Vision Speech 2022

Copyright © 2022 Keller Williams Realty, Inc.
1. Home Sales
The Numbers 2. Home Prices
That Drive U.S. 3. Months Supply of Inventory

4. Mortgage Rates
Real Estate 5. Affordability

1. Home Sales - Annual
Total Sales Total Sales
28.2M 28.2M
6.2 6.1 5.9
6.0
5.7 5.5 5.3 5.3 5.6
5.4 5.3 5.5
5.0 4.9 5.1 4.9
4.7 4.6 4.7 4.6 4.7
4.5 4.4 4.3 4.3
3.8 4.0
3.4 3.5 3.5
3.2
2.9 2.9
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
(proj.)
2022 Sales (Projected) Total Annual Single-Family Home Sales (in Millions)
The Numbers That Drive U.S. Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: National Association of REALTORS®
1. Home Sales - Monthly (Seasonally Adjusted)
6.7 6.7 6.6 6.5 6.7
6.4 6.3 6.3
6.2 6.1
6.0 5.9 5.9 5.9 6.0 6.0 5.9
5.7 5.8
5.4 5.4
4.8
4.4
4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021
2. Home Prices - Annual $347 $378
$343
$222 $224
$166
$94
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
(proj.)
Long-term Average = 4% Annual Median Home Price (in Thousands)
The Numbers That Drive U.S. Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Copyright © 2022 “January Existing Home Sales.” National Association of REALTORS®.
2. Home Prices - Monthly
363K 360K 358K 3.69%
350K 351K 353K 354K 354K
3.62% 341K
326K
306K 310K 312K 313K 311K 309K 311K
304K
287K 294K
281K 284K
266K 270K
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
’20 ’21 ’21
Interest Rate Median Home Price
2. Home Prices - Annual Appreciation
’90-’00 ’01-’05 ’06-’11 ’12-’19 ’20-’22
4.10% 8.26% -4.15% 6.28% 11.67%
17.0%
12.2% 11.5%
8.3% 9.0% 9.0%
7.0% 7.5% 6.8%
5.5% 6.3% 6.3% 5.7% 5.7% 5.0% 4.8%
4.8% 5.2% 5.4%
4.0% 3.8% 4.3% 4.4%
2.9% 2.7% 3.4% 3.1%
1.3% 0.6%
-1.8% -2.7%
-9.8%
-12.5%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
(proj.)
Annual Median Home Price Appreciation
3. Inventory - Annual
10.4
9.4
8.9 8.8
8.3
6.5
5.9
4.9 5.2
4.8 4.5 4.6 4.7 4.7 4.5 4.8
4.3 4.4
3.9 4 3.9
3.1
2.3
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Balanced = 6 months Annual Months Supply of Inventory

3. Inventory - Monthly
4.6
4 3.9
3.3
3.1 3.1 3.1 3
2.6 2.6 2.7
2.4 2.5 2.5 2.4 2.5
2.3 2.3
2 2.1 2.1
1.9 1.9 1.8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021
4. Mortgage Rates - Annual
16.63%
7.81
5.97
2.96
'72 '77 '82 '87 '92 '97 '02 '07 '12 '17 '21
Annual Mortgage Rate (%) Historical Average from ’72-’20 Historical Average from ’90-’20
The Numbers That Drive U.S. Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: Freddie Mac
4. Mortgage Rates - Monthly
4.15%
4.46%
3.62% 3.69%
4.03%
3.67% 3.87%
2.74%
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19
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21
15
16
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18
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20
21
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15
16
17
18
19
20
21
5
1
Monthly Mortgage Rate
The Numbers That Drive U.S. Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: Freddie Mac
5. Affordability
Affordability got slightly worse in 2021 due to rising home prices and mortgage rates.
36 36
31
30
28
26 26
23 24 23 23 23
22 22 22 22 22
20 20 21 21 20 20 21 20 20.3
19 19 20 20 20
20 19
19 19 18
17 17 16 17 17
15 15 15 16 16 16
15 14 14 15
13 13
'70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '21
Long-term Average Affordability

The Numbers That Drive U.S. Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Copyright © 2022 “Affordability Index.” National Association of REALTORS®.
The Numbers 1. Home Sales
2. Home Prices
That Drive 3. Toronto/Vancouver
Canadian Real 4. Months Supply of Inventory

