VISION 2024

(941) 404-4737 TheCoffeyGroup.com

VISION

DATA DISCLAIMER

Any data KW shares with you (the “Data”) is provided on an “as is” basis and KW makes no representation or warranty, and disclaims all warranties, expressed or implied, of any kind with respect to the Data. Neither KW nor any of its affliated persons will have any liability for damages of any kind resulting from your use of the Data. The Speakers do not hold fnancial licenses and certain slides present hypothetical Data for example purposes only. You should consult your own legal, fnancial, or tax advisor and verify all Data to your satisfaction prior to taking any action.

1. Home Sales 2. Home Prices 3. Total Market Volume 4. Inventory

The Numbers That Drive U.S. Real Estate

5. Mortgage Rates 6. Treasury Spread 7. Affordability

1.Home Sales - Annual

7.1

6.8

6.5

6.2

6.1

5.6

5.5 5.3 5.3

5.3 5.5

5.2 5.2 5.3

5.1 4.9

5.0

4.7

4.3 4.2 4.3

4.2 4.4

4.1

4.1 4.3

3.7 3.9 3.8

3.4 3.3 3.2 3.1

'89 '91

'93

'95

'97

'99

'01

'03

'05

'07

'09

'11

'13 '15 '17 '19 '21 '23 '24 (proj.)

2023 Sales

Total Annual Single-Family Home Sales (in Millions)

The Numbers That Drive U.S. Real Estate | Vision 2024

1.Home Sales - Monthly

SEASONAL INCOME CYCLE

MORE INCOME

LESS INCOME

6.49

5.92

JAN

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

5.69

5.57

5.40

5.13

4.88

4.77

4.68

4.55

4.44

4.43

4.30

4.29

4.16

4.12

4.07

4.04

4.03

4.00

3.95

3.82

3.79

3.78

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Seasonally Adjusted Annualized Sales Rate

2022

2023

The Numbers That Drive U.S. Real Estate | Vision 2024

2.Home Prices - Annual

9.3% Above Trend

390 398

351

357

24% Above Trend

297

222

166

'89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23 '24 (proj.) Long-term Trend = 4% Annual Median Home Price (in Thousands $USD)

The Numbers That Drive U.S. Real Estate | Vision 2024

2.Home Prices - Annual Appreciation

'90-'00 3.9%

'12-'19 6.4%

'20-'22 12.5%

'23-'24 1.6%

'01-'05 8.9%

'06-'11 -4.4%

18.2

12.4

11.5

10.2

9.1

8.4 9.3

6.6 7.7

6.4

5.1 5.7 4.9 4.9 5.7 6.8

5.2

3.9 4.1 4.6 5.2 5.3

2.6

2.6 3.1 3.8 3.0

1.0

0.9 2.2

0.2

-1.3

-3.9

-9.5

-12.9

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24 (proj.)

Annual Median Home Price Appreciation (%)

The Numbers That Drive U.S. Real Estate | Vision 2024

2.Home Prices - Appreciation, Historical

Pandemic Housing Boom and High Infation

Infation on Its Way to All Time High

Mar ’22 21.35%

Stagfation of the Mid-1970s

Sep '05 14.51% The Housing Bubble

Feb ’79 16.22%

Jan '75 11.28%

Jul '73 0.61%

Dec '82 0.57%

Apr '59 -0.87%

May '23 -0.43% Fed Raising Rates

Mar '91 -2.15% Savings and Loan Crisis

1973 Oil Crisis

Volcker Recessions; Fed Raises Rates to All-Time high

Eisenhower Recession; Fed Raised Rates

Feb '09 -12.75% Great Recession and Housing Crisis

'54 '56 '58 '60 '62 '64 '66 '68 '70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '23

Source: Robert Schiller Irrational Exuberance , S&P CoreLogic Case-Shiller U.S. National Home Price Index

