ALTOS RESEARCH | REALIQ: January 2009: REAL-TIME HOUSING MARKET UPDATE

Real-Time Housing Market Update

Published by Altos Research & Real IQ

January 7, 2009

Highlights
 The 10-City Composite Index was down 0.4% during December and 1.2% for the
The Altos 10-City Composite
past three months. Asking prices declined in 20 markets, were flat in three and up in
three of 26 markets.
presents the most current
 The largest monthly drop in asking prices occurred in Las Vegas with a 3.6%
decline during December. This marks the ninth consecutive month that Las Vegas
perspective on housing market
has posted the fastest rate of declining prices among major markets. The median
listing price in Las Vegas was $342,140 in December 2007 and fell to $227,358 in
conditions across the country.
December 2008.
 Prices increased in 3 of 26 markets with Salt Lake City up 1.0% for the month and
Prices decreased by 0.4% in
Houston up 3.1% during the fourth quarter. Charlotte, Dallas and Houston are now
the only markets showing three months of relative price stability.
December for the 10-City
 All markets displayed typical seasonal inventory decline except Detroit with the
largest declines in Boston and San Francisco. Across the 10-City Composite Index
Composite Index.
markets, inventory declined by 6.6% during December and 11.4% during the fourth
quarter. Inventory declines have continued since summer 2008 but, as demonstrated
by declining prices, the pace of supply contraction has not kept up with the falloff in
market demand.
 The market continues to slow as the median days-on-market increased in all
markets. All 26 markets had a median days-on-market of 100 or more in December.
By far, the market with the slowest rate of inventory turnover was Miami with a
median of 182 days-on-market or more than six months.

December Home Price Trends

The 10-City Composite Index was down just 0.4% during the last month and 1.2% over the
most recent three month period. This represents substantial deceleration in listing price
declines as the rate of decline in the 4th quarter of 2008 was less than half the rate of decline
experienced during the 3rd quarter of 2008 when the Composite Index fell 2.9%.

Prices declined in 20 of 26 markets during December. The largest monthly decline occurred
in Las Vegas with a drop of 3.6% in December and 6.8% over the past three months. This
marks the ninth consecutive month that Las Vegas has posted the fastest rate of declining
prices among major markets. Detroit listing prices fell at the second fastest rate with a drop
of 2.7% for the month.

Asking prices increased in 3 of 26 markets – Salt Lake City, Houston and Charlotte - and
were flat in three markets – Boston, Miami and Dallas. The largest single month increase
was in Salt Lake City up 1.0%. Charlotte, Dallas and Houston are the only markets showing
three months of sequential price increases.

© 2009 Altos Research LLC and Real IQ -1-

 ALTOS RESEARCH | REALIQ: January 2009: REAL-TIME HOUSING MARKET UPDATE

Altos Research Price Index

% Change
October November December % Change Over 3
MSA 2008 2008 2008 Last Month Months

10 City
$ 485,864 $ 481,839 $ 480,145 -0.4% -1.2%
Composite

Las Vegas $ 243,830 $ 235,858 $ 227,358 -3.6% -6.8%

Detroit $ 170,765 $ 168,826 $ 164,187 -2.7% -3.9%

San Francisco $ 622,008 $ 621,080 $ 609,524 -1.9% -2.0%

Phoenix $ 348,327 $ 340,058 $ 334,023 -1.8% -4.1%

Chicago $ 344,148 $ 340,250 $ 334,503 -1.7% -2.8%

Tampa $ 241,583 $ 238,073 $ 234,170 -1.6% -3.1%

San Diego $ 690,571 $ 680,669 $ 670,060 -1.6% -3.0%

San Jose $ 707,406 $ 703,715 $ 693,694 -1.4% -1.9%

Portland $ 368,410 $ 364,309 $ 359,722 -1.3% -2.4%

Los Angeles $ 637,769 $ 632,555 $ 625,476 -1.1% -1.9%

Seattle $ 468,267 $ 465,838 $ 461,129 -1.0% -1.5%

Atlanta $ 233,990 $ 232,579 $ 230,340 -1.0% -1.6%

Minneapolis $ 288,446 $ 287,458 $ 284,839 -0.9% -1.3%

Philadelphia $ 310,218 $ 307,840 $ 305,473 -0.8% -1.5%

Indianapolis $ 168,000 $ 168,327 $ 167,413 -0.5% -0.3%

Cleveland $ 167,958 $ 167,635 $ 166,863 -0.5% -0.7%

Austin $ 303,911 $ 302,501 $ 301,402 -0.4% -0.8%

Denver $ 382,473 $ 383,312 $ 382,671 -0.2% 0.1%

Washington, DC $ 459,433 $ 456,921 $ 456,393 -0.1% -0.7%

New York $ 636,997 $ 624,124 $ 623,792 -0.1% -2.1%

Boston $ 455,881 $ 455,854 $ 455,631 0.0% -0.1%

Miami $ 440,580 $ 439,347 $ 439,193 0.0% -0.3%

Dallas $ 236,567 $ 237,730 $ 237,792 0.0% 0.5%

Charlotte $ 253,492 $ 253,787 $ 254,494 0.3% 0.4%

Houston $ 218,424 $ 223,649 $ 225,181 0.7% 3.1%

Salt Lake City $ 454,220 $ 452,394 $ 456,887 1.0% 0.6%

© 2009 Altos Research LLC and Real IQ -2-

 ALTOS RESEARCH | REALIQ: January 2009: REAL-TIME HOUSING MARKET UPDATE

December Housing Supply Trends

For the month of December, listed property inventory increased in just one of 26 markets –
Detroit. Even in Detroit inventory fell by 3.2% over the most recent three month period.
Across the 10-City Composite Index markets, inventory declined by 6.6% for the month and
11.4% for the past three months.