5. Mortgage Rates
Estate 6. Affordability

1. Home Sales - Annual
Canada saw record home sales in 2021.
667
611
536 551
523 504 514
485 485 478 490
460 466 448 460 454 458 459
419 435 433
381
321 324 331 335 333
298 298 315
295
246 261
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
(proj.)
2022 Sales (Projected) Total Annual Single-Family Home Sales (in Thousands)
The Numbers That Drive Canadian Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: The Canadian Real Estate Association (CREA)
2. Home Prices - Annual
Prices increased more than 20% as demand remained strong and inventory remained tight.
740
688
568
510 503
490 489
442
408 4.4%
383
362 363
339
307 305 320
277
249
227
207
172 189
147 142 149 150 153 158 151 151 155 152 158 164
130
94 110
76 80
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
(proj.)
Avg. Home Price (in Thousands C$) 4.4% Growth Projected from 1984
2. Home Prices - Annual, in USD$
Prices increased more than 20% as demand remained strong and inventory remained tight.
581
549
423
393 378 379
367 364 372 370 370
330 346
286 287 281
244
206
174
148
124 122 130 124 119 116 110 111 112 107 111 111 120
105 103
83
59 59 68
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
(proj.)
Avg. Home Price (in Thousands USD$)
3. Toronto/Vancouver
The Greater Toronto Area (GTA) and the Greater Vancouver Area (GVA) have a huge effect on the
nationwide average price.
GVA+GTA % of Pop. Average Price, Jan. ’22 Average Price, Without GVA+GTA
24.2% $748,450 $588,500
Entire Country
Total Pop. | 38,490,000

Greater Vancouver Area
Combined Pop. | 9,318,341
Greater Toronto Area
4. Inventory
Inventory conditions in Canada have placed the country firmly in seller’s market territory.
Seller’s Mkt
78
71 70
66 64 64
63 61 62 62
59 59 60
56 56 54 56 55
53 53
Balanced
50 50 52 52
47 48 47
44 42 42
40 39
33
Buyer’s Mkt
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Home Sales As a Percentage of New Listings 40% 60%

5. Mortgage Rates
Mortgage rates in Canada remain near historic lows, but inflationary pressure may cause them to
rise in 2022.
11.1
9.5 9.5 9.2

8.8
8.4
7.9 7.6
7.1 6.9 7.4 7.1 7.1
7.0 6.7
6.4 6.2
6.0
5.6 5.6 5.4 5.3 5.3 4.9
5.2 5.2 4.9
4.7 4.7 4.8 4.8
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Average Annual Mortgage Rate, 5-Year Fixed (Percentage)

The Numbers That Drive Canadian Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: Bank of Canada
6. Affordability
% change from
Property Type Q3 2020 Q3 2021 % change
average
Detached Bungalow 53.4% 52.1% -1.3% 9.0%
Standard Condo 38.5% 33.8% -4.7% 0.9%
An increase (+) in cost (%) represents deteriorated affordability ( )
A decrease (–) in cost (%) represents improved affordability ( )
The Numbers That Drive Canadian Real Estate | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: RBC
1. 7-Day Moving Average
COVID-19 of U.S. Cases
2. Pandemic to Endemic

1. 7-Day Moving Average - U.S. Cases
903K
Cumulative U.S. Cases 76.8M
Cumulative U.S. Deaths 906K 806K
Cumulative Worldwide Cases 410.2M

Cumulative Worldwide Deaths 5.81M
209K
164K 247K
0
18
16
15
13
12
10
/7
/5
/4
21
31
1
30
28
27
25
24
22
20
2
7
/2
9/
3/
/1
/1
/1
/2
2/
10
11
12
3/
4/
5/
6/
7/
8/
2/
1/
3/
4/
5/
6/
7/
8/
9/
18
10
11
12
14
1/
2/
1/
New Cases Cumulative Deaths
COVID-19 | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: CDC
2. Pandemic to Endemic
COVID-19 is expected to become an endemic virus like the seasonal flu.
1. The key characteristics defining endemic are stability and predictability.
2. New variants are expected and severity will vary from one season to next, but level
of disruption is much lower because of:
a. Widespread existing immunity through vaccines and prior infections.
b. Better treatment regimens for severe disease.
c. Health system adapted to handle expected impacts.
3. Timing of the transition is still uncertain and will vary by location.
COVID-19 | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc.

1. Gross Domestic Product
The U.S. 2. Unemployment

3. Real Wages
Economy 4. Income by Sector
5. Inflation

1. GDP - Annual
5.7
4.8
4.4 4.5
4 4.1 3.9
3.8
3.5 3.5
2.8 2.7 2.8 2.8 2.7 2.7 2.9
2.3 2.3 2.3 2.3
1.9 2 1.8
1.7 1.5 1.7
1
0.1
-0.1
-0.1
-2.6
-2.6
-3.4
-3.4
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Real GDP Year-over-Year Change (Percentage)

