Q1Newsletter2011.pdf

Pacific Union International Real Estate Report

Q1

2011

A Member Of Real Living

PacUnion.com

This is a very exciting time for Pacific Union International, Inc. Twenty months after our change in ownership we are continuing to experience encouraging trends. Our very positive results are directly related to recovering residential real estate markets.

Pacific Union International, Inc. has recently been named the second largest residential brokerage company in the six San Francisco Bay Area markets we serve. Even more exciting, Real Trends, Inc., recently published their industry renowned report naming Pacific Union International, Inc. the 29th largest brokerage company in the United States.

While we are proud of our stature in the local and national marketplace; our greatest source of pride is our success in returning Pacific Union’s culture back to the innovative, entrepreneurial boutique firm. Locally owned and operated we continue to attract the finest professionals. We are investing every day to delivery luxury real estate services at the pinnacle of our industry.

At Pacific Union International, we define luxury through the quality of our people and services, not through the price of a home.

Our March 2011 results were the best we have experienced since 2007 in both units sold, average sales price and many other important variables. All of these internal success metrics are directly related to the positive trends we are experiencing in our local markets. The table below illustrates the increases in units sold (single family homes) in Q1 2011 v. Q1 2010 in six San Francisco Bay Area Counties.

Q1 2011 v Q1 2010 UNDER $1 MILLION

Marin

Sonoma

NUMBER OF SFH SOLD % CHANGE

9.84%

5.83%

Q1 2011 v Q1 2010 OVER $1 MILLION

Marin

NUMBER OF SFH SOLD % CHANGE

7.22%

San Sonoma Francisco

8.00%

9.84%

Contra Costa Alameda

9.84%

9.84%

Sonoma

San Sonoma Francisco

Contra Costa Alameda

16.00%

30.77%

-7.55%

-5.98%

-1.12%

These increase in units sold are sustaining themselves in our second quarter forecasts. In most cases above, the positive trends in units sold are causing prices to firm. Continued increases in units sold 2011 could be a precursor for modest pricing improvements in 2012.

We hope you enjoy our San Francisco Bay Area Market Report. We recognize real estate is a local business. If you have specific questions about a local neighborhood or a specific home, please do not hesitate to contact one of our real estate professionals, regional managers or me. I may most effectively be reached via e-mail at mark.mclaughlin@pacunion.com.

Sincerely, PACIFIC UNION INTERNATIONAL, INC.

Mark A. McLaughlin Mark A. McLaughlin, Chief Executive Officer

Pacific Union International Real Estate Report

Q1. 2011 Features

4 East Bay

12 Wine Country

20 San Francisco

A Member Of Real Living

PacUnion.com

24 Marin

Pacific Union International Real Estate Report

Q1. 2011

EAST BAY

East Bay 2009 vs. 2010 HOMES SOLD COMPARISON Oakland Area - All Prices: Single Family Homes Piedmont - All Prices: Single Family Homes Berkeley - All Prices: Single Family Homes Albany - All Prices: Single Family Homes Kensington - All Prices: Single Family Homes El Cerrito - All Prices: Single Family Homes

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Pacific Union International Real Estate Report

Q1. 2011

EAST BAY A Member Of Real Living

Despite formidable world events in Egypt, Libya and Japan and the resulting volatility of the stock market, many San Francisco Bay Area real estate markets experienced positive trends in the first quarter of 2011. Properties selling below $1 million, which represent over 70% of the closed sales in the six counties served by Pacific Union International, are showing modest to very favorable increases in the number of units sold. Indeed, in many markets we are enjoying “units sold” up nearly double the closings from Q1 2009. This is a refreshing trend which we feel is often a precursor, albeit by twelve to eighteen months, to value/price appreciation.

More importantly, we are experiencing a recovery in our clients’ confidence. We believe this is a result of historically low interest rates, stabilizing prices in our real estate markets, and a general feeling that the worst is behind us and that 2011 may be a better year than was expected.

Although this trend is not reflected in the chart below, we have also begun to observe positive indicators in the sales activity over $1 million. The number of pending sales in March was up 43% over March 2010, and we ended the quarter with a 2.3 month supply of inventory, the lowest level in two years. More good news is a refreshing rebound in high-end units sold in San Francisco, the town of Sonoma, Napa County, and just recently Marin County. This activity at the high end will begin to motivate the “move-up” buyers throughout the San Francisco Bay Area. As a result, we expect favorable results in our local markets throughout 2011.

First Quarter 2011 versus First Quarter 2010 Jan - Mar

Under $500K

Over $500K

$500K - $1M

$1M+

Volume

52%

10%

21%

-17%

Units Sold

55%

14%

21%

-21%

DOM

23%

18%

29%

-10%

Average Price

-2.4%

-3%

0%

5%

Median Price

0%

-1%

2%

5%

Source: EBRD March 31, 2011 *Oakland zip codes 94602, 94609, 94610, 94611, 94618, 94619, 94705, Piedmont, Berkeley, Albany, Kensington and El Cerrito.

