PUI_Q1_2012_REreport.pdf

Pacific Union International Real Estate Report

Q1. 2012

PacUnion.com A Member Of Real Living

We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

A Member of Real Living

PacUnion.com

Mark A. McLaughlin, CEO, Pacific Union International Please remember to seek out local news, trend analysis and advice for your real estate decisions.

Pacific Union International Real Estate Report

Q1. 2012

SAN FRANCISCO

PacUnion.com

A Member of Real Living

Pacific Union International Real Estate Report Q1. 2012

SAN FRANCISCO A Member Of Real Living

2012: The Best Year in San Francisco Since 2006 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

In San Francisco, we saw a 1.2% percent overall increase in home sales in the first quarter of 2012, compared to Q1 2011. This continues a steady upward trend for the last three years; if the activity continues, and we expect it will, we should see around 2,605 single-family home sales in 2012 – our best year overall since 2006.

Here’s a look at our 10-year numbers.

San Francisco 1st Quarter Single Family Homes Sold 700 600

584 582

552

562

500

509 492 407

400

333

467

497 503

300 200 100 0 ‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

‘12

San Francisco 1st Quarter Condos Sold 800 700 600 500 400 300 200 100 0

703 587

533 545

584

517

514 507 417

362 237

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

‘12

We’re experiencing accelerated activity in several price points. For example, single-family home sales in the $1 million to $3 million range were up 5 percent, while the $3 million and over market saw a 9 percent jump.

Condominium sales have been particularly robust. Total units sales in the $1 - $2 million range jumped 29 percent compared to Q1 2011, while the $2 million and over market was up 30 percent.

Would-be buyers may be stymied, however, by a lack of inventory. Due to the laws of supply and demand, multiple offers are common; in one instance recently we saw 30 offers – leaving 29 frustrated buyers hungry for the next property.

This is having the effect of pushing prices up. Condominium median prices are on the rise in Noe Valley (up 9%), as well as in the NOPA (North of Panhandle), Hayes Valley, and Lower Pacific Heights areas (all with a 14% increase).

Looking out on the rest of 2012, we see no signs of waning demand in our area. It’s an opportune time to put a property on the market. Buyers are finally rushing in, after years on the sidelines, in an effort to grab historically low interest rates and buy before the next appreciation wave – a wave that, at long last, seems to be upon us.

For a specific analysis of your home and personal objectives, please feel free to call any time.

Patrick Barber President | San Francisco Region 415.345.3001 patrick.barber@pacunion.com PacUnion.com One Letterman Drive Building C, Suite 300 San Francisco, CA 94129

Pacific Union International Real Estate Report

Q1. 2012

MEDIAN PRICE A Member Of Real Living

Q1 2012 Median Prices by District ‘11

■TENANCIES IN COMMON ■CONDOMINIUMS ■SINGLE FAMILY HOMES

‘12

$1.03M

$719K

$939K

$942K

‘11

$615K $629K

‘12

$557K $605K

$2.72M

$2.76M

$585K $590K

$2.44M $1.84M

$1.39M

NOB/RUSSIAN/ TELEGRAPH HILL

PAC HEIGHTS/ MARINA

‘12

$513K $670K $1.09M

$570K $775K

‘12

$492K

$598K

$422K

‘12

‘11

$590K

$599K

$620K

$555K

$363K

$660K

$664K

$675K

$798K

$551K

‘12

‘11

$844K

$495K

$575K

$702K

$685K

$878K

$844K

$1.28M $1.45M

LOWER PAC HEIGHTS/ HAYES/NOPA

‘11

$755K

‘12

‘11

‘11

NOE/CASTRO/ HAIGHT

RICHMOND/ SEACLIFF

‘11

SOMA/MISSION/ POTRERO

‘12

$375K

‘11

‘12

‘11

$830K

$300K $459K

$254K $479K

$315K $458K

ST. FRANCIS WOOD/ MIRALOMA/ FOREST HILL

SUNSET/ PARKSIDE

Source: SFAR MLS, March 31, 2012

LAKE MERCED/ INGLESIDE

‘12

$316K $450K

BAYVIEW/ EXCELSIOR

Q1 2012 Units Sold By District 3

9 154

0 9

71 133

24

103 89

42

65

SOMA/MISSION/ POTRERO

NOE/CASTRO/ HAIGHT

Source: SFAR MLS, March 31, 2012

■TENANCIES IN COMMON ■CONDOMINIUMS ■SINGLE FAMILY HOMES

0 10

5 BAYVIEW/ EXCELSIOR

SUNSET/ PARKSIDE

0 12 51

7

7 48 22

10 38 10

34

0 11

40

37

NOB/RUSSIAN/ ST. FRANCIS WOOD/ PAC HEIGHTS/ LOWER PAC HEIGHTS/ RICHMOND/ TELEGRAPH HILL MIRALOMA/ SEACLIFF MARINA HAYES/NOPA FOREST HILL