The Numbers That Drive U.S. Real Estate | Vision 2024

3.Total Market Volume

Agent Count 1.58M

Agent Count 1.36M

Agent Count Drop, 2007 to 2008 -140,472

2.83

Agent Count 761K

2.53

2.24

2.09

1.89

1.87

1.74

1.66

1.59 1.59 1.65

1.50

1.40

1.37

1.34

1.25 1.26

1.16

1.05

0.94 0.92 0.91 1.00

0.92 1.00 0.89

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 (proj.) Dollar Value (in Trillions $USD) 2023 Volume NAR Agent Count

The Numbers That Drive U.S. Real Estate | Vision 2024

3.Total Market Volume - Infation-Adjusted

Agent Count 1.58M

Agent Count 1.36M

Agent Count Drop, 2007 to 2008 -140,472

3.15

2.90

Agent Count 761K

2.65

2.60

2.24

2.19

2.16

2.09

1.96

1.88

1.87 1.95 1.91 1.93

1.78

1.66

1.65 1.63

1.54 1.57

1.43

1.41

1.32 1.28 1.25

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 (proj.) Infation-Adjusted Dollar Value (in Trillions $USD) 2023 Volume NAR Agent Count

The Numbers That Drive U.S. Real Estate | Vision 2024

4. Inventory - Annual

8.9% Avg. Appreciation

-4.4% Avg. Appreciation

6.4% Avg. Appreciation

12.5% Avg. Appreciation

10.4

9.4

8.9

8.8

8.3

6.5

5.9

4.9 5.2

4.8

4.6 4.7 4.7

4.4

4.3 4.5

3.9 4.0 3.9

3.1

2.7

2.3

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Balanced = 6 months

Annual Months Supply of Inventory

The Numbers That Drive U.S. Real Estate | Vision 2024

5.Mortgage Rates - Annual

16.63

7.74 5.98 6.81

'72

'76

'80

'84

'88

'92

'96

'00

'04

'08

'12

'16

'20 '23

Annual Mortgage Rate (%)

Historical Average from '72-'23

Historical Average from '90-'23

The Numbers That Drive U.S. Real Estate | Vision 2024

Source: Freddie Mac

5.Mortgage Rates - Monthly

Oct '23 7.62

Oct '22 6.90

Jan '24 6.64

Jun '22 5.52

Nov '18 4.87

Aug '22 5.22

Dec '16 4.20

Mar '21 3.08

Jan '15 3.67

Dec ’20 2.68

Avg. 30-Year Fixed Mortgage Rate (%)

The Numbers That Drive U.S. Real Estate | Vision 2024

Source: Freddie Mac

6.Treasury Spread

Q4 '08 2.46%

Q2 '20 2.55%

Q4 '23 2.85%

Q3 '00 2.13%

1.74%

Q2 '21 1.41%

Q1 '10 1.28%

Q1 '94 1.21%

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Spread Between 30-Year Fixed Rate Mortgage and 10-Year Treasury

Historical Average

The Numbers That Drive U.S. Real Estate | Vision 2024

Source: Board of Governors of the Federal Reserve System (U.S.)

7. Affordability

1981 49%

2006 32%

2023 32%

27%

20%

1972 22%

1998 21%

2020 18%

2012 17%

'72 '75 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14 '17 '20 '23

P&I as % of Income

Historical Average: 1972-2023

Historical Average: 2000-2023

Source: KW Research, Robert Shiller U.S. Home Prices 1890-present, Freddie Mac, U.S. Census Bureau

The Numbers That Drive U.S. Real Estate | Vision 2024

The Numbers That Drive Canadian Real Estate

1. Home Sales 2. Home Prices 3. Inventory 4. Mortgage Rates 5. Affordability

1.Home Sales - Annual

666

553

541

521

516

508

499

491

483

482 483

466

461

460

447 458 454 457

444

431

418 434

380

335 332 324 331 314

321

298 298

295

261

246

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

2023 Sales

Total Annual Single-Family Home Sales (in Thousands)

Source: The Canadian Real Estate Association (CREA)

2.Home Prices - Annual

678 687 704

567

510

490 502

489

442

408

383

363 364

339

307 305 321

277

249

226

207

172 189

149 150 153 158 151 151 155 152 158 164 147 142

'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Avg. Home Price (in Thousands C$)

