RE/MAX Cimarron

Housing Market Rebound Seen in 2012

RE/MAX Agents See a Recovering Housing Market in the New Year

Denver, CO – The U.S. housing market will continue a slow recovery in 2012,
led by stabilizing home prices and increasing sales. Those are among the key
findings of a year-end survey of one thousand RE/MAX real estate agents who
say housing’s vital signs are gaining strength. The quarterly RE/MAX Market
Insights survey provides analysis of the national housing market from the
perspective of active RE/MAX agents around the country.

Improving numbers
The majority of RE/MAX agents surveyed say housing prices will stay the
same, or increase in 2012. Projections are the strongest for the Southern U.S.
where 49.6% say prices will stabilize and 26.7% anticipate an increase. Agents
in the Northeast see the biggest challenges, with 47.5% concluding that prices
will decrease, 44.6% expecting prices to remain at 2011 levels, and only 7.9%
anticipating an increase.

Nationwide, RE/MAX agents reported a 10.7% increase in their home sales in
2011, and project an increase of 29.3% in 2012. Asked to measure the strength
of home sales, 62.1% of agents predict good to very good sales in 2012. Survey
results are also available in an online infographic.

“A sense that home prices and sales are improving indicates that the housing
market is positioned for a gradual recovery in 2012,” said RE/MAX Chief
Executive Officer Margaret Kelly. “These agents have the best perspective on
industry trends since they average more home sales than agents with any other
national firm.”

Obstacles remain
The major obstacles to the housing recovery cited by agents include sagging
consumer confidence, followed by lack of economic growth, unemployment,
concerns of more price declines and bank procedures.

Agents report that 52% of closings were significantly delayed in 2011, with
bank procedures cited as the cause in 23% of the cases, followed by financing
and appraisals. For sales that were canceled, bank procedures again was the
leading reason, while financing, sales price and appraisals also were factors.

The majority of agents say such delays and cancellations were higher in 2011,
than in 2010.

Buyers and sellers more realistic
Asked to grade buyers and sellers on how realistic they are about home prices,
RE/MAX agents gave both groups a B-. That compares with a C+ for buyers
and a C- for sellers at the start of 2011.

Common misconceptions reported by RE/MAX agents are sellers thinking their
home is still worth as much as it was four or five years ago before the housing
slump, and buyers believing that extremely low offers will eventually be
accepted.

“It’s certainly a positive trend that buyer and seller perceptions are changing to
adjust to current conditions,” Kelly said. “Those who are misinformed and try
to time the market, rather than address immediate housing needs, can lose
valuable opportunities.”

Other findings of the RE/MAX Market Insights survey, conducted Dec. 7-19
among randomly selected agents, include:

• Market bottoming out: Thirty-nine percent said their markets have already hit
bottom; 34% say prices will stop dropping in 2012; 27% says prices will reach
their lowest point in 2013 or beyond.

• What government can do to help housing market recover: 1) Streamline short-
sale process; 2) Focus on job creation; 3) Increase refinancing help for
underwater home owners; 4) Standardize lending practices; 5) Release
foreclosed properties more aggressively.

• Five most common buyer incentives that agents are seeing: 1) Reduce sales
price; 2) Pay closing costs; 3) Make repairs; 4) Buy home warranty; 5) Pay
origination fees or points.

• Distressed sales: RE/MAX agents project that 20.3% of their home sales in
2012 will consist of foreclosures and short sales. That compares with 17.1% in
2011 and 15% in 2010.

RE/MAX agents have sold more real estate in the U.S. than any other company
since 1998. They averaged 13.1 sales per agent in 2010. To find an agent or
view homes for sale, go to www.remax.com.

Online survey of 1,004 U.S. RE/MAX agents specializing in residential real estate,
conducted in December 2011. ©2012 RE/MAX, LLC. Each office independently
owned and operated.

DECEMBER 2011 - Volume 40

November Home Sales Higher than
Last Year: Prices Continue Stabilizing

November home sales were 8.1% higher than sales in November 2010,
according to The RE/MAX Monthly Housing Report, a survey of housing
data from 53 metropolitan areas. November is the 5th consecutive month
to show a year-over-year sales increase. At the same time, the number of
homes for sale, or inventory, continued to fall for the 17th straight month.
November home prices were 1.4% higher than October, making the 5th
month in 2011 that prices have risen month-to-month. However, home
prices remained 4.2% lower than prices in November last year.

              YEAR-OVER-YEAR

TRANSACTIONS          SALES PRICE

UP  8.1%                      DOWN 4.2%

In November, Closed Transactions were
5.7% lower than October transactions,
which reflects the normal seasonal trend.
However, November transactions were
8.1% higher than those seen in November
one year ago. For the last five months,
transactions have been higher than what
was reported in 2010 for the same period.
Of the 53 metro areas included in the
survey, 41 saw increased sales over
November 2010, including: New Orleans,
LA +31.0%, Nashville, TN +30.1%,
Wilmington, DE +28.0%, Omaha, NE
+ 25.9%, and Seattle, WA +23.4%.

