Metro Atlanta. Cleve s 10-Year Market Projections SF Detached. GoGaddis.com 89,002 83,829 78,958 74,369 70,047 65,976 62,142 58,531 55,129 51,926

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2 $231,000 $221,760 $228,413 $235,265 $242,323 Metro Atlanta Cleve s 10-Year Market Projections SF Detached $252,016 $262,097 $275,909 $290,450 $305,756 $321,870 Total Single Family Detached Closings Average Sales Price Actual Closings ,908 51,926 55,129 58,531 62,142 65,976 70,047 74,369 78,958 83,829 89,002 Actual Average Sales Price Source: First Multiple Listing Service

3 FMLS Market Charts

4 80,000 Single Family Detached - Closings Metro Atlanta 2016 vs , % 60,000 50,000 40,000 47,826 51,743 57,726 65,803 68,256 57,218 45,992 44,752 41,740 49,092 54,174 53,965 54,857 62,552 68,984 30,000 20,000 10, Source: First Multiple Listing Service

5 $300,000 Single Family Detached - Average Sale Price Metro Atlanta $265, vs % $250,000 $200,000 $150,000 $225,022 $231,846$240,312 $255,168 $260,723 $230,617 $197,562 $200,252 $176,326 $183,829 $230,762 $251,509 $277,922 $267,098 $100,000 $50,000 Up 57.6% since 2011 Up 4.6% since 2007 $ Source: First Multiple Listing Service

6 16,000 Single Family Attached Closings Metro Atlanta 2016 vs % 14,000 14,728 12,000 10,000 8,000 6,000 4,000 5,514 6,185 8,181 10,562 12,052 10,771 7,794 7,722 7,648 8,758 11,398 9,843 10,462 13,129 2, Source: First Multiple Listing Service

7 $250,000 Single Family Attached - Average Sales Price Metro Atlanta 2016 vs % $200,000 $150,000 $180,365 $187,073$186,042 $192,495 $195,446 $186,324 $177,318 $175,157 $195,334 $224,391 $211,685 $100,000 $150,811 $143,386 $139,328 $125,126 $50,000 Up 79.33% since 2011 Up 14.88% since 2007 $ Source: First Multiple Listing Service

8 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, to 2015 Total SFD and SFA Closings Metro Atlanta 82,314 83,712 75,651 69,936 66,255 64,008 64,427 57,850 55,794 54,483 51,128 68,984 68,256 57,218 54,857 62,522 54,174 45,992 49,092 53,965 44,752 41,470 14,725 12,052 10,711 7,794 7,722 7,648 8,758 9,834 11,398 13,129 10, vs % Total Single Family Single Family Detached Single Family Attached

9 180 Single Family Detached Total Days on Market Metro Atlanta Source: First Multiple Listing Service

10 80,000 Single Family Detached - Total Expired Listings Metro Atlanta 70,000 60,000 63,922 71,676 50,000 51,695 40,000 40,845 42,939 39,050 45,847 43,966 30,000 34,829 35,169 20,000 10,000 20,529 15,114 18,806 18,371 17, Source: First Multiple Listing Service

11 35,000 Single Family Detached - Total Withdrawn Listings Metro Atlanta 30,000 25,000 29,186 27,713 20,000 15,000 10,000 5,000 18,959 15,192 14,377 13,022 10,643 19,094 16,254 14,420 11,563 12,503 13,191 10,223 9, Source: First Multiple Listing Service

12 Average Days on Market and Percentage of Homes that Sell by Price Band % 64% 48% 38% 31% <$250,000 $250,000-$500,000 $500,000-$750,000 $750,000-$1,000,000 >$1,000,000 Percentage of listings that sell Avg Total Days on Market

13 80,000 70,000 Total Listing Inventory as of 12/31 Metro Atlanta All Property Types 75,622 60,000 68,431 50,000 59,425 54,121 54,070 40,000 30,000 20,000 34,190 39,326 41,311 44,544 36,659 23,564 27,043 30,605 30,204 31,518 10, Source: First Multiple Listing Service

14 Months of Supply Months of Supply Metro Atlanta Seller s Market Less than 4 months inventory Balanced Market 4 to 5 months inventory Buyer s Market More than 5 months inventory New - Residential Detached New - Residential Attached Resale - Residential Detached Resale - Residential Attached Balanced Market Source: First Multiple Listing Service

