Become YOUR Market Expert Using KCM and MRED

Russ Bergeron – MRED CEO

BIG DATA – little information

Your New Jobs

INFOMEDIARY & INTERPRETER

National Knowledge Local Expert

Jerry HoffmanKeller Williams

Senior MRED Instructor

Matt DollingerGearbox Consulting

Chief Solutions Officer

Steve HarneyKeeping Current Matters

Founder and Chief Content Creator

KNOWING THE NATIONAL MARKETSteve Harney – Keeping Current Matters

Inventory

What buyers and sellers are expecting.

Pricing

Home Sales

What is my current competition.

Existing and Pending Home Sales determine the rate of inventory and at what price they move.

S&P Case Shiller 11/2013

Year-over-Year Change in Prices

FHFA 3Q Home Price Index11/2013

Year-over-Year Price Changes by Region

FHFA 3Q Home Price Index11/2013

Year-over-Year Price Changes by State

Affordability is still good compared to any time over the last 50 years.

“Asking home prices give us the first look at where home sale prices are headed, and they point to a

slowdown. After rising rapidly in the first half of 2013, asking prices in two thirds of the largest metros are cooling. In fact, asking prices are falling – not just

rising more slowly – in 11 of the 100 largest metros, the most markets to see prices slip in six months.”

Jed Kolko Trulia’s Chief Economist

Affordability is still good compared to any time over the last 50 years.

“If home values continued to rise as they have, relatively unchecked, we would almost certainly

be headed into another bubble cycle, and nobody wants that…This moderation should

help consumers feel more at ease in their decisions to buy and sell, and will help keep the

market balanced.”

Stan HumphriesChief Economist for Zillow

Months Inventory of Homes for Sale

NAR 11/2013

5-6 Months = Normal Market Inventory

-24%

-20.8%

-16.8%

-14%-13%

-7.6%

-5%-6.2%

1.8% 0.9%

-25%

-20%

-15%

-10%

-5%

0%

5%

January February March April May June July August Sept October

% -24% -20.8% -16.8% -14% -13% -7.6% -5% -6.2% 1.8% 0.9%

NAR 11/2013

Year-over-Year Inventory Levels

"The conditions that led to the robust appreciation experienced earlier this year, including historically low mortgage interest rates, high affordability, low inventory and high demand, are waning. In their

place, we're beginning to see more inventory and rising mortgage rates, which will lead to further

normalization in the market going forward."

Dr. Stan Humphries Zillow Chief Economist

“The emerging slowdown in home purchases appears to

be largely seasonal.”

Thomas PopikResearch Director for the

HousingPulse survey

4,000,000

4,500,000

5,000,000

5,500,000

Existing Home Sales

S&P Case Shiller 11/2013

NAR 11/2013

100 = Historically Healthy Level

Pending Home Sales

Days on Market

Affordability is still good compared to any time over the last 50 years.

“The rapid price gains of the last year cannot be sustained and we expect the pace to decline substantially…A slower pace is a

positive for housing demand and will help to keep affordability from further eroding.”

Moody’s Analytics

BRINGING IT LOCAL WITH INFOSPARKS

Jerry Hoffman – MRED Certified Trainer

What is InfoSparks?

InfoSparks is an interactive online market analytics tool using MRED data to deliver easy to understand charts, graphs and housing trends for specific marketing areas. •Works on iPad and other tablets•Choose multiple areas•Expanded statistics•Customizable price ranges•Embed live data links on your website

Median Sales Price Comparison

Market Time Comparison

Inventory Comparison

Under Contract Comparison

Closed Sales Comparison

Median Sales Price Comparison

Market Time Comparison

Inventory Comparison

Under Contract Comparison

Under Contract Comparison

Closed Sales Comparison

Seller Type Insight

MARKET EXPECTATIONS 2014Steve Harney – Keeping Current Matters

Sustainability of Current Price Increases

Fitch Ratings11/2013

Home Price Expectation Survey 2013 4Q

Cumulative Appreciation by 2018

Home Price Expectation Survey 2013 4Q

PROJECTED Percentage Appreciation

ta·perˈtāpər/Verb – to diminish or reduce

A government stimulus package…

for the HOUSING INDUSTRY

Mortgage Rate Projections

Analyst Projected Rate 4Q 2014

Fannie Mae 4.8% National Assoc of Realtors 5.3% Freddie Mac 5.0% Mortgage Bankers Assoc 5.3%

Mortgage Interest Rate Payment (P&I)

Today $250,000 4.3% 1,237.18

Next Year $250,000 5.3% 1,388.26

Monthly Difference $151.08

The Cost of Waiting

MARKETING WITH DATAMatt Dollinger – Gearbox Consulting

Affordability is still good compared to any time over the last 50 years.“People don’t believe what you

tell them – but they always believe what they tell

themselves.”

Seth Godin

3.6%

7.9%

4.2%5.1%

Average Annual APPRECIATION

-5.9%

Pre-BUBBLE BUBBLE RECOVERYTO DATE

PROJECTEDNOW to 2018

BUST

Home Price Expectation Survey 2013 4Q

Home Price Expectation Survey 2013 4Q

Cumulative House Appreciation by 2018

23.7%

40.1%

28%

16.8%Pre-BubbleTrend

Bulls All Projections

Bears

$175K

$215K

By FSBO By AGENT

*The ‘typical’ price is actually the average price in the survey. However, studies have shown that people are

more likely to FSBO in markets with lower price points.

Typical Sold Price*FSBO vs. Agent

www.KeepingCurrentMatters.com/mredtrial

facebook.com/groups/kcmmembersfacebook.com/groups/kcmmembers

Metrics on KCM users

20% increase in total GCI for participants20% increase in online lead conversion 50% decrease in price adjustments30% decrease in DOM for listed properties98% LP:SP ratio for listed properties

www.keepingcurrentmatters.com/mredtrial

Activate your FREE account at www.keepingcurrentmatters.com/mredtrial Find out how to use InfoSparks http://mredllc.com/products_resources

Watch for the email with links to watch the replay of this presentation and your “Using KCM Effectively” video.

Get InfoSparks office trainingEmail: heather.schindler@MREDLLC.com.