LAKE MERCED/ INGLESIDE

Pacific Union International Real Estate Report

Q1. 2012

HOMES SOLD COMPARISON A Member Of Real Living

Single Family Homes Q1 2012 Sold Comparison JAN - MAR 2012

Under $1 Million

'11 - '12 % Change

$1-3 Million

'11 - '12 % Change

$3 Million+

'11 - '12 % Change

VOLUME

$224,011,553

-2%

$179,070,451

6%

$71,582,500

31%

UNITS SOLD

379

-2%

105

5%

12

9%

AVERAGE DOM

70

-5%

53

-18%

77

40%

MEDIAN PRICE

$576,000

-2%

$1,535,000

2%

$4,822,500

21%

AVERAGE PRICE

$591,060

0%

$1,705,433

1%

$5,965,208

20%

Source: BAREIS, as of March 31, 2012

Condominiums Q1 2012 Sold Comparison JAN - MAR 2012

Under $1 Million

'11 - '12 % Change

$1-2 Million

'11 - '12 % Change

$2 Million+

'11 - '12 % Change

VOLUME

$242,738,230

-6%

$101,856,343

34%

$35,809,000

8%

UNITS SOLD

406

-9%

76

29%

13

30%

AVERAGE DOM

81

-7%

63

-5%

2,656,000

27%

MEDIAN PRICE

$588,500

4%

$1,299,500

8%

$2,656,000

-6%

AVERAGE PRICE

$597,877

3%

$1,340,215

4%

$2,754,538

-17%

Source: BAREIS, as of March 31, 2012

Tenancies In Common Q1 2012 Sold Comparison JAN - MAR 2012

'11 - '12

$500K and under % Change $500K and higher

'11 - '12 % Change

VOLUME

$8,942,000

36%

$28,615,560

-25%

UNITS SOLD

23

44%

38

-19%

AVERAGE DOM

92

-2%

98

4%

MEDIAN PRICE

$399,000

-9%

$644,500

1%

AVERAGE PRICE

$388,783

-5%

$753,041

-7%

Source: BAREIS, as of March 31, 2012

Tenancies-in Common 6%

Single Family Homes 47% Condos & Co-ops 47%

Types of San Francisco Properties Sold in Q1 2012 ■TENANCIES IN COMMON ■CONDOMINIUMS ■SINGLE FAMILY HOMES Source: SFAR MLS, March 31, 2012

Pacific Union International Real Estate Report

Q1. 2012

MARIN

PacUnion.com

A Member of Real Living

Pacific Union International Luxury Real Estate Report Q1. 2012

MARIN COUNTY A Member Of Real Living

2012: The Best Year in Marin Since 2005 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

Marin was off to a roaring start in the first quarter of 2012, with nearly a 9 percent increase in home sales compared to Q1 2011. Here’s a look at our 10-year numbers.

Marin 1st Quarter Single Family Homes Sold 600 500

503

496

488 410

389

400

323

300

349 281

200

385

419

223

100 0

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

‘12

All indications are this white-hot activity we are experiencing in Marin will continue throughout 2012. If the trend does continue, we’d be looking at about 2,210 homes sold in 2012, which would make it our best year since 2005.

The fallout from all this activity has been fierce competition. In the first quarter, we saw 43 sales in Marin County draw multiple offers, ranging from 2 to 13! Mill Valley continues to be the epicenter of activity, with 16 multiple-offer transactions in the city alone.

Although the number of buyers currently continues to outpace inventory, we predict this may soon change.

Based on the activity our stagers and photographers are experiencing, we can expect to see substantial new listings hitting the market in the next few weeks and months – good news for all those buyers shut out in the multiple-offer competition.

We’re anticipating an extremely strong 2012. This is a great time for sellers to take advantage of the limited inventory, and to acquire a new property while prices have not yet started to push upward.

For a specific analysis of your home and personal objectives, please feel free to call any time.

Brent Thomson Senior Vice President Marin County 415.383.1900 brent.thomson@pacunion.com PacUnion.com 60 Belvedere Drive Mill Valley, CA 94941

Pacific Union International Luxury Real Estate Report

Q1. 2012

HOME COMPARISON A Member Of Real Living

Marin County $1 Million & Under Single Family Homes

TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$163,480,945

$170,607,486

4%

$174,013,670

2%

HOMES SOLD

254

281

11%

299

6%

AVG. DAYS ON MKT

115

135

17%

135

0%

MEDIAN PRICE

$637,500

$599,000

-6%

$565,000

-6%

AVERAGE PRICE

$643,626

$607,144

-6%

$581,896

-4%

MAX PRICE SOLD

$1,000,000

$1,000,000

0%

$1,000,000

0%

Source: BAREIS, as of March 31, 2012

Marin County $1 Million & Higher Single Family Homes Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

$181,997,207

$191,084,370

5%

$222,360,585

16%

HOMES SOLD

97

105

8%

119

13%

AVG. DAYS ON MKT

152

156

3%

156

0%

MEDIAN PRICE

$1,350,000

$1,500,000

11%

$1,510,000

1%

AVERAGE PRICE

$1,876,260

$1,819,851

-3%

$1,868,576

3%

MAX PRICE SOLD

$14,000,000

$6,215,000

-56%

$5,500,000

-12%

TIME PERIOD

Jan - Mar '10

VOLUME

Source: BAREIS, as of March 31, 2012

Marin County Market Statistics Q1 2011 vs Q1 2012 Jan - Mar

$1M and under

$1M and higher

VOLUME

2%

16%

HOMES SOLD

6%

13%

DOM

0%

0%

MEDIAN PRICE

-6%

1%

AVERAGE PRICE

-4%

3%

Source: BAREIS, as of March 31, 2012

Pacific Union International Luxury Real Estate Report

Q1. 2012

HOME COMPARISON A Member Of Real Living

Marin County $1-$3 Million Single Family Homes '10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

