Housing Affordability Index
220
Housing Affordability Index 1990 to Today
200
180
160
Years when distressed properties dominated the market
140
120
100
1990
1995
2000
2005
2010
TODAY NAR
900
800
Historic Data for the
700
600
MORTGAGE CREDIT AVAILABILITY INDEX
Lending Standards Too Lenient
500
(a report from the Mortgage Bankers Association)
400
300
200
100
0
2004
2007
2010
Today MBA
PROJECTED
4.4
Mean Percentage Appreciation
3.4 2.8
2017
2018
2019
2.7
2020
2.8
2021
Home Price Expectation Survey 2017 1Q
$42,898
$292,898
potential growth in family wealth over the next five years based solely on increased home equity
$284,921 $277,430
$269,874 $261,000 $250,000
January 2017
January 2018
January 2019
January 2020
January 2021
January 2022
Increased home equity based on price appreciation projected by the Home Price Expectation Survey Home Price Expectation Survey 2017 1Q
$850
$800
$750
$700
$650
$600
Median Asking
RENT since 1988
$550
$500
$450
$400
$350
$300 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Census
6.03%
5.04%
30 Year Fixed Rate Mortgage Rates FreddieMac
4.69% 4.45%
4.40% 3.98%
4.17% 3.85%
3.66%
2008
2009
2010
2011
2012
2013
2014
2015
3.65%
2016
Projected 2017
Historic Mortgage Rates by Decade
Decade 1970s 1980s 1990s 2000s
Average Rate 8.86% 12.7% 8.12% 6.29% Freddie Mac
Months Inventory of HOMES FOR SALE Last 12 Months
4.8 4.7 4.6
4.6 4.5
4.5
4.4
4.4
4.0 3.8 3.6 3.5
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb NAR 4/2017
Percentage of Home Buyers Who Used an Agent or Broker by age group 87%
87%
87%
89%
89%
89%
All purchasers
35 and younger
36 to 50
51 to 60
61 to 69
70 to 90
NAR
An American Family’s
Net Worth $225,000 $225,000
$5,000 Homeowner
Renter NAR
A Homeowner’s Net Worth…
OVER 45X greater than a renter’s
NAR
Q: When do most listings come on the market?
A: The 2nd Quarter of each Year
Housing Affordability Index 1990 to Today
200
180
160
Years when distressed properties dominated the market
140
120
100
1990
1995
2000
2005
2010
TODAY NAR
900
800
Historic Data for the
700
600
MORTGAGE CREDIT AVAILABILITY INDEX
Lending Standards Too Lenient
500
(a report from the Mortgage Bankers Association)
400
300
200
100
0
2004
2007
2010
Today MBA
PROJECTED
4.4
Mean Percentage Appreciation
3.4 2.8
2017
2018
2019
2.7
2020
2.8
2021
Home Price Expectation Survey 2017 1Q
$42,898
$292,898
potential growth in family wealth over the next five years based solely on increased home equity
$284,921 $277,430
$269,874 $261,000 $250,000
January 2017
January 2018
January 2019
January 2020
January 2021
January 2022
Increased home equity based on price appreciation projected by the Home Price Expectation Survey Home Price Expectation Survey 2017 1Q
$850
$800
$750
$700
$650
$600
Median Asking
RENT since 1988
$550
$500
$450
$400
$350
$300 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Census
6.03%
5.04%
30 Year Fixed Rate Mortgage Rates FreddieMac
4.69% 4.45%
4.40% 3.98%
4.17% 3.85%
3.66%
2008
2009
2010
2011
2012
2013
2014
2015
3.65%
2016
Projected 2017
Historic Mortgage Rates by Decade
Decade 1970s 1980s 1990s 2000s
Average Rate 8.86% 12.7% 8.12% 6.29% Freddie Mac
Months Inventory of HOMES FOR SALE Last 12 Months
4.8 4.7 4.6
4.6 4.5
4.5
4.4
4.4
4.0 3.8 3.6 3.5
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb NAR 4/2017
Percentage of Home Buyers Who Used an Agent or Broker by age group 87%
87%
87%
89%
89%
89%
All purchasers
35 and younger
36 to 50
51 to 60
61 to 69
70 to 90
NAR
An American Family’s
Net Worth $225,000 $225,000
$5,000 Homeowner
Renter NAR
A Homeowner’s Net Worth…
OVER 45X greater than a renter’s
NAR
Q: When do most listings come on the market?
A: The 2nd Quarter of each Year