4% Growth Projected from 1989

The Numbers That Drive Canadian Real Estate | Vision 2024

Source: The Canadian Real Estate Association (CREA)

3. Inventory

65 65

62 62

52 53 52 53 54

50 50

44 42 42

'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Home Sales As a Percentage of New Listings

40%

60%

The Numbers That Drive Canadian Real Estate | Vision 2024

Source: The Canadian Real Estate Association (CREA)

4.Mortgage Rates

11.1

9.5

9.5 9.2

8.8

8.4

7.9

7.6

7.4

7.1 6.9

7.1 7.1

7.0

6.7

6.2 6.0 6.4

5.7

5.4 5.2 5.2 5.6 5.6

5.3 5.3

4.9 4.8

4.9 4.7 4.7 4.8

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Average Annual Mortgage Rate, 5-Year Fixed (Percentage)

The Numbers That Drive Canadian Real Estate | Vision 2024

Source: Bank of Canada

5. Affordability

Percentage of Income for P&I Plus Taxes and Insurance

Change From 2022

Historical Average

Property Type

69%

44%

Single Family

44%

33%

Standard Condo

The Numbers That Drive Canadian Real Estate | Vision 2024

Source: RBC

1. Gross Domestic Product 2. Unemployment 3. Personal Savings Rate 4. Infation 5. Consumer Sentiment

The U.S. Economy

1. GDP - Annual

5.8

4.8

4.4 4.5

4.1

3.9

3.8

3.5

2.9

2.8

2.7

2.5 2.3 2.1

2.5

1.9

1.8

1.7

1.6

0.1

-0.1

-2.2

-2.6

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 ’23

Real GDP Year-Over-Year Change (%)

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Economic Analysis

1. GDP - Quarterly

34.8

7.0

5.2 4.7

3.8 5.2 6.2 4.2

4.9

3.8 3.1 3.4

3.5

3.3 2.3

3.3

3.2 2.9

2.6 3.2 4.6 2.4 1.9 0.9

2.7 2.6 2.2 2.1

2.4 1.2 2.4 2.0 1.9

2.3 2.9

1.8

1.3 0.6

0.6

-0.6

-1.4

-2.0

-5.3

-28.0

Quarterly GDP (%)

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Economic Analysis

1. GDP - Growth vs. Home Sales

2.5%

1.9%

-3.2%

-18.3%

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

GDP Growth

Existing Home Sales Growth

The U.S. Economy | Vision 2024

2. Unemployment - Annual

9.6

9.3

8.9

8.1

7.5

7.4

6.9

6.2

6.1

5.8 6.0

5.8

5.6

5.6 5.4

5.5

5.3

5.1

4.9

4.7

4.6 4.6

4.5

4.4

4.2 4.0

3.9 3.7

3.6 3.6

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '23

Unemployment (%)

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Labor Statistics

2. Unemployment - Annual

1982 9.7%

2010 9.6%

1975 8.5%

2020 8.1%

1992 7.5%

1960 5.5%

1989 5.3%

2000 4.0%

2023 3.6%

1969 3.5%

'60 '62 '64 '66 '68 '70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '23

Unemployment (%)

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Labor Statistics

2. Unemployment - Monthly

6.3 6.2

6.0 6.0 5.8 5.9

5.4 5.2

4.7 4.6

4.2

3.9 4.0

3.8 3.6 3.6 3.6 3.6

3.8 3.8 3.9 3.7 3.7 3.7 3.7 3.6 3.5 3.6 3.5 3.4 3.6 3.5 3.4

3.5 3.7 3.5 3.7

Jan '21 Apr '21 Jul '21 Oct '21 Jan '22 Apr '22 Jul '22 Oct '22 Jan '23 Apr '23 Jul '23 Oct '23 Jan '24

Unemployment (%)

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Labor Statistics

3.Personal Savings Rate

1973 13.5%

2021 11.1%

1959 10.3%

1992 9.4%

2012 7.9%

8.3%

5.2%

2023 4.5%

2005 2.3%

2020 1.5%

'59 '61 '63 '65 '67 '69 '71 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23

Personal Savings Rate (%)

Average Since 1959

Average Since 2000

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Economic Analysis

4. Infation - Annual

6.4%

6.1%

5.7%

5.2%

3.4% 3.9%

2.0%* 2.0%*

*Proj.