The U.S. Economy | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: U.S. Bureau of Economic Analysis
2. Unemployment - Annual
Unemployment is back near pre-pandemic levels but millions are still missing from the labor force.
9.3 9.6
8.9
8.1 8.1
7.5 7.4
6.9 6.9
6.1 6.0 6.2
5.6 5.6 5.4 5.8 5.5 5.8
5.1 5.3 5.4
4.9 4.7 4.6 4.6 4.9
4.5 4.2 4.4
4.0 3.9 3.7
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '21
Unemployment (%)
The U.S. Economy | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: U.S. Bureau of Labor Statistics
2. Unemployment - Monthly
Unemployment is back near pre-pandemic levels but millions are still missing from the labor force.
14.7
13.2
11.0
10.2
8.4
7.9
6.9 6.7 6.7
6.3 6.2 6.0 6.0
5.8 5.9 5.4
5.2
4.4 4.7 4.6
4.2 3.9 4.0
3.7 3.7 3.5 3.6 3.6 3.6 3.5 3.5
Jul '19 Oct '19 Jan '20 Apr '20 Jul '20 Oct '20 Jan '21 Apr '21 Jul '21 Oct '21 Jan '22
Unemployment (%)
3. Real Wages
Real incomes appear to have taken a step back due to inflation in 2021 after setting strong gains last year.
4.3
3.9
2.5
2.0 2.0
1.7 1.7 1.7
1.0 0.8 1.1 0.9
0.6 0.6 0.7
0.4 0.3 0.4 0.3
-0.1 -0.1 -0.0 -0.2 -0.0

-0.3 -0.3 -0.4
-0.6 -0.8 -0.9
-1.3
-2.6
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '21
Mean Hourly Wage Adjusted for Inflation

4. Income by Sector
$1,535
$1,396 10.5%
$1,344 $1,308
$1,229
$1,046 $1,038
6.5%
5.8% 5.9% 6.1%
5.4% 5.4% 5.1% $682
4.9% 5.0% 4.7%
4.1% 3.9% $502
2.1% 2.0% 2.0% 2.0%

1.5%
Financial Professional & Wholesale Construction Manufacturing Education & Transportation Retail Trade Leisure &
Activities Business Trade Health & Warehousing Hospitality
Services Services
YoY% Growth 2020 YoY% Growth 2021 January 2022 Wages

5. Inflation - Annual
Inflation is at a 40-year high as supply-chain issues create shortages and drive up prices.
CPI
7.04%
6.1% Core CPI
5.2% 5.50%
Proj. CPI
2% 2.00%
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24
CPI (Includes Energy and Food) Core CPI (Excludes Energy and Food) Target = 2%
The U.S. Economy | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: BEA
5. Inflation - Annual with Forecasts
CPI
2%
'10 '12 '14 '16 '18 '20 '22 '24
CPI (Includes Energy and Food) Projected CPI, 2022–2024 Target = 2%

5. Inflation - Affordability in Perspective
CAR GAS HOUSE WAGES
Price Mortgage
2021 $46,404 $3.51 $346,900 $1,455 $25.90
1989 $15,350 $0.97 $94,000 $825 $9.80
Adj. for
Inflation
$35,636 $2.25 $218,232 $1,915 $22.75
Real Change
from 1989
30.22% 56.00% 58.96% -24.02% 13.85%
The Canadian 1. Gross Domestic Product
2. Unemployment
Economy 3. Inflation

1. Gross Domestic Product
The Canadian economy is expected to grow again in 2021 after a decline in 2020.
5.2 5.2
4.3 3.9 4.5
2.7 3.0 3.1 3.2 3.1 3.1 2.9 3.0 2.8

2.6 2.3
1.8 1.8 2.1 1.8 1.9
1.6
1.0 0.7 1.0
-2.9
-5.2
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
(proj.)
Real GDP, Year-over-Year Change (Percentage)
The Canadian Economy | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: Org. for Economic Cooperation and Development
2. Unemployment
Unemployment is nearing pre-pandemic levels in Canada.
9.5 9.6 9.5

9.1
8.3 8.4 8.1
7.6 7.7 7.6 7.6 7.3 7.5
7.2 7.2 7.1 6.9 6.9 7.1
6.8 6.8
6.3 6.1 6.2 6.4
5.9 5.7
'95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Long-term Average = 8.2% Unemployment
3. Inflation
Inflation has risen sharply in Canada, creating pressure on the central bank to lower rates.
CPI
3.4%
Core CPI
2.3%
2%
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 ‘05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Rate Target Core CPI (Excludes Energy and Food) Inflation (CPI)
1. Sides Per Agent
2. Distressed Sales
3. Underwater Homes
4. Mortgage Rates and Treasury Notes
U.S. Events 5. Credit Conditions
6. New Home Starts
7. New Home Sales
8. Student Loan Debt
9. Economic Risks in 2022

1. Sides Per Agent
Available sides per agent was flat in 2021 as home sales increased to 6.1 million and the NAR population
reached an all-time high of 1.56 million.
NAR adds NAR sheds NAR adds
550K agents 330K agents 550K agents
Sides per drop Sides per increase Sides per drop
13.5 to 7.5 6.9 to 7.0 9.8 to 7.8
14.0 13.8 2000-2007 2008-2012 2013-2021
9.4 9.9 9.8 10.0

8.0 7.8
7.0 6.9
'77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Historical Average Sides Per Agent

