April 22, 2010 Vol.

3, Issue 4

What are real estate professionals saying to homebuyers and sellers about current market conditions? The
successful brokers and sales associates are talking about the strengths that exist in the market. Below are
positive angles that appeared recently in the media and underscore why it is a good time to buy real
estate.

NAR: Existing-Home Sales Rise in March Mark Expected “Spring Surge”

Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in
®
March, marking the beginning of an expected spring surge, according to the National Association of Realtors . Existing-
home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose
6.8% to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1%
above the 4.61 million-unit level in March 2009.

According to Lawrence Yun, NAR chief economist:

• “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago
levels for 20 months running. The homebuyer tax credit has been a resounding success as these underlying trends
point to a broad stabilization in home prices.”
• “Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed
manageably. In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-
time homebuyers.”
• “With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its
feet even as the tax credit impact disappears.”

-- “Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions,” Press Release,
National Association of Realtors, April 22, 2010.

Paulson: Housing Prices Could Climb 8-10% Nationwide in 2011

John Paulson, the hedge-fund manager famous for betting against mortgage securities, is now bullish on the U.S. housing
market and the economy. During a conference call with investors April 21, Paulson said he was concerned earlier this
year about a potential double-dip recession. “I'm not concerned about that at all today," he said. It's more likely there could
be a V-shaped recovery, Paulson elaborated. House prices have stabilized and could climb 8% to 10% nationwide in
2011, he added.

-- “Paulson & Co. Turns Bullish on Housing, Economy,” by Alistair Barr, MarketWatch, April 21, 2010.

U.S. Mortgage Applications for Purchases Post Biggest Rise since January

Mortgage applications in the U.S. rose by the most in seven weeks as the looming end of the homebuyer tax credit helped
spark the biggest rise in purchases since January. The Mortgage Bankers Association’s index increased 13.6% in the
week ended April 16. The Washington-based group’s gauge of purchases climbed 10.1% and a drop in mortgage rates
boosted the refinancing measure by 15.8%, the first gain since the end of February.

-- “U.S. Mortgage Applications Rise the Most in Seven Weeks,” by Shobhana Chandra, Bloomberg, April 21, 2010.
 Mortgage Delinquencies Decline the Second Consecutive Month

Mortgage delinquencies fell in March for the second month in a row, according to new data from LPS Applied Analytics,
which tracks loan performance.
• The number of mortgage loans that were at least 30 days past due or in foreclosure declined 8.6% in March.
• The biggest slide came in loans that were 30 days past due. Such loans fell by a record 342,000 to roughly 1.45
million, a level not seen since spring 2008.
“We're not out of the woods, but this appears to be a turning point. This is the first time we've seen improvement across all
stages of mortgage delinquency,” Ted Jadlos, president, LPS Applied Analytics

-- “Mortgage Delinquencies Decline Again,” by Ruth Simon, Wall Street Journal, April 19, 2010.

Leading Economic Indicators Index Rises 1.4% in March

The index of U.S. leading indicators rose in March by the most in 10

months, a sign the economy will keep growing into the second half of the
year. The 1.4% increase in the New York-based Conference Board's
measure of the outlook for three to six months was more than
anticipated and followed a revised 0.4% gain in February.

“The economy really seems to be gaining momentum, with better-than-

expected data coming from a wider variety of sources," said Russell Price,
a senior economist at Ameriprise Financial Inc. in Detroit. “The sectors that
were doing well appear to be doing even better and those that were
struggling appear to be seeing signs of renewed activity.”

-- “Leading Economic Indicators Index in U.S. Rose 1.4%,” Bloomberg, April

19, 2010.

New Signs that Home Prices May Be Stabilizing

A new sign that home prices may be stabilizing—fewer sellers are slashing prices while their homes are on the market.
Twenty percent of sellers slashed prices by an average 10% in April, and while that may sound like a lot, it's a good deal
less than the 27% who did so in April of 2009, all according to real estate website Trulia.com. Granted, sellers still slashed
a collective $23 billion dollars from their original expectations, but at least the numbers are headed in the right direction.
“Market stabilization is helping to define fair market value, and this helps agents and consumers price better,” said Trulia's
Ken Shuman.

