Market Share in Units

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2 Market Share in Units

3 MLS vs. ShoreWEST Category MLS Difference Average SP $176,334 $205, % SP to LP 93.31% 95.71% + 2.6% D-O-M %

4 Existing Home Sales S&P Case Shiller 12/2013

5 Year-Over-Year % Change in House Sales WEST Down 10.1% NORTHEAST Up 6.6% MIDWEST Unchanged NAR s Existing Homes Sales Report SOUTH Up 1%

6 BUYERS

7 Impact of Increasing INTEREST RATES

8 A government stimulus package for the HOUSING INDUSTRY

9 ta per ˈtāpər/ Verb to diminish or reduce

10 Year Fixed Mortgage Rates Federal Reserve 12/2013

11 Mortgage Rate Projections Analyst Projected Rate 4Q 2014 Fannie Mae 4.8% National Assoc of Realtors 5.4% Freddie Mac 5.0% Mortgage Bankers Assoc 5.3%

12 Date November 2012 November 2013 Average Interest Price* Rate** P&I*** $227, $1, $244, $1, Difference in Monthly Payment $ Monthly Annually Over 30 Years $ $2, $74,851.20

13 Date November 2014 Average Interest Price* Rate** P&I*** $254, $1, * Assuming a 4% Appreciation as projected by the latest Home Price Expectation Survey ** Based on projection from the Mortgage Bankers Association *** Principal & Interest Payment Monthly Annually Over 30 Years $ $2,442 $73,260

14 RATE Buyer s Purchasing Power 6.00 $ 1,079 $ 1,109 $ 1,139 $ 1,169 $ 1, $ 1,050 $ 1,080 $ 1,109 $ 1,138 $ 1, $ 1,022 $ 1,050 $ 1,079 $ 1,107 $ 1, $ 994 $ 1,022 $ 1,049 $ 1,077 $ 1, $ 966 $ 993 $ 1,020 $ 1,047 $ 1, $ 939 $ 965 $ 991 $ 1,017 $ 1, $ 912 $ 937 $ 963 $ 988 $ 1,013 $ 180,000 $ 185,000 $ 190,000 $ 195,000 $ 200,000-10% -7.5% -5% -2.5% Principal and Interest Payments rounded to the nearest dollar amount.

15 RATE Buyer s Purchasing Power 6.00 $ 2,158 $ 2,218 $ 2,278 $ 2,338 $ 2, $ 2,100 $ 2,160 $ 2,218 $ 2,276 $ 2, $ 2,044 $ 2,100 $ 2,158 $ 2,214 $ 2, $ 1,988 $ 2,044 $ 2,098 $ 2,154 $ 2, $ 1,932 $ 1,986 $ 2,040 $ 2,094 $ 2, $ 1,878 $ 1,930 $ 1,982 $ 2,034 $ 2, $ 1,824 $ 1,874 $ 1,926 $ 1,976 $ 2,026 $ 360,000 $ 370,000 $ 380,000 $ 390,000 $ 400,000-10% -7.5% -5% -2.5% Principal and Interest Payments rounded to the nearest dollar amount.

16 Rate deemed SIGNIFICANT threat* *on the 30-Year fixed rate mortgage Pulsenomics

17 Calculated Risk 7/2013

18 1983 $2, $1, $1, $1, Monthly payment on a $250,000 MORTGAGE (Principal & Interest)

19 The Increasing Cost of Renting Median Asking Rent Census Bureau 2013

20 5 Financial Reasons to Buy Reason Quote from Harvard Report Housing is the one leveraged investment available You're paying for housing whether you own or rent Owning is usually a form of forced savings There are substantial tax benefits to owning Owning is a hedge against inflation Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord. Having to make a housing payment one way or the other, owning a home can overcome people s tendency to defer savings. Homeowners are able to deduct mortgage interest and property taxes from income. Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition. Joint Center for Housing Studies, Harvard University12/2013

21 Homeowners Net Worth OVER 30X greater than renters Federal Reserve

22 An American Family s Net Worth Federal Reserve

23 LISTINGS

24 Pieces of the Puzzle

25 Home Prices

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27 Year-over-Year Price Changes by Region FHFA 3Q Home Price Index11/2013

28 Year-over-Year Price Changes by State FHFA 3Q Home Price Index11/2013

29 Milwaukee Waukesha West Allis +.87% FHFA Qtr-Over-Qtr

30 Home Price Expectation Survey A nationwide panel of over one hundred economists, real estate experts and investment & market strategists.

31 PROJECTED Percentage Appreciation Home Price Expectation Survey Q

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33 Month-Over-Month Price Changes 12/2013

34 2013 Available Inventory in millions

35 Typical Sold Price* FSBO vs. Agent $230K $184K 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.

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37 2014 Will be the year that real estate marketing shifts to effectively and consistently answering the one question every real estate pro gets asked: How s the market? Nobu Hata NAR s Director of Digital Engagement

38 Frivolous content will sink in 2014 as the gems of true insight continue to rise. Marc Davison 1000Watt Consulting

39 Jayson DeMers in Forbes Content Marketing Will Be Bigger Than Ever One of the main ways that companies are establishing authority and gaining trust with consumers is by consistently creating valuable content through a variety of channels. This typically involves relevant industry information that provides insight to an audience. Doing so allows a company to steadily build rapport with its demographic and develop a loyal following.

40 Jayson DeMers in Forbes Image-Centric Content Will Rule As consumers are hit with an increasing number of advertisements, it s becoming more important to make content easily and quickly digestible. If you look at the social media sites that are on the rise, three of the four have a common characteristic they place an emphasis on images.

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