MEDIAN SALES PRICE

NOV 2011  - $181,322

NOV 2010  -  $189,353

MEDIAN SALES PRICE

The Median Sales Price of homes sold in
November was $181,322, which is 1.4%
higher than the price in October. During
2011 prices have risen in five months and
declined in six, not demonstrating a clear
trend in either direction. Home Prices for
November were 4.2% lower than what was
seen in November 2010. In this month’s
survey of 53 metro areas, 33 showed price
increases from October, while 9 reported
increases over November last year,
including: Orlando, FL +8.5%, Miami, FL
+6.1%, Detroit, MI +5.9%, Houston, TX
+2.6%, and Denver, CO +2.3% .

DAYS ON MARKET – AVERAGE OF 53 METRO AREAS

The average Days on Market for homes sold in
November was 97, just 2 days higher than the
average of 95 reported in October, and 4 days
higher than the average seen in November 2010.
Only two months in 2011 saw a Days on Market
below 90. July and September both reported 88,
which represents the lowest average seen in the
last 12 months. Days on Market is the number of
days between first being listed in an MLS and
when a sales contract is signed.

MONTHS SUPPLY OF INVENTORY – AVERAGE OF 53 METRO AREAS

For the 17th straight month, the November
inventory of homes-for-sale fell. The average
inventory of homes-for-sale in the 53 metro
areas surveyed dropped 8.3% from October and
23.7% from November last year. Given the
current rate of sales, and the active inventory,
the resulting Months Supply is 7.8, just slightly
higher than the 7.7 reported last month, but
significantly lower than the 10 month supply
seen in November 2010. Months Supply is the
number of months it would take to clear a
market’s active inventory at the current rate of
sales. A six-month supply is considered a
balanced market between buyers and sellers.

CONTACT
For specific data on the 53 metropolitan areas in this report or to request an interview, please call (303) 796-3667.

ABOUT THE RE/MAX NETWORK
RE/MAX was founded in 1973 by Dave and Gail Liniger, real estate industry visionaries who still lead the Denver-based global
franchisor today. RE/MAX is recognized as a leading real estate franchisor with the most productive sales force in the industry
and a global reach of more than 80 countries. With a passion for the communities in which its agents live and work, RE/MAX is
proud to have raised more than $100 million for Children’s Miracle Network Hospitals, Susan G. Komen for the Cure® and
other charities. Nobody in the world sells more real estate than RE/MAX. Please visit www.remax.com or
www.joinremax.com.

DESCRIPTION
The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on
MLS data in approximately 53 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the
largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the
specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.

DEFINITIONS
Transactions are the total number of closed residential transactions during the given month. Month’s Supply of Inventory is the total number of residential
properties listed for sale at the end of the month (active inventory) divided by the number of sales contracts signed (pended) during the month. Where
“pended” data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is
listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median price of all residential
properties sold during the month.

MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be
guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report
re-calculates the previous period’s data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.
© copyright 2011 RE/MAX, LLC.

Top 10 Predictions for Residential Real Estate

RE/MAX Co-Founder Sees Good News for Homebuyers and Sellers

Denver, CO – As the country shakes off the effects of the worst economic
recession in recent history, the residential real estate market is beginning to
rebound, and Dave Liniger, Chairman and Co-Founder of the leading real estate
franchise RE/MAX, sees several positive factors that could take hold in 2012.

“Interest rates will remain at or near historic lows and home prices will
stabilize and start to rise by the end of the year,” said Liniger “There’s no
question, the housing recovery will be slow and steady, but for many cities the
turn-around is already happening.”

With interest rates lower than most people have ever seen, and prices lower than
they’ve been in years, the current marketplace has created a unique environment
that may not be repeated for decades.

“Informed and savvy consumers and investors recognize there’s great
opportunity in this market and they are leading the way to recovery,” Liniger
added.

Dave Liniger’s Top 10 Real Estate Predictions for 2012 are:
1. Continued low interest rates
2. Home prices stabilizing and starting to rise
3. Increasing numbers of home sales
4. Rising inventories, mostly due to increased foreclosures
5. Distressed properties will make up about half of all sales
6. An improved Short Sale process to help avoid foreclosure
7. Homeownership rates continue to fall
8. Foreign and domestic investors will buy 25% of homes
9. Increasing reliance on real estate agents
10. Increased use of Mobile and Social technologies

Watch Dave Liniger’s 2012 Forecast Video to see more detail on his predictions
and to hear him speak about several factors that could help speed-up a housing
recovery.

Dave Liniger co-founded the RE/MAX organization in 1973 and has been
working in real estate for over 40 years. Recently, he has dedicated his efforts
to promoting solutions to the housing crisis and working to place the housing
industry on the road to a sustainable recovery.

Specifically, Liniger is a strong advocate of foreclosure alternatives like Short
Sales and he has been advising Washington policymakers and national lenders
regarding a streamlined Short Sale process that would help American families
avoid the traumatic foreclosure process, and other critical housing issues.

For information please visit www.remax.com or www.joinremax.com.

# # #

About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, real estate industry visionaries who still lead the Denver-based global franchisor today. RE/MAX is recognized as one of the leading real estate franchise companies with the most productive sales force in the industry and a global reach of more than 80 countries. With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $100 million for Children’s Miracle Network Hospitals, Susan G. Komen for the Cure® and other charities. Nobody in the world sells more real estate than RE/MAX.  For more information about RE/MAX, please visit www.remax.com or www.joinremax.com