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15 June 2009 Building & Building Products Resale Market Analysis

23) Sacramento, CA
Figure 157: Year/Year change in existing home prices – Sacramento, CA

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

-50%

Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Source: Deutsche Bank and Local MLS associations, S&P/Case-Shiller

Figure 158: Year/year change in existing home sales - Sacramento, CA

200%

150%

100%

50%

0%

-50%

-100%
Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09

Source: Deutsche Bank and Local MLS associations

Figure 159: Metro stats – last 12 months - Sacramento, CA
Number of Yr/Yr Change Median Yr/Yr Change Housing Yr/ Yr
Sales in Sales Price in Closing Price Inventory Change
May-08 76.0% $233 -34.5% 25,466 -
Jun-08 95.5% $221 -37.3% 24,246 -
Jul-08 128.5% $219 -36.7% 26,042 -
Aug-08 107.4% $221 -33.6% 25,478 -
Sep-08 186.3% $196 -39.8% 24,858 -
Oct-08 173.1% $197 -36.3% 25,005 -19.6%
Nov-08 110.8% $185 -38.3% 23,634 -21.2%
Dec-08 139.7% $182 -36.3% 22,065 -20.0%
Jan-09 108.7% $170 -34.3% 23,556 -11.7%
Feb-09 81.0% $169 -34.8% 22,728 -18.2%
Mar-09 61.5% $169 -34.5% 21,844 -20.1%
Apr-09 17.6% $167 -29.1% 20,651 -21.4%
Source: Deutsche Bank, Local MLS associations, Zip Realty, US Census Bureau Note: Median Price in $000s

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15 June 2009 Building & Building Products Resale Market Analysis

Sacramento, CA (continued)
Figure 160: Sacramento, CA - Annual permits issued (thousands)
25

20

15

10

5

0
1993 1995 1997 1999 2001 2003 2005 2007 2009*
Source: Deutsche Bank and US Census *Note: 2007 figure is year-to-date

Figure 161: Existing Home Inventory - Sacramento, CA

33,000

31,000

29,000

27,000

25,000

23,000

21,000

19,000

17,000

15,000
Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09

Source: Deutsche Bank and Zip Realty

Figure 162: Top Public Builders
Sacramento, CA As a % of 2007 Comm 2007
Builder Closings Total Closings Count Closings/Comm
Beazer 494 4% 7 71
Standard Pacific 252 3% 6 42
Hovnanian 382 3% 9 45
Centex 733 2% 18 41
Lennar 722 2% 12 63
KB Home 420 2% 8 53
Pulte 442 2% 10 47
DR Horton 569 2% 34 17
Ryland - - 13 0
Meritage - - 8 0
MDC - - 5 0
Toll Brothers - - 2 0
Source: Deutsche Bank estimates, company reports

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15 June 2009 Building & Building Products Resale Market Analysis

Analyzing distressed inventory at a local level
Shadow inventory amounts to nearly 95% of listings in the 27 markets below. In our
view, the recent tidal wave of foreclosures has added another way in which MLS listings do
not accurately reflect the resale market. Based on our analysis, MLS based listing inventory is
significantly understating the extent of foreclosure inventory in many markets. In Figure 18
below, we compare distressed inventory vs. MLS listings in major metro areas across the
US. A certain portion of distressed inventory is included in MLS listings – if it were all
included we would expect MLS listings to be higher than distressed inventory. Clearly, not all
distressed inventory appears in MLS listings. As shown below, in eight of the 26 markets in
our analysis, distressed inventory is actually higher than MLS listings. In the Inland Empire
and Las Vegas the distressed inventory figure is more than three times that of MLS listings.
Overall, foreclosure inventory is equal to roughly 94% of MLS listings in the 27 markets in our
analysis. However within the 17 bubble markets in our list foreclosure inventory is much
higher, at roughly 116% of MLS listings, while within the 10 non-bubble markets foreclosure
inventory is equal to roughly 61% of MLS listings.

Markets in California dominate the shadow inventory rankings. Five of the top eight
markets in terms of shadow inventory compared to MLS listings are in California. The Inland
Empire is at the top of this list with for sale foreclosures amounting to nearly 371% of MLS
listings. Las Vegas is another metro where for distressed inventory amount to more than
300% of MLS listings. Southern markets such as Dallas, Austin, Raleigh and Charlotte
dominate the bottom half of our list where distressed inventory is a smaller phenomenon
relative to MLS listings. In all of these markets distressed inventory is less than half of MLS
listings.

