Tidewater Builders Association Builder Breakfast Presentation: The Regional Housing Market and Strategies for 2009

Current Supply in the Marketplace Total Number of Homes sold in the last 12 months:18,622 Monthly Absorption Rate 1,551 Number of homes on the market14,753 Months Supply on the market : Month Market Trend Total Number of Homes sold in the last 6 months:9, 907 Monthly Absorption Rate 1,651 Number of homes on the market14,753 Months Supply on the market: Month Market Trend Total Number of Homes sold in the last 3 months: 4, 405 Monthly Absorption Rate 1, 468 Number of homes on the market14,753 Months Supply on the market: 10

Sold Homes in last 12 months2328 Monthly Absorption Rate 194 Number of homes on the market1,813 Months Supply on the market 9.3 Chesapeake Sold Homes in the last 6 months1,476 Monthly Absorption Rate 246 Number of homes on the market1,813 Months Supply on the market 7.4 Sold Homes in last 3 months 610 Monthly Absorption Rate 203 Number of homes on the market 1,813 Months Supply on the market 8.9

Sold homes in last 12 months 1,782 Monthly Absorption Rate 149 Number of homes on the market1,626 Months Supply on the Market 11 Sold homes in last 6 months1,104 Monthly Absorption Rate 184 Number of homes on the market1,626 Months Supply on the Market 8.8 Sold homes in the last 3 months 508 Monthly Absorption Rate 169 Number of homes on the market1,626 Months Supply on the Market 9.6 Norfolk

Suffolk Sold homes in the last 12 months 985 Monthly Absorption Rates 82 Number of homes on the market1283 Months Supply on the market 16 Sold homes in the last 6 months 586 Monthly Absorption Rate 98 Number of homes on the market 1283 Months Supply on the market 13 Sold homes in the last 3 months 267 Monthly Absorption Rate 89 Number of homes on the market 1283 Months Supply on the market 14

Virginia Beach Sold homes in the last 12 months4,915 Monthly Absorption Rate 409 Number of homes on the market3,376 Months Supply on the market 8.2 Sold homes in the last 6 months2,961 Monthly Absorption Rate 493 Number of homes on the market 3,376 Months Supply on the market 6.8 Sold homes in the last 3 months 1,332 Monthly Absorption Rate 444 Number of homes on the market3,376 Months Supply on the market 7.6

Sampling of Sites by City Chesapeake: # Sold Avg $ Eagle Point 48 $ 348, $343,200 Edinburgh 15 $1,023,100 5 $964,800 Hampshires 44 $ 285, $281,000 Olde Mill Run 23 $ 401, $419,100 Oneford Place 12 $ 276,100 5 $257, 200 Vance Level 11 $ 581, $519, 700

Sampling of Sites by City Suffolk: # Sold Avg $ # Sold Avg $ Belleharbour 11 $374, $343,300 Governor’s Pt 16 $608, $602,500 Harbour Breeze 6 $460,200 3 $389,600 Kings Fork Farm 20 $350, $303, 300 Riverfront 15 $940, $831, 600 Saddlebrook 19 $520, 900 1$535, 000

Sampling of Sites by City Virginia Beach: # Sold Avg $ # Sold Avg $ Heritage Park 52 $729, $662,100 Lake Archway 8 $391, $360, 600 Lexington 83 $326, $298, 000 Ridgely 243 $282, $246, 700 Woodbridge 70 $396, $390, 600

Sampling of Sites by City Isle of Wight # Sold Avg $ # Sold Avg $ Eagle Harbor 22 $537, $476, 300 Charthouse 39 $225, $229, 900 Villas of Smithfield 30 $264, $265, 800 Wellington 19 $371, $356, 900 Norfolk East Beach35 $777, $707, 800 Harbor Walk 2 $406, $367, 700 Portsmouth New Port 15 $309, $238, 600

Strategies for 2009 There will always be a certain amount of buyers in the market place who are going to buy and are going to buy “new” versus “used”. Position yourself to get your share. How? Be sure your site does not look neglected: Your competing with resale and you must make your house look like a “home” Have competitive pricing…we saw the inventory and know the price points that are selling…as best you can get in line with that range Have tools for your sales team to demonstrate the value of your product and how living in your house will improve their lives

We conducted a survey of all our (363) buyers that purchased a home in 2008 from our New Homes Division Here is some of the information we found from the respondants

Here’s what we found… Location is still a huge factor over price Our prospects are not only buyers but co-broke agents No surprise, buyers are taking longer to decide and looking at more homes before they buy and re-sale is our number one competition 41% looked at over 16 homes before they bought 79% considered a “used” home before they bought 26% took over (10) months to make their decision Buyers are looking for functional space-to live LARGER than their present home Most buyers that visit your sites are “be backs” as has they have visited your site online before they came in person 55% of the buyers visited williamewood.com before they visited our sites

Here’s what we found… Top features that caused them to choose one model versus another…in order… Location Overall Design Price Builder Reputation Ability to Customize

Bottom Line When asked the “main reason for your move”? The responses in order were: LARGER home Military Transfer Closer to work Retirement School District

The best strategy you can take in 2009 is to recognize that the buyer will move in order to IMPROVE THEIR LIFE! If you don’t believe that…reflect on our election Be sure that you have a script that shows your unique selling position and how the functional features of your house will make their life better. Figure out what they don’t like about their home now and show them how your product is better. "The secret of success is to do the common things uncommonly well." ~ John D. Rockefeller