ALTOS RESEARCH | REALIQ: March 2010: REAL-TIME HOUSING MARKET UPDATE

Real-Time Housing Market Update
Published by Altos Research & Real IQ March 17, 2010

Highlights

The Altos 10-City Composite presents the most current perspective on housing market conditions across the country. The Composite median price fell by 1.3% in February 2010.

The Altos Research 10-City Composite Price Index was down by 1.3% in February and 3.0% during the most recent three-month period. The Index has now shown sequential monthly declines for the past seven months. Though readings of weekly price changes have shown modest expected seasonal increases in the past 7 weeks, indicating that the headline price number will tick up in the coming months. Asking prices fell in all 26 markets. The previously strong California markets all showed steep price declines during February. The largest monthly asking price drops occurred in San Francisco with prices falling 4.4%, followed closely by San Diego down 4.2%. San Francisco experienced the steepest quarterly drop in asking prices – down 10.9%. Listed property inventory jumped in 24 of 26 markets tracked. The inventory increases were largest in San Jose, San Francisco, Austin and San Diego. The big inventory rise is seasonally expected after the low point at the first of the year. Nationally inventory is 10% lower than last year at this time, though climbing rapidly going into the spring. All markets except San Francisco and San Jose had a median days-on-market of 100 or more in February. Chicago edged out Miami as the market experiencing the slowest turnover with a median of 220 days-on-market or more than 7 months.

February Home Price Trends
The 10-City Composite Index was down 1.3% during February and 3.0% for the most recent three-month period. The Composite Index effectively bottomed out in January 2009 at $470,017, climbed throughout the first half of 2009 to $509,030 in July before returning to a gradual downward trend. The Index stood at $479,781 as of February 2010 reflecting a decline of 5.75% since its 2009 summer high. Early indicators of pricing indicate that monthly price declines will be somewhat abated by the normal spring selling season. The market has been heavily influenced by the Federal Reserve’s mortgage-backed securities purchase program which has kept mortgage rates historically low and by the federal government’s home buyer tax credit. Both programs are scheduled to end during the next several months. The Index may retrace its 2009 lows before it turns up in the seasonally strong spring and summer months. Listing prices fell in all 26 major markets during February. The largest monthly decline occurred in San Francisco with prices falling 4.4% during February and 10.9% for the most recent three-month period. Prices fell by more than two percent during the month in 8 other markets. Miami experienced the smallest decline with prices decreasing by 0.2%.

© 2010 Altos Research http://www.altosresearch.com/altos/features/NationalReport.page

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ALTOS RESEARCH | REALIQ: March 2010: REAL-TIME HOUSING MARKET UPDATE

Altos Research Price Composite
December 2009 January 2010 February 2010 % Change Last Month % Change Over 3 Months

MSA

10 City Composite

$

494,426

$ 486,259

$

479,781

-1.3%

-3.0%

San Francisco San Diego Denver Phoenix Tampa San Jose New York Salt Lake City Seattle Detroit Dallas Minneapolis Portland Charlotte Austin Philadelphia Atlanta Indianapolis Chicago Washington, DC Boston Houston Las Vegas Los Angeles Cleveland Miami

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

799,017 801,627 380,403 303,165 219,715 793,752 638,082 358,811 400,184 153,867 242,198 293,221 323,884 248,543 294,467 346,994 225,050 169,500 316,232 445,289 486,815 232,544 166,338 712,964 169,719 494,992

$ 744,505 $ 758,462 $ 366,238 $ 295,465 $ 216,296 $ 758,610 $ 620,268 $ 351,884 $ 390,003 $ 150,342 $ 236,574 $ 287,057 $ 315,362 $ 241,277 $ 287,977 $ 341,991 $ 218,873 $ 167,331 $ 310,508 $ 436,260 $ 479,726 $ 229,622 $ 164,513 $ 707,355 $ 167,027 $ 501,523

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

712,048 726,408 355,361 288,184 210,973 740,304 605,947 344,798 382,374 147,456 232,147 281,775 309,898 237,368 284,017 337,360 216,042 165,306 306,972 431,423 475,711 227,730 163,315 702,274 166,084 500,436

-4.4% -4.2% -3.0% -2.5% -2.5% -2.4% -2.3% -2.0% -2.0% -1.9% -1.9% -1.8% -1.7% -1.6% -1.4% -1.4% -1.3% -1.2% -1.1% -1.1% -0.8% -0.8% -0.7% -0.7% -0.6% -0.2%

-10.9% -9.4% -6.6% -4.9% -4.0% -6.7% -5.0% -3.9% -4.5% -4.2% -4.1% -3.9% -4.3% -4.5% -3.5% -2.8% -4.0% -2.5% -2.9% -3.1% -2.3% -2.1% -1.8% -1.5% -2.1% 1.1%

© 2010 Altos Research http://www.altosresearch.com/altos/features/NationalReport.page

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ALTOS RESEARCH | REALIQ: March 2010: REAL-TIME HOUSING MARKET UPDATE

February Housing Supply Trends
During February, the inventory of properties listed for sale ballooned by 8.3% across the 10City Composite Index markets. Inventory increased in 24 of 26 markets, was flat in Detroit and decreased slightly in Salt Lake City. Nationally inventory is 10% lower than this time in 2009, though growing rapidly into the spring. Inventory increased at the fastest rate in San Jose and San Francisco, up 18.6% and 15.8% respectively. The Bay Area markets and San Diego were among the strongest during the summer of 2009 but have seen sharp price declines and inventory increases recently.