$148,869,370

10%

$165,796,085

11%

89

95

7%

106

12%

AVG. DAYS ON MKT

142

156

10%

138

-12%

MEDIAN PRICE

$1,315,000

$1,450,000

10%

$1,413,000

-3%

AVERAGE PRICE

$1,523,766

$1,567,046

3%

$1,564,114

0%

MAX PRICE SOLD

$2,950,000

$2,770,000

-6%

$3,000,000

8%

TIME PERIOD

Jan - Mar '10

VOLUME

$135,615,207

HOMES SOLD

Jan - Mar '11

Source: BAREIS, as of March 31, 2012

Marin County $3 Million & Higher Single Family Homes

TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$46,382,000

$42,215,000

-9%

$59,564,500

41%

HOMES SOLD

8

10

25%

14

40%

AVG. DAYS ON MKT

263

160

-39%

331

107%

MEDIAN PRICE

$4,025,000

$3,825,000

-5%

$4,250,000

11%

AVERAGE PRICE

$5,797,750

$4,221,500

-27%

$4,254,607

1%

MAX PRICE SOLD

$14,000,000

$6,215,000

-56%

$5,500,000

-12%

Source: BAREIS, as of March 31, 2012

Marin County Median & Average Home Price Q1 2010 – Q1 2012

QUARTER AVG. PRICE MEDIAN PRICE

Q110

Q210

Q310

Q410

Q111

$984,178 $1,083,861 $1,022,077 $1,022,299

$937,817

$751,000 $816,500

$705,000

Source: BAREIS, as of March 31, 2012

$790,000

$763,500

Q211

Q311

$1,053,418 $1,004,425 $779,000

$777,903

Q411

Q112

$962,229

$948,140

$737,000

$685,000

Pacific Union International Real Estate Report

Q1. 2012

NAPA COUNTY

PacUnion.com

A Member of Real Living

Pacific Union International Real Estate Report Q1. 2012

NAPA COUNTY A Member Of Real Living

2012: The Best Year in Napa Since 2005 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

We saw 304 homes sell in Napa Valley in the first quarter of 2012, a slight uptick from last year at this time but more importantly, the continuation of a steady trend of increasing Q1 sales. Here’s a look at our 10-year numbers.

Napa 1st Quarter Single Family Homes Sold 350 300

314

306 260

250

296 245

200

244

263

‘09

‘10

290

304

178 140

150 100 50 0 ‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘11

‘12

Source: BAREIS, as of March 31, 2012

Based on this, we are looking for 1,400 homes sold in 2012 – which will make it the best year in Napa since 2005.

In the southern end of Napa County, the City of Napa and American Canyon, most properties listed under $500,000 are generating multiple offers. Is this price point seeing appreciation at long last? Since prices had fallen approximately 30% that's hard to confirm, but we feel this price point has hit bottom and is on the upswing. Volume is down 12% for properties under $500,000 compared to Q1 of 2011, primarily because the area is inventory constrained – many buyers but fewer homes available for sale.

The northern end of the valley, especially St. Helena, continues to climb in desirability. We saw a 45% increase in Q1 sales compared to this time last year, mostly in the $1,000,000 and over range – a continuation of a trend that began in the fourth quarter of 2011. Estate properties, vineyard land, and wineries are in high demand.

Single-family homes at Silverado Country Club and Resort are seeing a resurgence in sales, and the Napa Valley is once again being sought after by second-home buyers in all price points.

In summary, we have buyers in abundance but require more inventory to satisfy their needs. 2012 is shaping up to be a banner year, and we anticipate a continued robust real estate market as we head into our prime spring selling season.

For a specific analysis of your home and personal objectives, please feel free to call any time.

Linda Carroll Branch Executive 707.967.1340 linda.carroll@pacunion.com PacUnion.com 508 Main Street Napa, CA 95474

Pacific Union International Real Estate Report

Q1. 2012

HOMES SOLD COMPARISON A Member Of Real Living

Napa County $500K & Under Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$68,342,929

$69,387,171

2%

$67,871,488

-2%

HOMES SOLD

220

232

5%

230

-1%

AVG. DAYS ON MKT

113

132

17%

121

-8%

MEDIAN PRICE

$306,000

$289,950

-5%

$300,000

3%

AVERAGE PRICE

$310,650

$299,083

-3.7%

$295,093

-1%

MAX PRICE SOLD

$500,000

$499,900

0%

$495,000

-1%

Source: BAREIS, as of March 31, 2012

Napa County $500K – $1 Million Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$21,254,524

$25,999,285

22%

$31,952,553

23%

HOMES SOLD

31

40

29%

48

20%

AVG. DAYS ON MKT

218

221

1%

188

-15%

MEDIAN PRICE

$641,250

$637,450

-0.6%

$637,500

0%

AVERAGE PRICE

$685,630

$649,982

-5.2%

$665,678

2%

MAX PRICE SOLD

$980,000

$995,000

2%

$1,000,000

1%

Source: BAREIS, as of March 31, 2012

Pacific Union International Real Estate Report

Q1. 2012

HOME COMPARISON & CITY STATS A Member Of Real Living

Napa County $1 Million & Higher Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$21,105,000

