2017 Economic Summit & Real Estate Forecast Kevin Risen, Moderator

Thank You Partners

The Presenters…

The Red Hot Rental Market, Is it Sustainable and Healthy? Jeff Bacheller, President/Owner, Real Property Management Colorado

Colorado’s Real Estate Market Leads the Nation, How So and Why? Chris Mygatt, President & COO of Colorado’s Top Real Estate Source – Coldwell Banker Real Estate

The Metro Denver Economic Outlook Pam Reichert, VP Metro Denver Economic Development Corp.

Is the Global and National Economy Really This Good and For How Long? Elliot Eisenberg, Ph.D., Chief Economist and Global Business Consultant

The Rental Market Update

The Red Hot Rental Market, Is it Sustainable and Healthy? Jeff Bacheller, President/Owner, Real Property Management Colorado

The Red Hot Rental Market, Is It Sustainable and Healthy? Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

Jeff Bacheller, Co/Owner of Real Property Management Colorado Servicing the Denver and Colorado Springs Rental Market for 10 years Currently Manage 1,255 Individually Owned Properties These include Single-Family Homes, Townhomes, Condos, and Small Apartment Buildings Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

Trending Topics JOBS CU Leeds School of Business predicts 63,000 new jobs in 2017 in the Metro Area Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

Trending Topics Single Family REITS Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

Multi-Family Building Continues Trending Topics Multi-Family Building Continues RealPage estimated 11,000 new doors came online in 2016 and estimates an additional 13,000 new apartment doors in 2017 Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

So Much Data… What to Believe Zillow is predicting rental rates to rise in 2017 by 2.5% RealPage is anticipating 4.4% Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

So Much Data… Where are we now? Colorado Division of Housing Q4 Report 2016 Overall Vacancy Rate is 3.2% 4 Bedroom Properties have the highest vacancy rate and 2 bedroom properties have the lowest Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company Highest Vacancy Rate is in Denver at 5.2% and the lowest is Boulder/Broomfield at 0%

So Much Data… Average Rents Were $1,338 1 bedroom: $920 Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company Average Rent = $1.08 sq/ft

What’s An Investor To Do? Single-family rentals will remain strong Keep your tenants if you can Renewal rent increases are currently averaging 4.2% Downtown market is saturated Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company New lease rent increases are currently averaging 3.05% Choose micro-markets such as Arvada, Aurora (new R-Line is open), and Littleton

Happy Investing in 2017! Talking Points: Thank you for being at the meeting today. It’s an important one Not your “usual” sales meeting or annual kick off. Today’s meeting is the result of months of gathering YOUR feedback and listening to what YOU need to grow your business and create more pride in YOUR company

The Residential Market Update

Colorado’s Real Estate Market Leads the Nation, How So and Why? Chris Mygatt, President & COO of Colorado’s Top Real Estate Source – Coldwell Banker Real Estate

What’s the Housing Market up to?? National Outlook Regional Outlook Local Outlook

What’s the Housing Market up to??

What’s the Housing Market up to?? Nationally….

Up 6.2%

Up 10.6%

Total Existing Home Sales, SA Annual Rate 5.79 Million Homes Sold (highest since Feb. 2007)

Median Price of Existing Home Sales Avg. Sales Price: $228,900

Where are sales happening Data from the Realtors® Confidence Index

Sales by Price Range

What’s the Housing Market up to?? Regional….

WWW.FHFA.GOV

This Time Last Year…

This Year…

Bottom of The Market…

Palm Bay/Melbor +13.18% 1 Bismarck, ND 0.0% 258 Market Inc/Decr Ranking Palm Bay/Melbor +13.18% 1 Fort Collins-Lov +10.48% 10 Greeley +10.44% 12 Den-Aurora-Lakewood +10.71% 14 Boulder +10.15% 15 Colorado Springs +7.63% 51 Pueblo +6.40% 81 Grand Junction + 4.92% 132 Bismarck, ND 0.0% 258

What’s the Housing Market up to?? Front Range Local….

2016 Up .3% Units Sold 49,940 51,551 51,230 Avg. Sales Price $340,000 $360,000 $401,000 DOM 40 33 35 Year 2014 2015 2016 Updated -sc

2016 Up 9.5% Updated -sc

2016 Down 18.6% YOY 2015 Down 31.9%

Updated -sc

Northern Colorado Snapshot Weld County Median Sales Price : Up 10.1% Average Sales Price : $312,634 (up 6.6%) Homes for Sale: Down 26.8% Larimer County Median Sales Price: Up 10.2%, Average Sales Price: $394,952 (up 9.8%) Homes for Sale: Down 20.9% Lack of re-sale inventory. New construction is helping to meet consumer demands.     Multiple offers on nearly every listing Source: IRES Updated-sc

Southern Colorado Snapshot Colorado Springs Top Ranked best place to live in America Downward pressures on market by low inventory Multiple offers priced under $300k All-Time High Average Sales Price Hit in January at $302,000 North Colorado Springs still very active due to Denver/Split Commuter Households Updated-sc

What’s the Housing Market up to?? Luxury…

Highest Priced Sold in Colorado …

Asking Price: $24.5 Million Highest Priced Sold in Colorado Asking Price: $24.5 Million Sold Price: $24.0 Million 6 Beds 6 Baths 8,710 sq. ft. Taxes: $32,979 720 WILLOUGHBY WAY, ASPEN

Asking Price: $7.0 Million Highest Priced Sold in Metro Denver Asking Price: $7.0 Million Sold Price: $7.0 Million 5 Beds 6 Baths 7,751 sq. ft. Taxes: $8,561 333 Milwaukee street, DENVER

Lowest Priced Sold (for fun)…

Lowest Priced Sold… Asking Price: $104,888 Sold Price: $92,777 2 Beds 1 Baths 1180 Yosemite St., DENVER

Real Estate is a Local Phenomenon…

Market report

Ask: Your Coldwell Banker Realtor Market & Area Report Ask: Your Coldwell Banker Realtor OR Email: chris@coldwellbanker.com

2017 Forecast…

2017 Forecast… Number of Homes Sold will increase slightly, unlike 2016 Prices will move UP, but modest! Standing Inventory will remain low Luxury Home Market will continue to strengthen First-Time Buyer will continue to feel the squeeze – But there is good news!

Driving the Market... First Time Buyer Demand improving – Millennials Weakness in the Investment Buyer Demand ````````````````````````````````````````` 100,000 Net Increase in Population – Relocation Unemployment Forecast to Remain at Historic Lows ```````````````````````````````` If Owners Don’t Have a Place to Go. They Won’t List `````````````````````````````` Builder’s are Creating Added Inventory, but not fast

Strategies for 2017 - 2018 If Buying… If Selling…. Ned a Loan Pick an agent that knows the Neighborhood Waiting is NOT a good strategy If Selling…. Happy Pricing Matters Staging Matters Moving up? Moving down?

The Metro Denver Economic Outlook…

The Metro Denver Economic Outlook Pam Reichert, VP Metro Denver Economic Development Corp.

Is the Global and National Economy Really This Good and For How Long? Elliot Eisenberg, Ph.D., Chief Economist and Global Business Consultant