15 Sales Price to List Price Ratios Single Family Detached in Metro Atlanta 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 86.0% 84.0% 82.0% 80.0% 97.6% 96.7% 97.0% 95.6% 94.7% 88.4% 93.6% 93.9% 94.0% 86.6% 86.8% 88.5% 95.1% 90.2% 98.4% 96.8% 96.9% 97.1% 96.5% 95.6% 95.6% 94.9% OLP/SP LP/SP Source: First Multiple Listing Service

16 Price Change Effect on Sales Price to Original List Price Ratio Metro Atlanta - Detached and Attached SF Homes % 98.0% 96.0% 97.9% Sales Price as % of Original List Price 94.0% 92.0% 90.0% 88.0% 86.0% 84.0% 82.0% 85.3% 80.0% 78.0% Days on Market No Price Change Days on Market With Price Change

17 100.0% New Construction and Re-Sale Closings in Metro Atlanta 90.0% 80.0% 70.0% 60.0% 79.3% 82.7% 85.8% 90.0% 93.0% 92.9% 91.1% 90.8% 89.8% 87.6% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 20.7% 17.3% 14.2% 10.0% 7.0% 7.1% 8.9% 9.2% 10.2% 12.4% % New % Re-Sale Source: First Multiple Listing Service

18 Average Sales Prices of New and Re-Sale Homes Metro Atlanta $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $340,782 $244,744 $330,504 $207,495 $298,396 $297,603 $179,866 $187,610 $275,583 $166,367 $283,724 $176,206 $318,037 $220,529 $341,598 $241,914 $353,852 $256,607 $360,119 $264,619 Avg. Sales Price New Avg. Sales Price Re-Sale $100,000 $50,000 Resale Price as % of New Price $ % 62.8% 60.3% 63.0% 60.4% 62.1% 69.3% 70.8% 72.5% 73.5% Source: First Multiple Listing Service

19 Price Ranges of Single Family Detached Closings in Metro Atlanta 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% $1,000,000+ $750,000-$999,999 $500,000-$749,999 $250,000-$499,999 $100,000-$249,999 <$99,999 Source: First Multiple Listing Service

20 50.00% 45.00% Cash Purchases as Percentage of Total Closings Single Family Detached - Priced Under $200,000 - Metro Atlanta 45.09% 44.21% 40.00% 39.91% 35.00% 36.42% 30.00% 25.00% 20.00% 19.15% 26.41% 31.24% 28.00% 22.80% Cash % 15.00% Source: First Multiple Listing Service

21 S&P/Case-Shiller Home Price Index August of Each Year AZ-Phoenix CA-Los Angeles DC-Washington FL-Miami GA-Atlanta IL-Chicago NC-Charlotte NV-Las Vegas NY-New York TX-Dallas Atlanta up 49.4% since 2011 Source: S&P/Case-Shiller Home Price Index

22 Metro Atlanta County Charts

23 Gwinnett County Source: First Multiple Listing Service 14,000 12,250 12,000 10,000 8,000 10,328 7,682 7,922 7,397 9,586 10,599 9,083 9,480 11, % Total SFD Closings 6,000 Total SFD Distressed Closings 4,000 2, ,464 4,002 1,302 1,961 2, ,272 1, , % of total Gwinnett County $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $241,070 $222,523 $181,840 $175,846 $162,363 $167,827 $157,777$157,421 $142,857 $149,831 $244,750 $228,269 $210,383 $191,910 $137,288$142,827 $108,892 $112,857 $176,543 $183, % Avg. Total SP Avg. Distressed SP $

24 North Fulton County Source: First Multiple Listing Service 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, % Total SFD Closings Total SFD Distressed Closings.95% of total North Fulton County $600,000 $500,000 $400,000 $300,000 $200,000 $456,854 $455,335 $482,556 $513,419 $410,690 $402,114 $447,929 $426,788 $389,994$386,012 $383,752 $405,978$413,358 $375,060 $370,340 $353,993 $320,845 $323,695 $299,325 $305, % Avg. Total SP Avg. Distressed SP $100,000 $

25 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, South Fulton County 4,536 4,061 3,621 3,331 3,089 3,043 3,174 2,949 2,845 3, % Total SFD Closings Total SFD Distressed Closings 7.51 % of total Source: First Multiple Listing Service South Fulton County $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 $167,136 $160,820 $150,325 $134,238 $114,672 $103,409 $88,055 $90,854 $92,571 $82,401 $104,444 $96,860 $97,838 $90,850 $85,105 $71,116 $73,737 $71,821 $73,367 $66, % Avg. Total SP Avg. Distressed SP

