Athertyn May 2013 Market Update

The Headlines

February 8, 2007: HSBC Warns of Subprime Losses

March 16, 2008: Bear Stearns Collapses

September 15, 2008: Lehman Brothers Declares Bankruptcy

October 8, 2009: Bush Signs $700 BillionBailout

October 9, 2009: Stocks Tumble

November 6, 2009: Unemployment Reaches Above 10%

Athertyn potential buyers

Pending Sales

2011 over 2010 - 21%%

2012 over 2011 + 22%

2013 over 2012 + 21%%

Months Supply of Inventory

It comes down to jobs and income

• 3.2 million jobs created in the last

four years

• 15.3% increased personal income

in the last four years – 3.6% a year

Decisions led by lifestyle

– Pent up demand

– Demographics

– Household formations

– Housing obsolescence

– Desire for second homes

– Lifestyle change

–Rising rents

–Lack of new construction

inventory

–Fewer foreclosures

Where are we now?

• Low inventory = rising prices

• More sellers will enter market

• Doesn’t pay to wait 2 or 3 years

What about the future?

• Slow growth – next 6 months critical

• Strong manufacturing

• Continued job and income growth

• Decrease in dependency on foreign oil

• Economy back to “normal” by 2016

Housing

• Growth limited by lack of inventory

• Good long-term investment

• 80% view homeownership as essential

• Emotional reasons for owning a home

• No longer buying home for ATM

Athertyn appeals to Lifestyle Buyers

“What do I want to

do for the next 15 to

20 years of my life?”

They “get it” now!

Lifestyle buyers

• Two decisions: – Do they want to change?– What choices are available

• Longer purchase cycles– Lifestyle decision– Looking at alternatives

– No pressing need