ten-x 2016 u.s. housing market update

WHERE REAL ESTATE IS MOVING

2016 U.S. Housing Market Update

© 2016 Ten-X, LLC. Confidential & Proprietary

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What We’ll Cover Today

¨ A Brief Introduction to Ten-X

¨ Existing and New Home Sales

¨ Headwinds Challenging the Industry¨ Inventory¨ Affordability¨ Declining home ownership rates

¨ State of the Foreclosure Market

¨ International Investment in US Real Estate

¨ Closing Thoughts

A Brief Introduction to Ten-X

The Leading Online Real Estate Marketplace

NUMBERS

$39 BillionOf assets sold

200,000+Assets sold

INVESTORS MILESTONES2007Company founded

2016Ten-X

2009CRE platform


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The Ten-X Brand Family

Ournewname,Ten-X,reflectsexpansionoftheserviceswe’llbedelivering– andthemuchbroaderaudiencewe

plantoreachviathreedistinctlinesofbusiness.

Dedicatedtothesaleofqualitycommercial

propertiesviaauctionandmoretraditionalmethods

Anewtransactionplatformcreatedespeciallyformove-inreadyhomesandofferingmore

traditionaltransactionoptionsthatappealtoaconsumeraudience

Thenation’slargestonlinerealestatemarketplace,nowexclusivelyfocusedonthesaleofbank-owned andforeclosureproperties

National Housing Market Overview


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Existing Home Sales Flat, New Homes Ticking Up


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Florida, Pacific Northwest Dominate Sales Trends

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New & Existing Home Inventory Remains Low


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New Home Inventory Remains Near 40-Year Low

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Housing Starts Improving…


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But Single Family Housing Starts Remain Very Weak


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Prices Continue to Rise, Outpacing Wage Growth


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Higher Prices Reduce Homeowners Negative Equity

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But Affordability Becoming More of a Concern

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Although Most States are Still Below Pre-Crisis Peaks

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Homeownership Rates Continue to Languish


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Even Though Household Formation Has Slowed Down

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Student Loan Debt a Factor in Household Formation

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Foreclosure Market Update


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Delinquencies Continue to Trend Downward


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Foreclosure Starts Declining Rapidly


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And Overall Foreclosure Activity Approaches Normal Levels


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Distressed & Cash Sales Declining, but Still Above Norm

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International Investors


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International Buyers Account for Over $100 Billion

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China, Canada Dominate Purchases


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But Interest is Strong from Around the World

Closing Thoughts


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Closing Thoughts

¨ 2016 will look very much like 2015¨ Between 5.3-5.5 million existing home sales, and 550,000-600,000 new home sales¨ Prices should rise 5-6%

¨ Inventory weak across the board¨ Lackluster construction, underwater borrowers, declining distressed inventory

¨ Affordability may become a problem¨ Prices continue to outpace wage growth

¨ Household formation slower than expected¨ Lack of starter homes, generational tendencies, and credit availability may skew numbers towards rentals¨ Latino buyers – the fastest growing segment – poses challenges for lenders

¨ Foreclosure crisis almost over (finally)¨ Activity should be at normal levels by 2017¨ Possibility that levels will dip below historical norms¨ Note sales by GSEs, major lenders accelerating recovery

¨ Unlikely to hit “full recovery” until 2018 at the earliest

Thank You!

Rick Sharga

Chief Marketing Officer, Ten-X

[email protected]

@ricksharga