U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Copyright © 2021 “January Existing Home Sales.” National Association of REALTORS®.
2. Distressed Sales
13%
12%
10% 13%
12%
27% 24% 4%
22% 19% 3%
2% 2%
12% 10% 1%
8% 6% 5% 4% 1%1%
1% 1%
1%1% <1%
1% <1%
1%
Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14 Dec '15 Dec '16 Dec '17 Dec '18 Dec '19 Dec '20 Dec '21
Foreclosures Short Sales Not Broken Out
U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: National Association of REALTORS®
3. Underwater Homes
The portion of homes in negative equity continues to fall as home prices appreciate.
24.7 24.4
22.0
13.0
10.3
8.1
6.3
4.9 6%
4.0 3.7 3.0
2.1
Q3 '10 Q3 '11 Q3 '12 Q3 '13 Q3 '14 Q3 '15 Q3 '16 Q3 '17 Q3 '18 Q3 '19 Q3 '20 Q3 '21
Historical Average Underwater Homes (% of Mortgaged Homes)

U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: CoreLogic Homeowner Equity Insights
4. Mortgage Rates and Treasury Notes
20
18.45% - Oct. 1981
17
15.27% - Nov. 1981
13
2.68%
10 - Dec. 2020
0.62%
7 - Jul. 2020
3 3.10%
1.47%
’72 ’77 ’82 ’87 ’92 ’97 ’02 ’07 ’12 ’17 '21
Dec.
’21
10-Year Treasury Mortgage Rate
U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: Board of Governors of the Federal Reserve System (U.S.)
5. Credit Conditions
Credit conditions loosened in 2021, particularly for jumbo and non-QM loans.
Tightening
Steady
Loosening
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
Q2
Q4
'0
'0
'0
'0
'0
'0
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'1
'2
'2
'2
'2
7
7
8
8
9
9
0
0
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
0
0
1
1
Loosening Tightening
U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: FRB SLOOS
6. New Home Starts
1,716 1,465
1,123
1,046
991 1,000
849 876 888
782
715
622 618 648
535
445 471 431
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Long-term Average New Single-family Home Starts (in Thousands)

U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: U.S. Census Bureau
7. New Home Sales
New home sales have recovered since the Great Recession, but took a hit in 2021 as construction
slowed due to supply-chain issues.
1,279
$393K
1,049
822
769 762
685
616 614 650
562
$241K 482 503
430 440
374 368
321 306
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Median New Home Price New Single-family Home Sales (in Thousands) Long-term Average Home Sales
U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: U.S. Census Bureau
8. Student Loan Debt
Student loans are simply part of the conversation now for first-time buyers.
$3.0T $3.0T $3.0T

$2.9T $2.9T
$2.7T
$2.6T
$1.9T
$1.9T
$1.8T $1.8T
$2.1T $2.1T $1.9T $1.8T
$1.9T $2.0T
$1.4T $1.4T $1.5T $1.6T $1.6T

$1.1T $1.2T $1.3T
$0.9T $0.9T $1.0T
$0.6T $0.7T $0.8T
$0.4T $0.4T $0.5T
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Student Loans (in Trillions) All Other Consumer Debt (in Trillions; Excludes Mortgage)
U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: Federal Reserve Bank of New York
9. Economic Risks in 2022
1. Russian Invasion of Ukraine
a. Global impact on energy markets
b. Global impact on financial and equities markets
2. Federal Reserve Policy

a. Fed is set to raise rates three times in 2022 but may get more aggressive based on data.
b. It takes several months for Fed policy impacts to be realized; if Fed moves too quickly, it
could cause growth to stall.
U.S. Events | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc.
1. The World’s Wealthy
Luxury 2. Allocation of Financial

Investments

1. The World’s Wealthy
HNWI* in US HNWI in Canada Global HNWI Wealth of Global HNWIs
Year (in Thousands) (in Thousands) (in Millions) (in US$ Trillions)
2008 2,460 231 8.6 $32.8
2009 2,866 251 10 $39.0
2010 3,104 282 10.9 $42.7
2011 3,068 280 11 $42.0
2012 3,436 298 12 $46.2
2013 4,006 320 13.7 $52.6
2014 4,351 331 14.6 $56.4
2015 4,458 321 15.4 $58.7
2016 4,795 357 16.6 $63.5
2017 5,285 377 18.1 $70.2
2018 5,322 362 18.0 $68.1
2019 5,909 392 19.6 $74.0
2020 6,575 403 20.8 $79.6
’08-’20 Increase 167.3% 74.5% 141.9% 142.7%
*HNWI = High Net Worth Individuals
Luxury | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Sources: Capgemini and RBC Wealth Management
2. Allocation of Financial Investments
Real Cash/ Fixed Stock Alternative
Year Estate Deposits Income Market Investments
2008 18% 21% 29% 25% 7%
2009 18% 17% 31% 29% 6%
2010 19% 14% 29% 33% 5%
2012 20% 28% 16% 26% 10%
2013 19% 27% 16% 25% 14%
2014 18% 26% 17% 27% 13%
2015 18% 24% 18% 25% 16%
2016 18% 24% 18% 25% 16%
2017 14% 27% 18% 31% 10%
2018 17% 27% 16% 31% 9%
2019 16% 28% 18% 26% 13%
2020 15% 25% 17% 30% 13%
2021 15% 24% 18% 30% 14%
Luxury | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Sources: Capgemini and RBC Wealth Management. *No data for 2011.
1. Job Growth
Commercial 2. Commercial Vacancy Rates