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24 '25

CPI (Includes Energy and Food)

Core CPI (Excludes Energy and Food)

Target = 2%

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Economic Analysis

4. Infation - Affordability in Perspective

240%

Hospital Services (238.3%)

200%

College Tuition & Fees (177.6%)

160%

Food & Beverages (90.3%) Average Hourly Wages (93.8%) Childcare & Nursery School (123.2%) Medical Care Services (123.9%) College Textbooks (130.8%)

120%

80%

Housing (88.8%)

40%

Household Furnishings/Operations (15.7%) New Cars (25.1%)

Clothing (0.8%)

Cell Phone Services (-37.1%)

-40%

Computer Software (-71.9%) Toys (-72.2%) TVs (-97.7%)

-80%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Labor Statistics

5.Consumer Sentiment

Feb '20 101.0

Jun '21 85.5

Jan '19 91.2

Jan '24 79.0

Feb ’23 67.0

Apr '20 71.8

Aug '21 70.3

Jun '23 64.4

Jun '22 50.0

Jan '19 May '19 Sep '19 Jan '20 May '20 Sep '20 Jan '21 May '21 Sep '21 Jan '22 May '22 Sep '22 Jan '23 May '23 Sep '23 Jan '24

The U.S. Economy | Vision 2024

Source: U.S. Bureau of Economic Analysis

The Canadian Economy

1. Gross Domestic Product 2. Unemployment 3. Infation

1.Gross Domestic Product

5.2 5.2

4.5

4.3 3.9

3.6

3.1 3.2

3.1 3.1

3.0

3.0 2.8

2.9

2.7

2.6

2.3

2.1

1.9

1.8

1.6

1.0

0.7 1.0

-2.9

-5.2

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 (est.)

Real GDP, Year-Over-Year Change (Percentage)

Source: Org. for Economic Cooperation and Development

2. Unemployment

9.5 9.6

9.5

9.1

8.4 8.1

8.3

7.7 7.6

7.6

7.5

7.3 7.1

7.2

6.9 6.9 7.1

6.8

6.4

6.3 6.1 6.2

5.9 5.7

5.3 5.4

'95

'97

'99

'01

'03

'05

'07

'09

'11

'13

'15

'17

'19

'21

'23

Long-Term Average = 8.2%

Unemployment

Source: Org. for Economic Cooperation and Development

3. Infation

3.7% 3.4%

2.0%

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 ‘05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

CPI (Includes Energy and Food)

Core CPI (Excludes Energy and Food)

Target = 2%

Source: Org. for Economic Cooperation and Development

1. Sides Per Agent 2. Volume Per Agent 3. Listings with Price Drops 4. New Listings 5. Distressed Sales 6. Credit Conditions 7. New Homes 8. Student Loan Debt 9. Household Debt Service Ratio 10. Economic Risks in 2023

U.S. Events

1.Sides Per Agent

NAR adds 591K agents Sides per drop 13.5 to 7.5

NAR sheds 338K agents Sides per increase 6.9 to 9.3

NAR adds 581K agents Sides per drop 9.8 to 5.3

2008-2012

2013-2023

2000-2007

14.0

13.8

13.5

10.0

9.9

9.8

9.4

8.0

7.0

6.9

5.7

5.3

'77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23'24 (proj.) Historical Average Sides Per Agent

Source: National Association of REALTORS® and KW Research

2.Volume Per Agent

3.63

3.00

2.97

2.69

2.57

2.40

1.67

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24

Volume Per Agent (in Millions $USD)