26 Source: First Multiple Listing Service City of Atlanta 3,500 3,000 2,500 2,807 2,757 2,451 2,065 2,160 2,383 2,647 2,715 2,861 2, % 2,000 Total SFD Closings 1,500 Total SFD Distressed Closings 1, % of total City of Atlanta $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $493,966 $405,309 $436,008$437,094 $379,459 $340,748 $180,614 $201,625$234,815 $130,691 $83,972 $109,480 $546,741 $577,266$611,799 $499,724 $270,059 $171,747$177,049 $190, % Avg. Total SP Avg. Distressed SP $

27 Source: First Multiple Listing Service Cobb County 12,000 10,000 8,237 8,088 8,625 8,548 9,467 9, % 8,000 7,074 6,218 6,042 6,015 6,000 Total SFD Closings Total SFD Distressed Closings 4,000 2, % of total $350,000 $300,000 $250,000 Cobb County $279,716 $266,196 $277,203$292,198 $255,680 $244,681 $225,609 $221,052 $192,030 $201, % $200,000 $150,000 $100,000 $163,889$161,281$157,841$155,673 $149,099 $156,858 $171,199 $126,269$126,016 $131,088 Avg. Total SP Avg. Distressed SP $50,000 $

28 Dekalb County Source: First Multiple Listing Service 9,000 8,000 7,341 7, % 7,000 6,000 6,533 6,028 5,745 5,177 5,748 6,588 6,575 6,556 5,000 Total SFD Closings 4,000 Total SFD Distressed Closings 3,000 2,000 1,191 1,741 1,776 1,449 1,708 1,795 1, % of total 1, Dekalb County $350,000 $300,000 $250,000 $265,498 $223,738 $301,107 $283,567 $263,921 $244, % $200,000 $150,000 $100,000 $50,000 $131,504 $179,288 $183,848 $167,111 $177,476 $106,131 $88,295 $95,410 $102,535$105,463$103,438$100,528 $86,068 $82,895 Avg. Total SP Avg. Distressed SP $

29 Forsyth County Source: First Multiple Listing Service 5,000 4,500 4,000 3,500 3,000 2,500 2,000 3,283 2,386 2,098 2,199 2,609 2,939 3,557 3,769 4,186 4, % Total SFD Closings Total SFD Distressed Closings 1,500 1, % of total $400,000 $350,000 $300,000 $250,000 Forsyth County $335,646 $324,568 $320,302 $332,829$345,034 $291,135 $292,673 $276,842 $256,451 $263,533 $200,000 $150,000 $232,633 $279,964 $264, % $231,184 $190,018 $185,018 $211,885 $225,418 $209,898 $241,164 Avg. Total SP Avg. Distressed SP $100,000 $50,000 $

30 5,000 4,500 4,000 3,500 3,000 2,500 2,000 3,489 2,344 2,410 2,342 2,813 Cherokee County 3,794 3,609 3,186 4,281 4, % Total SFD Closings Total SFD Distressed Closings Source: First Multiple Listing Service 1,500 1, % of total Cherokee County $300,000 $250,000 $200,000 $150,000 $100,000 $253,453 $232,227 $212,939 $203,365 $180,959$184,197 $266,329 $249,778 $231,250 $211,269 $198,066 $182,532$182,441 $178,867 $167,875 $173,671 $136,053$139,641 $150,575$156, % Avg. Total SP Avg. Distressed SP $50,000 $

31 Source: First Multiple Listing Service Hall County 3,000 2,500 2,202 2, % 2,000 1,779 1,635 1,789 1,834 1,851 1,500 1,216 1,216 1,351 Total SFD Closings Total SFD Distressed Closings 1, % of total , , , , ,000 50,000 $254,701 $226,630 $203,069 $181,318 $158,714$157,078 Hall County $192,096 $251,436 $221,224 $235,302 $174,053 $156,681 $149,894 $138,768 $125,328 $137,655 $140,473 $109,630$106,598$106, % Avg. Total SP Avg. Distressed SP

32 Source: First Multiple Listing Service Clayton County 1,600 1,400 1,200 1,033 1,225 1,436 1,156 1,301 1,145 1,019 1, % 1, Total SFD Closings Total SFD Distressed Closings 8.7% of total , , ,000 80,000 60,000 40,000 Clayton County $123,158 $119,544 $101,679 $83,315 $80,889 $92,228 $59,797 $62,828 $55,992 $46,994 $48,685 $66,792 $64,681 $62,450 $64,201 $55,956 $56,816 $50,542 $42,515 $44, % Avg. Total SP Avg. Distressed SP 20,

