Demonstrating desirable property valuations is very difficult in the current market environment. Low transaction volume hinders traditional Comparative Property Analysis valuations and Residual Land Value analysis often results in undesirable conclusions.

The Five Year Supply & Demand Model consists of over 100 data points, a portion of which are listed below and are updated monthly with current data. This is a forward looking model based on commonly accepted assumptions that are a guide to determine future demand for housing, lots and land:

Supply Data Points (portion):
Resale (Bank Owned & Traditional), Builder Inventory, SFR Defaults, Foreclosures (Subprime, Traditional & Strategic), SFR Starts, and Alt-A Loan Influence

Demand Data Points (portion):
Employment Growth, Value & Affordability, Population Growth, Retirement Age In-Migration, and Second Home Demand

The Five Year Residual Land Model is a companion study to the Supply & Demand Model. Simply stated, in this report we apply Supply & Demand conclusions to New Home Median pricing, minus hard/soft construction costs resulting in the estimated Residual Land Value over the next five years.

Significant Data Points include:

• Estimated Annual Median Home Price
• Interest Rates
• Estimated Annual Labor & Materials Cost
• Median Density per Acre
• Lot Construction Cost