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The Stricker/TenBroeck Team’s

FIRST QUARTER 2009 REAL ESTATE REPORT

The Stricker/TenBroeck Team’s

FIRST QUARTER 2009 REAL ESTATE REPORT

www.JeffAndSteve.com

Specialists in Marketin Peninsula Real Estate Since 1987

Dear Friends and South Peninsula/Silicon Valley Residents,

As a service to our clients and the residents of the communities we serve, we publishanalysis and sales statistics for each quarter, plus an annual report. Hopefully, this information provides you with a clear understanding of current real estate trends and typical home values in your community.Please enjoy this report with our compliments. We invite you to call or email us with your questions or if we can provide real estate assistance to you, your family, or friends.

Including

Commentary,Statistics,

and

Sales Information

for the South Peninsula and Silicon Valley!

eff

tricker

BROKER, ATTORNEY

teve

roeck

BROKER, SRES

Los Altos Ofce:

650.823.8057

jstricker@apr.com

Palo Alto Ofce:

650.450.0160

stenbroeck@apr.com

Best Regards,

*Information deemed reliable, but not guaranteed. If your home is listed withanother broker, this is not a solicitation of that listing. ©www.CoreFact.com

167 S. San Antonio Road, Los Altos, CA 94022

ANALYSIS& COMMENTARY

This chart shows the listingand sales activity for singlefamily homes during the rstquarter of 2009 as comparedto the rst quarter of 2008,and the fourth quarter of2008 (arrows).First Quarter 2009 vs. First Quarter 2008

KEY INdICATORS

•Salesweredownbynearly50%,onaverage,comparedtoayearago.•Thenumberofhomesonthemarkethasincreasedgreatly(up250%inPaloAlto).

LOCAL MARKETS CONTINUE TO SOFTEN

Thetrendofmorehomesforsaleandfewerclosedsalescontinuedthroughtherstquarteroftheyear.Thisimbalanceofsupplyanddemandkeptdownwardpressureonhomeprices.Weexpectthistocontinueintonextyear.Themostreliablewaytoestimatechangesinhomevaluesistoanalyzepriceadjustmentsonhomesthatareboughtandre-soldwithinayearortwo.Basedonourreviewofhomeswhichweresoldandthenre-soldduringthelast2years,weestimatethatlocalhomepriceshavefallenapproximately15%onaverage–moreforsome,lessforothers.

AN UPdATE ON OUR 2009 REAL ESTATE FORECAST

Inour2008AnnualRealEstateReportreleasedinJanuary,wepredicted“TheinventoryofsouthPeninsulahomesforsalewillrisesignicantly…creatingagreaterimbalancebetweensupplyanddemand.Asaresult,homevalueswilldecline10-20%onaverage…”Sowhathastranspiredduringtherstquarterof2009?Sofar:•Inventoryofhomesforsalehasrisensubstantiallyinalmostallareas•Buyerdemandremainsat•PricesarefallinginallareasWebelieveourforecastwillremainunchangedwellinto2010.

ThE BEST TIME TO INvEST IN LOCAL REAL ESTATE SINCE ThE 1970’S?

Onceeachdecadetherehasbeena“besttimetoinvest”inlocalrealestateafterwhichhomevaluesriseforseveralyearsuntiltheyhavedoubledinvalue,typically.Intherecentpast,theseyearswere1973,1984,1994,and2003,whichcorrespondstoatimeshortlyafterhomepriceshadfallenfor1-3years.Itwillsoonbe(ifnotnow)the“besttime”tobuyarsthome,amove-uphome,avacationretreat,orarentalproperty.Whatmaymakethisopportunitythe“bestsincethe70’s”isthecurrentavailabilityofrecordlowinterestrates.

WANT TO LEARN MORE ABOUT INvESTINg IN REAL ESTATE?

Itisgenerallyagreedthatrealestateisthegreatestsourceofwealthfortheaverage“millionairenextdoor.”Tohelpourclientsbuildwealththroughrealestateinvestment,wehavedevelopedapersonalizedreviewofavailableopportunitiesentitledSystematicWealthAccumulationViaRealEstate.Thereviewconsidersyourpersonalproleindeterminingthebest-suitedinvestmentoptionsavailabletoyou.Theseappropriateoptionsthenbecomethebasisofalong-terminvestmentplan.Ifyouwouldliketoreceiveanoutlineofourreviewprocess,pleasevisitwww.JeffAndSteve.com,emailusatJeffAndSteve@ apr.com,orcallusatthenumbersbelow.

Los AltosMeian Sales Prices

Q1 ’00 through Q1 ‘09

Palo AltoMeian Sales Prices

Q1 ’00 through Q1 ‘09

If you know of someone considering buying or selling a home, please have them contact us for a complimentary consultation. They’ll want to have all of the facts and solid advice in this challenging market. Also,please be sure to visit our website:

JeffAndSteve.com

for the latest info on Market Trends and to follow market updates on our

Real Estate Blog.

MEdIAN SALES PRICES dOWN TO ’04 LEvELS

ThegraphsaboveshowthemediansalespricesinLosAltosandPaloAltoforQ1overthepast10years.Asyouwillsee,theaveragedaysonthemarketincreasedin2009.Theaveragepercentageoflistpricereceivedbysellersdecreased.Webelievethatvaluesarelikelytocontinuetoerodeuntilemploymentandconsumercondencebothimprovesignicantly.The“tradeup”markethasbeenhitparticularlyhardbythecreditcrunchaslendersnolongerallowbuyersto“buyrstandsellsecond”.Buyersnowhavetoeithera)hopetogetanofferthatis“contingent”uponthesaleoftheircurrenthomeacceptedbyasellerorb)plantomovetwice:moveintoaninterimrentalthenshopfortheirnexthome.Mostfolksndmovingtwicetobeaverydistastefulalternative.

To iew carts of 10‐year Q1 sales prices in oter cities,click on te Newsletter tab atwww.JeffAnStee.com

Jeff Stricker

BROKER, ATTORNEYLos Altos Ofce:

650.823.8057

jstricker@apr.com

Steve TenBroeck

BROKER, SRESPalo Alto Ofce:

650.450.0160

stenbroeck@apr.com