3. Loan Delinquency Rates

1. Job Growth
Businesses in the U.S. added a net 6.1M jobs in 2021 but employment is still below pre-pandemic levels.
4,000
3,080
2,000
611
0
-2,000
-780
-4,000
-6,000
-7,303
-8,000
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
3-Month Moving Average of Net Jobs Added, in Thousands 0 Jobs Added

Commercial | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: U.S. Bureau of Labor Statistics
2. Commercial Vacancy Rates
1. Recovery in multifamily was driven by

household formation, and rental demand
should remain high as mortgage rates
and home prices increase.
2. Remote working has deeply impacted

office space and vacancies remain high.
Commercial | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: NAR Analysis of CoStar Data
3. Loan Delinquency Rates
Delinquency rates on commercial RE loans remain near zero.
12.49%
9.13%
4.0%
0.98%
0.85%
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Average '91 to present Commercial Real Estate Loan Delinquency Rate

Commercial | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: FRED
Industry 1. Great Convergence
2. Industry Developments

1. Great Real estate companies
and agents
Portals Insurance
Convergence
SEARCH
Transaction frictions Fintech (mortgage,
(iBuying, power
BUY fractional ownership,
buyers, concierge …) OWN rent to own …)
SELL
Title and escrow Home builders
Institutional buyers
Industry | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc.

2. Industry Developments
1. Zillow shutters Zillow Offers, purchases ShowingTime and announces Super App
2. Power Buyers help an estimated 15K consumers in a low inventory market
3. Commercial data giant CoStar jumps into residential with a series of acquisitions
4. Federal eviction moratorium expires and foreclosures remain low
5. Nonbank lenders gain market share and pivot to purchase as refi market wanes
6. Brad Inman sells Inman News
Industry | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc.

National Association
of REALTORS ®
2021 Profile of Home Buyers and Sellers

First-Time Home Buyers
The level of first-time home buyers remains well below the historic norm.
50%
47%
42% 42% 42% 42%

41%
40% 40%
39% 39% 40%
38%
37%
36%
35%
34% 34%
33% 33% 33%
32%
31%
'95 '97 '99 '01 '03 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
First-time Home Buyers

National Association of REALTORS® | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc. Source: 2021 Profile of Home Buyers and Sellers
Primary Reason for Purchasing a Home
2006 2010 2016 2017 2018 2019 2020 2021
Desire to own a home 32% 31% 31% 30% 29% 29% 27% 28%
Desire for a larger home 14 9 10 10 9 9 10 11
Desire to be closer to family/friends * 5 7 8 8 9 9 10
Change in family situation 9 8 8 8 7 8 8 7
Desire for a home in a better area 8 5 6 7 7 7 6 7
Job-related relocation or move 12 7 8 8 8 7 6 5
Desire for a smaller home 5 3 6 5 5 6 6 5
Retirement 4 3 5 5 5 5 5 5
Establish a household * 2 3 2 2 3 2 3
Desire to be closer to job/school/transit 7 3 3 4 3 3 3 2
Affordability * 6 3 3 2 2 3 2
Financial security * 1 2 2 2 2 2 2
Desire for a newly built or custom-built home N/A N/A 2 2 2 2 2 2
* Less than 1%
Tenure in Previous Home
2007 2010 2016 2017 2018 2019 2020 2021
1 year or less 6% 3% 3% 4% 9% 4% 4% 8%
2 to 3 years 23 8 10 10 15 13 11 16
4 to 5 years 17 16 11 12 12 14 14 14
6 to 7 years 13 18 12 10 8 11 12 10
8 to 10 years 13 17 15 14 12 10 11 9
11 to 15 years 12 17 21 21 17 16 16 15
16 to 20 years 7 8 11 11 11 12 13 11
21 years or more 10 13 16 17 16 19 20 18
Median 6 8 10 10 9 10 10 8
Buyer’s Expected Tenure
Buyers expect to stay in their home longer than they actually do. Stay in touch so that even if your client’s
move is unexpected, you are top of mind.
2006 2010 2016 2017 2018 2019 2020 2021