Even in the face of these somewhat uneven statistics, homes in the right location at the right price are eliciting multiple offers, another indicator of pent up demand and increasing client confidence. Buyers are eager to settle into new homes, hoping to capitalize on historically low interest rates and take advantage of what many experts believe to be the bottom of the market. Overly ambitious sellers who price their homes 10% to 12% higher than market value, hoping for a buyer who wants to negotiate, are still finding it difficult to attract that buyer. But homes priced within 3% to 5% of true market value are selling quickly, often with multiple offers.

Opportunities for buyers and sellers exist in all of our neighborhoods. Please call me to explore your local market conditions and any real estate opportunities you may be considering.

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

Pacific Union International Real Estate Report

Q1. 2011

HOMES SOLD COMPARISON A Member Of Real Living

Oakland Area* All Prices - Single Family Homes TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$81,886,270

$106,957,475

31%

$115,968,170

8%

HOMES SOLD

159

182

14%

222

22%

AVG. DAYS ON MKT

53

41

-23%

45

10%

MEDIAN PRICE

$473,000

$542,750

15%

$510,000

-6%

AVERAGE PRICE

$515,007

$587,678

14%

$522,379

-11%

MAX PRICE SOLD

$1,950,000

$3,200,000

64%

$1,450,000

-55%

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

Piedmont All Prices - Single Family Homes TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$18,576,000

$12,052,256

-35.1%

$21,303,000

77%

HOMES SOLD

10

10

0%

16

60%

AVG. DAYS ON MKT

64

25

-61%

42

68%

MEDIAN PRICE

$1,563,500

$1,265,500

-19%

$1,232,500

-3%

AVERAGE PRICE

$1,857,600

$1,205,225

-35%

$1,331,437

10%

MAX PRICE SOLD

$3,900,000

$1,670,000

-57%

$2,300,000

38%

Source: EBRD

Berkeley* All Prices - Single Family Homes TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$35,165,306

$46,037,213

31%

$62,274,110

35%

HOMES SOLD

54

69

28%

104

51%

AVG. DAYS ON MKT

44

34

-23%

51

50%

MEDIAN PRICE

$610,500

$612,000

0%

$560,000

-8%

AVERAGE PRICE

$651,209

$667,205

2%

$598,789

-10%

MAX PRICE SOLD

$1,650,000

$1,780,000

8%

$2,375,000

33%

Source: EBRD *All zip codes

Pacific Union International Real Estate Report

Q1. 2011

HOMES SOLD COMPARISON A Member Of Real Living

Albany All Prices - Single Family Homes TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$5,679,000

$7,021,600

24%

$6,988,704

0%

HOMES SOLD

10

13

30%

13

0%

AVG. DAYS ON MKT

19

44

132%

29

-34%

MEDIAN PRICE

$560,000

$510,000

-9%

$475,999

-7%

AVERAGE PRICE

$567,900

$540,123

-5%

$537,592

0%

MAX PRICE SOLD

$835,000

$711,000

-15%

$828,500

17%

Source: EBRD

Kensington All Prices - Single Family Homes TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$6,417,700

$7,707,250

20%

$7,534,000

-2%

HOMES SOLD

10

9

-10%

12

33%

AVG. DAYS ON MKT

97

19

-80%

39

105%

MEDIAN PRICE

$665,000

$749,000

13%

$610,000

-19%

AVERAGE PRICE

$641,770

$856,361

33%

$627,833

-27%

MAX PRICE SOLD

$725,000

$1,510,000

108%

$880,000

-42%

Source: EBRD

El Cerrito All Prices - Single Family Homes TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$12,152,660

$15,465,500

27%

$19,470,800

26%

HOMES SOLD

23

27

17%

38

41%

AVG. DAYS ON MKT

59

29

-51%

46

59%

MEDIAN PRICE

$509,000

$550,000

8%

$489,500

-11%

AVERAGE PRICE

$528,376

$572,796

8%

$512,389

-11%

MAX PRICE SOLD

$850,000

$1,110,000

31%

$820,000

-26%

Source: EBRD

Pacific Union International Real Estate Report

Q1. 2011

CONTRA COSTA COUNTY

HOME COMPARISON Annual Review of Single-Family Detached Annual Review of Townhouse-Condo

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Pacific Union International Luxury Real Estate Report

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Q1. 2011

CONTRA COSTA COUNTY

Despite formidable world events in Egypt, Libya and Japan and the resulting volatility of the equity markets, the first quarter of 2011 experienced positive trends in many San Francisco Bay Area real estate markets. Properties selling below $1 million, which are over 70% of the closings in the six counties served by Pacific Union International, are experiencing modest to very favorable increases in units sold. In many markets we are enjoying units sold up nearly double the closings in the marketplace from Q1 2009. A refreshing trend which we feel is always a precursor, albeit by twelve to eighteen months, to value/price appreciation.

Most importantly we are experiencing a recovery in our clients’ confidence. We believe this is a result of historic low interest rates, stabilized pricing in our real estate markets and a general feeling that “the worst” is behind us and that 2011 may be a better year than we expected in late 2010.

