1. (619) 417-1817 anevin@xperagroup.com

2. INTERNATIONAL ECONOMICS  Oil  Interest Rates  Demographics

8. Propensity to Spend

9. THE UNITED STATES

10. CELL PHONES ONLY  64% of Millennials  60% of Hispanics  32% of Baby Boomers  47% Living in the West

13. 75%

16. Do you sense the air is different in the Silicon Valley? “There’s an enormous rejection of constraints.” An interview with Larry Summers in Fortune Magazine

17. MISONEISM FEAR OF CHANGE OR INNOVATION

21. THE NEXT 25 YEARS IN THE U.S. Millennials will inherit $40 Trillion in  Life Insurance  Pension Funds  Life Savings  Home Equity (80% of seniors own homes)  Businesses

22. AMERICA IS THE MATTRESS OF THE WORLD

23. NOW LET’S TALK REAL ESTATE!

24. “THE SITUATION IS HOPELESS, BUT NOT SERIOUS.” “THE SITUATION IS HOPELESS, BUT NOT SERIOUS.” COUNT LEOPOLD BERCKTOLD - 1912

25. NOW, HERE’S THE 2016 FORECAST

27. DEMAND OUTSTRIPS SUPPLY BY 50,000 UNITS

28. San Diego County –2016 Nevinomics Forecast Population growth will continue at 25,000+ Population growth will continue at 25,000+ New jobs will total more than 30,000 New jobs will total more than 30,000 New home sales will improve slightly: 3,500- 4,000 units (1/3rd of normal) New home sales will improve slightly: 3,500- 4,000 units (1/3rd of normal) Few new single family lots will be manufactured Few new single family lots will be manufactured The resale housing market will at least match 2015 with more than 35,000 homes and condominiums sold. The resale housing market will at least match 2015 with more than 35,000 homes and condominiums sold.

29. Interest rates will remain low, Very low. Interest rates will remain low, Very low. Home prices will increase 5-7%, same as in 2014 and 2015 and Home prices will increase 5-7%, same as in 2014 and 2015 and The really big money will be made by owners of apartment projects that reposition their projects by substantially upgrading them. The really big money will be made by owners of apartment projects that reposition their projects by substantially upgrading them.

30. Alan N. Nevin Director, Economic and Market Research (619) 417-1817 anevin@xperagroup.com