$28,208,331

34%

$48,897,500

73%

HOMES SOLD

13

18

38%

26

44%

AVG. DAYS ON MKT

222

262

18%

240

-8%

MEDIAN PRICE

$1,390,000

$1,388,500

0%

$1,375,000

-1%

AVERAGE PRICE

$1,623,462

$1,567,130

-3%

$1,880,673

20%

MAX PRICE SOLD

$4,250,000

$2,850,000

-33%

$7,000,000

146%

Source: BAREIS, as of March 31, 2012

Napa City Stats 2011 vs 2012 CITY

# SALES Q1 2011

# SALES Q1 2012

% CHANGE IN SALES

AVG PRICE Q1 2011

AVG PRICE Q1 2012

% CHANGE AVG PRICE

AVG DOM Q1 2011

AVG DOM Q1 2012

% CHANGE AVG DOM

NAPA

187

200

7%

$437,158

$466,634

6.7%

169

142

-16%

AMERICAN CANYON

73

67

-8%

$298,535

$284,616

-4.7%

94

105

12%

CALISTOGA

6

7

17%

$498,417

$785,929

58%

142

254

79%

ST. HELENA

11

18

64%

$780,620

$1,256,856

61%

202

212

5%

YOUNTVILLE

6

5

-17%

$747,500

$541,500

-28%

298

236

-21%

RUTHERFORD

1

1

0%

$775,000

$2,060,000

N/A

33

20

N/A

ANGWIN

5

3

-40%

$611,996

$765,667

25%

138

172

25%

Source: BAREIS, as of March 31, 2012

Pacific Union International Real Estate Report

Q1. 2012

SONOMA COUNTY

PacUnion.com

A Member of Real Living

Pacific Union International Luxury Real Estate Report Q1. 2012

SONOMA COUNTY A Member Of Real Living

2012: The Best Q1 in Sonoma County Since 2006 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

In Sonoma County, home sales in the first quarter of 2012 were up 14 percent compared to the same time last year – in fact, it’s been the best Q1 in our area since 2006. Here’s a look at our 10-year numbers.

Sonoma County 1st Quarter Single Family Homes Sold

1,600 1,400 1,200 1,000 800 600 400 200 0

1,227

1,086

1,191

1,220 1,025

1,023 752

‘02

‘03

‘04

‘05

‘06

‘07

916

975

‘10

‘11

1,116

615

‘08

‘09

‘12

Source: BAREIS, as of March 31, 2012

If the trend continues, we anticipate robust sales in 2012 – unless we are limited by a lack of inventory, which has been a recurring issue in the past months. Our purchase contracts are exceeding new listings, and multiple offers have been the rule rather than the exception.

In other areas of note, we are seeing a marked increase in purchase contracts in price ranges that have been very slow before Q1 of this year. This is true of almost every price point in our area, with two price ranges – $600,000-$699,999 and over $4 million – seeing double-digit percentage increases in the number of homes under contract.

We are also seeing a significant increase in purchase contracts ratified on short-sale properties. This is a trend that we expect to continue as banks learn that short sales hedge against the further losses and liabilities of foreclosures.

We predict a very strong 2012 for Sonoma County. Favorable interest rates, job and economic growth, high demand from buyers, and sellers who have been trying to wait out the market – and are now ready to move – all bode well for continued growth.

If you’re a potential seller, act soon to take advantage of the high demand. If you’re a buyer, persevere! Your options may be limited by low inventory, but the home you purchase will likely look like a bargain as prices begin to rise.

For a specific analysis of your home and personal objectives, please feel free to call any time.

Rick Laws Senior Vice President 707.888.3763 rick.laws@pacunion.com PacUnion.com 3333 Mendocino Avenue, Suite 210 Santa Rosa, CA

Pacific Union International Luxury Real Estate Report

Q1. 2012

MARKET ACTIVITY COMPARISON A Member Of Real Living

$ In Thousands

Median Price January ‘12 – March ’12 for Sonoma County 360 340 320 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0

PRICE

MEDIAN PRICE FOR SONOMA COUNTY SINGLE FAMILY HOMES IN MARCH OF 2012 WAS $320,000, UP 4.1% OVER MARCH OF 2011, AND DOWN FOR THE FIRST QUARTER LESS THAN 1%

Mar 11

Apr 11

May 11

Jun 11

July 11

Aug 11

Sep 11

Oct 11

Nov 11

Dec 11

Jan 12

Feb 12

Mar 12

Sold

Sold

-.08%

#Units

Supply/Demand January ‘12 – March ’12 for Sonoma County 2800 2700 2600 2500 2400 2300 2200 2100 2000 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0

SUPPLY & DEMAND MARCH 2011 VS MARCH 2012 Supply (For Sale) is down 25% over March of 2011 Demand (Sold) is up 10.4%

FIRST QUARTER OF 2012

Supply (For Sale) is down 8.5% Sales(Sold) are up 34.9%

Mar 11

Apr 11

For Sale

May 11 Sold

Jun 11

July 11

Aug 11

Sep 11 For Sale -8.5%

Source: BAREIS, April 4, 2012

Oct 11 Sold +34.9%

Nov 11

Dec 11

Jan 12

Feb 12

Mar 12

Pacific Union International Luxury Real Estate Report

Q1. 2012

MARKET ACTIVITY COMPARISON A Member Of Real Living

Months

Months Supply of Inventory 2011 vs 2010 for Sonoma County 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00

MONTHS SUPPLY OF INVENTORY IN THE FIRST QUARTER OF 2012 MSI IS DOWN 43% TO 1.6 MONTHS OF SUPPLY... 4 TO 6 MONTHS IS CONSIDERED A BALANCED MARKET

Mar 11

Apr 11

May 11

Jun 11

July 11

Aug 11

Sep 11

Oct 11

Nov 11

Dec 11

Jan 12

Feb 12

Mar 12

MSI-UC

MSI-UC

-43.0%

Source: BAREIS, April 4, 2012

Supply/Demand #Units January ‘12 – March ’12 for Sonoma County 650 600 550 500 450

