HAMPTON ROADS, VA KEY MARKET FACTS

On the Market Now

Resale New Construction Estimated Months to absorb Resale inventory Estimated Months to absorb New Constr inventory

Current Week 10,501 9,507 994 6.14 3.67 mos 588 644 721 0.9 386
91 (23.58%) 36 (9.33%)

Versus 3 mos ago

Versus 1 yr ago

3 Mos Ago

One Year Ago

10,862 9,831 1,031 7.4 4.1 624 746 713 1.1 453
50 (11%)

12,765 11,450 1,315 7.8 5.9 678 704 685 1.0 376
22 (5.8%)

For the Week Ending Aug 5, 2012

# Price reductions (Current) # Entered market # Off market On/Off Ratio

Contracts Ratified (Week of Jul 23 - Jul 29)

Bank REO/GOVT Owned Short Sale Resale Detached Resale Attached New Construction Detached New Construction Attached

94(20.8%) 86 (22.9%)

Closings (Week of Jul 23 - Jul 29)

Resale Detached Resale Attached New Construction Detached New Construction Attached Of note this week: 38.46% of Resale Detached contracts ratified
for the current week 100 of 260 were REO/Govt /SS transactions. Of the 100 contracts 85 or 85% had list prices < $250,000. Also note: 1. The number of Short Sales have been significantly more than same wk 1 year ago for 21 of the last 26 weeks. 2. Inventory Graph updated to show Aug inventory #'s. Expect inventory #'s to decline through the end of the year and end below 9,000.
15,000 14,000 13,000

260 74 32 20 443 297 76 49 21

INVENTORY

317 68 46 22 517 358 93 43 23

248 71 36 21 554 392 100 41 21

GUIDE
Arrows show direction of change from the previous period Colors show the change is positive, negative or neutral Two side by side arrows of the same color and direction indicate a Green Arrow (Positive) trend. # Units
12,000 11,000 10,000 9,000 8,000

Red Arrow (Negative)

1. Mos to absorb is based on the sales pace of the last 6 mos 2. "On the Market Now" does not include Master Models 3. An "on/off ratio" below 1.0 means that inventory is declining and above 1.0 means that inventory is growing 4. A "Normal" market is 5 7 mos of inventory 5. "Closings" numbers are always largest at the end of the mo so caution should be used when identifying a closings trend

Lowest Aug inventory in 6 years Aug 2012 starting

with 18.3 % less inventory than Aug 2011.

Jan Feb Mar Apr May Jun Jul Month Aug Sep Oct Nov Dec

2007

2008

2009

2010

2011

2012

Data Source: REIN Analysis Date: 8/7/2012

Analysis By:
New Homes Division R. Wildermuth