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15 June 2009 Building & Building Products Resale Market Analysis

Figure 18: Local MLS listings vs. distressed inventory
Foreclosure
MLS Listings Inventory % Listings
Inland Empire CA 24,023 89,020 371%
Las Vegas NV 17,041 58,519 343%
San Diego CA 11,501 30,623 266%
Los Angeles CA 39,575 102,243 258%
Phoenix AZ 41,758 92,330 221%
Sacramento CA 19,772 29,588 150%
San Francisco CA 24,638 34,415 140%
Denver CO 20,481 23,270 114%
Tucson AZ 8,703 8,564 98%
Atlanta GA 59,980 58,189 97%
Miami FL 96,729 76,892 79%
Chicago IL 95,396 68,754 72%
Orlando FL 40,498 28,682 71%
Jacksonville FL 15,866 10,926 69%
Baltimore MD 4,764 3,270 69%
Minneapolis MN 28,584 19,055 67%
Houston TX 37,141 23,912 64%
New York Area 45,262 27,208 60%
Tampa FL 48,847 28,623 59%
Washington DC Area 48,177 24,632 51%
Philadelphia PA 46,310 17,998 39%
Austin TX 14,051 4,800 34%
Dallas TX 48,998 16,408 33%
Seattle WA 47,954 11,966 25%
Salt Lake City UT 21,247 4,629 22%
Charlotte NC 27,944 5,778 21%
Raleigh NC 20,133 2,488 12%
Total 955,373 902,783 94%

Bubble Markets 581,418 675,500 116%
Non-bubble Markets 373,955 227,283 61%
Source: Realtytrac, Zip Realty, Deutsche Bank
Note: Foreclosure inventory includes pre-foreclosures, auctions and REO. 2/3 of pre-foreclosures are assumed to become foreclosures.

Inventory of distressed assets includes 2.2% of households. Since MLS listings are a poor
proxy for true resale inventories (see Inventory section), in this section we compare
distressed inventory to other more reliable housing metrics in order to gauge how substantial
it is. In Figure 19 below, we compare foreclosure inventories to the number of housing units
in each metro. Overall, foreclosure inventory represents 2.2% of homes in the 27 markets we
analyze. This list is headed mainly by the bubble markets that experienced the fastest growth
in terms of new construction during the recent housing boom, including Las Vegas, Inland
Empire, Phoenix Sacramento and Orlando. In the bubble markets foreclosure inventory
represents 2.4% of homes while in the non bubble markets foreclosure inventory represents
1.7% of homes. Las Vegas has the largest percentage of distressed inventory to housing
stock at 7.7%, followed by the Inland Empire with 6.4% and Phoenix with 5.7%. Baltimore
has the lowest percentage of distressed inventory to housing stock at 0.3%, followed by
New York, and Raleigh where roughly 0.6% each of housing stock is distressed inventory.

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15 June 2009 Building & Building Products Resale Market Analysis

Figure 19: Distressed Inventory as a % of Housing Units
Foreclosure Housing Units % Housing Housing Units
Inventory (2006) Units Added (2000-06)
Las Vegas NV 58,519 756,161 7.7% 34%
Inland Empire CA 89,020 1,400,825 6.4% 18%
Phoenix AZ 92,330 1,622,977 5.7% 21%
Sacramento CA 29,588 837,102 3.5% 16%
Orlando FL 28,682 854,121 3.4% 24%
Miami FL 76,892 2,380,664 3.2% 10%
Atlanta GA 58,189 2,056,233 2.8% 24%
San Diego CA 30,623 1,125,827 2.7% 8%
Los Angeles CA 102,243 4,379,290 2.3% 3%
Denver CO 23,270 1,028,001 2.3% 14%
Chicago IL 68,754 3,104,981 2.2% 7%
Tampa FL 28,623 1,294,419 2.2% 13%
San Francisco CA 34,415 1,679,600 2.0% 4%
Tucson AZ 8,564 418,199 2.0% 13%
Jacksonville FL 10,926 569,729 1.9% 19%
Washington DC Area 24,632 1,660,085 1.5% 11%
Minneapolis MN 19,055 1,310,614 1.5% 12%
Salt Lake City UT 4,629 384,436 1.2% 12%
Houston TX 23,912 2,098,898 1.1% 16%
Dallas TX 16,408 1,543,076 1.1% 15%
Seattle WA 11,966 1,383,270 0.9% 10%
Charlotte NC 5,778 677,795 0.9% 23%
Austin TX 4,800 613,459 0.8% 22%
Philadelphia PA 17,998 2,373,750 0.8% 4%
Raleigh NC 2,488 409,230 0.6% 23%
New York Area 27,208 4,571,041 0.6% 3%
Baltimore MD 3,270 1,101,292 0.3% 5%
Total 902,783 41,635,075 2.2% 10%

