Housing Market Outlook The Housing Renaissance Frank E. Nothaft CoreLogic Senior Vice President & Chief Economist August 7, 2015

U.S. Housing Market Forecast Home sales: 2015 expected to be best since 2007 U.S. Home Price Index projected up 4%-5% in next year Headwinds make home-sale recovery sluggish Rental remains robust: vacancy low, rents up

Home Sales: Increase 5% in 2015, Best since 2007 Non-Distressed Resale up every year since 2011 Home Sales (millions) Forecast New Short REO Resale Source: CoreLogic REAS MarketTrends through April 2015, projected after. 2

U.S. Home Prices Projected to Rise 4.5% Next Year Projected to reach prior peak by mid-2017 (2000-17 growth rate 4% per year) CoreLogic Home Price Index (January 2000 = 100) Forecast Source: CoreLogic Home Price Index including distressed sales, January 2000 = 100 (August 4, 2015 release) and CoreLogic REAS HPI Forecasts 3

For-Sale Home Inventory Has Been Very Low Since 2012 Sources: National Association of Realtors, U.S. Census Bureau (New Residential Sales and Housing Vacancy Survey). Note: Existing home inventory excludes Condo & Co-op Inventory before 1999. 4

Months’ Supply, Days on Market, Home-Price Growth Home Price Gain 9 12.4% 5 11.0% 31 4.8% 48 9.0% 22 7.2% 46 9.8% 28 3.7% 88 104 1.5% 100 1.3% 127 Metro Area U.S. 5.9 months Number of Months Source: CoreLogic Home Price Index (percent change, April 2014 to April 2015) and CoreLogic Listing data for April 2015 (median Days on Market for sold properties). 5

Negative Equity Share in U.S.: 10.2%, or about 5 Million Homeowners Source: CoreLogic Equity Report, First Quarter 2015. Louisiana, Maine, Mississippi, South Dakota, Vermont, West Virginia and Wyoming have insufficient equity data to report.

Short & REO Sales Down, non-Distressed Sales Up Percent Change in Sales (Jan-Mar, 2014 vs 2015) -9% Short -11% REO 10% Non-Distressed 7% Total Distressed 2015 Q2: REO 10% 7% Short 3% Source: CoreLogic REAS MarketTrends; 2015 based on 95% collection of data for Q1 and partial data for Q2 7

Underwriting Remains Cautious HCI Factors Credit Score Loan-to-Value Debt-to-Income Broker Share Documentation (Full/Low/No) Adjustable-Rate Mortgage 2015Q2 27 Source: CoreLogic TrueStandings, 2015Q2 based on partial data; 2000Q1 = 100. Bars represent 2001 and 2008-2009 recessions. 8

Underwriting Remains Cautious Purchase Orig. 2000-2001 (Blue) April 2015 (Red) Source: CoreLogic TrueStandings, April 2015 purchase-money originations compared with 2000 and 2001 9

Single-Family Detached Rental Stock Growth 2006–2013 Change in Number of Single-Family Detached Rental Stock 2006 - 2013 Percent Change in Single-Family Detached Rental Stock 2006 - 2013 Source: U.S. Census Bureau, 50 largest metropolitan rental markets; size of bubble represents the size of the single-family rental detached stock. 10

Single-family Rent Growth Strong, Especially in West Rent Growth for 3-Bedroom Detached Houses, April 2014 to April 2015 Rent Atlanta Chicago Dallas Detroit Houston Los Angeles Miami New York Philadelphia Phoenix San Francisco Seattle Washington DC 1043 1613 1341 994 1297 2434 1787 2161 1193 1280 4008 2000 1759 Source: CoreLogic Rental Trends, metropolitan area median rent April 2015

Where to find more information Look for regular updates to our housing forecast, commentary and data at http://www.corelogic.com/about-us/research.aspx Twitter: @CoreLogicEcon The views, opinions, forecasts and estimates herein are those of the CoreLogic Office of the Chief Economist, are subject to change without notice and do not necessarily reflect the position of CoreLogic or its management.  The Office of the Chief Economist makes every effort to provide accurate and reliable information, however, it does not guarantee accuracy, completeness, timeliness or suitability for any particular purpose. CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries. 12