#Units

400

DEMAND

350 300

THE LEADING INDICATOR OF DEMAND IS THE NUMBER OF PROPERTIES WITH ACCEPTED PURCHASE AGREEMENTS (UNDER CONTRACT)

250 200 150

THE LAGGING INDICATOR WILL BE THE NUMBER OF HOMES CLOSING ESCROW. (SOLD)

100 50 0

Mar 11 UC

Apr 11

May 11 Sold

Source: BAREIS, April 4, 2012

Jun 11

July 11

Aug 11

Sep 11

Oct 11

UC

SOLD

+34.4%

-34.9%

Nov 11

Dec 11

Jan 12

Feb 12

Mar 12

Pacific Union International Real Estate Report

Q1. 2012

SONOMA VALLEY

PacUnion.com

A Member of Real Living

Pacific Union International Luxury Real Estate Report Q1. 2012

SONOMA VALLEY A Member Of Real Living

2012: The Best Year in the Sonoma Valley Since 2005 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

Activity in the Sonoma Valley has gotten off to a hurried start in 2012, with a 14 percent increase in home sales in the first quarter of 2012, compared to Q1 2011. Here’s a look at our 10-year numbers.

Sonoma Valley 1st Quarter Single Family Homes Sold

140 120 100

117 102

112 85

82

80

68

60

75

79

‘09

‘10

85

97

60

40 20 0 ‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘11

‘12

Source: BAREIS, as of March 31, 2012

If the trend continues, we’d be looking at about 505 homes sold in 2012, which makes it the best year since 2005.

However, as with many other areas, our biggest issue is low inventory in all price ranges. In particular, we are seeing multiple offers on most properties in the under-$500,000 price range and on many properties over $1M. Properties priced in the first “move up” range (between $500,000 and $1,000,000) seem to be the biggest challenge. This makes sense: Many sellers selling in the under $500,000 range are not realizing much (if any) equity because this price range holds the greatest number of short sales and foreclosures.

The over-$1M market is as brisk as we have seen in a long time. One property we listed at $1,300,000 saw four offers in its first week on the market.

One really exciting bit of news on the Sonoma Valley market is for investors. Rents have increased, interest rates are incredibly low, and financing is very affordable. Those factors combine to create an outstanding opportunity to purchase a home as a long- or even short-term rental (like a vacation or second home). This is the first time we’ve seen rental properties ‘pencil out’ in over 10 years – so it’s a great time to invest.

We anticipate that 2012 will be the best in years for single-family-home sales, as long as inventory can keep up with demand. Buyers appear to be ready!

For a specific analysis of your home and personal objectives, please feel free to call any time.

Jill Silvas Branch Executive 707.934.2300 jill.silvas@pacunion.com PacUnion.com 640 Broadway Street Sonoma, CA 95476

Pacific Union International Luxury Real Estate Report

Q1. 2012

HOMES SOLD COMPARISON A Member Of Real Living

Sonoma Valley $1 Million And Under Single Family Homes TIME PERIOD

2011

2012

'11 - '12 % Change

VOLUME

$33,609,215

$39,619,649

18%

HOMES SOLD

75

87

16%

AVG. DAYS ON MKT

120

120

0%

MEDIAN PRICE

$390,000

$395,000

1%

AVERAGE PRICE

$448,123

$455,398

2%

MAX PRICE SOLD

$965,000

$1,000,000

4%

Source: BAREIS, March 31, 2012

Sonoma Valley $1 Million And Higher Single Family Homes TIME PERIOD

2011

2012

'11 - '12 % Change

VOLUME

$19,089,000

$36,365,100

91%

HOMES SOLD

10

12

20%

AVG. DAYS ON MKT

181

281

55%

MEDIAN PRICE

$1,387,500

$2,050,000

48%

AVERAGE PRICE

$1,908,900

$3,030,425

59%

MAX PRICE SOLD

$3,995,000

$8,000,000

100%

Source: BAREIS, March 31, 2012

Pacific Union International Luxury Real Estate Report

Q1. 2012

HOME COMPARISON & CITY STATS A Member Of Real Living

Sonoma County All Price Ranges TIME PERIOD

2011

2012

'11 - '12 % Change

VOLUME

$397,238,593

$455,920,210

15%

HOMES SOLD

978

1,122

15%

AVG. DAYS ON MKT

136

138

1%

MEDIAN PRICE

$320,000

$318,750

0%

AVERAGE PRICE

$406,174

$406,346

0%

MAX PRICE SOLD

$3,995,000

$8,400,000

110%

Source: BAREIS, March 31, 2012

YTD Sonoma County Cities Stats 2011 vs 2012 Single Family Homes CITY

# SALES 2011

# SALES 2012

% CHANGE IN SALES

AVG PRICE 2011

AVG PRICE 2012

% CHANGE AVG PRICE

AVG DOM 2011

AVG DOM 2012

% CHANGE AVG DOM

SONOMA

80

87

9%

$615,198

$617,667

0%

130

135

-4%

GLEN ELLEN

3

6

100%

$812,500

$1,586,342

95%

80

130

63%

KENWOOD

2

5

150%

$522,450

$1,431,200

173.9%

76

237

212%

PETALUMA

113

162

43%

$431,404

$387,688

-10%

151

147

-3%

ROHNERT PARK

69

65

-6%

$293,217

$289,986

-1%

98

122

24%

SANTA ROSA

417

467

12%

$359,418

$341,835

-5%

126

128

2%

HEALDSBURG

42

39

-7%

$550,105

$733,349

33%

143

190

33%

WINDSOR

75

76

1%

$350,304

$329,170

-6%

142

148

4%

SEBASTOPOL

42

42

0%

$553,184

$441,972

-20%

132

129

-2%

Source: BAREIS, March 31, 2012

Pacific Union International Real Estate Report

Q1. 2012

EAST BAY

PacUnion.com

A Member of Real Living

Pacific Union International Real Estate Report Q1. 2012

EAST BAY A Member Of Real Living

2012: The Best Year in the East Bay Since 2006 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

Here’s a look at how home sales in the East Bay have fared over the past 10 years.