2023 Volume Per Agent

U.S. Events | Vision 2024

Source: National Association of REALTORS® and KW Research

3.Listings With Price Drops - Percentage

61%

58%

57%

56%

55%

53%

50%

46%

43% 42% 43%

41%

39%

37%

36% 35% 34%

33%

32%

31%

24%

21%

16%

13%

Jan ’22

Mar

May

Jul

Sep

Nov

Jan ’23

Mar

May

Jul

Sep

Nov Dec

Percentage of Listings With at Least One Price Drop

U.S. Events | Vision 2024

Source: KW Research

4.New Listings

2022: 5.4M

2023: 4.8M

631K

567K

565K

520K

507K 492K

482K 479K

476K

447K

430K

427K 442K

425K 419K

395K

357K

356K

348K 335K

346K

313K

238K

233K

Jan ’22

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec Jan ’23

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Number of New Listings

U.S. Events | Vision 2024

Source: KW Research

5.1. Distressed Sales

13%

12%

10%

13%

12%

27%

22% 24%

19%

12%

10% 8%

6% 5% 4%

1% 1% <1% <1% 1% 2%

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

'22

'23

Foreclosures

Short Sales

Not Broken Out

U.S. Events | Vision 2024

Source: National Association of REALTORS®

5.2. Underwater Homes

24.7

24.4

22.0

13.0

10.3

8.1

6.3

4.9

4.0

3.7

3.0

2.1

1.9

1.8

Q3 '10 Q3 '11 Q3 '12 Q3 '13 Q3 '14 Q3 '15 Q3 '16 Q3 '17 Q3 '18 Q3 '19 Q3 '20 Q3 '21 Q3 '22 Q3 '23

Historical Average

Underwater Homes (% of Mortgaged Homes)

U.S. Events | Vision 2024

Source: CoreLogic Homeowner Equity Insights

6.Credit Conditions

Tightening

Loosening Steady

Loosening

Tightening

U.S. Events | Vision 2024

Source: FRB SLOOS

7.1. New Home Starts

1,465 1,716

1,127

1,046

1,005

991

1,000

908

888

876

849

782

715

648

622

618

535

471

445

431

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Long-Term Average

New Single-Family Home Starts (in Thousands)

U.S. Events | Vision 2024

Source: U.S. Census Bureau

7.2. New Home Sales

1,279

1,049

822

769

762

685

668

641

616

614

650

562

503

482

440

430

374

368

321

306

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Long-Term Average

New Single-Family Home Sales (in Thousands)

U.S. Events | Vision 2024

Source: U.S. Census Bureau

8.Student Loan Debt

$3.1T

$2.9T $3.0T $3.0T $3.0T

$2.9T

$2.7T

$2.6T

$1.9T

$1.8T $1.8T

$1.8T $1.9T $2.1T

$2.1T

$2.0T $1.9T

$1.6T $1.6T $1.6T $1.6T $1.5T $1.4T

$1.4T $1.3T $1.2T

$1.1T $1.0T

$0.9T $0.9T $0.8T $0.7T

$0.6T $0.5T $0.4T

$0.4T

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Student Loans (in Trillions)

All Other Consumer Debt (in Trillions; Excludes Mortgage)

U.S. Events | Vision 2024

Source: Federal Reserve Bank of New York

9.Household Debt Service Ratio

13.1% 12.9%

12.7% 12.8%

12.4% 12.4% 12.3% 12.2%

12.3%

11.8%

11.3%

10.6%

10.1% 10.2% 10.0% 10.0% 10.1% 10.0% 9.9% 9.9%

9.8% 9.7%

6.0% 5.9%

6.0%

9.3% 9.1%

6.3%

5.6%

6.6% 6.6% 6.4% 6.3%

6.2%

5.1%

5.0%

5.0% 5.2% 5.3%

5.5% 5.6% 5.7% 5.7% 5.8%

5.8% 5.8% 5.4% 5.3%

6.7% 6.2% 6.8% 7.1% 7.0%

5.8% 5.9% 6.4% 5.7% 5.8% 5.8%

5.6% 5.2%

5.0% 4.7% 4.5%

4.5% 4.3% 4.2% 4.2% 3.9%

3.7% 4.0% 4.0%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Mortgage Debt Service Ratio

