2017 U.S. Economic & Housing Market Update

WHERE REAL ESTATE IS MOVING

What We’ll Cover Today

¨ US Economic Overview

¨ Existing and New Home Sales

¨ State of the Foreclosure Market

¨ The Mortgage Market

¨ Closing Thoughts

A Brief Introduction to Ten-X

The Leading Online Real Estate Marketplace

NUMBERS

$46 BillionOf assets sold

275,000+Assets sold

INVESTORS MILESTONES2007Company founded

2016Ten-X

2009CRE platform

The Ten-X Brand Family

Ournewname,Ten-X,reflectsexpansionoftheserviceswe’llbedelivering– andthemuchbroaderaudiencewe

plantoreachviathreedistinctlinesofbusiness.

Dedicatedtothesaleofqualitycommercial

propertiesviaauctionandmoretraditionalmethods

Anewplatformcreatedespeciallyforconsumersandagents,withafocusonmove-inreadyhomes

Thenation’slargestonlinerealestatemarketplace,nowexclusivelyfocusedonthesaleofbank-ownedandforeclosureproperties

US Economic Overview

GDP Stable, but Still Lags Historic Averages

Inflation in Line with Market Expectations

Unemployment Rate Continues to Improve

Labor Force Participation Rate Still Historically Low

And Part Time Employment Historically High

Wage Growth Appears to be Steady

And Consumer Confidence Highest Since 2000

National Housing Market Overview

Existing Home Sales Ticking Up

New Home Sales Improving, But Uneven

Existing Home Inventory Historically Low

New Home Inventory Improving, But Near 40-Year Low

Housing Starts Improving…

But Lagging Behind Prior Recoveries…

…and Inflated by Multifamily Numbers

Prices Continue to Rise, Outpacing Wage Growth

And Affordability is Becoming More of a Concern

Homeownership Rates Still Near 50-Year Low

Even Though Household Formation Is Picking Up

Student Loan Debt a Factor in Household Formation

Foreclosure Market Update

Delinquency Rates Continue to Fall

Foreclosure Starts Declining Rapidly

Monthly Foreclosure Activity Trending Down

And Overall Foreclosure Activity Approaches Normal Levels

Percentage of Loans in Foreclosure Lowest Since 2006

Distressed & Cash Sales Declining, but Still Above Norm

The Mortgage Market

Mortgage Rates are Finally Rising…

…But are Still Near Their Historic Lows

Refinance Activity Falling Fast

Purchase Activity May Not be Enough to Offset Drop

But as Rates Rise, Credit May Loosen

International Investors

International Buyers Account for Over $100 Billion

China, Canada Dominate Purchases

But Interest is Strong from Around the World

Closing Thoughts

¨ 2017 will look very much like 2016¨ Between 5.5-5.6 million existing home sales, and 650,000-700,000 new home sales¨ Prices should rise 5-6%

¨ Inventory weak across the board¨ Lackluster construction, underwater borrowers, declining distressed inventory

¨ Affordability may become a problem¨ Prices continue to outpace wage growth

¨ Household formation slower than expected¨ Lack of starter homes, generational tendencies, and credit availability may skew numbers towards rentals¨ Latino buyers – the fastest growing segment – pose challenges for lenders

¨ Foreclosure crisis finally over¨ Activity should be at normal levels by late 2017¨ Possible that levels will dip below historical norms¨ Note sales by GSEs, major lenders accelerating recovery

¨ Unlikely to hit “full recovery” until late 2018 at the earliest

Thank You!

Rick Sharga

Executive Vice President, Ten-X

rsharga@ten-x.com

@ricksharga

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