33 Fayette County Source: First Multiple Listing Service % Total SFD Closings Total SFD Distressed Closings % of total Fayette County $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $308,783 $294,128$277,505 $265,777 $226,325 $236,627$255,151 $282,152 $356,478 $335,379 $230,856 $204,486 $194,453 $182,617 $171,285$168,818$167,273$166,851$159,196 $137, % Avg. Total SP Avg. Distressed SP $50,000 $

34 1,200 Henry County 1,064 Source: First Multiple Listing Service 1, % Total SFD Closings Total SFD Distressed Closings 2.91% of total $250,000 Henry County $200,000 $193,611 $172,714 $180,414 $202,749 $205, % $150,000 $100,000 $50,000 $140,540 $142,569 $134,030 $122,936 $155,128 $115,198 $144,584 $130,525 $130,428 $130,454 $111,110 $96,457 $100,809 $106,548 $109,857 Avg. Total SP Avg. Distressed SP $

35 Rockdale County Source: First Multiple Listing Service % Total SFD Closings Total SFD Distressed Closings 8.10% of total $250,000 Rockdale County +7.18% $210,530 $200,000 $150,000 $100,000 $50,000 $169,542 $172,777 $152,726 $149,421 $143,675 $136,289 $141,007 $174,119 $156,880 $162,453 $139,831 $121,904 $113,566 $115,355 $94,918 $103,225 $135,012 $127,770 $98,398 Avg. Total SP Avg. Distressed SP $

36 The Effect of Distressed Property Sales on Single Family Sales Prices in 2012 in Metro Atlanta Average Sales Price (Non-Distressed) $220,930 Single Family Detached Average Sales Price (Distressed Closings) $110,676 Single Family Detached -16.7% Average Sales Price (All Closings) $183,827 Single Family Detached Average Sales Price (Non-Distressed) $166,180 Single Family Attached Average Sales Price (Distressed Closings) $82,250 Single Family Attached -15.9% Average Sales Price (All Closings) $139,729 Single Family Attached Source: First Multiple Listing Service

37 The Effect of Distressed Property Sales on Single Family Sales Prices in 2013 in Metro Atlanta Average Sales Price (Non-Distressed) $258,683 Single Family Detached Average Sales Price (Distressed Closings) $120,509 Single Family Detached -10.8% Average Sales Price (All Closings) $230,731 Single Family Detached Average Sales Price (Non-Distressed) $194,596 Single Family Attached Average Sales Price (Distressed Closings) $92,310 Single Family Attached -10.0% Average Sales Price (All Closings) $175,189 Single Family Attached Source: First Multiple Listing Service

38 The Effect of Distressed Property Sales on Single Family Sales Prices in 2014 in Metro Atlanta Average Sales Price (Non-Distressed) $266,056 Single Family Detached Average Sales Price (Distressed Closings) $142,924 Single Family Detached -5.5% Average Sales Price (All Closings) $251,349 Single Family Detached Average Sales Price (Non-Distressed) $204,098 Single Family Attached Average Sales Price (Distressed Closings) $95,553 Single Family Attached -4.3% Average Sales Price (All Closings) $195,314 Single Family Attached Source: First Multiple Listing Service

39 The Effect of Distressed Property Sales on Single Family Sales Prices in 2015 in Metro Atlanta Average Sales Price (Non-Distressed) $276,138 Single Family Detached Average Sales Price (Distressed Closings) $125,887 Single Family Detached -3.3% Average Sales Price (All Closings) $266,949 Single Family Detached Average Sales Price (Non-Distressed) $216,560 Single Family Attached Average Sales Price (Distressed Closings) $98,221 Single Family Attached -2.3% Average Sales Price (All Closings) $211,674 Single Family Attached Source: First Multiple Listing Service

40 The Effect of Distressed Property Sales on Single Family Sales Prices in 2016 in Metro Atlanta Average Sales Price (Non-Distressed) $281,222 Single Family Detached Average Sales Price (Distressed Closings) $133,480 Single Family Detached -1.9% Average Sales Price (All Closings) $275,821 Single Family Detached Average Sales Price (Non-Distressed) $226,777 Single Family Attached Average Sales Price (Distressed Closings) $108,760 Single Family Attached -1.1% Average Sales Price (All Closings) $224,125 Single Family Attached Source: First Multiple Listing Service