In Contra Costa County and Southern Alameda County we have not yet experienced meaningful positive indicators in activity over $1 million. Volume remains light and pricing remains soft. The good news is we have begun to experience a refreshing rebound in units sold in the high end (over $1.0 million) in northern Napa County, the Town of Sonoma, San Francisco and just recently Marin County. This activity at the high-end will begin to motivate the “move-up” buyers throughout the San Francisco Bay Area. As a result, we expect more favorable results in our local market segment throughout 2011.

The table below illustrates the comparison Q1 2011 to Q1 2010 for volume ($) and units (#) sold below $1 million and above $1 million: Q1 2010 vs. Q1 2011

Under $1 Million

Over $1 Million

Units (#)

Volume ($)

Units (#)

Volume ($)

Orinda, Lafayette & Moraga

Up 37%

Up 29%

Up 4%

Down 5%

Walnut Creek, Alamo, Danville & San Ramon

Up 6%

Up 1%

Down 24%

Down 23%

Livermore, Pleasanton & Dublin Flat

Flat 0%

Down 1%

Down 6%

Down 9%

Even in the face of these statistics, the right homes, in the right locations with market based pricing are experiencing multiple offers. This is an indicator of pent up demand and client confidence. Our buyers are anxious to settle into new homes but they are only willing to act (put pen to paper) when the perception of value crystallizes in their mind.

Homes with 10% - 12% “pricing cushion” for which to negotiate are finding no one (no offers) to negotiate with.

Homes priced within 3% - 5% of true market value are seeing brisk interest and of course those priced at market are receiving multiple offers.

Opportunities exist in all of our neighborhoods – please feel free to call me to explore your local market conditions and real estate opportunities you may be considering.

Ellen Anderson 925.314.4888 ellen.anderson@pacunion.com PacUnion.com 8 Camino Encinas, Suite 100 Orinda, CA 94563

Pacific Union International Luxury Real Estate Report

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Q1. 2011

HOME COMPARISON

Orinda, Moraga, Lafayette - Single Family Homes Jan - Mar 2011

Under $1 Million

'10 - '11 % Change

$1-3 Million

'10 - '11 % Change

$3 Million+

'10 - '11 % Change

Volume

$49,200,016

29%

$35,286,800

-5%

$0

0%

Units Sold

67

37%

26

4%

0

0%

Average DOM

67

14%

75

6%

0

0%

Median Price

$730,000

-8%

$1,275,000

2%

$0

0%

Average Price

$734,328

-6%

$1,357,184

-8%

$0

0%

Source: EBRD, March 31, 2011

Alamo, Danville, Walnut Creek, San Ramon - Single Family Homes Jan - Mar 2011

Under $1 Million

'10 - '11 % Change

$1-3 Million

'10 - '11 % Change

$3 Million+

'10 - '11 % Change

Volume

$185,666,502

1%

$69,910,304

-23%

$0

0%

Units Sold

273

6%

55

-24%

0

0%

Average DOM

50

25%

58

-27%

0

0%

Median Price

$687,000

-7%

$1,198,000

0%

$0

0%

Average Price

$685,116

-5%

$1,271,096

1%

$0

0%

Source: EBRD, March 31, 2011

Pacific Union International Luxury Real Estate Report

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Q1. 2011

HOME COMPARISON

Concord, Pleasant Hill - Single Family Homes Jan - Mar 2011

Under $1 Million

'10 - '11 % Change

$1-3 Million

'10 - '11 % Change

$3 Million+

'10 - '11 % Change

Volume

$87,982,293

-5%

$0

0%

$0

0%

Units Sold

260

-2%

0

0%

0

0%

Average DOM

55

53%

0

0%

0

0%

Median Price

$312,000

-7%

$0

0%

$0

0%

Average Price

$339,699

-3%

$0

0%

$0

0%

Source: EBRD, March 31, 2011

Dublin, Livermore, Pleasanton - Single Family Homes Jan - Mar 2011

Under $1 Million

'10 - '11 % Change

$1-3 Million

'10 - '11 % Change

$3 Million+

'10 - '11 % Change

Volume

$179,961,799

0%

$43,808,915

-9%

$3,000,000

100%

Units Sold

316

-1%

31

-6%

1

100%

Average DOM

50

35%

69

97%

40

100%

Median Price

$565,000

1%

$1,220,000

-2%

$3,000,000

100%

Average Price

$571,307

1%

$1,413,190

-3%

$3,000,000

100%

Source: EBRD, March 31, 2011

Pacific Union International Real Estate Report

Q1. 2010

SONOMA

HOME COMPARISON Sonoma Valley - $1M & Under: SFH Sonoma Valley - $1M & Higher: SFH HOME COMPARISON & CITY STATS Napa & Sonoma Counties - $1M & Higher: SFH Sonoma City Stats 2009 vs. 2010: 2010: SFH

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Pacific Union International Luxury Real Estate Report

Q1. 2011

SONOMA A Member Of Real Living

"No matter how long the winter, spring is sure to follow." This proverb may well describe the change of season, but perhaps it also best describes the promise of the changes in the real estate market. Having been through a particularly long ‘real estate winter’, it appears that things may be starting to improve.