Inventory levels declined in 25 of 26 markets. Inventory fell by the largest amount in Boston
and San Francisco where it contracted 11.4% in both markets. While prices have continued
to decline, inventory has also been steadily declining as well since Summer 2008. The big
question is whether inventory will balloon during the coming Spring selling season or remain
restrained. Until inventory experiences a sustained decline, housing prices will continue to be
pressured.

Listing Inventory
% Change
October November December % Change
MSA Over 3
2008 2008 2008 Last Month
Months

10 City Composite 328,207 311,531 290,829 -6.6% -11.4%

San Francisco 13,770 12,760 11,309 -11.4% -21.8%

Boston 18,145 16,225 14,381 -11.4% -26.2%

Denver 16,006 15,028 13,539 -9.9% -18.2%

Austin 10,869 10,195 9,253 -9.2% -17.5%

San Jose 6,636 6,247 5,671 -9.2% -17.0%

San Diego 11,100 10,834 9,902 -8.6% -12.1%

Minneapolis 20,885 19,451 17,944 -7.7% -16.4%

New York 61,654 58,052 53,596 -7.7% -15.0%

Washington, DC 26,837 25,415 23,521 -7.5% -14.1%

Los Angeles 44,589 42,439 39,319 -7.4% -13.4%

Charlotte 17,178 17,145 15,991 -6.7% -7.4%

Portland 16,693 15,634 14,598 -6.6% -14.4%

Cleveland 15,413 14,497 13,549 -6.5% -13.8%

Houston 34,990 32,718 30,622 -6.4% -14.3%

Chicago 64,413 60,293 56,431 -6.4% -14.1%

Philadelphia 35,764 34,111 31,928 -6.4% -12.0%

Dallas 34,924 33,795 31,680 -6.3% -10.2%

Atlanta 54,925 52,914 50,060 -5.4% -9.7%

© 2009 Altos Research LLC and Real IQ -3-

 ALTOS RESEARCH | REALIQ: January 2009: REAL-TIME HOUSING MARKET UPDATE

Indianapolis 15,474 14,553 13,779 -5.3% -12.3%

Seattle 23,662 21,994 20,931 -4.8% -13.0%

Salt Lake City 8,958 8,590 8,191 -4.6% -9.4%

Tampa 26,907 26,700 25,469 -4.6% -5.6%

Miami 47,989 46,727 45,208 -3.3% -6.2%

Phoenix 38,162 38,451 37,915 -1.4% -0.7%

Las Vegas 23,009 23,059 22,900 -0.7% -0.5%

Detroit 51,901 49,516 50,312 1.6% -3.2%

December Housing Market Demand Trends

During December all 26 markets had an average days-on-market of 100 or more. Days-on-
market increased in every single market. By far, the market with the slowest rate of inventory
turnover was again Miami at an average of 182 days-on-market or more than six months. San
Francisco experienced the fastest rate of inventory turnover at an average of 100 days-on-
market, followed by San Diego at 103 days.

Average Days on Market

% Change
October November December % Change Over 3
MSA 2008 2008 2008 Last Month Months

10 City Composite 126 135 145 7.5% 15.0%

Miami 172 179 182 2.0% 5.8%

Chicago 142 152 166 8.9% 16.3%

Atlanta 141 147 156 6.1% 10.6%

Cleveland 131 141 151 7.1% 15.2%

New York 115 135 151 12.2% 31.7%

Charlotte 128 136 149 9.3% 16.4%

Detroit 139 142 145 1.7% 4.5%

Tampa 138 138 142 3.3% 3.3%

Washington, DC 128 133 141 6.2% 10.3%

Philadelphia 120 129 140 8.8% 16.7%

Minneapolis 123 129 140 8.3% 13.9%

Indianapolis 119 127 138 8.5% 16.5%

Seattle 113 122 135 10.8% 20.3%

© 2009 Altos Research LLC and Real IQ -4-

 ALTOS RESEARCH | REALIQ: January 2009: REAL-TIME HOUSING MARKET UPDATE

Portland 113 122 135 10.9% 19.9%

Houston 119 126 134 6.6% 12.2%

Boston 112 118 132 11.5% 17.7%

Denver 108 115 126 9.5% 16.6%

Los Angeles 108 113 119 5.5% 9.9%

Phoenix 111 112 118 6.0% 6.9%

Las Vegas 113 113 118 4.6% 4.1%

Austin 102 110 117 6.4% 14.6%

Dallas 105 110 116 5.9% 11.2%

San Jose 101 108 114 6.0% 12.8%

Salt Lake City 99 105 112 7.3% 13.5%

San Diego 94 99 103 4.4% 10.1%

San Francisco 86 92 100 7.8% 16.3%

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.

© 2009 Altos Research LLC and Real IQ -5-

 ALTOS RESEARCH | REALIQ: January 2009: REAL-TIME HOUSING MARKET UPDATE

About Real IQ
Real IQ provides housing market analysis and consulting services to leading mortgage and
real estate companies including: Bank of America, Realogy, Weichert, Long & Foster,
LendingTree and others. More information about Real IQ is located at www.realiq.com.

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 Stephen
Bedikian or Michael Simonsen.

Stephen Bedikian Michael Simonsen

Partner & Research Director CEO & Co-Founder
Real IQ Altos Research LLC
Tel: 310-871-3737 Tel: 888-819-7775
Web: www.realiq.com Web: www.altosresearch.com
Email: sbedikian@realiq.com Email: mike@altosresearch.com

© 2009 Altos Research LLC and Real IQ -6-