Bubble Markets 675,500 28,408,352 2.4% 9%
Non-bubble Markets 227,283 13,226,723 1.7% 15%
Source: Realtytrac, US Census, Deutsche Bank
Note: Foreclosure inventory includes pre-foreclosures, auctions and REO. 2/3 of pre-foreclosures are assumed to become foreclosures.

As a reference point, we also include the rate of growth in housing stock in the far right
column. This column shows what percent of current (2006) housing stock was added from
2000 through 2006.
Months supply of distressed inventory is at 28.9. Whereas in Figure 19 we compare
distressed inventory against housing stock, in this section we assess it on a months supply
basis. In Figure 20 below, we calculate local month’s supply of distressed inventory based on
the level of new home production in 2008. Based on local new production levels overall
distressed inventory is equal to a 28.9 months supply. In the bubble markets distressed
inventory equals a 39.2 months supply while in the non-bubble markets it’s only a 16.2
months supply. Miami tops the list with a massive 113 months of supply, followed by the
Inland Empire with 111 months of supply. Five California markets are within the top seven
with an average of 80 months of distressed inventory supply.

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15 June 2009 Building & Building Products Resale Market Analysis

The markets with the lowest supply of distressed inventory are mostly Southern markets,
including the main Texas markets as well as Charlotte and Raleigh, NC. This is not surprising
considering that not only have these markets held up better but also they are more
dominated by new construction than the rest of the country. The bottom 10 markets have
only a 6.8 months supply of distressed inventory, compared to 28.9 months overall and 69.7
months supply for the top 10 markets.

Figure 20: Distressed inventory compared to new housing production
Foreclosure Months
Inventory Permits (2008) Supply
Miami FL 76,892 8,166 113.0
Inland Empire CA 89,020 9,620 111.0
Los Angeles CA 102,243 15,290 80.2
San Diego CA 30,623 4,911 74.8
Phoenix AZ 92,330 17,414 63.6
San Francisco CA 34,415 6,891 59.9
Sacramento CA 29,588 6,062 58.6
Las Vegas NV 58,519 12,550 56.0
Chicago IL 68,754 16,723 49.3
Minneapolis MN 19,055 5,913 38.7
Tampa FL 28,623 9,092 37.8
Atlanta GA 58,189 18,797 37.1
Orlando FL 28,682 10,738 32.1
Denver CO 23,270 8,951 31.2
Tucson AZ 8,564 3,400 30.2
Philadelphia PA 17,998 9,932 21.7
Washington DC Area 24,632 14,479 20.4
Jacksonville FL 10,926 6,870 19.1
Salt Lake City UT 4,629 4,259 13.0
Seattle WA 11,966 15,136 9.5
Baltimore MD 3,270 4,789 8.2
Houston TX 23,912 42,226 6.8
New York Area 27,208 51,446 6.3
Dallas TX 16,408 33,180 5.9
Charlotte NC 5,778 12,140 5.7
Austin TX 4,800 14,144 4.1
Raleigh NC 2,488 11,538 2.6
Total 902,783 374,657 28.9

Bubble Markets 675,500 206,786 39.2
Non-bubble Markets 227,283 167,871 16.2
Source: Realtytrac, US Census, Deutsche Bank
Note: Foreclosure inventory includes pre-foreclosures, auctions and REO. 2/3 of pre-foreclosures are assumed to become foreclosures.

Shadow inventory continues to grow
Shadow inventory continues to grow in spite of higher distressed property sales. As
shown in Figure 21, shadow inventory (foreclosures available for sale) in the 42 markets
we’ve been tracking has increased from about 781,000 in August 08 to 1,061,000 at the end
May. Foreclosures available for sale have generally increased despite rising sales volumes of
properties in distress. As mentioned previously the NAR has reported that over the last
several months distressed home sales have accounted for approximately 45% of resale
volumes.

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15 June 2009 Building & Building Products Resale Market Analysis

Figure 21: Shadow inventory levels over the last ten months

1,100,000

1,050,000

1,000,000

950,000

900,000

850,000

800,000

750,000
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09

Source: Deutsche Bank, RealtyTrac
Note: Through April 15, 2009

Details about our database of shadow inventory. We originally generated our list of 42
markets based on our proprietary builder community count in 1Q08. These were the top 42
markets by public builder community count and account for approximately 40% of all housing
units in the US according to 2007 Census housing unit estimates. 23 of our 42 markets are
classified as bubble markets (those where price appreciation was greater than 59% from
2000-2005 according to FHFA data). Within the largest states these metros account for: 74%
of homes in California, 55% in Texas, 78% in Arizona, 88% in Nevada and 68% in Florida.

Bank owned inventory the bulk of foreclosures for sale. Out of the 1,061,000 distressed
homes inventory, 44% are bank owned, 26% are in pre-foreclosure and 29% are awaiting
auction (Figure 22). In total there are 467k bank owned properties on the market, while 311k
properties are in auction and 281k in pre-foreclosure. Note: we determine shadow inventory
from pre-foreclosures by assuming that 2/3rds will ultimately be foreclosed upon.

Figure 22: Homes in pre-foreclosure, at auction or bank Figure 23: Percentage of homes in pre-foreclosure, at
owned auction or bank owned
Pre-foreclosures Auction Bank Owned Pr e-f or eclosur es Auct ion Bank Owned

1,200,000 100%

90%

1,000,000
80%

70%
800,000

60%

600,000
50%

40%
400,000
30%

200,000 20%

10%

0
Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

0%

Source: Deutsche Bank, RealtyTrac Source: Deutsche Bank,RealtyTrac

Bubble markets dominate the bulk of distressed properties for sale. As one might
expect, properties in bubble markets make up a significantly larger share of the shadow
inventory. 70% (738,000 units) of distressed homes are located in bubble markets while the
remaining 30% (323,000 units) are located in non-bubble markets. Figure 24 shows the

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15 June 2009 Building & Building Products Resale Market Analysis

bubble/non-bubble percent breakdown of the total 1,061,000 foreclosures available at the
end May, 2009.

Figure 24: Foreclosures avail for sale in bubble & non-bubble mkts as of April 15, 2009

Non
Bubble
30%

Bubble
70%

Source: Deutsche Ban, Realty Track
Note: 23 bubble markets and 19 non-bubble markets

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15 June 2009 Building & Building Products Resale Market Analysis

Housing Inventory
Summary: On a year/year basis, overall resale listings were down -16% in May. On a month/
month basis, inventories were down by -1% from April. Total inventory in the 31 markets we
track stands at roughly 1,027,000 listings (down from 1,280,000 listings at this time last year).

Marginal decline in listings
Overall listings in the 31 available markets that we track showed a -1.2% median
month/month decrease to 1.03mm units in May. This compares to May’s historical increase
of +1% (according to NAR US nationwide data). Volumes data continues to show strength in
certain markets due to foreclosure sales which we think is a result of investor buyers. While
there may be a temporary boost in demand in the 1H09 due to buyers deferring purchases as
a result of the economic shock in 4Q08, we think that real homebuyer resale demand (not
investors) will remain tepid throughout the remainder of the year.

Figure 25: Month/ month change in housing inventories

Median for DB 31 Metros NAR historical median
10%

5%

0%

-5%

-10%

-15%
Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09
Source: Deutsche Bank, Zip Realty, NAR

“Inventory” captured in MLS listings not as reliable as it once was. As the housing
market has moved further into this downturn foreclosures have only just begun to add insult
to injury. Below we reiterate two important points about the resale inventory trends:

„ Occupied listings should not be considered a true unit of inventory since there isn’t a net
addition or subtraction to the overall buyer pool; and
„ More often than not, distressed vacant properties do not show up in MLS listings which
may dramatically understate true inventory.
While we do believe that evaluating housing listings on a metro level basis is important, we
feel that the two points made above are important considerations when examining inventory
data.

