Christine Todd's powerpoint presentation from the Dec. 7, 2010 International Forum year-end celebration.

1. NVAR International Year-End Celebration December 7, 2010

2. What’s happening in our market? Northern Virginia market: In some ways we are like the rest of the country In others ways we are very different And in many ways, we have one of the best markets in the nation!

3. Have we hit the bottom? -Indicators say “yes” and “no”! -Recovery is slow and painful -First time buyers and cash investors drove first half of 2010 recovery -Prices up, inventory weak but we see fewer short sales (thank goodness)

4. Today’s Real Estate Market 30-year mortgage rate is at generational lows, under 5% National median-home price is stabilizing, $170,000 Inventory is still very high Foreclosures more of a problem than short sales Source: NAR

5. The U.S. market today The economy is growing….slowly The private sector is finally creating some jobs, corporate profits are up Consumer confidence remains low, though clearly off bottom Source: NAR

7. Investors still purchasing inventory with cash

8. Job losses and unemployment show improvement in our region

9. Economy will continue to slowly expand in 2011Source: Gerald L. Gordon ,PH.D President and CEO, Fairfax County Economic Development Authority

10. Recent Major Economic Development Activity in Fairfax County Northrop Grumman selects Fairfax County for new corporate headquarters, joining CSC Hilton Worldwide Science Applications International Corporation Volkswagen of America More on the way!

11. Northern Virginia Market Population is growing New jobs are being created Unemployment around 5% and (would be lower if population were not growing) Prices up, inventory steady Foreclosure/Short Sales market shrinking

12. Benefits of Living in Fairfax County Source: Jerry Gordon, President and CEO of the Fairfax EDA

14. Record high $569,826 June, 2007

15. Record low $376,669 Jan., 2009

16. 2010 first half average sales price - $472,762

17. October average sales price- $ 470,882Over 7% increase over last year

18. NAR: Record number of first-time homebuyers(Survey finds most buyers applied for tax credits) First-time homebuyers accounted for half of all home sales from July 2009 through June 2010 based on 8,449 responses to a survey sent nationwide. This is the highest share of first-time-buyer purchases in the history of the survey, which dates back to 1981.

19. Tax Credit was Huge Success 1 million additional buyers 1 million fewer inventory units Reduced months supply by 2 to 2.5 months Preserved Housing Wealth by nearly $1 trillion Limited future foreclosures

20. Long Standing Housing Policy Mortgage Interest Deduction If eliminated, estimated about a 15% loss in home values FHA Self-financing without ever needing taxpayer funds, but threatened Fannie and Freddie Made big mistakes and need to be restructured

21. ?

23. Research, white papers

25. Support NAR's Call For Action by calling your Representatives to ask their help in defending home ownership and the Mortgage Interest Deduction.They need to hear from YOUtoday. For more info, please visit realtoractioncenter.com/realtor-party/click-to-call-mid

26. Suggested Talking Points I am a constituent and a REALTOR®. I have been on the front lines of the housing crisis. I can assure you that even talk of changing MID harms an already fragile market. I am strongly opposed to the Deficit Commission's proposal to limit or eliminate the Mortgage Interest Deduction. News reports saying that Congress threatens to repeal or limit MID will keep potential buyers on the sidelines and further delay the housing recovery.

27. Suggested Talking Points Please oppose any efforts to reduce or eliminate the Mortgage Interest Deduction in any future deficit reduction proposals or legislation. Thank you for helping to ensure the ongoing recovery of the housing market. As a member of the National Association of REALTORS®, I appreciate your belief that home ownership matters. If you call outside of office hours, please leave a voice mail communicating the message above.

28. Public Awareness Campaign: What Matters Most ? “What Matters Most ?” reminds homeowners, buyers and sellers alike that homeownership remains the foundation of the American Dream. The advertising materials underscore the value that REALTORS® bring to communities and their clients, and explain that REALTORS® are prepared—to show you options, answer your questions and guide you home.

30. NAR Real TV ad let’s watch

36. Low mortgages

37. Save on taxes

38. It’s yours!

39. A better home

40. Forced savings

41. A lot to choose from

43. First-time Buyers Median Household Income $59,900 Median Square Feet 1540 Median Age 30

44. Home Owners' Net Worth Is More Than 40 Times That of Renters

45. Housing Wealth Gains

46. Economists Expect Price Increases in Upcoming Years Northern Virginia Region already beyond these national estimates

47. Sample Markets with Price Increases % change from one year ago Source: Lawrence Yun, Ph.D.,Chief Economist and Senior Vice-President of NAR

48. Home SalesDipping in 3rd quarter of 2010, then rising

49. Pending Contracts on Existing Homes Tax Credit Impact

50. Existing Home Sales Source: NAR

51. Housing StartsGradually rising

52. New Homes Construction 2.1 million In 2006 500,000 new starts in 2010 VS

53. Future Housing Shortage? Source: Lawrence Yun, Ph.D.,Chief Economist and Senior Vice-President of NAR

54. Dr. Yun’s predictions “Over the next 12 months, I will be watching Lexington, KY and Washington, DC to outperform the rest of the country”! May, 2010

60. NVAR Counties- October, 2010 Stats

61. Supply and Demand (NVAR)

62. 2010 Sold Listings October

63. 2010 Under Contracts October

64. 2010 Ave. Sales Price (NVAR) October Record High- $578,689 (June 2006) Record Low- $376,669 (January 2009)

65. Economic GrowthSlow growth, but still positive

66. NAR Challenges in the Coming Years Ensure flow of capital into the Real Estate market Creating access to affordable property insurance Preserving the value of homeownership Improving professionalism of REALTORS® Fighting the attack on Home Ownership MID……are you ready for the fight?

67. Take advantage of this new member benefit for all 2011 members by learning how to make use of these form fillable documents. Please visit nvar.com/nvar-news/free-instanetforms-for-members

68. The IdentitySecure® Program for REALTORS® is the newest offering from NAR's REALTOR Benefits® Program and is among the most comprehensive fraud security solutions available today Find out about all the protection benefits of IdentitySecure®. Your first month is just $1. Visit the IdentitySecurewebsite for more information and to sign up. www.identitysecure.com/NAR

69. NEW! Auto Loan Offer Get a fixed low rate on a new or used vehicle with a 20% down payment. NEW! Individual Retirement Accounts (IRAs) -Plan for your future today with Traditional, Roth and SEP Savings & Certificate accounts Realtorsfcu.org

70. Health Insurance Realtors® Core Health Insurance Plan Guaranteed acceptance Low cost starting at $70.69 per month Choose any provider RealtorsCoreHealthInsurance.com/AE

71. Dental Insurance For more information: visit us online at RealtorsDentalInsurance.com

72. REALTOR.ORG

73. houselogic.com

75. Happy Holidays