41 Savings on Short Sales and Foreclosures vs. Market Sales Metro Atlanta 2016 Single Family Detached Non Distressed Avg. Sales Price $281,222 Short Sales Avg. Sales Price $166,5122 (41% less) Foreclosures Avg. Sales Price $132,560 (53% less) Single Family Attached Non Distressed Avg. Sales Price $226,777 Short Sales Avg. Sales Price $112,805 (50% less) Foreclosures Avg. Sales Price $114,834 (49% less) Source: First Multiple Listing Service

42 Mortgage Delinquencies

43 Source: Mortgage Bankers Association & caculatedriskblog.com

44 2016 National Foreclosure Rate:.8% 2015 National Foreclosure Rate: 1.2% 2016 Georgia Foreclosure Rate:.5% 2015 Georgia Foreclosure Rate:.67% As a percentage of all homes with a mortgage Source: Mortgage Bankers Association & calculatedriskblog.com, RealtyTrac.com

45 Price-to-Rent Ratios

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48 Cost to Purchase vs. Rent Analysis Metro Atlanta, GA 2016 Average Monthly Cost to Rent Metro Atlanta Home: $1,729 Average Monthly Cost to Purchase Metro Atlanta Home: Effective Monthly Cost to Purchase with Tax Advantages: $1,474 (17% less) $1,236 (29% less)

49 Looking Ahead

50 2017 Atlanta Real Estate Market Projections: Prices will rise 2.5-4%. Sales will rise 3-6%. Buyer urgency increasing at lower price ranges. Downward pressure on commissions. Regulatory uncertainty. Credit standards ease and more creative loan products introduced. Mortgage rates increase. Builders offer more incentives (to buyers and to brokers/agents) and face continued cost pressure. Smart Data plays more important role in real estate. On the Fence sellers decide it s time to move. Sellers in higher prices need to be more tactical when pricing. Buyer s remorse increases in lower price ranges. The next downturn is coming. Will you be ready?

51 Mortgage Rates Freddie Mac 30 year Fixed Rate Decrease in borrowing power as rates increase: 4.30% $3, % $6, % $9, Projected Rates /1/2015 4/1/2015 5/1/2015 6/1/2015 7/1/2015 8/1/2015 9/1/ /1/ /1/ /1/2015 1/1/2016 2/1/2016 3/1/2016 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/ /1/ /1/ /1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 7/1/2017 8/1/2017 9/1/ /1/ /1/ /1/2017 Source: Average or NAR, MBA and Fannie Mae Projections

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53 $350,000 Median U.S. Home Price $300,000 $313,600 $250,000 $200,000 $196,871 $150,000 $100, % $50, % $0 Average US Home Sales Price US Average Home Sales Price - Adjusted for Interest Rate Source: US Census

54 Millennial* Myths: live in parent s basement too much student debt to buy homes prefer to rent Live Urban *

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56 Homeownership Rates Q Q Q Q4 Source: Census

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58 The Call Cleve Atlanta Real Estate Show Sundays at Noon & Tuesdays at 2 EXPERT REAL ESTATE ADVISOR on THE MORNING RIDE WITH LARRY LARSON TUESDAYS AT 9:30 AM

59 Sure Home Selling System Sure Home Buying System

60 3100 Apples to Apples 100-based Index Value Year US Median Home Sales Price Dow Jones Industrial Average S&P 500 Average Source: US Census, DJIA, S&P 500

61 Mortgage Rates - 10-Year Treasury Yield - Fed Funds Rate Historic: 15-year spread: 1.18% 30-year spread: 1.77% Currently: 15-year spread: 0.94% 30-year spread: 1.70% Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan year Mortgage Rate 15-year Mortgae Rate 10-year Treasury Yield Federal Funds Rate Source: Freddie Mac & US Federal Reserve

62 Atlanta Will Continue to Grow By 2040 Year Population Employment ,473,846 2,699, ,256,323 4,472,563 Source: Atlanta Regional Commission

63 New Housing Units Required in Metro Atlanta based on Population Growth , , , ,537 4-Year Total 142,685 Source: Atlanta Regional Commission and US Census

64 Where Will Growth Take Place in Metro Atlanta? For 20 Counties NNW NNE ENE WNW The Core is not depicted by a growth bar, but increases by 77,024 persons and 65,562 jobs between 2000 and 2030 ESE WSW SSW SSE Source: Atlanta Regional Commission

65 Metro Atlanta Employment Density percent of 20-county jobs is inside the blue outline 1.32 = median jobs per acre for census tracts Source: Atlanta Regional Commission

66 Feel free to contact me with any questions. Cleve Gaddis Gaddis Partners, RE/MAX Center Sure Realty, Inc. (a boutique residential property management company) Medlock Bridge Road, Suite 119 Johns Creek, GA www