Consumer Debt Service Ratio

U.S. Events | Vision 2024

Source: FRED

10.Economic Risks in 2024

1. Ineffectual Governance 2. Global Conficts – Political and Direct 3. Financial System Risks Stemming from Commercial Real Estate 4. Natural Disasters and Severe Weather Events

U.S. Events | Vision 2024

1. The World’s Wealthy 2. Allocation of Financial Investments 3. Days on Market 4. Listings With Price Drops

Luxury

1.The World’s Wealthy

Population of HNWI in North America, in Millions

Total Wealth of HNWI in North America, in Trillions

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2.7M 3.1M 3.4M 3.3M 3.7M 4.3M 4.7M 4.8M 5.2M 5.7M 5.7M 6.3M 7.0M 7.9M 7.4M

$9.1T

$10.7T $11.6T $11.4T $12.7T $14.9T $16.2T $16.6T $18.0T $19.8T $19.6T $21.7T $24.3T $27.7T $25.6T

*HNWI = High Net Worth Individuals

Luxury | Vision 2024

Sources: Capgemini and RBC Wealth Management

2.Allocation of Financial Investments

Year 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Real Estate

Cash/Deposits

Fixed Income

Stock Market

Alt. Investments

18% 18% 19% 20% 19% 18% 18% 14% 17% 16% 15% 15% 15% 15%

21% 17% 14% 28% 27% 26% 24% 27% 27% 28% 25% 24% 24% 34%

29% 31% 29% 16% 16% 17% 18% 18% 16% 18% 17% 18% 18% 15%

25% 29% 33% 26% 25% 27% 25% 31% 31% 26% 30% 30% 29% 23%

7% 6% 5%

10% 14% 13% 16% 10%

13% 13% 14% 14% 13%

Luxury | Vision 2024

Sources: Capgemini and RBC Wealth Management. *No data for 2011.

3.Luxury: Days on Market

118

111

104 105

104

101

97 97

90 91

86 85 87

84 81

83 81 83 82

74 74 75 76

74 72

71 70

69 72

68 68 67 67

66 67 69

Jan ’22

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec Jan ’23

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Luxury Days on Market

Non-Luxury Days on Market

Luxury | Vision 2024

Source: KW Research

4.Luxury: Listings With Price Drops

23%

22%

21% 22% 22%

21%

20% 20%

20%

19%

17%

16%

16% 17%

14%

13%

12%

10%

8% 7%

Jan ’22

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec Jan ’23

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Percentage of Listings With at Least One Price Drop

Luxury | Vision 2024

Source: KW Research

1. Commercial Trends 2. Multifamily Units Started 3. Loan Delinquency Rates

Commercial

1.Commercial Trends

1. Offce

a. Highest vacancy rates on record. b. Declining rents. c. Most pressure on non Class A spaces as tenants move to quality. d. $2.8T in commercial debt due in the next 4 years. Offce is the most at risk. 2. Multifamily a. Downward pressure on rents from surge in construction over the last three years. 3. Retail a. Continuing transition to mixed-use and “consumer experience”-oriented spaces. b. Vacancy rates slightly above pre-pandemic levels.