1 year or less 1% 1% 1% 1% 1% 1% 1% 2%
2 to 3 years 11 3 3 3 5 5 5 5
4 to 5 years 18 12 9 9 14 14 14 16
6 to 7 years 7 3 3 3 4 4 4 4
8 to 10 years 12 13 15 14 22 20 23 23
11 to 15 years 6 5 6 6 10 10 9 9
16 to 20 years 20 22 26 27 43 45 44 41
Don’t Know 24 42 38 36 1 1 1 1
Median 8 10 12 15 15 15 15 2
Weeks in Home Search
12 12 12 12 12
10 10 10 10 10 10 10
8 8 8 8 8
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
First Step in Buying Process
2007 2010 2016 2017 2018 2019 2020 2021
Looked online for properties for sale 32% 36% 44% 42% 44% 44% 43% 41%
Contacted a real estate agent 20 19 17 17 17 16 18 19
Looked online for information about the buying process 12 11 13 12 11 12 9 10
Contacted a bank or mortgage lender 7 8 7 8 7 7 7 9
Talked with a friend or relative about the buying process 9 7 6 6 6 6 7 7
Drove by homes/neighborhoods 1 7 6 6 6 5 6 5
Visited open houses 7 4 3 3 4 4 4 2
Contacted a builder/visited builder models 1 1 1 1 1 1 2 2
Contacted a home seller directly 2 1 1 1 1 1 2 1
Looked up neighborhood information * * 1 1 1 1 1 1
Attended a home buying seminar 1 2 1 1 1 1 1 1
Looked in newspapers, magazines, or home buying guides 5 2 1 1 1 1 1 *
* Less than 1%
Information Sources Buyers Use
2006 2010 2016 2017 2018 2019 2020 2021
Real estate agent 85% 88% 92% 89% 86% 87% 87% 87%
Mobile or tablet search device N/A N/A 72 74 73 73 76 74
Open house 47 45 50 52 53 51 53 41
Online video site N/A N/A 36 39 37 35 41 40
Yard sign 63 57 49 48 46 39 41 35
Home builder 26 16 14 19 18 15 18 19
Print newspaper advertisement 55 36 16 15 13 11 10 7
Home book or magazine 34 23 12 12 10 7 8 6
Billboard 9 5 4 5 5 4 4 4
Television 11 7 3 2 3 3 3 2
Relocation company 5 3 3 3 3 3 3 2
Where Buyers Found the Home
They Purchased
2006 2010 2016 2017 2018 2019 2020 2021
Internet 24% 37% 44% 51% 49% 50% 52% 51%
Real estate agent 36 38 33 34 31 28 29 28
Friend, relative or neighbor 8 6 6 4 6 7 6 6
Home builder or their agent 8 4 6 2 6 5 4 5
Yard sign/Open house sign 15 11 9 8 7 7 6 7
Directly from sellers/Knew the sellers 3 2 2 1 2 3 3 3
Print newspaper advertisement 5 2 1 1 1 1 * *
Home book or magazine 1 * * * * * * *
Other * * * * * * * *
* Less than 1%
Value of Website Features
Detailed property info 80% 16% 3% 96%
Property photos 84% 12% 3% 96%
Floor plans 55% 30% 6% 9% 85%
Details about recently sold properties 39% 42% 9% 10% 81%
Neighborhood info 37% 44% 9% 10% 81%
Virtual tours 43% 34% 8% 15% 77%
Real estate agent contact info 43% 30% 13% 14% 73%
Pending sales/Contract status 39% 33% 14% 14% 72%
Interactive maps 34% 34% 13% 19% 68%
Videos 28% 34% 14% 24% 62%
Info about upcoming open houses 20% 33% 21% 26% 53%
Virtual open houses 12% 21% 20% 47% 33%
Virtual listing appointments 10% 17% 21% 52% 27%
Very Useful Somewhat Useful Not Useful Did Not Use Very Useful /
Somewhat Useful
Method of Home Purchase
5%
8%
77% 77% 79% 81% 77% 83% 89% 89% 88% 88% 87% 88% 86% 87% 89% 88% 87%
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Agent or Broker Builder or Builder's Agent Previous Owner Other

Buyer Representation Agreement
Buyer representation agreement is a crucial protocol to maintain transparency and to align expectations
between buyers and agents.
2006 2010 2016 2017 2018 2019 2020 2021

Yes, a written arrangement 44% 40% 42% 40% 40% 39% 40% 40%
Yes, an oral arrangement 20 17 16 17 16 19 17 17
No 26 29 29 28 31 28 28 27
Don’t know 11 13 14 15 14 14 15 16
What Buyers Want from Their Agent
Help finding the right home to purchase 52%
Help negotiating sale terms 13%
Help with price negotiations 11%
Help with paperwork 8%
Price of comparable home sales 6%
Help determine what buyer can afford 4%
Help find and arrange financing 3%
Teach buyer about neighborhood 2%
Help find renters for buyer's property Less than 1%
How Buyers Found Their Agent
2006 2010 2016 2017 2018 2019 2020 2021
Referred by (or is) a friend, neighbor, or relative 40% 48% 42% 42% 41% 41% 40% 47%
Used agent previously to buy or sell a home 13 9 11 12 12 12 13 13
Inquired about specific property viewed online N/A N/A N/A N/A 7 7 7 7
Website 7 10 9 9 6 5 6 7
Referred by another real estate agent or broker 5 3 5 5 5 6 5 5
Saw contact information on for sale/open house sign 7 6 4 4 4 3 3 5
Visited an open house and met agent 7 7 6 6 5 5 6 4
Personal contact by agent (telephone, email, etc.) 3 3 3 4 3 4 4 3
Referred through employer or relocation company 4 3 3 2 2 2 2 2
Walked into or called office and agent was on duty 4 5 2 2 1 1 1 1
Mobile or tablet application N/A N/A 1 1 1 1 1 1
Other 7 7 11 11 11 11 10 6
* Less than 1%
Buyer Interviews
Buyers overwhelmingly went with the first or second agent they met – you need to get there first!
2006 2010 2016 2017 2018 2019 2020 2021
One 65% 64% 69% 70% 68% 75% 73% 73%
Two 20 21 19 17 20 15 16 16
Three 10 10 8 8 8 7 7 7
Four or more 5 6 4 6 5 3 4 4
Most Important Factors for Buyers
An agent’s honesty/trustworthiness, experience, and reputation matter the most to buyers.
Honest and trustworthy 20%