Despite formidable world events in Egypt, Libya and Japan and the resulting volatility of the equity markets, the first quarter of 2011 experienced positive trends in many San Francisco Bay Area real estate markets. Properties selling below $1 million, which are over 70% of the closings in the six counties served by Pacific Union International, are experiencing modest to very favorable increases in units sold. A refreshing trend which we feel is always a precursor, albeit by twelve to eighteen months, to value/price appreciation.

Most importantly we are experiencing a recovery in our clients’ confidence. We believe this is a result of historic low interest rates, stabilized pricing in our real estate markets and a general feeling that “the worst” is behind us and that 2011 may be a better year than we expected in late 2010.

In Sonoma Valley we have not yet experienced meaningful positive indicators in activity over $1 million.

Volume remains light and pricing remains soft. The good news is we have begun to experience a refreshing rebound in units sold in the high end (over $1 million) in Wine Country in general (Napa and Sonoma Counties). This activity at the high-end will begin to motivate the “move-up” buyers throughout the San Francisco Bay Area. As a result, we expect more favorable results in our local market segment throughout 2011.

Even in the face of these statistics, the right homes, in the right locations with market based pricing are experiencing multiple offers. This is an indicator of pent up demand and client confidence. Our buyers are anxious to settle into new homes but they are only willing to act (put pen to paper) when the perception of value crystallizes in their mind. Homes with 10% - 12% “pricing cushion” for which to negotiate are finding no one (no offers) to negotiate with. Homes priced within 3% - 5% of true market value are seeing brisk interest and of course those priced at market are receiving multiple offers.

Opportunities exist in all of our neighborhoods – please feel free to call me to explore your local market conditions and real estate opportunities you may be considering.

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

Pacific Union International Luxury Real Estate Report

Q1. 2011

HOME COMPARISON A Member Of Real Living

Sonoma Valley* $1 Million & Under Single Family Homes TIME PERIOD

2010

2011

'10 - '11 % CHANGE

VOLUME

$31,869,865

$33,931,590

6%

HOMES SOLD

71

76

7%

AVG. DAYS ON MKT

112

115

3%

MEDIAN PRICE

$419,000

$387,500

-8%

AVERAGE PRICE

$448,871

$446,468

-1%

MAX PRICE SOLD

$900,000

$965,000

7%

*Sonoma, Glen Ellen & Kenwood Source: BAREIS, March 31, 2011

Sonoma Valley* $1 Million & Higher Single Family Homes TIME PERIOD

2010

2011

10 - '11 % CHANGE

VOLUME

$16,004,000

$19,089,000

19%

HOMES SOLD

8

10

25%

AVG. DAYS ON MKT

172

164

-5%

MEDIAN PRICE

$1,760,000

$1,387,500

-21%

AVERAGE PRICE

$2,000,500

$1,908,900

-4.6%

MAX PRICE SOLD

$3,500,000

$3,995,000

14%

*Defined as BAREIS code B1300 Source: BAREIS, March 31, 2011

Pacific Union International Luxury Real Estate Report

Q1. 2011

HOME COMPARISON & CITY STATS A Member Of Real Living

Napa & Sonoma Counties $1 Million & Higher Single Family Homes TIME PERIOD

2010

2011

'10 - '11 % CHANGE

VOLUME

$62,298,000

$75,338,558

21%

HOMES SOLD

38

45

18%

AVG. DAYS ON MKT

191

233

22%

MEDIAN PRICE

$1,409,500

$1,350,000

-4%

AVERAGE PRICE

$1,639,421

$1,674,190

2%

MAX PRICE SOLD

$4,250,000

$3,995,000

-6%

Source: BAREIS, March 31, 2011

Sonoma County Cities Stats Q1 ’10 vs Q1 ‘11 Single Family Homes CITY

# SALES Q1 2010

# SALES Q1 2011

SONOMA

72

81

13%

$598,977

$611,583

2%

121

123

2%

GLEN ELLEN

5

3

-40%

$557,700

$812,500

46%

71

71

0%

KENWOOD

2

2

0%

$979,500

$522,450

-46.7%

112

76

-32%

PETALUMA

124

112

-10%

$472,383

$441,148

-7%

99

143

44%

ROHNERT PARK

56

69

23%

$315,820

$293,158

-7%

65

98

51%

SANTA ROSA

420

411

-2%

$388,241

$360,055

-7%

98

112

14%

HEALDSBURG

20

42

110%

$651,235

$550,105

-16%

157

119

-24%

WINDSOR

64

74

16%

$373,982

$349,227

-7%

95

137

44%

SEBASTOPOL

35

41

17%

$591,004

$555,577

-6%

121

127

5%

Source: BAREIS, March 31, 2011

% CHANGE AVG PRICE AVG PRICE % CHANGE AVG DOM # SALES Q1 2010 Q1 2011 AVG PRICE Q1 2010

AVG DOM % CHANGE Q1 2011 AVG DOM

Pacific Union International Real al E Estate e Report

Q1. 2011

NAPA COUNTY

HOME COMPARISON Napa County - $500K & Under: SFH Napa County - $500K-$1M: SFH HOME COMPARISON & CITY STATS Napa County - $1M & Higher: SFH YTD Napa City Stats Stats:: 2009 vs. 2010

