15 Year Closing 15 Year Closing New Construction & Resale History New Construction & Resale History 25,000 20,000 RESIDENTIAL RESIDENTIAL 15,000 MARKET UPDATE MARKET UPDATE 10,000 Van Rose, MIRM 5,000 Van Rose, MIRM President, Rose and Womble Womble New Homes New Homes President, Rose and 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 March 12, 2008 March 12, 2008 Resale New Construction Source: Hampton Roads Housing Stats Hampton Roads Housing Stats 2007 2007 � � Average Price of SF New Home Average Price of SF New Home SALES SALES $434,672 $434,672 � � A Decrease of $5,344 or 1.2% A Decrease of $5,344 or 1.2% � 15.25% RESALE: 18,527 � 15.25% RESALE: 18,527 � � Average Price of SF Existing Home Average Price of SF Existing Home $283,406 $283,406 � 10.23% NEW HOMES: 3,562 � 10.23% NEW HOMES: 3,562 � � An Increase of $12,895 or 4.1% An Increase of $12,895 or 4.1% Source: Source: Hampton Roads Residential Sales Market Share for Detached Hampton Roads Residential Sales Sales by Price Range 1999 to 2007 1999 to 2007 Resale New Construction 100% 7% 951 506 30,000 877 6% 21% 18% 17% 2,511 >$500,000 18% 75% 25,000 436 18% 18% 22% 26% 26% $400K to $500K 19% 20,000 25% 25% 50% 33% 791 $300K to $400K 15,000 9,560 69% <$300,000 25% 10,000 658 28% 5,000 0% 0 Resale Detached New Construction 1999 2000 2001 2002 2003 2004 2005 2006 2007 Detached Source: Source: 1
Market Share for Attached Market Share for Attached Average Market Time Average Market Time Sales by Price Range Sales by Price Range Existing Homes Existing Homes 154 3% 100% 90 80 78 77 76 4% 209 212 72 80 24% 69 69 66 1308 28% >$400,000 70 61 75% Days on Market 60 $300K to $400K 300 48 35% 46 50 50% 36 $200K to $300K 40 27 28 3061 65% 30 <$200,000 265 25% 31% 20 10 84 10% 0% 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Resale Attached New Construction Attached Source: Source: 2007 Southside Average Closing Prices 2007 Southside Average Closing Prices Single Family Detached Homes Single Family Detached Homes 2007 2007 Resale NC Diff CLOSINGS CLOSINGS $522,277 $600,000 $438,994 $432,476 $500,000 $360,801 $400,000 $305,322 � 15.5% $285,920 RESALE: 18,667 � RESALE: 18,667 15.5% $300,000 $161,476 $153,074 $127,154 $200,000 � 15.3% NEW HOMES: 4,131 � 15.3% NEW HOMES: 4,131 $100,000 $0 Virginia Beach Chesapeake Suffolk Source: Source: 2007 Peninsula Average Closing Prices 2007 Southside Average Closing Prices 2007 Peninsula Average Closing Prices 2007 Southside Average Closing Prices Single Family Detached Homes Single Family Detached Homes Single Family Detached Homes Single Family Detached Homes Resale NC Diff Resale NC Diff $462,416 $451,107 $500,000 $500,000 $401,864 $450,000 $450,000 $364,226 $400,000 $400,000 $327,355 $307,087 $312,035 $350,000 $350,000 $255,588 $300,000 $300,000 $235,014 $220,499 $203,717 $250,000 $250,000 $191,353 $166,850 $150,381 $200,000 $200,000 $123,638 $86,588 $150,000 $86,881 $150,000 $64,235 $100,000 $100,000 $50,000 $50,000 $0 $0 Hampton Newport News York County Portsmouth Norfolk Isle of Wight Source: Source: 2
Average Sq Ft Average Sq Ft 2007 Peninsula Average Closing Prices 2007 Peninsula Average Closing Prices New Construction Single Family Detached New Construction Single Family Detached Single Family Detached Homes Single Family Detached Homes Resale NC Diff 2 0 0 3 $ 1 0 4 per sq ft $453,475 2 ,5 6 2 SF $441,871 $432,042 $500,000 2 0 0 4 $ 1 2 3 per sq ft $450,000 $392,703 $322,038 $400,000 2 ,6 4 1 SF $350,000 $263,049 2 0 0 5 $ 1 4 9 per sq ft $300,000 $250,000 2 ,7 4 2 SF $200,000 $150,000 2 0 0 6 $ 1 6 1 per sq ft $60,772 $58,989 $100,000 -$9,829 2 ,6 4 7 SF $50,000 $0 2 0 0 7 $ 1 5 5 per sq ft -$50,000 2 ,7 4 4 SF James City County Williamsburg Gloucester Source: Source: New Construction Product Mix New Construction Product Mix New Construction Price Points New Construction Price Points 1% 3% 2% 1% <$300,000 4% Single Family $300K to $400K Detached 21% 8% $400K to $500K Multi-Story $500K to $600K 37% Condo $600K to $700K 11% 15% Multi-Plex 60% $700K to $800K Condo $800K to $900K 8% Townhome/ $900K to $1 million Duplex 29% $1 million+ Source: Source: Single Family Building Permits January 2008 vs January 2007 CHALLENGES CHALLENGES � 40% � U.S. � 31% � Northeast 31% FOR FOR � 36% � South South 36% � 37% � Midwest Midwest 37% 2008 2008 � 54% � West West 54% � 19% � Hampton Roads 19% Source: NAHB 3
Inventory Buyer Confidence Resale 10,595 units 9 months supply New Homes 2,225 units 8.8 months supply Source: Lack of Construction during 2 nd half of 2008 Over 10,000 units of mixed use approved in Hampton Roads Credit: Perception versus Reality PREDICTIONS PREDICTIONS FOR FOR 2008 2008 4
Hampton Roads Hampton Roads Product shortage in the Employment to Permit Ratio 2 nd half of 2008 Employment to Permit Ratio Change in Employment Permits Issued E/P Ratio 20,000 2.50 18,000 16,000 2.00 14,000 12,000 1.50 10,000 8,000 1.00 6,000 4,000 0.50 2,000 0 0.00 2000 2001 2002 2003 2004 2005 2006 2007 Data Sources: Bureau of Economic Analysis, Regional Economic Modeling Inc., 1/29/2008 U.S. Census Bureau (Permits)-Note: 2007 permits are estimated) Deals will be gone by the 2 nd half of 2008 Financing Financing will be will be King King New, affordable product New, affordable product offerings will raise new home offerings will raise new home sales numbers sales numbers Readjusting Readjusting Starting at $169,900 of Supply/ of Supply/ Demand Demand Imbalance Imbalance 5
# 5 Hampton Roads Top 5 Builders AND THE AND THE WINNERS WINNERS ARE ARE…… …….. .. 134 Source: # 4 # 3 255 158 # 1 # 2 370 295 6
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