May 24, 2013

RE: Update on Key Development Milestones

Dear Pronghorn Property Owners and Club Members,

Welcome to Summer 2013 at Pronghorn!!! We all are excited to hear from many members about how great the golf courses are playing. A lot of hard work from the maintenance staff over the last 12 months, as well as some cooperating weather early in the season, has helped to accomplish this goal.

I am happy to update you on some key accomplishments and milestones for Pronghorn.

The following are the highlights since the last update was sent to you in February:

Development

-          A new Improvement Agreement (IA) with Deschutes County was finalized in the first quarter of 2013. The new IA brings Pronghorn Resort into compliance with all County codes and ordinances

-          SB Architects was engaged In April to commence conceptual design and planning for the new hotel

-          Overnight lodging facilities, an improved spa, new banquet facilities and other improvements are currently in the early design phase

Pronghorn Club and Resort

-          The Club & Resort is now free and clear of any debt or encumbrances

-          New member & guest transportation fleet delivered in May 2013 (3 Suburban LTZs)

-          New equipment has been ordered for the Fitness & Movement Studio, which ls planned to be in place in June

-          Auberge will announce Pronghorn Lodge facilities in June

-          A marketing and promotion campaign will be launched to promote the lodge and additional resort improvements

Dear Sotheby’s International Realty® Brokers,

I would like to extend my congratulations to our companies named on the REAL Trends
500, an annual research report that identifies the country’s largest and most successful
residential firms as ranked by closed transaction sides and separately by closed sales
volume. REAL Trends, Inc. is a leading source of analysis and information on the
residential brokerage and housing industry.

On the report, issued this month, there were 24 Sotheby’s International Realty firms on
the closed sales volume list and 11 on the closed transactions sides list. We are very
proud of all the companies recognized, and wish you continued success this year:

• William Pitt/Julia B. Fee Sotheby’s International Realty
• Premier Sotheby’s International Realty
• Russ Lyon Sotheby’s International Realty
• Sierra/Summit/Fuller Sotheby’s International Realty
• Daniel Gale Sotheby’s International Realty
• HOM Sotheby’s International Realty
• ‘ITR Sotheby’s International Realty
• Briggs Freeman Sotheby’s International Realty
• ONE Sotheby’s International Realty
• Aspen Snowmass Sotheby’s International Realty
• Prominent Properties Sotheby’s International Realty
• Jackson Hole Sotheby’s International Realty
• Atlanta Fine Homes Sotheby’s International Realty
• Gibson Sotheby’s International Realty
• Jameson Sotheby’s International Realty
• Ewing & Associates Sotheby’s International Realty
• Today Sotheby’s International Realty
• Kuper Sotheby’s International Realty
• Callaway Henderson Sotheby’s International Realty
• Pacific Sotheby’s International Realty
• Heritage House Sotheby’s International Realty
• Lakes Sotheby’s International Realty
• Cascade Sotheby’s International Realty
• Williams Trew Sotheby’s International Realty

Sincerely,
Philip White
President and Chief Executive Officer
Sotheby’s International Realty Affiliates LLC

• How far their easy-money policies should be pushed
• Where to go with their bond-buying program, with it’s $85 billion-a-month budget

According to analysts, the bond-buying program is responsible for helping to keep the US mortgage interest rates at such historical lows. It has also helped with boosting the prices of assets, as well as stimulating spending and hiring.

Officials within the federal government have been debating about when it will be appropriate to start winding the program down. They’re concerned that our economy may not be ready to survive without the bond-buying. They fear that the current signs of recovery may be temporary, just like in the past.

On Tuesday, these reports became major factors that drove the financial markets. The strong data encouraged stock investors, sending the industrial average of Dow Jones to new heights. The 10-year Treasury note yields increased to their highest peak in about 13 months, to 2.132%.

This data shows that our economy as a whole is headed in the right direction. But, according to Scott Buchta of Brean Capital LLC, it’s probably not enough for the federal government to scale back on bond buying.

Standard & Poor’s/Case-Shiller also released a national index this past Tuesday. It shows a 10.2% increase in home prices between March 2012 and March 2013. This reflects the highest annual gain since 2006, when home prices began falling.

Also on Tuesday, 30-year fixed rate mortgages inched up to 3.9%. In the meantime, home prices are still 28% lower than they were during the market peak in 2006. Between the low prices and record-low interest rates, homes in the US continue to remain affordable.

Americans consider houses to be our biggest financial assets. So, analysts believe that increasing home prices can really help to boost consumer confidence. These gains will also stop many homeowners from being distressed by being underwater. Increasing prices mean more padding between what they owe on their homes and how much they’re currently worth.