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Pacific Union International Real Estate Report

Q1. 2011

NAPA COUNTY A Member Of Real Living

Despite formidable world events in Egypt, Libya and Japan and the resulting volatility of the equity markets, the first quarter of 2011 experienced positive trends in many San Francisco Bay Area real estate markets. Properties selling below $1 million, which are over 70% of the closings in the six counties served by Pacific Union International, are experiencing modest to very favorable increases in units sold. In many markets we are enjoying units sold up nearly double the closings in the marketplace from Q1 2009. A refreshing trend which we feel is always a precursor, albeit by twelve to eighteen months, to value/price appreciation.

Most importantly we are experiencing a recovery in our clients’ confidence. We believe this is a result of historic low interest rates, stabilized pricing in our real estate markets and a general feeling that “the worst” is behind us and that 2011 may be a better year than we expected in late 2010.

We have begun to experience a refreshing rebound in units sold in the high end (over $1.0 million) in Napa County, the Town of Sonoma, San Francisco and just recently Marin County. This activity at the high-end will begin to motivate the “move-up” buyers throughout the San Francisco Bay Area. As a result, we expect more favorable results in our local market segment throughout 2011.

Our market place is experiencing a phenomenon, once again, that has been absent for the last 2-3 years: the right homes, in the right locations with market based pricing are experiencing a huge increase in activity and in many cases multiple offers, in all price points. This is an indicator of pent up demand and client confidence. Our buyers are anxious to settle into new homes but they are only willing to act (put pen to paper) when the perception of value crystallizes in their minds. Homes with a 10% - 15% “pricing cushion” from which to negotiate are finding no one (no offers) to negotiate with. Homes priced within 3% - 5% of true market value are seeing brisk interest and those priced at market value are frequently receiving multiple offers.

Opportunities exist in all of our neighborhoods – please feel free to call me to explore your local market conditions and real estate opportunities you may be considering

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

Pacific Union International Real Estate Report

Q1. 2011

HOME COMPARISON A Member Of Real Living

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

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$61,921,713

$68,342,929

10%

$67,305,171

-2%

HOMES SOLD

200

220

10%

226

3%

AVG. DAYS ON MKT

89

94

6%

116

23%

MEDIAN PRICE

$320,000

$306,000

-4%

$288,279

-6%

AVERAGE PRICE

$309,609

$310,650

0.3%

$297,810

-4%

MAX PRICE SOLD

$499,900

$500,000

0%

$499,900

0%

Source: BAREIS, March 31, 2011

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

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$25,942,515

$21,254,524

-18%

$25,999,285

22%

HOMES SOLD

38

31

-18%

40

29%

AVG. DAYS ON MKT

123

170

38%

192

13%

MEDIAN PRICE

$660,000

$641,250

-2.8%

$637,450

-1%

AVERAGE PRICE

$682,698

$685,630

0.4%

$649,982

-5%

MAX PRICE SOLD

$1,000,000

$980,000

-2%

$995,000

2%

Source: BAREIS, March 31, 2011

Pacific Union International Real Estate Report

Q1. 2011

HOME COMPARISON & CITY STATS A Member Of Real Living

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

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$10,687,089

$21,105,000

97%

$25,433,331

21%

HOMES SOLD

8

13

63%

16

23%

AVG. DAYS ON MKT

114

195

71%

281

44%

MEDIAN PRICE

$1,150,000

$1,390,000

21%

$1,388,500

0%

AVERAGE PRICE

$1,335,886

$1,623,462

22%

$1,589,583

-2%

MAX PRICE SOLD

$2,775,000

$4,250,000

53%

$2,850,000

-33%

Source: BAREIS, March 31, 2011

Napa City Stats Q1 2010 vs Q1 2011 CITY

# SALES Q1 2010

# SALES Q1 2011

NAPA

149

182

22%

$413,204

$433,376

4.9%

111

142

28%

AMERICAN CANYON

87

71

-18%

$310,456

$296,902

-4.4%

73

78

7%

CALISTOGA

5

5

0%

$883,400

$528,100

-40%

158

118

-25%

ST. HELENA

12

10

-17%

$952,708

$728,682

-24%

171

169

-1%

YOUNTVILLE

4

6

50%

$768,750

$747,500

-3%

147

205

39%

RUTHERFORD

1

1

0%

$1,390,000

$775,000

-44%

109

33

-70%

ANGWIN

2

5

150%

$380,000

$611,996

61%

385

138

-64%

Source: BAREIS, March 31, 2011

% CHANGE AVG PRICE AVG PRICE % CHANGE AVG DOM # SALES Q1 2010 Q1 2011 AVG PRICE Q1 2010

AVG DOM % CHANGE Q1 2011 AVG DOM

Pacific Union International Real Estate Report

Q1. 2011

SAN FRANCISCO

MEDIAN PRICE Q4 Media Price by Property Type & Neighborhood HOMES SOLD COMPARISON Q4 2010 SF Units Sold by Property Type & Neighborhood SFH Q4 2010 Sold Comparison Condminiums Q4 2010 Sold Comparison Tenancies In Common Q4 2010 Sold Comparison

