The State of the Housing Market Today Housing Renaissance San Diego, CA August 2012 Stan Humphries, PhD Chief Economist stan@zillow.com 206.470.7127

Home values are stabilizing (June ZHVI for US) Home values are back to 2004 levels ZHVI covers 83 million single-family, condo, coops and excludes foreclosure re-sales. Source: Zillow

Home values are stabilizing (June ZHVI for US) Source: Zillow

Affordability is at historic highs (United States)

Affordability is at historic highs (Phoenix)

Affordability is at historic highs (Miami)

Affordability is at historic highs (Las Vegas)

All but two metros have historically high affordability

Wide variation in how markets have fared during downturn Decline in home values from peak levels Source: Zillow

…and how they will fare over coming year Source: Zillow

And wide variation at sub-metro level

And wide variation at sub-metro level

And wide variation at sub-metro level

And wide variation at sub-metro level

Negative equity will have a significant impact on the market… Source: Zillow

Negative equity will have a significant impact on the market… Loan to Value Distribution for Homeowners with a Mortgage (U.S.) Source: Zillow

…but not entirely in the way we thought it would.

…but not entirely in the way we thought it would.

…but not entirely in the way we thought it would.

Foreclosure crisis continues to fuel rental demand Source: Zillow

Over the last year, rents have significantly appreciated Year-over-Year Zillow Rent Index Source: Zillow

In many metros, the price-to-rent ratio has been falling

Many metros have incredibly low breakeven horizons

About In-depth research and monthly reports Real Estate Metrics www.zillow.com/research Real Estate Metrics Zillow Home Value Index % homes in negative equity List prices Sale prices Rental prices Home sales $ value/square foot $ price/square foot Sale-to-list price ratio % listings with price cuts $ amount of listing price cuts % homes sold for loss/gain % homes foreclosed % sales that are foreclosure re-sales % homes increasing/decreasing in value % homes sold in the past year Interactive data portal www.zillow.com/local-info

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