Experience 19%
Reputation 17%
Friend or family member 13%
Knowledge of neighborhood 8%
Caring personality/Good listener 6%
Timely with responses 6%
Seems 100% accessible (technology) 4%
Association with company 1%
Active in community 1%
Professional designations 1%
Other 4%
Home as a Financial Investment
Is real estate a good financial investment? Is real estate a better investment than stocks?
Good investment Better

Not a good investment About as good
11% Don’t know 15% Not as good
3%
50%
35%
86%
Buyer: Repeats and Referrals
'21 75% 15% 5% 4% 90%
'20 76% 15% 5% 4% 91%
'19 75% 15% 5% 4% 90%
'18 74% 16% 5% 4% 90%
'17 74% 15% 6% 5% 89%
'16 73% 15% 6% 5% 88%
'15 72% 16% 5% 5% 88%
'14 73% 15% 5% 5% 88%
'13 73% 15% 6% 4% 88%
'12 74% 15% 5% 4% 89%
'11 72% 17% 5% 4% 89%
Definitely Probably Probably Not Definitely Not Don’t Know Definitely / Probably
Buyer and Seller Satisfaction
Consumers continue to express satisfaction with the process of buying and selling a home.
2% 3%
5% 6%
21%
32%
61%
70%
Very satisfied
Somewhat satisfied
Somewhat dissatisfied
Very dissatisfied
Buyer Satisfaction Seller Satisfaction
How Sellers Found Their Agent
2006 2010 2016 2017 2018 2019 2020 2021
Referred by (or is) a friend, neighbor, or relative 44% 41% 39% 41% 39% 39% 41% 39%
Used agent previously to buy or sell a home 30 23 25 23 24 27 26 29
Personal contact by agent (telephone, email, etc.) 5 4 4 5 5 5 4 4
Referred by another real estate agent or broker 4 4 4 3 3 3 4 4
Website 2 4 4 5 4 4 5 3
Visited an open house and met agent 5 4 4 4 4 3 3 2
Saw contact information on for sale/open house sign * 3 2 2 2 2 1 2
Referred through employer or relocation company 3 3 2 2 2 2 1 1
Direct mail (newsletter, flier, postcard, etc.) 3 2 2 2 2 1 1 1
Walked into or called office and agent was on duty * * 1 1 2 1 1 1
Other 2 6 10 10 12 10 11 15
* Less than 1%
Seller Interviews
Number of agents sellers contacted before deciding with whom to sell.
2006 2010 2016 2017 2018 2019 2020 2021
One 69% 66% 72% 74% 75% 75% 77% 82%
Two 18 19 16 15 13 15 13 10
Three 9 10 8 7 8 8 7 5
Four or more 4 6 4 3 3 3 4 3
What Sellers Want from Their Agent
Help price the home competitively 21%
Help seller market home to potential buyers 20%
Help sell the home within specific timeframe 16%
Help seller find ways to fix up the home to sell it for more 16%
Help find a buyer for home 12%
Help with negotiations and dealing with buyers 6%
Help with paperwork/inspections/preparing for settlement 5%
Help seller see homes available to purchase 1%
Help create and post videos for tour 1%
Most Important Factors for Sellers
An agent’s reputation, honesty/trustworthiness, and whether they’re a friend or family member matter
the most to sellers.
Reputation 32%
Honest and trustworthy 19%
Friend or family member 17%
Knowledge of the neighborhood 11%
Caring personality/Good listener 5%
Commission 4%
Association with company 4%
Seems 100% accessible (technology) 3%
Professional designations 1%
Other 5%
Compensation Negotiations
2007 2010 2016 2017 2018 2019 2020 2021
Real estate agent initiated discussion of compensation 39% 44% 48% 48% 47% 46% 44% 47%
Client brought up the topic and the real estate agent was
31 25 22 20 21 22 23 20
able and willing to negotiate their commission or fee
Client brought up the topic and the real estate agent was
9 9 6 8 6 5 5 5
not willing or able to negotiate their commission or fee
Client did know commissions and fees could be