East Bay* 1st Quarter Single Family Homes Sold 600 500

464

448

458

455

455 377

400

295

300

266

417

422

‘11

‘12

311

200 100 0

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

Source: EBRD *Defined by Oakland zip codes: 94602, 94609, 94610, 94611, 94618, 94619, 94705, Piedmont, Berkeley, Albany, Kensington and El Cerrito.

Our projections indicate we'll likely see around 2,290 home sales in 2012 which will make it our best year since 2006.

While our Q1 results showed only a modest increase of 1.2% above the same time period last year, we attribute this not to a sluggish market but to a lack of listing inventory. There is no shortage of buyers in our marketplace, but the new inventory is not keeping up with the demand. More than two-thirds of our first quarter sales involved multiple offers, and there have been weeks where the number of homes going into contract has exceeded the number of new listings. The number of pending sales in March 2012 was up more than 50 percent over March 2010 and 2011 and there is only a one-month supply of listing inventory. Thus, in many neighborhoods, ours is now a sellers’ market, with demand far outstripping supply and properties selling swiftly, frequently for over the list price.

A number of factors, however, suggest that an increase in new inventory is not far off. Prices are stabilizing, and this, coupled with pent-up buyers demand and increasing consumer confidence as the economy rebounds, should result in an increase in the number of new properties coming onto the market. Indeed, given the current momentum, once the sellers step in to meet the buyer demand this, could be the best year in our marketplace since 2006.

If you are a seller who has been watching the market for a good time to make a move, now is that time. For a specific analysis of your home and personal objectives, please call any time.

Pam Hoffman SVP, Branch Executive 510.338.1320 phoffman@pacunion.com PacUnion.com 1900 Mountain Boulevard Oakland, CA 94611

Pacific Union International Real Estate Report

Q1. 2012

HOMES SOLD COMPARISON A Member Of Real Living

Oakland Area* All Prices - Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$106,957,475

$119,596,370

12%

$133,186,590

11%

HOMES SOLD

182

231

27%

249

8%

AVG. DAYS ON MKT

40

45

13%

47

4%

MEDIAN PRICE

$542,750

$500,000

-8%

$470,000

-6%

AVERAGE PRICE

$587,678

$517,733

-12%

$534,885

3%

MAX PRICE SOLD

$3,200,000

$1,450,000

-55%

$3,000,000

107%

Source: EBRD

*Defined by Oakland zip codes: 94602, 94609, 94610, 94611, 94618, 94619, 94705

Piedmont All Prices - Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$12,052,256

$21,303,000

77%

$24,234,337

14%

HOMES SOLD

10

16

60%

19

19%

AVG. DAYS ON MKT

25

42

68%

26

-38%

MEDIAN PRICE

$1,265,500

$1,232,500

-3%

$1,210,000

-2%

AVERAGE PRICE

$1,205,225

$1,331,437

10%

$1,275,491

-4%

MAX PRICE SOLD

$1,670,000

$2,300,000

38%

$2,760,000

20%

Source: EBRD

Berkeley All Prices - Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$46,336,213

$63,925,790

38%

$54,034,757

-15%

HOMES SOLD

70

106

51%

90

-15%

AVG. DAYS ON MKT

34

50

47%

32

-36%

MEDIAN PRICE

$609,787

$560,000

-8%

$557,500

0%

AVERAGE PRICE

$661,945

$603,073

-9%

$600,386

0%

MAX PRICE SOLD

$1,780,000

$2,375,000

33%

$1,687,500

-29%

Source: EBRD

Pacific Union International Real Estate Report

Q1. 2012

HOMES SOLD COMPARISON A Member Of Real Living

Albany All Prices - Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$7,021,600

$6,988,704

0%

$5,583,165

-20%

HOMES SOLD

13

13

0%

11

-15%

AVG. DAYS ON MKT

44

28

-36%

51

82%

MEDIAN PRICE

$510,000

$475,999

-7%

$415,000

-13%

AVERAGE PRICE

$540,123

$537,592

0%

$507,560

-6%

MAX PRICE SOLD

$711,000

$828,500

17%

$1,150,000

39%

Source: EBRD

Kensington All Prices - Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$7,707,250

$7,534,000

-2%

$6,273,254

-17%

HOMES SOLD

9

12

33%

9

-25%

AVG. DAYS ON MKT

19

38

100%

63

66%

MEDIAN PRICE

$749,000

$610,000

-19%

$675,000

11%

AVERAGE PRICE

$856,361

$627,833

-27%

$697,028

11%

MAX PRICE SOLD

$1,510,000

$880,000

-42%

$1,300,000

48%

Source: EBRD

El Cerrito All Prices - Single Family Homes TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$15,465,500