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Pacific Union International Real Estate Report

Q1. 2011

SAN FRANCISCO A Member Of Real Living

In counterpoint to recent cataclysmic geo-physical (Japan), geo-political (Egypt and Libya) and geo-financial (European Union bailouts) events occupying our headlines, the performance of San Francisco residential real estate during the first quarter of 2011 has, for the most part, been a model of moderation and stability. And even where statistically significant numbers portray any kind of “spike,” those numbers are gratifyingly positive. For example:

Q1 2011 vs. Q1 2010, City-wide • Single family homes (SFHs) $1M and under: sales volume virtually unchanged, with number of sales (362!) up 4%; average and median sales prices only slightly lower (6% and 4%) • SFHs $1-3M: sales volume and number of sales virtually unchanged; average and median prices very stable - - up 1% and down 4%, respectively • SFHs over $3M: sales volume and modest number of sales (11 vs. 15) down about 25%; average and median prices up 7% and 10%, respectively • Condos $1M and under: sales volume up 17% and number of sales (424!) up 21%; average and median prices only slightly lower • Condos $1-2M: sales volume and number of sales down only about 5%; average and median prices virtually unchanged • Condos over 2M: sales volume, average and median prices up somewhat; number of sales even at nine Obviously it has been the robust activity within the moderately priced condo market that stands out during the first 90 days of 2011, joined by solid performance in the under-$1M single family home category. Even in other SFH and condo ranges, pragmatic property sellers are finding that strategically wise price reductions are garnering multiple offers.

But it is still for buyers that the greater opportunities persist - - especially move-up buyers in the over-$1M range. Moreover, owners of those properties themselves identify and act on higher-priced move-up opportunities.

And fostering purchase activity through all property category and price ranges are the still-auspicious mortgage interests rates which, of themselves, yield an effectively lower “purchase price” when compared with the inevitably higher “effective purchase price” figures we will see when those rates creep back up.

Tenancies-in Common 6%

Single Family Homes 46% Condos & Co-ops 48%

‫ع‬TENANCIES IN COMMON ‫ع‬CONDOMINIUMS ‫ع‬SINGLE FAMILY HOMES As of December 31, 2010