Currently, there are still not enough homes on the market to meet demands. This is intensifying buyer urgency even more. Homebuilders have taken advantage of this situation by building new homes across the US. Eventually, as the supply increases, so will home prices.

As demand continues to outnumber supply, real estate agents have been contacting potential sellers about intense demand in their local communities. They’re becoming more and more aggressive when it comes to keeping homeowners informed about their local market conditions.

Ms. Lee, a condo owner, had been renting out her property to tenants for four years. She listed the unit for sale n April. Within just one week, she received six different offers. When it closed escrow, it went for just above her asking price of $275,000.

Her real estate agent, Mr. Bryan, says he’s sent out 200 postcards to local condo owners. His goal was to flushed out potential sellers. His postcards had one message on the front in big, bold letters, “Got Belltown Condo?”

Source: http://money.cnn.com/2013/04/30/real_estate/home-lotteries/index.html

http://www.i-newswire.com/tetherow-lodge-ground-breaking/220472

http://realtormag.realtor.org/daily-news/2013/04/12/mortgage-rates-sink-lower-again-week

A local development group has made plans to built a subdivision that will be located southeast of Central Oregon Community College. The 20-lot subdivision plans are a revival of a previous proposal from another developer. These plans came to a halt when the housing market and economy tanked out in 2008.

The new developers are Green Intentions LLC. They recently filed an application during mid-March with the city of New Bend to build the new subdivision. Their application details their plans for converting 5.4 acres of vacant land into 20 single-family homes, right off of Northwest College Way.

Property boundaries begin to the east of College Way, between Portland Avenue and Saginaw Avenue, and extends almost to Quincy Avenue.

Jim Guild, a development partner for Green Intentions, declined to comment Monday on the specifics. However, he did state that the group may be ready to make an announcement about their plans as early as this summer. Guild says that they are still in the process of getting their marketing strategy formulated.

Currently, the plan is still going through the motions of the city of New Bend’s development process. The developers filed blueprints with the city that shows plans for a new road. It will be located on Saginaw’s south side, right across from Cascade View Drive. The road will end in two separate cul-de-sacs, before it reaches Portland Avenue.

Aaron Henson, Bend’s Senior Planner, announced that there’s a public comment period for local community residents that’s running through Monday. Shortly after this, city planners just may give the new development project the seal of approval.

Henson says that the new proposal was almost identical to the previous application, which was filed back in 2006. He isn’t expecting many, or any, major issues or surprises.

Plans made by the previous owner also involved turning the vacant lot into a subdivision. According to official city documents, they were able to complete the new road’s preliminary grading and install the infrastructure for the sewage system before the real estate market crash in 2008. It was at that time that the previous developer’s approved plans lapsed.

According to property records of Deschutes County, in 2005, CHC Development LLC paid $1 million for the vacant land parcel. By 2008, CHC found themselves suing the city because flooding issues due to stormwater. In 2009, their case was closed. As noted in country and state records, they lost the vacant land in 2010 to foreclosure.

In 2012, Green Intentions purchased the parcel out of foreclosure for $825,000.

Development plans show that there are currently four dry wells installed along where one of the proposed cul-de-sacs will be located. Their purpose will be to prevent flooding on the site during rain storms by catching the stormwater.

Within the last year alone several projects have come about that could help completely change College Way’s landscape south of COCC in the new future. In November, John Gilbert, Bend developer, purchased a 3-acre, partially developed site. It’s located just across Green Intentions’ land on College Way.

Economists at Fannie Mae have predicted that the sales of existing homes in the US will increase by 10.5 percent by the end of 2013. By 2014, sales are expected to increase by 6.2 percent. Sales in the single-family home market are predicted to increase 15.1 by the end of 2013, and 44.1 percent by the end of next year.

According to the report, home prices are expected to increase at the rate of the current housing recovery. This will have a huge impact on boosting the net worth of US homes. The amount of homeowners who are underwater borrowers is expected to diminish gradually, while reducing strategic default incentives.

Fannie Mae Mortgage Rate Predictions

Fannie Mae made another prediction related to mortgage rates. They believe these rates will remain at record-low averages throughout 2013. However, 30-year fixed-rate mortgages will continue increasing. During the first quarter of 2013, the average was 3.5 percent. This average is expected to increase to 4 percent by the last quarter of 2013. The mortgage rate prediction for the last quarter of 2014? It’s during this time that the rates are projected to increase by an average of 4.5 percent.

The amount of homebuyer mortgage applications is also expected to increase this year by 16.8 percent. By 2014, the amount of applications should increase by 17.1 percent. However, Fannie Mae is predicting that decline in the number of refinancing applications will more than likely cause the amount of mortgage loan originations to decrease by 14.5 percent in 2012, and 31.4 percent next year.