4. Industrial a. Slight pullback after surge in pandemic-era ecommerce. b. Rent growth has slowed but remains positive.

Commercial | Vision 2024

2.Multifamily Units Started

906

459

423

371

133

'65 '67 '69 '71 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23

Starts

Historical Average

Commercial | Vision 2024

Source: U.S. Census Bureau

3.Loan Delinquency Rates

11.73%

8.55%

4.0%

1.07%

0.90%

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Average '91 to present

Commercial Real Estate Loan Delinquency Rate

Commercial | Vision 2024

Source: FRED

National Association of REALTORS ®

2023 Profle of Home Buyers and Sellers

First-Time Home Buyers

50%

47%

42% 42% 42%

41%

40% 40% 40%

39%

38%

37%

36%

35%

34%

33%

33% 33%

32%

31%

26%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

First-Time Home Buyers

Source: 2023 Profle of Home Buyers and Sellers

Primary Reason for Purchasing a Home

2006 2010 2017 2018 2019 2020 2021 2022 2023 32% 31% 30% 29% 29% 27% 28% 22% 26%

Desire to own a home Desire for a larger home

9 5 8 7 3 3 3 2 6 1

9 8 7 8 5 5 3 2 2 2 2 7

9 9 8 7 6 5 3 3 2 2 2 7

11 10

11 12

Desire to be closer to family/friends Change in family situation Job-related relocation or move

8 8 8 5 5 4 2 3 2 2 7

9 8 6 6 5 3 2 3 2 2 6

7 5 5 5 2 3 2 2 2 7

6 6 8 8 1 2 2 2 1 8

8 6 6 5 3 2 2 2 2 1

Desire for a smaller home

5 4 7

Retirement

Desire to be closer to job/school/transit

Establish a household

* * *

Affordability

Financial Security

Desire for a newly built or custom-built home

N/A

Desire for a home in a better area

* Less than 1%

Source: 2023 Profle of Home Buyers and Sellers

Tenure in Previous Home

2007 2010 2017 2018 2019 2020 2021 2022 2023 6% 3% 4% 9% 4% 4% 8% 4% 2%

1 year or less

10 15 13 11 16 10 12

2 to 3 years

17 16 12 12 14 14 14 13 14

4 to 5 years

13 18 10

11 12 10 12 12

6 to 7 years

13 17 14 12 10 11

12 11

8 to 10 years

12 17 21 17 16 16 15 13 13

11 to 15 years

11 11 12 13 11 10 11

16 to 20 years

10 13 17 16 19 20 18 25 25

21 years or more

Median

10 10

Source: 2023 Profle of Home Buyers and Sellers

Buyer’s Expected Tenure

2006 2010 2017 2018 2019 2020 2021 2022 2023 1% 1% 1% 1% 1% 1% 2% 3% 2%

1 year or less

3 9 3

2 to 3 years

18 12

14 14 14 16 15 13

4 to 5 years

6 to 7 years

12 13 14 22 20 23 23 17 22

8 to 10 years

10 10

11 to 15 years

20 22 27 43 45 44 41 50 45

16 to 20 years

24 42 36

Don’t Know

Median

10 15 15 15 15 12 15 15

Source: 2023 Profle of Home Buyers and Sellers

Weeks in Home Search

12 12 12 12 12

10 10 10 10 10 10

10 10

8 8 8 8 8

8 8

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Source: 2023 Profle of Home Buyers and Sellers

First Step in Buying Process

2007 2010 2017 2018 2019 2020 2021 2022 2023 32% 36% 42% 44% 44% 43% 41% 52% 41% 20 19 17 17 16 18 19 19 20