Patrick Barber 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. 2011

MEDIAN PRICE A Member Of Real Living

First Quarter Median Price By Property Type And Neighborhood ‘10

‘11

$595K

$795K

$1.02M

$939K

‫ع‬TENANCIES IN COMMON ‫ع‬CONDOMINIUMS ‫ع‬SINGLE FAMILY HOMES

‘11

$640K

‘10

$599K

$650K

$549K

$639K $2.8M

$2.85M

‘10

$2.44M

$670K

$585K

$519K

$570K

$590K

$755K

$775K

$1.22M NOB/RUSSIAN/ TELEGRAPH HILL

‘11

‘10

$492K

‘10

$575K

$588K

$705K

SOMA/MISSION/ POTRERO

‘10

$620K $668K

$530K $795K

SUNSET PARKSIDE

$495K

$1.55M $878K

NOE/CASTRO/ HAIGHT

RICHMOND/ SEACLIFF

‘11 ‘10

$363K $798K

‘10

‘11

$357K

‘11

$328K $475K

$289K $458K

$560K

ST. FRANCIS WOOD/ MIRALOMA/ FOREST HILL

Source: SFAR MLS, March 31, 2011

LAKE MERCED/ INGLESIDE

$315K $460K

BAYVIEW EXCELSIOR

San Francisco Units Sold by Property Type and Neighborhood Q1 2011 19

0 19

174 71

4 15

‫ع‬TENANCIES IN COMMON ‫ع‬CONDOMINIUMS ‫ع‬SINGLE FAMILY HOMES 13

125 95

87

64 4 NOE/CASTRO/ HAIGHT

Source: SFAR MLS, March 31, 2011

0 12

7 3 42

50

37 SOMA/MISSION /POTRERO

$650K

$1.28M

$1.35M

$1.39M

LOWER PAC HEIGHTS/ HAYES/NOPA

$422K

$747K

$760K

6

‘11

‘11

$470K

$753K

$616K

$687K

$1.78M

PAC HEIGHTS/ MARINA

‘10

‘11

‘10

‘11

BAYVIEW/ EXCELSIOR

SUNSET/ PARKSIDE

20

40 5

5 19

0 10

32

39

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. 2011

homes sold comparison A Member Of Real Living

Single Family Homes Q1 2011 Sold Comparison JAN - MAR 2011

Under $1 Million

'10 - '11 % CHANGE

$1-3 Million

'10 - '11 % CHANGE

$3 Million+

'10 - '11 % CHANGE

VOLUME

$216,218,723

-1%

$165,058,550

-3%

$54,767,008

-22%

UNITS SOLD

362

4%

98

-4%

11

-27%

AVERAGE DOM

73

22%

66

3%

55

-38%

MEDIAN PRICE

$592,500

-6%

$1,500,000

-4%

$4,000,000

10%

AVERAGE PRICE

$597,289

-4%

$1,684,571

1%

$4,978,819

7%

Source: SFAR MLS, March 31, 2011

Condominiums Q1 2011 Sold Comparison JAN - MAR 2011

Under $1 Million

'10 - '11 % CHANGE

$1-2 Million

'10 - '11 % CHANGE

$2 Million+

'10 - '11 % CHANGE

VOLUME

$245,331,289

17%

$72,019,820

-7%

$30,850,500

21%

UNITS SOLD

424

21%

56

-5%

9

0%

AVERAGE DOM

87

16%

67

-12%

68

48%

MEDIAN PRICE

$570,645

-6%

$1,224,500

-1%

$2,860,000

17%

AVERAGE PRICE

$578,612

-3%

$1,286,068

-2%

$3,427,833

21%

Source: SFAR MLS, March 31, 2011

Tenancies In Common Q1 2011 Sold Comparison JAN - MAR 2011

$500K and under

'10 - '11 % CHANGE

$500K and higher

'10 - '11 % CHANGE

VOLUME

$6,193,000

-46%

$32,167,000

10%

UNITS SOLD

15

-44%

45

5%

AVERAGE DOM

75

-36%

91

8%

MEDIAN PRICE

$437,500

-3%

$629,000

-3%

AVERAGE PRICE

$412,867

-3%

$714,822

5.4%

Source: SFAR MLS, March 31, 2011

Pacific Union International Real Estate Report

Q1. 2011

MARIN

HOMES SOLD COMPARISON Marin County $1M & Under - SFH Marin County $1M & Higher - SFH HOME PRICE & MARKET STATS Marin County Median & Average Home Price Marin County Market Statistics HOME COMPARISON Marin County $1-$3M - SFH Marin County $3M & Higher - SFH Marin County Median & Avg Home Price Marin County Market Statistics Positive Market Activity Returns to Marin County

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A Member Of Real Living

Pacific Union International Luxury Real Estate Report

Q1. 2011

MARIN COUNTY A Member Of Real Living

Despite formidable world events across the Middle East and Japan and the resulting volatility of the equity markets, the first quarter of 2011 experienced positive trends in many San Francisco Bay Area real estate markets. Properties selling below $1 million, which are over 70% of the closings in the six counties served by Pacific Union International, are experiencing modest to very favorable increases in units sold. In many markets we are enjoying units sold up nearly double the closings in the marketplace from Q1 2009. A refreshing trend which we feel is always a precursor, albeit by twelve to eighteen months, to value/price appreciation.

Most importantly we are experiencing a recovery in our clients’ confidence. We believe this is a result of historic low interest rates, stabilized pricing in our real estate markets and a general feeling that “the worst” is behind us and that 2011 may be a better year than we expected in late 2010.

In Marin County we have begun to experience a refreshing rebound in units sold in the high end (over $1 million), this trend extends to northern Napa County, the Town of Sonoma, and San Francisco as well. This activity at the high-end will begin to motivate the “move-up” buyers throughout the San Francisco Bay Area. As a result, we expect more favorable results in our local market segment throughout 2011.

The table below illustrates the comparison Q1 2011 to Q1 2010 for volume ($) and units (#) sold below $1 million and above $1 million:

2010 v 2011

2010 vs. 2011

Under $1M

Over $1M

$1 - $3M

$3M+

Volume

35%

4%

9%

-9%

Units Sold

9%

7%

6%

25%

AVG DOM

23%

8%

15%

-37%

Average Price

-6%

-3%

3%

-27%

Median Price

-6%

13%

10%

-5%

Even in the face of these statistics, the right homes, in the right locations with market based pricing are experiencing multiple offers. This is an indicator of pent up demand and client confidence. Pragmatic property sellers are finding that strategically wise price reductions are garnering multiple offers while homes with a 10% – 12% “pricing cushion” for which to negotiate are finding no one to negotiate with.

Opportunities exist in all of our neighborhoods – please feel free to call me to explore your local market conditions and real estate opportunities you may be considering.