9 10 11 10 11 10 13 13
negotiated but did not bring up the topic
Client did not know commissions and fees could be

13 11 14 15 15 18 15 15
negotiated
Seller: Repeats and Referrals
'21 74% 15% 6% 5% 89%
'20 74% 15% 5% 5% 89%
'19 73% 14% 7% 5% 87%
'18 69% 17% 6% 7% 86%
'17 67% 18% 7% 7% 85%
'16 70% 15% 7% 6% 85%
'15 67% 17% 7% 7% 84%
'14 68% 15% 8% 7% 83%
'13 65% 19% 8% 7% 84%
'12 66% 18% 7% 7% 84%
'11 69% 16% 8% 5% 3% 85%
Definitely Probably Probably Not Definitely Not Don’t Know Definitely / Probably
Method Used to Sell Home
2006 2010 2016 2017 2018 2019 2020 2021
Sold home using an agent or broker 84% 88% 89% 89% 91% 89% 89% 90%
For sale by owner (FSBO) 12 9 8 8 7 8 8 7
Sold home to a home-buying company 1 1 1 * 1 1 1 1
Sold through an iBuyer program N/A N/A N/A N/A N/A N/A * *
Other 3 3 2 2 1 2 2 2
* Less than 1%
Incentives Offered to Attract Buyers
2010 2016 2017 2018 2019 2020 2021
None 56% 64% 63% 66% 66% 67% 74%
Home warranty policies 25 21 21 18 17 17 13
Assistance with closing costs 20 16 16 13 14 14 9
Credit toward remodeling or repairs 5 6 8 7 8 8 7
Other incentives (car, TV, etc.) 4 5 4 4 3 3 2
Other 5 3 4 4 4 4 3

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Copyright © 2022 Keller Williams Realty, Inc.

That Drive U.S. 3. Months Supply of Inventory

Copyright © 2022 Keller Williams Realty, Inc.

Balanced = 6 months Annual Months Supply of Inventory

Long-term Average Affordability

Canadian Real 4. Months Supply of Inventory

Copyright © 2022 Keller Williams Realty, Inc.

24.2% $748,450 $588,500

Total Pop. | 38,490,000

Combined Pop. | 9,318,341

Greater Toronto Area

Home Sales As a Percentage of New Listings 40% 60%

9.5 9.5 9.2

Average Annual Mortgage Rate, 5-Year Fixed (Percentage)

Detached Bungalow 53.4% 52.1% -1.3% 9.0%

Standard Condo 38.5% 33.8% -4.7% 0.9%

An increase (+) in cost (%) represents deteriorated affordability ( )

A decrease (–) in cost (%) represents improved affordability ( )

Copyright © 2022 Keller Williams Realty, Inc.

Cumulative Worldwide Cases 410.2M

1. The key characteristics defining endemic are stability and predictability.

3. Timing of the transition is still uncertain and will vary by location.

COVID-19 | Vision 2022 Copyright © 2022 Keller Williams Realty, Inc.

The U.S. 2. Unemployment

Copyright © 2022 Keller Williams Realty, Inc.

Real GDP Year-over-Year Change (Percentage)

-0.1 -0.1 -0.0 -0.2 -0.0

Mean Hourly Wage Adjusted for Inflation

2.1% 2.0% 2.0% 2.0%

YoY% Growth 2020 YoY% Growth 2021 January 2022 Wages

'10 '12 '14 '16 '18 '20 '22 '24

CPI (Includes Energy and Food) Projected CPI, 2022–2024 Target = 2%

2021 $46,404 $3.51 $346,900 $1,455 $25.90

1989 $15,350 $0.97 $94,000 $825 $9.80

Copyright © 2022 Keller Williams Realty, Inc.

2.7 3.0 3.1 3.2 3.1 3.1 2.9 3.0 2.8

9.5 9.6 9.5

Long-term Average = 8.2% Unemployment

4. Mortgage Rates and Treasury Notes

U.S. Events 5. Credit Conditions

6. New Home Starts

7. New Home Sales

8. Student Loan Debt

9. Economic Risks in 2022

Copyright © 2022 Keller Williams Realty, Inc.

9.4 9.9 9.8 10.0

Historical Average Sides Per Agent

Foreclosures Short Sales Not Broken Out

Historical Average Underwater Homes (% of Mortgaged Homes)

Long-term Average New Single-family Home Starts (in Thousands)

$3.0T $3.0T $3.0T

$1.4T $1.4T $1.5T $1.6T $1.6T

2. Federal Reserve Policy

Luxury 2. Allocation of Financial

Copyright © 2022 Keller Williams Realty, Inc.

Commercial 2. Commercial Vacancy Rates

Copyright © 2022 Keller Williams Realty, Inc.

3-Month Moving Average of Net Jobs Added, in Thousands 0 Jobs Added

1. Recovery in multifamily was driven by