$19,795,800

28%

$18,746,200

-5%

HOMES SOLD

27

39

44%

44

13%

AVG. DAYS ON MKT

29

47

62%

41

-13%

MEDIAN PRICE

$550,000

$489,000

-11%

$430,000

-12%

AVERAGE PRICE

$572,796

$507,584

-11%

$426,050

-16%

MAX PRICE SOLD

$1,110,000

$820,000

-26%

$950,000

16%

Source: EBRD

Pacific Union International Real Estate Report

Q1. 2012

CONTRA COSTA

PacUnion.com

A Member of Real Living

Pacific Union International Real Estate Report

CONTRA COSTA COUNTY A Member Of Real Living

2012: The Best Year in Contra Costa Since 2005 We have been pleasantly surprised by the pace of the real estate market as we move into the second quarter of 2012 – and we’re projecting even better things to come for the rest of the year.

Buyer demand drove an increase in the number of homes sold in Q1 in most of the Bay Area. Aided by job growth, improving economic indicators, and historically low interest rates, the market is changing with a velocity we haven’t seen since its collapse in September 2008.

In Contra Costa County, we saw a slight .4% increase in home sales in the first quarter of 2012, compared to Q1 2011. That makes it the best Q1 in our area since we last saw this sort of activity in 2007. Here’s a look at our 10-year numbers.

Contra Costa 1st Quarter Single Family Homes Sold 1,400 1,200

1,269 1,023

1,000

1,045

900

800

824

892 551

600

647

750

853

856

‘11

‘12

400 200 0 ‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

Source: BAREIS, as of March 31, 2012

With these trends, we expect to see around 6,400 sales in 2012 – our best year overall since 2005. We are still seeing constrained inventory (more buyers than sellers) in the 24/680 corridor, and we expect the second quarter will continue to show pent-up demand from buyers as well as multiple offers on well -priced homes.

Buyers still are cautious about overpaying, however, so they won’t pay an inflated list price just to avoid a multiple-offer situation – at least, not yet.

Lamorinda continues to be more competitive than the other areas we cover, due to less turnover and fewer homes to sell given the smaller population. That won’t change soon; prospective buyers are very loyal to the area and are choosing to focus here rather than looking in Alamo or Danville.

We predict Blackhawk will continue to sell well, since for the first time those prices are in line with homes for sale outside the gated community. And buyers with cash in hand love the area.

The one area that will likely show limited growth is the “move-up” market, where a buyer might go from an $800K home to a $1.3M home. This is mostly due to the lack of equity in those homes now, as well as the new conforming limits on mortgages.

In short, we are looking ahead to a great 2012! For a specific analysis of your home and personal objectives, please feel free to call any time.

Ellen Anderson Senior Vice President, Contra Costa County 925.314.4888 ellen.anderson@pacunion.com PacUnion.com 8 Camino Encinas, Suite 100 Orinda, CA 94563

Pacific Union International Real Estate Report

HOMES SOLD COMPARISON A Member Of Real Living

Alamo, Blackhawk, Danville, Diablo, San Ramon $1 Million And Under - SFH TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$141,389,541

$150,350,868

6%

$147,039,995

-2%

HOMES SOLD

196

213

9%

211

-1%

AVG. DAYS ON MKT

45

50

11%

49

-2%

MEDIAN PRICE

$750,000

$705,000

-6%

$729,000

3%

AVERAGE PRICE

$721,375

$705,872

-2%

$696,872

-1%

MAX PRICE SOLD

$1,000,000

$1,000,000

0%

$1,000,000

0%

Source: EBRD, as of March 31, 2012

Concord, Martinez, Pleasant Hill, Walnut Creek $1 Million And Under - SFH TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$168,053,147

$178,427,304

6%

$174,866,011

-2%

HOMES SOLD

407

472

16%

469

-1%

AVG. DAYS ON MKT

39

55

41%

47

-15%

MEDIAN PRICE

$375,000

$334,000

-11%

$325,000

-3%

AVERAGE PRICE

$412,906

$378,023

-8%

$372,848

-1%

MAX PRICE SOLD

$999,900

$969,000

-3%

$992,000

2%

Source: EBRD, as of March 31, 2012

Lafayette, Moraga, Orinda $1 Million And Under - SFH TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$38,115,500

$50,617,566

33%

$40,198,830

-21%

HOMES SOLD

49

70

43%

56

-20%

AVG. DAYS ON MKT

59

64

8%

59

-8%

MEDIAN PRICE

$796,000

$729,000

-8%

$749,500

3%

AVERAGE PRICE

$777,867

$723,108

-7%

$717,836

-1%

MAX PRICE SOLD

$1,000,000

$997,000

0%

$950,000

-5%

Source: EBRD, as of March 31, 2012

Pacific Union International Real Estate Report

HOMES SOLD COMPARISON A Member Of Real Living

Alamo, Blackhawk, Danville, Diablo, San Ramon $1 Million And Higher - SFH TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$90,318,267

$87,385,054

-3%

$87,051,222

0%

HOMES SOLD

72

68

-6%

64

-6%

AVG. DAYS ON MKT

87

74

-15%

88

19%

MEDIAN PRICE

$1,193,000

$1,175,000

-2%

$1,252,000

7%

AVERAGE PRICE

$1,254,420

$1,285,074

2%

$1,360,175

6%

MAX PRICE SOLD

$2,100,000

$2,800,000

33%

$3,125,000

12%

Source: EBRD, as of March 31, 2012

Concord, Martinez, Pleasant Hill, Walnut Creek $1 Million And Higher - SFH TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$6,636,000