Brent Thomson 415.383.1900 brent.thomson@pacunion.com PacUnion.com 60 Belvedere Drive Mill Valley, CA 94941

Pacific Union International Luxury Real Estate Report

Q1. 2011

HOME COMPARISON A Member Of Real Living

Marin County $1 Million & Under - SFH TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$109,743,874

$163,480,945

49%

$167,815,586

3%

HOMES SOLD

173

254

47%

276

9%

AVG. DAYS ON MKT

94

97

3%

119

23%

MEDIAN PRICE

$630,000

$637,500

1%

$599,400

-6%

AVERAGE PRICE

$634,358

$643,626

1%

$608,027

-6%

MAX PRICE SOLD

$995,000

$1,000,000

1%

$1,000,000

0%

Source: BAREIS, as of March 31, 2011

Marin County $1 Million & Higher - SFH TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$101,739,338

$181,997,207

79%

$189,684,370

4%

HOMES SOLD

50

97

94%

104

7%

AVG. DAYS ON MKT

119

121

2%

131

8%

MEDIAN PRICE

$1,587,500

$1,350,000

-15%

$1,525,000

13%

AVERAGE PRICE

$2,034,787

$1,876,260

-8%

$1,823,888

-3%

MAX PRICE SOLD

$9,000,000

$14,000,000

56%

$6,215,000

-56%

Source: BAREIS, as of March 31, 2011

Pacific Union International Luxury Real Estate Report

Q1. 2011

HOME PRICE & MKT. STATS A Member Of Real Living

Marin County Median & Average Home Price Q1 2009 - Q1 2011 $1,300,000 $1,200,000 $1,022,037

$1,030,255

$1,100,000 $1,000,000 $866,680

$940,633

$880,127 $854,440

$800,000

$768,000 $790,000

$760,088 $695,500

$700,000 $600,000

$947,714

$852,776

$900,000

$725,000

$700,000 $658,500

$600,000

$705,250

$650,500

$500,000 $400,000 Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Source: BAREIS, as of March 31, 2011

‫ ث‬Average Price

‫ ث‬Median Price

Marin County Market Statistics Q1 2010 vs Q1 2011 60%

Percentage Change

40%

23% 20% 13% 9% 7%

3% 4%

8%

0% -6%

-3%

-6%

-20%

-40% Volume ($)

Units Sold ‫ ث‬$1M and Under

Source: BAREIS, as of March 31, 2011

Days On Market

Average Price

‫ ث‬$1 Million and Higher

Median Price

Pacific Union International Luxury Real Estate Report

Q1. 2011

HOME COMPARISON A Member Of Real Living

Marin County $1-$3 Million - SFH TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$65,585,350

$135,615,207

107%

$147,469,370

9%

HOMES SOLD

42

89

112%

94

6%

AVG. DAYS ON MKT

113

116

3%

133

15%

MEDIAN PRICE

$1,382,500

$1,315,000

-5%

$1,450,000

10%

AVERAGE PRICE

$1,561,556

$1,523,766

-2%

$1,568,823

3%

MAX PRICE SOLD

$2,625,000

$2,950,000

12%

$2,770,000

-6%

Source: BAREIS, as of March 31, 2011

Marin County $3 Million & Higher - SFH TIME PERIOD

Jan - Mar '09

Jan - Mar '10

'09 - '10 % Change

Jan - Mar '11

'10 - '11 % Change

VOLUME

$36,153,988

$46,382,000

28%

$42,215,000

-9%

HOMES SOLD

8

8

0%

10

25%

AVG. DAYS ON MKT

151

178

18%

113

-37%

MEDIAN PRICE

$3,664,494

$4,025,000

10%

$3,825,000

-5%

AVERAGE PRICE

$4,519,249

$5,797,750

28%

$4,221,500

-27%

MAX PRICE SOLD

$9,000,000

$14,000,000

56%

$6,215,000

-56%

Source: BAREIS, as of March 31, 2011

Pacific Union International Luxury Real Estate Report

Q1. 2011

HOME PRICE & MKT. STATS A Member Of Real Living

Marin County Median & Average Home Price Q1 2009 - Q1 2011 $1,300,000 $1,200,000 $1,022,037

$1,030,255

$1,100,000 $1,000,000 $866,680

$940,633

$880,127 $854,440

$800,000

$768,000 $790,000

$760,088 $695,500

$700,000 $600,000

$947,714

$852,776

$900,000

$725,000

$700,000 $658,500

$600,000

$705,250

$650,500

$500,000 $400,000 Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Source: BAREIS, as of March 31, 2011

‫ ث‬Average Price

‫ ث‬Median Price

Marin County Market Statistics Q1 2010 vs Q1 2011 60%

Percentage Change

40%

23% 20% 13% 9% 7%

3% 4%

8%

0% -6%

-3%

-6%

-20%

-40% Volume ($)

Units Sold ‫ ث‬$1M and Under

Source: BAREIS, as of March 31, 2011

Days On Market

Average Price

‫ ث‬$1 Million and Higher

Median Price

The Bay Area’s Dominant Real Estate Source Our offices are located in the most desirable neigborhoods throughout the Bay Area.

Napa Valley, V Napa 707.251.8805 707.251

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Petaluma

Sonoma

707.769.0600

Santa Rosa

Napa

707.522.2900

Sonoma 707.939.9500

Belvedere 415.789.8686

Solano

Kentfield 415.448.1100

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Marin

925.743.9330 925.743

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Contra Costa

415.380.6100

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415.474.6600

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San Francisco South Beach

510.982.4400 510.982

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415.437.9797

Relocation

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800.305.7989

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8% 7% 6%

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