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15 June 2009 Building & Building Products Resale Market Analysis

Listings up the most in Philadelphia, PA and down the most in San Diego, CA. The 31
markets that we track had a -1% month/month decrease in inventory. The largest increase
was in Philadelphia up +14.7% from April followed by Norfolk up +5.8%. Looking at the
declines, San Diego had the highest decline down -23.6% followed by the Inland Empire
down -15.3%. Listings in many of the bubble markets are showing declines with many home
sellers pulling their houses from the market in order to avoid competing with foreclosures.
See Figure 26 for a monthly breakdown of metro level inventory details.

Figure 26: Month/ month change in housing inventories broken down by metro
Metro Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09
Philadelphia, PA 1.5% -1.7% 1.5% 0.2% -0.9% -3.8% 0.5% -9.3% 2.9% 2.6% 2.4% 14.7%
Norfolk, VA 1.6% -1.0% -0.5% -1.7% -1.3% -1.7% -4.1% -0.5% 1.8% 1.3% 0.9% 5.8%
Massachusets -0.6% -3.1% -3.3% -0.5% -4.0% -8.0% -12.0% 9.2% 2.2% 3.9% 5.2% 3.8%
New York State 1.4% -0.1% -1.3% -0.1% -1.7% -2.5% -5.6% -3.8% 2.3% 2.7% 2.3% 2.9%
Austin, TX 5.4% 1.8% -2.2% -4.0% -1.4% -3.7% -6.2% -1.3% 3.5% 5.6% 1.1% 2.7%
Seattle, WA 3.0% 2.1% 0.4% -2.6% -4.3% -5.4% -6.6% -6.7% 3.5% 2.3% 0.6% 2.6%
Chicago, IL 2.3% 0.5% -1.0% -2.1% -3.2% -4.5% -5.6% -4.0% 2.2% 2.1% 1.0% 1.4%
Minneapolis-St. Paul, MN 0.3% -1.1% -1.5% -4.4% -0.6% -7.3% -7.1% -4.7% 1.6% 1.3% 0.4% 1.3%
Charlotte, NC 1.3% 0.2% 1.4% -2.0% -1.5% -0.7% -3.8% -3.7% 3.8% 1.3% 1.1% 1.1%
Dallas-Fort Worth, TX 0.4% -0.7% -2.3% -2.9% -1.2% 0.0% -5.0% -2.3% 1.5% 3.1% 0.7% 0.9%
Baltimore, MD 3.4% 3.6% 0.6% 0.9% -1.7% -3.5% -6.8% -3.9% -1.3% 2.2% 0.5% 0.9%
Richmond, VA 0.7% -1.2% -0.1% -0.8% -1.8% -2.0% -5.7% -3.3% 4.4% 1.9% 2.8% 0.8%
Houston, TX 0.6% 0.2% -2.1% -3.9% -2.6% -2.5% -5.0% -2.5% 0.0% 2.4% -1.2% -0.2%
Raleigh-Cary, NC -0.9% 0.9% 0.6% -0.1% 1.1% -1.7% -4.3% -3.2% 0.3% 3.5% 2.0% -0.4%
Denver, C0 -0.4% -1.9% -3.2% -1.5% -2.6% -5.3% -7.7% -1.1% 2.2% 3.9% 0.9% -0.7%
Atlanta, GA 0.3% -1.1% -2.5% -3.1% -1.5% -2.2% -5.0% -6.7% -0.2% 0.6% -2.6% -1.2%
Salt Lake City, UT 2.4% 1.0% -1.5% -1.8% -2.2% -2.9% -5.5% -1.4% 0.6% 1.0% -0.5% -1.4%
Washington DC Area -0.6% -0.7% -3.0% -1.7% -2.8% -3.4% -6.5% -4.9% -0.4% 0.2% -1.7% -1.8%
Jacksonville, FL -1.1% -0.5% 10.7% -0.1% -1.0% -1.2% -2.9% -1.9% 0.8% 0.0% -1.7% -2.0%
Tampa-St. Petersburg, FL -1.8% -1.1% 0.1% -0.7% 0.4% -0.5% -2.9% -4.1% -0.7% -1.6% -4.5% -4.3%
Sacramento, CA -4.8% 7.4% -2.2% -2.4% 0.6% -5.5% -6.6% 6.8% -3.5% -3.9% -5.5% -4.3%
Tucson, AZ -3.9% -1.5% -3.4% 2.0% 3.1% 0.3% -1.6% -2.3% 0.0% -0.9% -4.1% -5.4%
Orlando, FL -1.0% -0.7% -0.5% 2.8% 0.4% -0.7% -2.0% -4.1% -1.0% -1.9% -4.2% -5.5%
Miami-Ft. Lauderdale, FL -0.5% -1.2% -1.2% -0.9% -1.0% -1.4% -3.0% -3.7% -2.0% -2.9% -5.1% -5.9%
Oxnard, CA -0.6% -4.8% -4.0% -5.8% -6.2% -3.4% -10.1% -6.1% -3.3% -2.6% -12.5% -7.6%
Los Angeles-Orange County, CA -1.2% -1.6% -3.5% -5.0% -2.2% -3.9% -7.7% -5.4% -2.8% -3.9% -9.3% -9.5%
Oakland, CA -1.3% -0.7% -3.1% -1.9% 0.0% -6.4% -10.1% -4.8% 0.2% -0.8% -8.9% -10.8%
Phoenix, AZ -2.3% -0.2% 3.8% -1.3% 0.8% 1.8% 1.3% -4.2% -5.1% -3.6% -12.9% -13.7%
Las Vegas, NV -1.5% 0.9% -1.0% -0.1% 2.2% 1.6% -0.3% -3.5% -3.6% -3.8% -11.0% -14.4%
Inland Empire, CA -2.0% -2.0% -2.6% -2.6% 0.8% -5.2% -5.4% -6.3% -5.9% -7.0% -13.5% -15.3%
San Diego, CA -1.9% 0.1% -3.3% -5.0% -2.0% -3.0% -7.3% -3.4% -0.4% -1.9% -4.7% -23.6%
Median -0.5% -0.7% -1.5% -1.7% -1.4% -2.9% -5.5% -3.7% 0.2% 1.0% -1.2% -1.2%
Source: Deutsche Bank, Zip Realty
Note: sorted by change in inventory in current month