Listing Inventory
MSA December 2009 233,417 January 2010 233,920 February 2010 253,265 % Change Last Month 8.3% % Change Over 3 Months 8.5%

10 City Composite

San Jose San Francisco Austin San Diego Denver Los Angeles Boston Chicago Minneapolis Seattle Tampa Phoenix Portland Miami New York Dallas Atlanta Cleveland Indianapolis Las Vegas Houston Philadelphia

3,151 5,951 9,133 7,094 11,174 25,739 12,221 49,867 13,946 19,792 18,879 27,599 12,129 28,509 55,060 28,442 35,483 12,073 11,897 19,662 28,491 22,279

3,342 6,331 9,040 7,364 11,448 26,921 12,077 49,491 13,843 19,924 18,893 28,627 12,161 28,371 54,867 29,309 34,676 12,080 12,131 19,258 30,317 22,276

3,962 7,333 10,134 8,251 12,769 29,854 13,377 54,798 15,253 21,575 20,328 30,753 13,040 30,246 58,255 31,042 36,687 12,743 12,794 20,003 31,433 23,066

18.6% 15.8% 12.1% 12.0% 11.5% 10.9% 10.8% 10.7% 10.2% 8.3% 7.6% 7.4% 7.2% 6.6% 6.2% 5.9% 5.8% 5.5% 5.5% 3.9% 3.7% 3.5%

25.7% 23.2% 11.0% 16.3% 14.3% 16.0% 9.5% 9.9% 9.4% 9.0% 7.7% 11.4% 7.5% 6.1% 5.8% 9.1% 3.4% 5.5% 7.5% 1.7% 10.3% 3.5%

© 2010 Altos Research http://www.altosresearch.com/altos/features/NationalReport.page

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ALTOS RESEARCH | REALIQ: March 2010: REAL-TIME HOUSING MARKET UPDATE

Washington, DC Charlotte Detroit Salt Lake City

17,415 14,008 27,647 6,661

17,028 14,025 27,026 7,341

17,561 14,460 27,023 7,184

3.1% 3.1% 0.0% -2.1%

0.8% 3.2% -2.3% 7.9%

February Housing Market Demand Trends
During February every market except San Jose and San Francisco had a median days-onmarket of 100 or more. Chicago edged out Miami as the market experiencing the slowest turnover with a median of 220 days-on-market or more than 7 months versus 219 in Miami. San Francisco experienced the fastest rate of inventory turnover at a median of 86 days-onmarket.

Average Days on Market
December 2009 January 2010 February 2010 % Change Last Month % Change Over 3 Months

MSA

10 City Composite

166

172

166

-3.7%

-0.3%

Chicago Miami Charlotte Atlanta Cleveland Detroit Washington, DC Philadelphia Indianapolis Minneapolis Denver Seattle Tampa New York Portland Austin Phoenix

211 247 201 214 175 190 174 172 154 198 187 198 155 132 141 136 146

220 244 206 222 185 189 181 175 161 162 164 158 154 152 142 142 145

220 219 203 191 188 187 182 179 162 156 155 155 147 145 145 138 138

-0.4% -10.2% -1.1% -13.9% 1.5% -1.1% 0.4% 1.8% 0.1% -3.5% -5.1% -2.0% -4.5% -4.6% 2.1% -2.6% -4.8%

4.3% -11.3% 1.2% -11.0% 7.0% -1.3% 4.4% 4.1% 5.0% -21.2% -16.8% -22.0% -5.1% 9.8% 2.9% 2.1% -5.1%

© 2010 Altos Research http://www.altosresearch.com/altos/features/NationalReport.page

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ALTOS RESEARCH | REALIQ: March 2010: REAL-TIME HOUSING MARKET UPDATE

Dallas Las Vegas Salt Lake City Houston Boston Los Angeles San Diego San Jose San Francisco

154 129 122 135 130 126 111 110 99

169 134 132 137 135 126 110 102 94

137 136 134 131 130 119 108 99 86

-18.8% 1.7% 1.6% -4.0% -3.6% -5.0% -1.3% -3.2% -8.6%

-11.2% 5.4% 9.7% -2.9% -0.1% -5.2% -2.0% -10.4% -12.7%

Methodology
The Altos Research—Real IQ Real-Time Housing Report provides data on current housing market conditions in major markets around the country. Unlike other data sources that lag several months behind the market, this report summarizes metrics associated with active residential property listings to present the only real-time view of the housing market. Each ―market‖ measured in this report is equivalent to the Census Bureau's Metropolitan Statistical Area (MSA) dominated by the city listed. Properties analyzed in this data included repeat sales of single-family homes. Condominiums and town homes are not included in the data set. New construction is not included in the data set. The Altos Research Price Index is a statistical compilation of property prices highly correlated with the S&P/Case Shiller® Index. The Altos 10-City Composite is based on single family homes in Boston, Chicago, New York, Los Angeles, San Diego, San Francisco, Miami, Las Vegas , Washington D.C, Denver. For more information visit AltosResearch.com.

© 2010 Altos Research http://www.altosresearch.com/altos/features/NationalReport.page

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ALTOS RESEARCH | REALIQ: March 2010: REAL-TIME HOUSING MARKET UPDATE

About Altos Research
Altos Research LLC pioneered real-time real estate market research. Founded in 2005, the company's information products serve investors, derivatives traders, and thousands of real estate professionals. The company publishes analytical reports and data feeds each week for thousands of zip codes including all 20 S&P/Case Shiller markets summarized in this report. The Altos Research—Real IQ Housing Market Update is jointly produced by Real IQ™ and Altos Research. If you have any questions regarding this report, please contact Michael Simonsen. Michael Simonsen CEO & Co-Founder Altos Research LLC Tel: 888-819-7775 Web: www.altosresearch.com Email: mike@altosresearch.com

© 2010 Altos Research http://www.altosresearch.com/altos/features/NationalReport.page

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