-- “New Signs that Home Prices May Be Stabilizing,” by Diana Olick, CNBC.com, April 21, 2010.

Snapshot of Housing Related Statistics from AP Economy Survey

The Associated Press Economy Survey drew upon forecasts from 44 economists. What follows are their average
forecasts, along with some historical context.
• Sale prices of previously occupied homes: In 2010, a decline of 0.1 percent. In 2011, a 2.3 percent increase. Prices
tumbled 10.7 percent last year. Home prices will remain almost flat for the next two years, even after plunging an
average 30 percent nationally since their peak in 2006.
• Number of previously occupied homes sold: In 2010, 5.4 million. In 2011, 5.9 million. That would mark continued
improvement from the low of 4.9 million in 2008 and be in line with sales in a healthy economy. There were 5.2
million sales last year.
-- “A Snapshot of the AP Economy Survey Results,” Associated Press, April 12, 2010

Survey: 80% of First-Time Buyers & Sellers Say it’s a Good Time to Buy a House

With average home prices down about 30% nationally from 2006, mortgage rates low and federal tax credits still in play,
more than 80% of U.S. homebuyers see this as a good time to purchase, a Century 21 Real Estate poll found. According
to the First-Time Home Buyers and Sellers Survey, which captured the opinions of prospective homebuyers and sellers
who either bought or sold their first home within the past year or are planning to buy or sell their first home within the next
year:
• Almost half of first-time homebuyers and sellers expect home prices to increase over the next year
 • 84% of first-time buyers surveyed are aware of the Homebuyer Tax Credit and 64% of those who are in the market
for their first home said they qualify
“Today's market presents a generational opportunity for home buyers and current home owners looking to leverage their
market position,” Rick Davidson, president & CEO, Century 21 Real Estate.

-- “Time Ripe to Buy U.S. Homes Before Prices Rise - Poll,” by Lynn Adler, Reuters, April 21, 2010.

Number of First-Time Homebuyers Increase in March

First-time buyers accounted for nearly half of all U.S. home sales in March as they took advantage of tax credits and more
affordable prices resulting from distressed transactions, according to a real estate survey of more than 1,500 sales agents
conducted by the Campbell/Inside Mortgage Finance.
• A record 48.2% of home purchases were first-time home buyers. The previous record for first-time buyer share was
at 46.9% in October, ahead of the November expiration of the tax credit, which was later extended.
“Many observers had felt that the pool of first time homebuyers had been depleted last fall. Instead, the normal spring-
summer buying season is combining with the tax credit to produce blow-out results for first-time homebuyers,” Thomas
Popik of Campbell Surveys.

-- “1st Time US Homebuyer Share Jumped in March - Survey,” by Al Yoon, Reuters, April 19, 2010.

California Median Home Price and Home Sales Rise Compared to Last Year

The median price paid for a California home in March jumped 14.3% compared with the same month last year, reflecting a
reduction in the number of foreclosure properties on the market and the comeback of higher-priced coastal areas,
according to research firm MDA DataQuick. It was the fifth consecutive year-over-year increase after 27 months of
declines.
• In the San Francisco Bay Area, the median increased 31%
• The firm reported a 14% year-over-year jump in the Southland's median price
• The median was up 9.7% in Los Angeles County and up 12.2% in Orange County

-- “California's Median Home Price Jumps 14.3%,” by Alejandro Lazo, LA Times, April 16, 2010.

An estimated 37,295 new and resale houses and condos

were sold in California last month.

That was up 32.7% from February, and up 3% from

March 2009.

-- “California Statewide March Home Sales,” by DQNews.com,

April 15, 2010.

California Offers New $10,000 Homebuyer Tax Credit

Gov. Arnold Schwarzenegger has signed into law legislation that provides $200 million in new homebuyer tax credits. This
new credit will begin May 1, a day after the expiration of the federal homebuyer tax credit on April 30. “We have seen the
positive impact the federal homebuyer tax credit and last year's state tax credit have had on California's housing market.
We hope the new state tax credit will continue to bring stability to our marketplace,” said Silicon Valley Association of
Realtors president Jeff Bell.

-- “State will Offer New Homebuyer Tax Credit,” by Rose Meily, San Jose Mercury News, April 5, 2010.