Looked online for properties for sale

Contacted a real estate agent

12 11 12 11 12

9 7 7 6 4 2 2 1 1 1

6 7 4 5 1 1 2 2

Looked online for information about the buying process

7 9 1 7 1 2

8 7 7 4 1 1

8 6 6 3 1 1 1 1 1

7 6 6 4 1 1 1 1 1

7 6 5 4 1 1 1 1 1

9 7 5 2 2 1 1 1

8 7 4 3 2 2 2 1

Contacted a bank or mortgage lender

Talked with a friend or relative about buying process

Drove by homes/neighborhoods

Visited open houses

Contacted builder/visited builder models

Contacted a home seller directly

Looked up neighborhood information

1 5

2 2

* *

Attended a home buying seminar

Looked in newspapers, magazines, or home buying guides

* Less than 1%

Source: 2023 Profle of Home Buyers and Sellers

Information Sources Buyers Use

2006 2010 2017 2018 2019 2020 2021 2022 2023 85% 88% 89% 86% 87% 87% 87% 86% 88%

Real estate agent

74 52 39 48 19 15 12

73 53 37 46 18 13 10

73 51 35 39 15 11

76 53 41 41 18 10

74 41 40 35 19

73 28 40 39

72 50 38 33 17

Mobile or tablet search device

N/A

Open house

Online video site

N/A

63 26 55 34

57 16 36 23

Yard sign

Home builder

7 6 4 2 2

6 5 4 3 2

Print newspaper advertisement

7 4 3 3

8 4 3 3

7 2 2 2

Home book or magazine

5 7 3

5 2 3

5 3 3

Billboard

Television

Relocation company

Source: 2023 Profle of Home Buyers and Sellers

Where Buyers Found the Home They Purchased

2006 2010 2017 2018 2019 2020 2021 2022 2023 24% 37% 49% 50% 52% 51% 51% 51% 52%

Internet

Real estate agent

8 8

4 6

6 6 7 2 1

5 7 7 3 1

4 6 6 3

5 6 7 3

6 6 4 3

6 4 4 3

Home builder or their agent

Friend, relative, or neighbor

4 5

Yard sign/Open house sign

3 5 1

2 2

Directly from sellers/Knew the sellers

* * *

Print newspaper advertisement

* *

Home book or magazine

Other

* Less than 1%

Source: 2023 Profle of Home Buyers and Sellers

Value of Website Features

Detailed property info Property photos Floor plans Details about recently sold properties Neighborhood info Virtual tours Real estate agent contact info Pending sales/contract status Interactive maps Videos Info about upcoming open houses Virtual open houses Virtual listing appointments

65% 65%

15% 15%

19% 19%

80% 80% 71% 65% 64% 65% 68% 58% 48% 51% 49% 26% 23%

47%

24%

28%

37%

26%

32%

28%

33%

32%

27%

43%

25%

10%

22%

30%

28%

11%

31%

22%

26%

13%

39%

21%

30%

13%

36% 36%

19%

30%

15%

9% 9%

17%

57%

14%

16%

61%

Very Useful

Somewhat Useful

Not Useful

Did Not Use

Very Useful / Somewhat Useful

Source: 2023 Profle of Home Buyers and Sellers

Method of Home Purchase

83% 89% 89% 88% 88% 87% 88% 86% 87% 89% 88% 87% 86% 89% 79% 81% 77%

69%

'01

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

Agent or Broker

Builder or Builder's Agent

Previous Owner

Other

Source: 2023 Profle of Home Buyers and Sellers

Buyer Representation Agreement

2006 2010 2017 2018 2019 2020 2021 2022 2023

Yes, a written arrangement

44% 40% 40% 40% 39% 40% 40% 35% 41%

Yes, an oral arrangement

Don’t know

Source: 2023 Profle of Home Buyers and Sellers

What Buyers Want from Their Agent

50%

Help fnding the right home to purchase

12%

Help negotiating sale terms

11%

Help with price negotiations

7% 7%

Help with paperwork

Price of comparable home sales

Help determine what buyer can afford

3% 3%

Help fnd and arrange fnancing

Teach buyer about neighborhood

Help fnd renters for buyer's property

Less than 1%

Source: 2023 Profle of Home Buyers and Sellers

How Buyers Found Their Agent

2006 2010 2017 2018 2019 2020 2021 2022 2023

40% 48% 42% 41% 41% 40% 47% 38% 43%

Referred by (or is) a friend, neighbor, or relative

Used agent previously to buy or sell a home

Inquired about specifc property viewed online

N/A

Website

Referred by another real estate agent or broker

Saw contact information on for sale/open house sign

Visited an open house and met agent

Personal contact by agent (telephone, email, etc.)

4 4

3 5

Referred through employer or relocation company

Walked into or called offce and agent was on duty

Mobile or tablet application

N/A

Other

Source: 2023 Profle of Home Buyers and Sellers

Buyer Interviews

2006 2010 2017 2018 2019 2020 2021 2022 2023

One

65% 64% 70% 68% 75% 73% 73% 67% 71%

Two

Three

Four or more

Source: 2023 Profle of Home Buyers and Sellers

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85

Made with FlippingBook interactive PDF creator