Inventories on a year/year basis were down in 28 of our 31 markets. The largest declines
were in the three California markets of Inland Empire, Oxnard and San Diego (down -50.4%,-
50.2%, and -45.3% respectively). As for the largest increases, Philadelphia had the highest
increase up by 9.2% followed by Austin with a 0.4% increase and Norfolk with a 0.3%
increase. See Figure 27 for a weekly breakdown of metro level inventory details.

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15 June 2009 Building & Building Products Resale Market Analysis

Figure 27: Year/year change in housing inventories broken down by metro (weekly since March 13th)
Metro 3/13/09 3/20/09 3/27/09 4/3/09 4/10/09 4/17/09 4/24/09 5/1/09 5/8/09 5/15/09 5/22/09 5/29/09
Philadelphia, PA -0.7% -0.3% -1.7% -1.9% -0.2% -1.3% -2.9% -2.1% -2.9% -1.9% 9.4% 9.2%
Austin, TX 9.2% 8.6% 6.2% 6.2% 7.3% 5.4% 1.8% 3.1% 2.2% 3.3% 2.1% 0.4%
Norfolk, VA 1.7% 1.2% -0.9% -2.0% -0.6% -2.4% -3.2% 1.7% 1.1% 2.3% 1.0% 0.3%
Jacksonville, FL 3.1% 3.7% 1.4% -0.5% 1.4% 1.0% 1.0% 1.4% -1.3% 0.0% -1.1% -1.5%
Charlotte, NC 8.3% 5.2% 4.4% 3.0% 5.5% 3.6% 2.3% 2.7% 0.1% 0.9% -1.1% -2.0%
Raleigh-Cary, NC -1.8% -0.7% -2.6% -2.0% -1.2% -1.5% -2.1% -2.0% -2.6% -2.3% -3.4% -2.5%
New York State - - 1.4% 1.5% 2.4% 1.3% -2.5% -1.4% -3.2% -2.1% -2.7% -3.8%
Richmond, VA 11.3% 10.6% 8.1% 6.1% 9.6% 8.4% 5.8% 6.8% 4.0% 4.5% 3.6% -4.7%
Baltimore, MD 4.7% 5.7% 2.2% 1.9% 2.0% -0.9% -2.4% -1.5% -2.4% -2.6% -4.1% -5.5%
Dallas-Fort Worth, TX -7.6% -6.9% -8.0% -8.6% -8.1% -4.0% -8.6% -8.4% -9.3% -8.2% -8.3% -7.8%
Massachusets -9.7% -9.3% -10.9% -9.6% -9.1% -9.5% -9.6% -8.7% -9.2% -8.6% -9.3% -8.8%
Chicago, IL -1.7% -2.6% -4.9% -5.1% -4.9% -6.6% -8.2% -8.1% -9.2% -8.9% -9.7% -10.8%
Seattle, WA 1.5% -1.0% -4.3% -5.7% -4.6% -6.2% -8.3% -7.7% -9.1% -9.1% -9.8% -11.3%
Salt Lake City, UT 2.7% 2.6% -0.4% -1.2% -1.6% -3.2% -5.3% -5.4% -7.5% -6.2% -8.0% -11.7%
Houston, TX -13.7% -13.3% -13.6% -14.3% -13.4% -14.1% -15.3% -14.9% -15.9% -15.8% -16.0% -15.9%
Denver, C0 -15.7% -15.6% -15.2% -17.0% -15.2% -16.1% -16.2% -16.4% -17.2% -16.4% -16.1% -16.4%
Tucson, AZ -9.6% -9.2% -10.1% -12.5% -11.1% -11.5% -12.5% -14.0% -15.0% -14.3% -15.4% -16.6%
Orlando, FL - - - - - - -12.6% -13.6% -14.0% -15.1% -16.4% -16.9%
Tampa-St. Petersburg, FL -14.1% -15.2% -15.0% -17.3% -16.1% -17.2% -17.7% -18.4% -19.7% -18.8% -19.8% -19.9%
Minneapolis-St. Paul, MN -13.8% -14.9% -16.1% -16.5% -16.1% -17.0% -18.1% -18.0% -18.5% -18.7% -19.7% -20.2%
Sacramento, CA -19.0% -19.9% -20.1% -22.0% -20.7% -21.7% -21.4% -22.4% -23.2% -23.2% -23.1% -22.4%
Atlanta, GA -15.7% -15.5% -17.3% -18.9% -17.6% -19.2% -20.5% -20.2% -22.8% -21.4% -22.2% -22.6%
Washington DC Area -13.4% -14.6% -17.7% -19.8% -18.0% -19.9% -21.2% -21.2% -23.5% -23.1% -23.6% -24.2%
Miami-Ft. Lauderdale, FL -16.6% -17.5% -18.1% -19.8% -19.1% -20.5% -21.2% -22.2% -24.0% -23.7% -24.9% -25.4%
Las Vegas, NV -14.6% -14.2% -14.7% -17.4% -17.6% -19.7% -21.7% -23.7% -25.9% -27.1% -29.0% -30.6%
Phoenix, AZ -11.4% -12.5% -13.9% -17.9% -18.8% -21.3% -23.4% -25.7% -28.5% -29.2% -31.6% -31.7%
Oakland, CA -18.6% -19.5% -21.7% -24.5% -26.2% -29.2% -31.1% -32.5% -35.4% -36.6% -38.5% -39.8%
Los Angeles-Orange County, CA -30.2% -31.5% -32.8% -35.9% -36.0% -37.9% -38.8% -39.6% -42.0% -42.7% -43.7% -44.0%
San Diego, CA -23.2% -24.3% -25.9% -27.7% -27.6% -28.9% -29.2% -29.5% -30.2% -30.4% -30.6% -45.3%
Oxnard, CA -40.9% -40.8% -40.8% -43.2% -43.8% -45.7% -46.0% -46.7% -48.1% -48.0% -49.7% -50.2%
Inland Empire, CA -33.1% -34.9% -36.5% -39.8% -40.0% -43.1% -43.8% -45.3% -47.6% -48.7% -49.7% -50.4%
Median -12.4% -12.9% -13.6% -14.3% -13.4% -14.1% -12.6% -14.0% -15.0% -15.1% -16.0% -16.4%
Source: Deutsche Bank, Zip Realty

Deutsche Bank Securities Inc. Page 23