jpg)
WHERE REAL ESTATE IS MOVING
Foreclosures: The Worst is Behind Us
![Page 20: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/20.jpg)
US Foreclosure Activity Continues to Decrease
![Page 21: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/21.jpg)
Delinquent Loan Backlog is Shrinking
21
![Page 22: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/22.jpg)
REO Activity Increasing…
22
![Page 23: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/23.jpg)
…But Foreclosure Starts Continue to Decline
23
![Page 24: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/24.jpg)
And 60% of Foreclosure Starts are Repeat Foreclosures
![Page 25: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/25.jpg)
Over 80% of Loans in Foreclosure are Pre-2010 Vintage
![Page 26: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/26.jpg)
Number of Zombie Foreclosures Down by 43%
26
![Page 27: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/27.jpg)
And No Longer a Major Problem in Most Markets
![Page 28: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/28.jpg)
WHERE REAL ESTATE IS MOVING
Investor Activity
![Page 29: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/29.jpg)
Investor Purchase Prices Moderating in All Regions
29
![Page 30: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/30.jpg)
Price to Appraisal Ratio Increasing Slightly
30
![Page 31: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/31.jpg)
Driven by Increases in Major Metros
31
![Page 32: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/32.jpg)
South & West Regions Have Recovered Strongly
32
![Page 33: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/33.jpg)
Top 5 Hottest Metro Areas in the US All in Those Regions
33
![Page 34: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/34.jpg)
WHERE REAL ESTATE IS MOVING
Potential Headwinds
![Page 35: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/35.jpg)
What Could Derail – or at Least Slow Down – the Market
• Shift towards renting instead of home buying
• Volatility of foreign market economies
• Weak job growth and workforce participation
• Lack of credit availability
• Government regulations
35
![Page 36: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/36.jpg)
Household Formation Improving…
36
![Page 37: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/37.jpg)
But Homeownership Rates Continue to Fall
37
![Page 38: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/38.jpg)
Government Agencies Continue to Dominate Lending
38
![Page 39: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/39.jpg)
So Credit Continues to be Tight Except for High-FICO Borrowers
39
![Page 40: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/40.jpg)
And Borrowing Hasn’t Kept Pace with Sales Volume
40
![Page 41: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/41.jpg)
What Could Derail – or at Least Slow Down – the Market
• Shift towards renting instead of home buying
• Volatility of foreign market economies
• Weak job growth and workforce participation
• Lack of credit availability
• Government regulations
41
![Page 42: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/42.jpg)
WHERE REAL ESTATE IS MOVING
Closing Thoughts
![Page 43: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/43.jpg)
What’s in Store for the Rest of 2015 and 2016
• 2015 sales volume will improve from 2014
» Existing home sales between 5.2-5.3 million units
» New home sales will approach 500,000
» Existing home prices likely to appreciate between 5-6%
• Foreclosure inventory will continue to decline
» Judicial foreclosure states should work through backlog by end of 2016
• Lack of credit will continue to hamper recovery
» Domestic and foreign investors continue to play a vital role
• 2016 should deliver the next step in the recovery
» More existing home inventory, slight uptick in new home stock, slowing home price appreciation, entry of more Millennials into the market
43
![Page 44: Fall Housing Outlook Webinar with RIck Sharga](https://reader031.vdocument.in/reader031/viewer/2022030309/58f2bba61a28abec5c8b4589/html5/thumbnails/44.jpg)
WHERE REAL ESTATE IS MOVING
Rick Sharga Executive Vice President Auction.com [email protected] Follow me on Twitter: @ricksharga