KW Convention

Vision speech from Keller Williams Family Reunion Feb 12, 2012

Gary Keller and Jay Papasan

The numbers that drive real estate

  • Home sales
  • Home prices
  • Inventory
  • Mortgage rates
  • Affordability

Home sales activity has increased 1.7% in 2011 yet home prices in 2011 contracted again by 3.9%. The median sales price remain at the lowest level since 2003. Historical appreciation rate for long term is 4%

Is this a good time to buy? Depends. What is your purpose of buying?

Inventory as a country is at 8.3 months supply.

Mortgage rates continue to decrease with 30 year rate at 3.7%, which is the lowest in history! How much lower can it go?

1% in interest rate increase equals 10% drop in home price as far as house payment is concerned.

From 2007 to today, the price of construction has decreased 17%

Affordability of the housing market is the lowest in HISTORY! Homes are the most affordable in the United States than they have been since numbers have been recorded.

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