$6,782,000

2%

$5,304,000

-22%

HOMES SOLD

5

5

0%

4

-20%

AVG. DAYS ON MKT

75

67

-11%

144

115%

MEDIAN PRICE

$1,251,000

$1,315,000

5%

$1,289,500

-2%

AVERAGE PRICE

$1,327,200

$1,356,400

2%

$1,326,000

-2%

MAX PRICE SOLD

$1,630,000

$1,550,000

-5%

$1,515,000

-2%

Source: EBRD, as of March 31, 2012

Lafayette, Moraga, Orinda $1 Million And Higher - SFH TIME PERIOD

Jan - Mar '10

Jan - Mar '11

'10 - '11 % Change

Jan - Mar '12

'11 - '12 % Change

VOLUME

$36,996,950

$36,456,800

-1%

$39,790,400

9%

HOMES SOLD

25

27

8%

28

4%

AVG. DAYS ON MKT

71

77

8%

50

-35%

MEDIAN PRICE

$1,250,000

$1,250,000

0%

$1,292,500

3%

AVERAGE PRICE

$1,479,878

$1,350,251

-9%

$1,421,085

5%

MAX PRICE SOLD

$2,950,000

$2,500,000

-15%

$2,950,000

18%

Source: EBRD, as of March 31, 2012

Mortgage Services Professionals Mortgage Services Professionals is a joint venture of Pacific Union International and Wells Fargo Home Mortgage. As a responsible mortgage lender, we work closely with customers to help them explore and explain options, helping them find home financing that helps meet individual budgets and homeownership goals.

Call us today for a complimentary consultation 877-369-3332

Mortgage Rates Remain Near Historic Lows RATES ON 30-YEAR FIXED-RATE MORTGAGES ON CONVENTIONAL, CONFORMING LOANS 18% 15% 12% Average, 1972-2011: 8.815

9% 6% 3% 0%

MOST RECENT MONTH MARCH 2012: 3.954%

1972

1976

1980

1984

1988

1992

1996

2000

2004

2008

2012

SOURCE: Freddie Mac’s Primary Mortgage Market Survey. Rate shown is the rate on a 30-year fixed-rate mortgage on a prime conventional, conforming loan with an LTV of no more than 80%. These are historical figures, and the most recent rate shown doesn’t necessarily reflect a rate that is currently available. PMMS data is provided “as is”, with no warranties of any kind, express or implied, including, but not limited to warranties of accuracy or implied warranties of merchantability or fitness for a particular purpose. Use of the data is at the user’s sole risk.

MOST RECENT MONTHLY AVERAGE: MARCH 2012 3.954% 4.019% APR Payment example: $200,000 30-year fixed-rate mortgage with a 20% down payment.

The average origination fee for a loan of this size would have been $1,560.00, or .78 points.

The APR quoted above does not include other closing costs. One point is one percent of the loan amount.

This loan would have had 360 scheduled monthly principal and interest payments of $949.53.

This monthly payment amount does not include property tax or homeowner’s insurance, which must be paid in addition to your loan’s principal and interest. Your actual payment may be higher. The rate, points, APR, and payment amount are based on the most recent monthly average from Freddie Mac’s survey. These specific loan terms may not have been offered by Wells Fargo Home Mortgage during that month.

PacUnion.com/Bay-Area-Mortgage-solutions

Your goals deserve our attention.

With our wide range of programs and dedication to personal service, you can feel confident that we’ll provide you with the information you need to help you choose the home financing to fit your current needs and future goals.

Put your goals into action, call your Mortgage Services Professionals mortgage consultant today.

All first mortgage products are provided by Mortgage Services Professionals, LLC. Mortgage Services Professionals, LLC may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.

Meet Our Team Serving S A N F R A N C I S C O

Dennis Kowalski | NMLSR ID 282816 | dkowalski@msploan.com | 415.259.8618

Tina Jennings | NMLSR ID 653876 | tina.jennings@msploan.com | 415.505.4891

Victoria Johnston | NMLSR ID 776711 | vjohnston@msploan.com | 415.314.5664 Serving W I N E C O U N T R Y

Reina Perkins | NMLSR ID 856071 | reina.perkins@msploan.com | 707.318.3774 Sheila O’Neill | NMLSR ID 371029 | sheila.oneill@msploan.com | 707.501.8856 Serving M A R I N C O U N T Y

Adam Wise | NMLSR ID 653875 | adam.wise@msploan.com | 415.297.9473

David Grose | NMLSR ID 737283 | david.grose@msploan.com | 415.359.4025

Stephanie Heaton | NMLSR ID 849134 | stephanie.heaton@msploan.com | 415.813.4526 Serving E A S T B A Y

Christopher Perez | NMLSR ID 893123 | chris.perez@msploan.com | 925.785.2006 Jim Stewart | NMLSR ID 457860 | jim.r.stewart@msploan.com | 510.338.1333

Micaelanne Hogarty | NMLSR ID 318325 | micaelanne.hogarty@msploan.com | 510.338.1336 Vince Wirthman | NMLSR ID 313777 | vince.wirthman@msploan.com | 510.504.5683

Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. ©2012 Mortgage Services Professionals, LLC. All Rights Reserved. NMLSR ID 459292 #947879 04/12-07/12

PacUnion.com/Bay-Area-Mortgage-solutions

PacUnion.com

A Member of Real Living

F o l l o w Pacific Union International: