Q22014 quarterlyreport ezine final

Quarterly Real Estate Report Q2 2014

A Member of Real Living

Table of Contents

Three Reasons Why This Housing Cycle Is Not a Bubble

4

Bay Area Job, Population Growth Will Continue to Fuel Housing Demand

6

Contra Costa County 8 East Bay 12 Marin County 16 Napa County 20 San Francisco 24 Silicon Valley 32 Sonoma County 38 Sonoma Valley 42 Tahoe/Truckee 46

Three Reasons Why This Housing Cycle Is Not a Bubble Bay Area real estate values, fundamentals, and “noise” continue to be hot topics at social gatherings and client meetings. Does this cycle resemble the dot-com era bubble? Can the pace and valuations we are seeing continue?

While supply and demand are very basic and scalable market dynamics, I do believe it is important to separate the pace of sales from valuations. In terms of sales volume, the market’s current pace still displays somewhat of a “slingshot” effect from constrained demand as a result of the 2008 equities-market meltdown. Buyers sought safety on the sidelines for three or four years, but in the last 24 months, demand has been ferocious.

Although we anticipate Bay Area sales volume will experience year-over-year growth of less than 5 percent by 2016 and 2017, slowing demand will not relax pricing.

The following three fundamentals are currently driving Bay Area real estate markets: 1. Supply constraints: Our region has limited land available for new housing development.

2. Exceptional job growth: Northern California enjoys the hottest employment market in the U.S., with intellectually challenging, highly sought-after, and lucrative jobs. (See our feature story below for more on our region’s economic outlook.)

3. Population growth: The chart below illustrates that population growth across our nine-county region has exceeded new housing supply by an average of nearly 200 percent in four years.

Bay Area Population Growth Versus Housing-Supply Growth: 2010-2014 Population Growth: 2010-2014

Housing Growth: 2010-2014

Type

Alameda

County

4.2%

1.3%

Undersupply

Contra Costa

3.6%

1.4%

Undersupply

Marin

1.4%

0.4%

Undersupply

Napa

2.0%

0.7%

Undersupply

San Francisco

3.9%

1.3%

Undersupply

San Mateo

3.7%

0.9%

Undersupply

Santa Clara

4.9%

2.0%

Undersupply

Solano

2.6%

1.3%

Undersupply

Sonoma

1.4%

1.0%

Balanced

Source: California Department of Finance

Each of the market dynamics listed above generally has very positive impacts on residential real estate. I doubt there is another major U.S. market that is experiencing and enjoying the combination of all three of these factors.

On a global stage, the Bay Area trails New York City, London, Hong Kong, and Beijing on a dollar-per-square-foot valuation perspective. Over the next five years, look for our region’s real estate prices to meet the aforementioned international markets.

A few years ago I attended a Bay Area real estate conference where Leslie Appleton-Young, vice president and chief economist of the California Association of Realtors, spoke. When asked about the best time to invest in California real estate, Leslie replied, “I’ve been answering that question for 30 years, and my answer has always been ‘five years ago.’”

If I am not mistaken, Warren Buffet said, “Buy all the real estate you can,” in a 2009 television interview. I suspect we will all feel the same way in 2019 when we look back at today’s market.

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

Bay Area 10-Year Overview Here’s a look at home sales in the Bay Area’s real estate markets in the second quarter of 2014, with a glance back at the 10 preceding second quarters.

Bay Area: 10-Year Overview of Q2 Homes Sold Q2 '04

Q2 '05

Q2 '06

Q2 '07

Q2 '08

Q2 '09

Q2 '10

Q2 '11

Q2 '12

Q2 '13

Q2 '14

3,702

3,475

2,779

2,026

2,542

3,518

3,273

3,141

3,403

2,977

2,799

EAST BAY

881

892

814

749

613

556

681

676

810

823

781

MARIN COUNTY

912

799

665

684

494

440

574

555

680

786

764

NAPA COUNTY

476

434

317

279

247

307

336

356

419

374

350

SAN FRANCISCO (SFH)

817

785

746

600

655

557

674

685

726

746

609

SAN FRANCISCO (CONDOS)

747

720

589

645

533

370

565

578

737

760

738

SILICON VALLEY

1,046

869

806

793

621

533

617

738

781

770

724

SONOMA COUNTY

1,893

1,791

1,245

1,001

1,143

1,282

1,249

1,175

1,484

1,458

1,268

SONOMA VALLEY

199

197

125

113

97

123

136

121

176

174

160

TAHOE/TRUCKEE (SFH)

336

272

215

183

160

151

200

210

268

291

268

TAHOE/TRUCKEE (CONDOS)

104

116

73

82

35

28

62

82

88

71

75

REGION CONTRA COSTA COUNTY

Copyright © Pacific Union. Source: BrokerMetrics / Terradatum, Inc. using data from SFARMLS, EBRD, BAREIS, MLSLSTINGS, TSIERRA, July 7, 2014.

Click here to see specific 10-year data on key cities in the Bay Area.

Bay Area Job, Population Growth Will Continue to Fuel Housing Demand The Bay Area’s tech-industry-driven economy continues to add extremely desirable and high-paying jobs, attracting talented workers from around the nation and globe. But even though our region’s phenomenal economic growth likely will begin to slow over the next couple of years, intense demand for housing is almost certainly here to stay thanks to a pronounced lack of available homes.

“We’re getting closer to full employment,” says Stephen Levy, director and senior economist of Palo Alto-based Center for Continuing Study of the California Economy. “And what that means is that as we near full employment, that’s going to bring in people, which will add to the housing demand.”

May statistics from the California Employment Development Department show that each one of our Bay Area counties boasts an unemployment rate lower than the statewide average of 7.6 percent. Job growth remains particularly strong in Marin, Napa, San Francisco, and San Mateo counties, all of which have unemployment rates of less than 5 percent.

Levy believes that the Bay Area’s unemployment rate will never return to dot-com-era lows, when it hovered in the 2 to 3 percent range in San Francisco and Silicon Valley. However, he forecasts that even though job growth will level off over the next two years, the Bay Area will continue to outperform the rest of the country.

Population Growth Outpacing New Housing in Key Markets Since the U.S. began to emerge from the Great Recession in 2010, the Bay Area’s population rate has jumped sizably, according to California Department of Finance data. Over the past four years, the number of residents in San Francisco and San Mateo counties has grown by nearly 4 percent while increasing by almost 5 percent in Santa Clara County.

But none of those counties has built enough new housing units to keep up with the expanding populace.

Since 2010, new housing has grown by just 2 percent in Santa Clara County, 1.3 percent in San Francisco, and 0.9 percent in San Mateo County.

“Peninsula prices and rents will continue to outpace the state and national average unless we see a dramatic increase in supply, and even then it would be snapped up pretty quickly,” Levy says.

Economic Climate Much More Stable Than in Dot-Com Days As was the case in the dot-com boom and subsequent bust, the tech industry remains the primary driver of Bay Area employment growth. However, Levy believes that our current economy is far less frenetic than it was 15 years ago.

“I think it’s quite different,” he says. “These are real companies, and they have customers, profits, and burgeoning sales. The dot-com era was more about business plans.”

Still, technology companies aren’t the only businesses fueling Bay Area job growth. Other industries, including hospitality, health care, and construction, are seeing employment upticks, Levy says. However, he cautions that tremendous growth in the Internet sector could eventually slow expansion in other industries, including brick-and-mortar retail and financial services.

While the Bay Area’s economic outlook appears solid for the foreseeable future, the housing shortage may eventually impede growth, as workers could become wary of relocating to an area where finding a home is so difficult. Therefore, new construction remains a crucial factor in keeping our region’s economy moving upward and onward.

“I think [our economy] will always grow, but absolutely, housing poses a constraint to our growth over the long term,” Levy says. “The lack of housing could take some of the bloom off of the rose and limit some of the growth that might otherwise be there.”

Contra Costa County Quarterly Real Estate Report Q2 2014

Ellen Anderson Senior Vice President, Contra Costa County 925.743.9330 ellen.anderson@pacunion.com 101 Sycamore Valley Road West | Danville, CA 94526

Contra Costa County pacificunion.com | A Member of Real Living

Contra Costa County: Q2 Results After many months of frustratingly low inventory levels, Pacific Union’s Contra Costa County region saw a significant increase in the supply of available homes for sale in the second quarter. Having regained equity in their homes, sellers made the decision to move during the quarter, some in order to be in their next homes before their children start school in the fall.

Home prices rose by double digits from a year ago, and properties generally sold slightly above their list prices. That’s good news for sellers, but it pushed some first-time buyers out of the market. Being outbid time and again in multiple-offer situations also discouraged some buyers, although the increase in inventory has tempered the frenetic pace of bidding we saw in 2013. In the second quarter, many homes attracted a handful of offers – not the dozen or more that were commonplace last year.

Looking Forward: Real estate activity typically slows during the summer, and the third quarter of 2014 will be no different. Home prices will continue to rise moderately through the end of the year, and a steady increase in inventory will reduce the instances of multiple offers, though the most desirable homes will continue to spark bidding wars.

Defining Contra Costa County: Our real estate markets in Contra Costa County include the cities of Alamo, Blackhawk, Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek. Sales data in the charts below includes single-family homes in these communities.

Median Sales Price $1,100,000 $1,000,000

$947,500

$1,032,475 $912,091

$900,000

$925,000

$904,000

Aug-13

Sep-13

$871,250

$897,500

$931,500

$920,000

$1,050,000 $1,002,500

$980,000

$860,000

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000

Jun-13

Jul-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in these Contra Costa County communities: Alamo, Blackhawk, Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek.

Months’ Supply of Inventory 2.6

2.3 2.0

2.1

1.6

2.1 1.8

1.6 1.4

1.5

1.7 1.5

1.6

1.5

1.3

1.4

1.1

0.6

0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in these Contra Costa County communities: Alamo, Blackhawk, Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek.

Contra Costa County pacificunion.com | A Member of Real Living

Average Days on the Market 40

38

37

35 30

30 25 20

19

21

22

30

28

24

23

22

18

18

Apr-14

May-14

15 10 5 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in these Contra Costa County communities: Alamo, Blackhawk, Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek.

Percentage of Properties Under Contract 45% 40%

36.1%

35%

34.7%

33.4%

31.7%

31.4%

31.3%

40.9%

39.2%

39.6%

Mar-14

Apr-14

May-14

41.3%

35.3%

26.6%

30%

24.6%

25% 20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in these Contra Costa County communities: Alamo, Blackhawk, Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek.

Sales Price as a Percentage of Original Price 103%

101.8%

102% 101%

100.4%

100.3%

100.0%

100%

100.2%

100.1%

Feb-14

Mar-14

102.1%

100.2%

99.0%

99%

98.4%

98%

98.0% 97.3%

97.4%

Dec-13

Jan-14

97% 96% 95% 94%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in these Contra Costa County communities: Alamo, Blackhawk, Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek.

Contra Costa County pacificunion.com | A Member of Real Living

A Closer Look at Contra Costa County

Contra Costa County Snapshot: Q2 2014 vs. Q2 2013 Sales Volume

Homes Sold

Avg. Days on Market

Median Price

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Alamo

$ 109,667,738

$ 105,196,975

-4%

82

65

-21%

40

26

-35%

$ 1,258,750

$ 1,410,000

12%

Blackhawk

$

$

56,718,475

14%

29

33

14%

58

46

-21%

$ 1,495,000

$ 1,637,125

10%

Danville

$ 222,956,498

$ 227,901,847

2%

213

190

-11%

20

18

-10%

$

955,000

$ 1,097,500

15%

Diablo

$

$

9,541,000

82%

3

4

33%

34

30

-12%

$ 1,500,000

$ 2,507,500

67%

Lafayette

$ 131,488,464

$ 143,610,230

9%

106

98

-8%

19

18

-5%

$ 1,148,525

$ 1,207,500

5%

Moraga

$

44,208,075

$

55,953,190

27%

38

43

13%

20

18

-10%

$ 1,130,000

$ 1,236,000

9%

Orinda

$

116,420,650

$

119,744,414

3%

87

81

-7%

22

23

5%

$ 1,234,000

$ 1,300,000

5%

Pleasant Hill

$

67,962,150

$

63,675,752

-6%

115

99

-14%

13

23

77%

$

599,000

$

610,000

2%

San Ramon

$ 213,005,146

$ 223,404,957

5%

240

227

-5%

12

16

33%

$

859,500

$

930,000

8%

Walnut Creek

$ 158,378,822

$

-28%

182

123

-32%

20

18

-10%

$

800,000

$

870,000

9%

49,766,950

5,249,194

114,081,060

Source: Terradatum, July 7, 2014. Data is for single-family homes in selected Contra Costa County cities.

East Bay Quarterly Real Estate Report Q2 2014

Pam Hoffman Senior Vice President, Managing Broker, East Bay Region 510.339.6460 phoffman@pacunion.com 1900 Mountain Boulevard | Oakland, CA 94611

East Bay pacificunion.com | A Member of Real Living

East Bay: Q2 Results Even with a noticeable and welcome increase in inventory, demand continued to outstrip the supply of available homes for sale in Pacific Union’s East Bay region during the second quarter of 2014. The majority of homes on the market garnered multiple offers, particularly those in the most desirable neighborhoods. Overall, however, the number of offers and the pace of bidding slowed somewhat in the last half of the quarter.

Home prices continued to rise during the quarter, with those in the $500,000-to-$1 million range attracting the most attention from buyers. The most competitive neighborhoods were those rated the most walkable near BART, restaurants, and shops.

Besides offering new options to frustrated buyers, the increase in listings suggests that sellers have regained equity in their homes and are optimistic that they can successfully trade up to their next property.

Looking Forward: The East Bay remains an attractive destination for homebuyers priced out of the superheated San Francisco market. Even with an expected seasonal slowdown in the summer months – a consequence of school breaks and summer vacations – we expect continued strong sales throughout 2014.

Defining the East Bay: Our real estate markets in the East Bay region include Oakland ZIP codes 94602, 94609, 94610, 94611, 94618, 94619, and 94705; Alameda; Albany; Berkeley; El Cerrito; Kensington; and Piedmont. Sales data in the charts below includes single-family homes in these communities.

Median Sales Price $900,000 $800,000

$740,000 $735,000

$741,500

$722,500 $730,000

$730,000

$700,000

$700,000

$713,750

Dec-13

Jan-14

$725,000

$760,000

$812,000

$817,000

Apr-14

May-14

$840,000

$600,000 $500,000 $400,000 $300,000 $200,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Feb-14

Mar-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in the East Bay.

Months’ Supply of Inventory 2.0

2.1

2.0

2.0

1.9 1.6

1.7 1.5 1.3

1.3

1.3

1.4

1.3

1.2

1.1

1.1

1.1

1.1

May-14

Jun-14

0.9

0.9 0.7 0.5 0.3 0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in the East Bay.

East Bay pacificunion.com | A Member of Real Living

Average Days on the Market 35

33

32

30

28 25

25 20

18

25 22

20

25

21

20

22

22

May-14

Jun-14

15 10 5 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in the East Bay.

Â

Percentage of Properties Under Contract 50% 45%

40.7%

40%

37.4%

37.0%

35.8%

35%

38.2%

43.5%

44.2%

Mar-14

Apr-14

47.4%

46.8%

May-14

Jun-14

36.7% 31.5%

30.4%

28.2%

30% 25% 20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in the East Bay. Â

Sales Price as a Percentage of Original Price 116%

113.3%

114% 112% 110%

111.8% 110.0%

108.6%

108%

107.0%

108.7%

109.4%

108.3% 106.8%

106%

109.4%

106.1% 104.1%

104%

100.8%

102% 100% 98% 96% 94%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in the East Bay.

East Bay pacificunion.com | A Member of Real Living

A Closer Look at the East Bay

East Bay Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

Alameda

$

72,061,423

$

77,096,483

7%

101

86

-15%

16

21

31%

$

716,885

$

808,500

13%

Albany

$

18,407,500

$

22,982,000

25%

25

28

12%

20

14

-30%

$

705,000

$

776,000

10%

Berkeley

$ 122,887,382

$ 159,755,925

30%

133

145

9%

17

20

18%

$

818,000

$

885,000

8%

El Cerrito

$

42,259,010

$

50,367,288

19%

69

66

-4%

20

23

15%

$

605,000

$

705,750

17%

Kensington

$

15,148,225

$

21,498,024

42%

18

22

22%

18

21

17%

$

834,063

$

832,630

0%

Oakland*

$ 341,993,525

$ 327,628,507

-4%

435

371

-15%

20

23

15%

$

740,000

$

790,000

7%

Piedmont

$

$ 125,934,725

82%

42

63

50%

16

17

6%

$ 1,531,000

$ 1,750,000

14%

69,193,743

Source: Terradatum, July 7, 2014. Data is for single-family homes in selected East Bay cities; *Oakland ZIP codes 94602, 94609, 94610, 94611, 94618, 94619, and 94705.

East Bay Price Range Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Homes Sold

Avg. Days on Market

Median Price

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

27,359,803

-47%

134

67

-50%

27

34

26%

$

401,500

$

430,000

7%

Over $500,000 $ 630,354,908

$ 757,903,149

20%

689

714

4%

17

20

18%

$

800,000

$

852,500

7%

$500,000 $1 million

$ 339,075,212

-10%

513

457

-11%

17

19

12%

$

735,000

$

749,000

2%

$ 418,827,937

66%

176

257

46%

17

21

24%

$ 1,309,000

$ 1,400,000

7%

Under $500,000

$

51,595,900

$ 377,632,107

Over $1 million $ 252,722,801

Q2 '14 $

Q2 '13

Q2 '14

% change

Source: Terradatum, July 7, 2014. Data is for SFH in the East Bay: Alameda, Albany, Berkeley, El Cerrito, Kensington, Piedmont, and Oakland ZIP codes 94602, 94609, 94610, 94611, 94618, 94619, and 94705.

Oakland Snapshot: Q2 2014 vs. Q2 2013 Neighborhood Montclair / Joaquin Miller

Homes Sold Q2 '13

Q2 '14

Average Price % change

Q2 '13

Q2 '14

% change

103

82

-20%

$897,631

$1,068,483

19%

Crocker Highlands / Grand Lake

49

39

-20%

$824,878

$930,629

13%

Rockridge / Claremont

71

49

-31%

$1,166,861

$1,411,029

21%

Glenview / Oakmore

30

30

0%

$817,530

$891,866

9%

Laurel / Dimond

27

32

19%

$465,981

$546,632

17%

Redwood Heights / Lincoln Heights

40

37

-8%

$680,837

$664,700

-2%

Crestmont / Ridgemont / Skyline

11

14

27%

$973,000

$1,099,464

13%

Temescal / Piedmont Ave.

13

11

-15%

$664,600

$816,004

23%

Source: EBRD, July 7, 2014. Data is for single-family homes in selected Oakland neighborhoods.

Marin County Quarterly Real Estate Report Q2 2014

Brent Thomson President, Marin County 415.383.1900 brent.thomson@pacunion.com 575 Redwood Highway, Suite 150 | Mill Valley, CA 94941

Marin County pacificunion.com | A Member of Real Living

Marin County: Q2 Results Second-quarter real estate activity in Pacific Union’s Marin County region was, in a word, phenomenal. Buyers were eager and plentiful, and sellers – motivated by steadily rising home prices and restored equity over the past year – increasingly made the decision to cash out or move up. Some baby boomers downsized their homes, thereby boosting their retirement funds.

Buyer demand remained exceptionally strong in the second quarter, which doesn’t indicate a bubble but rather reflects long-term growth in the market. Marin County remains a key Bay Area destination, and buyers continued to outnumber the supply of available homes. The most active markets were for high-end homes in communities such as Mill Valley, Ross, and Kentfield.

Looking Forward: The summer months typically bring a slowdown in activity, as buyers’ thoughts turn to vacations instead of real estate. However, the Bay Area’s booming economy virtually guarantees that Marin County real estate will continue to command high interest from buyers. List prices will likely stabilize in the third and fourth quarters, although multiple offers for the most desirable homes will continue to push final prices higher.

Defining Marin County: Our real estate markets in Marin County include the cities of Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon. Sales data in the charts below includes single-family homes in these communities.

Median Sales Price $1,300,000 $1,100,000

$990,000

$1,100,000

$1,008,650 $905,000

$946,000

$905,000

$848,500

$900,000

$935,000

$995,000 $1,001,500 $1,030,000

$1,060,000

$852,000

$700,000 $500,000 $300,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7 2014. Median sales price for single-family homes in these Marin County communities: Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon.

Months’ Supply of Inventory 3.1 2.6

2.6 2.1

2.0

2.0

2.5 2.2

1.9

2.0

2.5

1.8

1.7

1.8

1.6

1.4

1.4

May-14

Jun-14

1.1 0.6 0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in these Marin County communities: Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon.

Marin County pacificunion.com | A Member of Real Living

Average Days on the Market 90

84 75

80 70

62

60 50 40

73

52

50

54

56

53

53 46

45

41

30 20 10 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in these Marin County communities: Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon.

Percentage of Properties Under Contract 45%

40.9%

40% 35% 30%

30.4%

32.1% 29.2%

27.5%

27.2%

27.7%

39.2% 34.7%

38.2%

31.8%

27.0%

25% 19.0%

20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in these Marin County communities: Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon.

Sales Price as a Percentage of Original Price 102% 100%

100.7% 100.0%

99.3% 98.6%

98%

98.3%

98.0%

98.0% 97.0% 96.0%

96% 94.2%

95.8% 93.8%

94%

94.5%

92% 90%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in these Marin County communities: Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon.

Marin County pacificunion.com | A Member of Real Living

A Closer Look at Marin County

Marin County Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

Median Price

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Belvedere

$

32,745,000

$

23,342,260

-29%

11

9

-18%

38

76

100%

$ 2,650,000

$ 2,470,000

-7%

Corte Madera

$

43,814,936

$

33,693,348

-23%

38

27

-29%

34

32

-6%

$ 1,025,000

$ 1,249,650

22%

Fairfax

$

25,283,880

$

21,579,015

-15%

33

25

-24%

45

35

-22%

$

$

800,000

3%

Greenbrae

$

23,864,400

$

33,732,000

41%

15

22

47%

34

33

-3%

$ 1,425,000

$ 1,475,500

4%

Kentfield

$

60,434,625

$

55,690,035

-8%

26

27

4%

43

37

-14%

$ 1,926,500

$ 1,800,000

-7%

Larkspur

$

33,454,500

$

38,797,350

16%

23

26

13%

56

34

-39%

$ 1,318,000

$ 1,347,500

2%

Mill Valley

$ 147,765,450

$ 196,953,722

33%

109

120

10%

43

40

-7%

$ 1,250,000

$ 1,350,000

8%

Novato

$

114,916,670

$ 131,874,944

15%

154

159

3%

52

47

-10%

$

$

765,000

9%

Ross

$

43,243,050

$

59,131,400

37%

17

17

0%

33

60

82%

$ 2,100,000

$ 3,200,000

52%

San Anselmo

$

94,727,620

$

78,392,205

-17%

86

67

-22%

45

57

27%

$

975,500

$

950,000

-3%

San Rafael

$ 163,090,910

$

169,119,995

4%

171

165

-4%

47

39

-17%

$

819,000

$

858,000

5%

Sausalito

$

34,507,513

$

38,225,300

11%

21

20

-5%

40

44

10%

$ 1,470,000

$ 1,614,150

10%

Tiburon

$

92,371,025

$ 127,701,500

38%

38

40

5%

46

133

189%

$ 2,232,500

$ 3,100,000

39%

779,000

699,000

Source: Terradatum, July 7, 2014. Data is for single-family homes in selected Marin County cities.

Napa County Quarterly Real Estate Report Q2 2014

Linda Carroll Regional Executive, Napa County 707.251.8805 linda.carroll@pacunion.com 944 Main Street | Napa, CA 94559

Napa County pacificunion.com | A Member of Real Living

Napa County: Q2 Results After a slow first quarter, real estate activity in Pacific Union’s Napa County region picked up noticeably in April, performed even better in May, and shot off the charts in June. The second quarter of 2014 saw a large increase in the supply of available homes, and buyers were waiting; as soon as a well-priced property came on the market, it sold.

All price points saw strong sales activity across the county, with exceptional demand for winery properties and vacant land suitable for development. Distressed properties – short sales and bank-owned homes – have virtually disappeared from the marketplace after accounting for half of all sales just a few years ago. Home prices have stabilized, and multiple offers, a staple of nearly all sales last year, have waned. In short, Napa County’s real estate markets have largely returned to normalcy after a tumultuous seven years of boom, bust, and recovery.

Looking Forward: The third quarter looks to be an active time for homebuying and selling, even though sales typically slow a bit after schools let out for the summer and families pursue vacations. Plenty of buyers will be watching – and bidding – in the months ahead.

Defining Napa County: Our real estate markets in Napa County include the cities of American Canyon, Angwin, Calistoga, Napa, Oakville, Rutherford, St. Helena, and Yountville. Sales data in the charts below includes all single-family homes in Napa County.

Median Sales Price $600,000 $550,000

$505,000

$500,000

$575,000

$563,250

$540,000

$527,500 $468,500

$492,500

$501,000

$528,000 $475,000

$535,000

$510,022 $471,000

$450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in Napa County.

Months’ Supply of Inventory 5.1 4.6 4.1

4.0

3.6

4.5

4.2 3.8

3.8

4.1

3.8

3.0

3.1

4.7

3.4

3.4

Apr-14

May-14

2.9

3.1

2.6 2.1 1.6 1.1 0.6 0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in Napa County.

Napa County pacificunion.com | A Member of Real Living

Average Days on the Market 140

127

120

110

100 82 80

77

81

83

87

100

91

67

65

71

76

60 40 20 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in Napa County.

Â

Percentage of Properties Under Contract 30% 25.6% 25%

21.5%

20.1%

20%

21.0% 18.8%

16.7%

18.0%

17.4%

24.6%

22.9%

20.1% 18.2%

14.8%

15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in Napa County. Â

Sales Price as a Percentage of Original Price 100% 98%

98.3% 96.5%

96.3%

96.4%

96.3%

95.4%

96%

94.1%

93.6%

94%

95.9%

93.7%

92.2%

92%

90.0%

90%

90.7%

88% 86% 84%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in Napa County.

Napa County pacificunion.com | A Member of Real Living

A Closer Look at Napa County

Napa County Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

American Canyon

$

21,731,900

$

17,195,400

-21%

60

43

-28%

71

43

-39%

$

353,500

$

403,000

14%

Angwin

$

3,773,500

$

2,780,000

-26%

7

3

-57%

89

78

-12%

$

450,000

$

395,000

-12%

Calistoga

$

23,499,000

$

17,876,000

-24%

21

16

-24%

87

124

43%

$

655,000

$

672,500

3%

Napa

$ 138,987,350

$ 169,367,620

22%

243

246

1%

80

67

-16%

$

469,000

$

532,000

13%

St. Helena

$

37,869,668

$

61,038,408

61%

31

34

10%

97

124

28%

$

960,000

$ 1,095,579

14%

Yountville

$

7,375,800

$

8,090,000

10%

9

8

-11%

67

24

-64%

$

765,000

$ 1,032,500

35%

Source: Terradatum, July 7 2014. Data is for single-family homes in selected Napa County cities.

Napa County Price Range Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

Under $500,000

$

73,678,850

$

57,855,485

-21%

206

151

-27%

67

64

-4%

$

365,000

$

395,000

8%

$500,000 $999,999

$

83,119,868

$

97,244,260

17%

122

143

17%

101

74

-27%

$

650,000

$

650,000

0%

$1 million - $3 million

$

63,155,728

$

71,765,683

14%

43

47

9%

99

72

-27%

$ 1,250,000

$ 1,340,000

7%

Over $3 million $

24,600,000

$

49,032,000

99%

3

9

200%

69

121

75%

$ 5,900,000

$ 5,025,000

-15%

Source: Terradatum, July 7, 2014. Data is for single-family homes in Napa County.

San Francisco Quarterly Real Estate Report Q2 2014

Patrick Barber President 415.929.7100 patrick.barber@pacunion.com One Letterman Drive, Building C, Suite 500 | San Francisco, CA 94129

San Francisco pacificunion.com | A Member of Real Living

San Francisco: Q2 Results One year ago the San Francisco real estate market was on fire, as the region came roaring back from the recession and housing downturn, yielding exceptionally strong sales in virtually every market and neighborhood and at all price points. Fast-forwarding to the second quarter of 2014 we saw largely the same story: Demand for San Francisco single-family homes and condominiums showed little sign of cooling.

The supply of available homes rose modestly during the quarter, but aggressive bidding and multiple offers remained typical for almost all fairly priced properties. Median home prices continued to climb higher, with final prices routinely topping list prices by 10 percent or more –a welcome bonus for sellers. The Mission District remained particularly popular with buyers, thanks in part to its prime location, wealth of transportation options, and abundant supply of vintage housing.

Looking Forward: San Francisco’s strong real estate market does not appear to be weakening. Home prices will likely continue to rise moderately, and we expect to see more properties gradually hit the market. As one of the nation’s most popular relocation destinations due to a booming regional economy, San Francisco will continue to provide plenty of opportunities for both buyers and sellers.

Single-Family Homes – Median Sales Price $1,300,000 $1,100,000

$1,200,000 $1,050,000 $939,000

$900,000

$872,500

$934,000

$929,000 $903,000

$957,000

$947,000

$925,000

Nov-13

Dec-13

Jan-14

$1,100,000

$1,100,000

$985,000

$700,000 $500,000 $300,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in San Francisco.

Condominiums – Median Sales Price $1,050,000

$1,100,000 $1,000,000 $900,000

$896,500

$875,000 $825,000

$828,500

$851,500

$950,000

$945,000

$979,000

Jan-14

Feb-14

Mar-14

$872,500

$920,000

$980,000

$770,000

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for condominiums in San Francisco.

San Francisco pacificunion.com | A Member of Real Living

Single-Family Homes – Months’ Supply of Inventory 2.4

2.6

2.1

2.1 1.7 1.6

1.4

1.4

1.8

1.7

1.6

1.5 1.3

1.3

1.3

Apr-14

May-14

1.1

1.1

0.6

0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in San Francisco.

Condominiums – Months’ Supply of Inventory 3.1 2.5

2.6

2.0

2.1 1.6

1.6

1.7

1.5

1.4

1.2

1.2

1.1

1.2

1.0

1.4

1.4

May-14

Jun-14

1.1

0.6 0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for condominiums in San Francisco.

Single-Family Homes – Average Days on the Market 45 40 35

42 35

38 33

31

34

41

38

34

32

35

30

26

27

25 20 15 10 5 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in San Francisco.

San Francisco pacificunion.com | A Member of Real Living

Condominiums – Average Days on the Market 50

40

46

43

45 37

39

36

35

40

39 34

35

30

33

30

30

29

Mar-14

Apr-14

May-14

25 20 15 10 5 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for condominiums sold in San Francisco.

Single-Family Homes – Percentage of Properties Under Contract 45% 40%

38.0%

39.6% 35.6%

34.2%

35%

42.3% 37.1%

38.0%

37.3%

33.8%

32.5% 28.7%

30%

41.7%

27.7%

25% 20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in San Francisco.

Condominiums – Percentage of Properties Under Contract 50%

46.6% 41.1%

45% 40%

38.8%

38.8% 33.5%

35%

38.8%

30.8%

42.3%

39.3% 33.2%

33.5%

Dec-13

Jan-14

40.8% 35.6%

30% 25% 20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of condominiums under contract in San Francisco.

San Francisco pacificunion.com | A Member of Real Living

Single-Family Homes – Sales Price as a Percentage of Original Price 113.5%

115%

110%

109.4% 107.6% 105.3%

105%

104.4%

106.1%

109.3%

109.8%

Mar-14

Apr-14

110.6%

106.9%

105.6% 103.5% 99.5%

100%

95%

90%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in San Francisco.

Condominiums – Sales Price as a Percentage of Original Price 110% 108.2% 108%

106.9%

106.3%

106%

107.9% 106.9%

105.0% 103.8%

104%

106.8%

105.5% 103.5%

104.1%

101.3%

102%

100.5%

100% 98% 96%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for condominiums under contract in San Francisco.

San Francisco pacificunion.com | A Member of Real Living

Delving into San Francisco’s Districts

San Francisco is defined by 10 separate districts, each of which encompasses several neighborhoods.

District 1:

Inner Richmond, Central Richmond, Outer Richmond, JordanPark/Laurel Heights, Lake, Lone Mountain, Sea Cliff.

District 2: Outer Sunset, Central Sunset, Inner Sunset, Outer Parkside, Parkside, Inner Parkside, Golden Gate Heights.

District 3: Pine Lake Park, Merced Manor, Lake Shore, Lakeside, Stonestown, Merced Heights, Ingleside, Ingleside Heights, Oceanview.

District 4: Balboa Terrace, Diamond Heights, Forest Hill, Forest Hill Extension, Forest Knolls, Ingleside Terrace, Midtown Terrace, Miraloma Park, Monterey Heights, Mount Davidson Manor, Sherwood Forest, St. Francis Wood, Sunnyside, West Portal, Westwood Highlands, Westwood Park.

District 5: Buena Vista/Ashbury Heights, Clarendon Heights, Cole Valley/Parnassus Heights, Corona Heights, Duboce Triangle, Eureka Valley/Dolores Heights, Glen Park, Haight-Ashbury, Mission Dolores, Noe Valley, Twin Peaks.

District 6: Alamo Square, Anza Vista, Hayes Valley, Lower Pacific Heights, North Panhandle, Western Addition.

District 7: Cow Hollow, Marina, Pacific Heights, Presidio Heights.

District 8: Downtown, Financial District/Barbary Coast, Nob Hill, North Beach, North Waterfront, Russian Hill, Telegraph Hill,

Tenderloin, Van Ness/Civic Center.

District 9: Bernal Heights, Central Waterfront/Dogpatch, Inner Mission, Mission Bay, Potrero Hill, South Beach,

South of Market, Yerba Buena.

District 10: Bayview, Bayview Heights, Candlestick Point, Crocker Amazon, Excelsior, Hunters Point, Little Hollywood,

Outer Mission, Mission Terrace, Portola, Silver Terrace, Visitacion Valley.

San Francisco pacificunion.com | A Member of Real Living

San Francisco Snapshot: SFH, Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

District 1

$

120,202,000

$

102,975,175

-14%

70

56

-20%

38

20

-47%

$

1,431,500

District 2

$

110,912,382

$

122,156,648

10%

124

107

-14%

25

28

12%

$

District 3

$

43,280,000

$

38,505,000

-11%

55

41

-25%

37

26

-30%

$

District 4

$

111,217,537

$

106,062,750

-5%

89

73

-18%

35

28

-20%

District 5

$

191,832,276

$

183,319,608

-4%

112

86

-23%

32

20

District 6

$

23,642,125

$

26,537,240

12%

11

11

0%

34

District 7

$

193,415,000

$

156,513,300

-19%

47

34

-28%

District 8

$

28,310,000

$

34,901,250

23%

8

8

District 9

$

97,383,124

$

65,256,875

-33%

87

District 10

$

82,863,975

$

98,995,932

19%

143

Q2 '14

% change

1,602,500

12%

845,445

$ 1,000,000

18%

720,000

$

836,500

16%

$ 1,146,000

$ 1,375,000

20%

-38%

$

$

1,942,500

24%

21

-38%

$ 2,250,000

$ 2,725,000

21%

32

45

41%

$

$

3,700,000

16%

0%

28

86

207%

$ 2,562,500

$ 3,191,000

25%

54

-38%

36

27

-25%

$

1,030,000

$

1,170,000

14%

139

-3%

39

35

-10%

$

580,000

$

692,000

19%

1,567,500

3,200,000

$

Source: Terradatum, July 7, 2014. Data is for single-family homes in San Francisco districts.

San Francisco Snapshot: Condos, Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

District 1

$

30,482,475

$

40,125,500

32%

32

34

6%

31

32

3%

$

873,500

$

1,004,000

15%

District 2

$

8,835,000

$

17,250,888

95%

12

16

33%

45

28

-38%

$

716,000

$

927,500

30%

District 3

$

3,687,000

$

6,238,000

69%

9

10

11%

45

27

-40%

$

421,000

$

549,500

31%

District 4

$

10,139,000

$

10,418,125

3%

19

17

-11%

64

23

-64%

$

460,000

$

575,000

25%

District 5

$

119,915,548

$

125,252,282

4%

116

107

-8%

33

23

-30%

$

999,000

$

1,150,000

15%

District 6

$

74,471,601

$

66,670,671

-10%

85

64

-25%

39

30

-23%

$

825,000

$

999,000

21%

District 7

$

128,623,760

$

130,806,514

2%

101

87

-14%

47

26

-45%

$

1,259,000

$

1,301,000

3%

District 8

$

140,843,889

$

137,325,269

-2%

130

115

-12%

38

42

11%

$

865,000

$

920,000

6%

District 9

$

229,227,402

$

315,051,153

37%

230

278

21%

32

30

-6%

$

827,500

$

920,500

11%

District 10

$

10,498,857

$

5,026,869

-52%

26

10

-62%

97

59

-39%

$

412,000

$

541,500

31%

Source: Terradatum, July 7, 2014. Data is for condominiums in San Francisco districts.

San Francisco pacificunion.com | A Member of Real Living

San Francisco Price Range Snapshot: SFH, Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Under $1 million

$

274,051,588

$

189,426,030

-31%

386

251

-35%

35

34

-3%

$1 million - $3 million

$

510,311,731

$

485,258,173

-5%

318

302

-5%

32

23

-28%

Over $3 million $

218,695,100

$

260,539,575

19%

42

56

33%

35

40

14%

Median Price Q2 '13

Q2 '14

% change

750,000

4%

$ 1,450,000

$ 1,467,500

1%

$

$

-5%

$

723,500

3,900,000

$

3,690,000

Source: Terradatum, July 7, 2014. Data is for single-family homes in San Francisco County.

San Francisco Price Range Snapshot: Condos, Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Under $1 million

$

322,759,806

$

277,948,911

-14%

473

384

-19%

40

34

-15%

$

$1 million - $2 million

$

333,758,726

$

393,505,564

18%

251

289

15%

35

25

-29%

Over $2 million $

100,206,000

$

182,710,796

82%

36

65

81%

66

35

-47%

Q2 '14

% change

751,250

6%

$ 1,300,000

$ 1,316,000

1%

$

$

2%

710,000

2,442,500

$

2,500,000

Source: Terradatum, July 7, 2014. Data is for condominiums in San Francisco County.

Silicon Valley Quarterly Real Estate Report Q2 2014

David Barca Vice President, Silicon Valley 650.314.7200 dbarca@pacunion.com 1706 El Camino Real, Suite 220 | Menlo Park CA 94025

Silicon Valley pacificunion.com | A Member of Real Living

Silicon Valley: Q2 Results Spring is typically a brisk season for real estate, but second-quarter activity in Pacific Union’s Silicon Valley region was even busier than usual. Tech-industry workers and foreign buyers helped spur the activity, including a nonstop rise in sale prices. Just a few years ago, homes in the market’s “sweet spot” sold for $1.1 million to $1.7 million; today, those same homes command between $1.5 million and $2.5 million, and they go into escrow as soon as they hit the market.

High-end homes continued to sell well, with many buyers paying all cash for properties priced at $10 million and higher.

An estimated 25 percent of sales in the region were “off-market” – private transactions that never appeared on an MLS. Off- MLS sales are controversial because, while buyers and sellers can avoid the tumult of open houses and bidding wars, a prearranged price can mask a home’s real value. Buyers, for example, may pay many thousands above asking price for a home listed on the open market. On the other hand, sellers may settle for a price far below what a home is worth in an off-MLS transaction.

Looking Forward: The third quarter in Silicon Valley looks to be busy, although not as hectic as the second. Homes generally attracted fewer multiple offers in the second quarter than in the first, and we expect that trend to continue.

Defining Silicon Valley: Our real estate markets in the Silicon Valley region include the cities and towns of Atherton, Los Altos (excluding county area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside. Sales data in the charts below includes all single-family homes in these communities.

Defining the Mid-Peninsula: Our real estate markets in the Mid-Peninsula subregion include the cities of Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area). Sales data in the charts below includes all single-family homes in these communities.

Median Sales Price $3,100,000 $2,617,500 $2,600,000 $2,160,000 $2,010,000

$2,100,000

$2,087,500

$2,205,000

$2,250,018

$2,325,000

$2,400,000

$2,358,000

$2,466,000

$2,425,000 $2,400,000

$2,100,000

$1,600,000 $1,100,000 $600,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in these Silicon Valley communities: Atherton, Los Altos (excluding County area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside.

Months’ Supply of Inventory 3.6

3.1

3.1 2.6 2.1

2.4

2.5

2.1 1.7

1.6

1.7

1.6

1.6

1.5

1.6

1.4

1.1

1.1

1.2

0.6 0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in these SIlicon Valley communities: Atherton, Los Altos (excluding County area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside.

Silicon Valley pacificunion.com | A Member of Real Living

Average Days on the Market 60

55

50 38

40 30

37

37 30

23

24

Jun-13

Jul-13

30

29

25

20

20

19

Apr-14

May-14

22

10 0

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in these Silicon Valley communities: Atherton, Los Altos (excluding County area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside.

Percentage of Properties Under Contract 50%

44.3%

45% 40% 35% 30%

29.8%

31.7%

29.1%

27.9%

31.7%

32.5%

29.9%

42.8% 38.6%

36.9%

34.0%

24.6%

25% 20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in these Silicon Valley communities: Atherton, Los Altos (excluding County area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside.

Sales Price as a Percentage of Original Price 108%

106.2%

106%

102%

104.6%

104.5%

104%

102.5% 101.4%

100.4%

100%

101.2% 99.1%

103.9%

102.8%

102.1% 100.1%

99.7%

98% 96% 94%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in these Silicon Valley communities: Atherton, Los Altos (excluding County area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside.

Silicon Valley pacificunion.com | A Member of Real Living

A Closer Look at Silicon Valley Silicon Valley Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Atherton

$

138,484,000

$

193,393,003

40%

33

34

3%

42

44

5%

Los Altos*

$

254,306,762

$

268,980,624

6%

122

101

-17%

17

15

-12%

Los Altos Hills

$

106,700,498

$

99,809,000

-6%

29

25

-14%

61

33

Menlo Park**

$

186,218,500

$

212,798,075

14%

96

87

-9%

18

Palo Alto

$

291,764,488

$

362,272,674

24%

118

131

11%

Portola Valley

$

88,610,000

$

86,248,000

-3%

26

32

Woodside

$

112,010,500

$

113,993,500

2%

39

31

Median Price Q2 '13

Q2 '14

% change

3,953,502

10%

$ 2,000,000

$ 2,350,000

18%

-46%

$

$

3,300,000

10%

15

-17%

$ 1,817,500

$ 2,040,000

12%

17

15

-12%

$

$

2,300,000

10%

23%

38

21

-45%

$ 2,775,000

$ 2,350,000

-15%

-21%

40

42

5%

$ 2,383,000

$ 2,517,000

6%

$

3,600,000

2,995,000

2,100,000

$

Source: Terradatum, July 7, 2014. Data is for single-family homes in selected Silicon Valley cities. *Excludes County area **Excludes east of U.S. 101

Mid-Peninsula pacificunion.com | A Member of Real Living

Median Sales Price $1,700,000 $1,500,000

$1,600,000

$1,562,500 $1,380,000

$1,300,000

$1,375,000

$1,360,000

$1,263,500 $1,250,000 $1,204,000

$1,267,500

$1,475,000

$1,493,000

$1,311,375 $1,300,500

$1,100,000 $900,000 $700,000 $500,000 $300,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in these San Mateo County communities: Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area).

Months’ Supply of Inventory 2.6

2.4 1.9

2.1

1.6

1.6 1.3

1.6

1.5

1.4

1.3 1.1

1.1

1.0

1.1

1.2

0.8

0.6

0.1

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in these San Mateo County communities: Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area).

Average Days on the Market 60 50

50 40 30

27

30

34 26

35

33

32 25

25

19

20

18

17

10 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in these San Mateo County communities: Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area).

Mid-Peninsula pacificunion.com | A Member of Real Living

Percentage of Properties Under Contract 60% 49.8%

50%

44.6%

40%

38.9%

35.6%

34.2%

38.8%

46.9%

43.6%

36.3%

32.2%

30%

28.6%

28.1%

Dec-13

Jan-14

36.1%

20% 10% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in these San Mateo County communities: Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area).

Sales Price as a Percentage of Original Price 105% 104%

104.0%

103.4%

103%

103.0%

102.2%

102%

102.9%

103.2%

103.9%

103.6% 102.4%

100.9%

101%

99.8%

100%

98.8%

99%

98.0%

98% 97% 96% 95%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in these San Mateo County communities: Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area).

A Closer Look at Silicon Valley Mid-Peninsula Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

Median Price

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Burlingame*

$

143,606,026

$

151,022,888

5%

85

82

-4%

26

16

-38%

$ 1,592,000

$ 1,707,500

7%

Hillsborough

$

113,014,750

$

165,306,458

46%

37

44

19%

59

56

-5%

$ 2,800,000

$ 2,997,500

7%

San Mateo**

$

200,517,708

$

197,083,406

-2%

185

157

-15%

22

18

-18%

$ 1,005,649

$ 1,085,000

8%

Source: Terradatum, July 7, 2014. Data is for single-family homes in selected San Mateo County cities. * Excludes Ingold Millsdale Industrial Center ** Excludes the North Shoreview/Dore Cavanaugh area

Sonoma County Quarterly Real Estate Report Q2 2014

Rick Laws Senior Vice President, Sonoma County 707.547.3800 rick.laws@pacunion.com 3333 Mendocino Avenue, Suite 210 | Santa Rosa, CA 95403

Sonoma County pacificunion.com | A Member of Real Living

Sonoma County: Q2 Results After a slow start in the first quarter, home sales in Pacific Union’s Sonoma County region picked up significantly in the second quarter as more, higher-priced inventory arrived on the market. After sitting on the fence for years, sellers saw equity levels rise substantially and decided the time was right to get in the game.

Buyers, meanwhile, were anxious to take advantage of the expanded supply. Many homes received multiple offers, but typically two or three per property – not the 10 or 12 bids seen over the past year.

The median sales price rose moderately, but less because of appreciation and more because of the changing nature of home sales. A few years ago the Sonoma County market consisted mostly of short sales and foreclosures, whereas today they account for 10 percent or less of sales. Equity sales and higher-priced properties are currently predominant as the housing recovery advances and the market returns to normalcy.

Looking Forward: As long as the inventory of available homes continues to rise, we expect continued growth in the region. Demand for homes will not be as frantic as we’ve seen over the past year, but it still runs deep.

We look forward to a strong second half for 2014.

Defining Sonoma County: Our real estate markets in Sonoma County include the cities of Cotati, Healdsburg, Penngrove, Petaluma, Rohnert Park, Santa Rosa, Sebastopol, and Windsor. Sales data in the charts below includes all single-family homes and farms and ranches in Sonoma County.

Median Sales Price $550,000 $479,000

$500,000 $450,000

$437,000

$435,000

$447,650

$457,500

$450,000

$465,000

$460,000

$491,500 $449,325

$468,950

$485,500

$498,000

$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes and farms/ranches in Sonoma County.

Months’ Supply of Inventory 3.1

2.7

2.6 2.1

2.1

2.1

2.1

Jun-13

Jul-13

Aug-13

2.2

2.5

2.4

2.5 2.1

2.0

2.3

2.1

1.9

1.6 1.1 0.6 0.1

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes and farms/ranches in Sonoma County.

Sonoma County pacificunion.com | A Member of Real Living

Average Days on the Market 90 78

80 70

71 62

68

67

79

81 72

67

73

74 59

60

57

50 40 30 20 10 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes and farms/ranches sold in Sonoma County.

Â

Percentage of Properties Under Contract 40% 33.9%

35% 30%

29.6%

30.1% 26.5%

25.0%

27.0%

25%

32.3%

32.5%

32.9%

33.7%

Mar-14

Apr-14

May-14

Jun-14

27.5% 24.9% 22.2%

20% 15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes and farms/ranches under contract in Sonoma County. Â

Sales Price as a Percentage of Original Price 100%

98.9%

99% 98%

97.6%

98.0%

98.4% 97.4%

97%

96.3%

96.8%

96.9% 96.2%

96% 95%

94.3%

95.9%

96.0%

Feb-14

Mar-14

93.7%

94% 93% 92% 91%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes and farms/ranches under contract in Sonoma County.

Sonoma County pacificunion.com | A Member of Real Living

A Closer Look at Sonoma County

Sonoma County Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

Healdsburg

$

39,450,520

$

45,435,315

15%

53

46

-13%

61

56

-8%

$

610,000

$

612,500

0%

Petaluma

$

93,971,750

$

84,739,300

-10%

178

138

-22%

61

47

-23%

$

468,500

$

557,500

19%

Rohnert Park

$

30,824,600

$

30,989,788

1%

81

72

-11%

53

44

-17%

$

379,000

$

420,000

11%

Santa Rosa

$ 301,707,438

$ 280,943,923

-7%

610

520

-15%

64

56

-13%

$

410,000

$

440,000

7%

Sebastopol

$

52,472,371

$

48,417,055

-8%

73

66

-10%

78

63

-19%

$

600,000

$

690,000

15%

Windsor

$

39,707,025

$

41,207,762

4%

87

81

-7%

73

81

11%

$

420,000

$

470,000

12%

Source: Terradatum, July 7, 2014. Data is for single-family homes and farms/ranches in selected Sonoma County cities.

Sonoma County Price Range Snapshot: Q2 2014 vs. Q2 2013 Sales Volume

Homes Sold

Avg. Days on Market

Median Price

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Q2 '13

Under $1 million

$ 621,526,935

$ 587,642,861

-5%

1361

1,167

-14%

66

60

-9%

$

$1 million and over

$ 178,440,649

$ 171,045,025

-4%

97

101

4%

111

88

-21%

$ 1,370,000

420,000

Q2 '14

% change

461,000

10%

$ 1,350,000

-1%

$

Source: Terradatum, July 7, 2014. Data is for single-family homes and farms/ranches in selected Sonoma County cities.

Sonoma Valley Quarterly Real Estate Report Q2 2014

Jill Silvas Regional Executive, Sonoma Valley 707.939.9500 jill.silvas@pacunion.com 135 West Napa Street, Suite 200 | Sonoma, CA 95476

Sonoma Valley pacificunion.com | A Member of Real Living

Sonoma Valley: Q2 Results Sellers in Pacific Union’s Sonoma Valley region tended to keep their properties off the market during the winter and early spring months, waiting for gardens and flowerbeds to bloom in order to present their homes in the best light.

That decision created a substantial increase in listings during the latter part of the second quarter. Additionally, sellers put overly optimistic prices on their homes – higher it seems than the market would bear – and the strategy backfired.

By the end of the second quarter many sellers had reduced prices, and homes were staying on the market longer than expected.

Nonetheless, it was a busy quarter. Some sellers found themselves in the unusual position of competing for buyers, who got to choose from a more robust mix of homes. Well-priced properties continued to attract multiple offers, although far fewer than the dozen or so that we saw last year.

There was even a bit of a sales lull for midpriced homes in May before activity regained steam in June, and what began as a boom in the beginning of the year for multimillion dollar properties has now softened considerably. It remains to be seen as to whether this is just another cyclical event or a correction in the market as a whole.

Looking Forward: With a strong market in second-home sales, Sonoma Valley real estate is closely tied to the Bay Area’s economy. Forecasts call for robust economic growth well into next year, suggesting plenty of opportunities for both buyers and sellers.

Defining Sonoma Valley: Our real estate markets in Sonoma Valley include the cities of Glen Ellen, Kenwood, and Sonoma. Sales data in the charts below refers to all residential properties – including single-family homes, condominiums, and farms and ranches – in these communities.

Median Sales Price $700,000 $600,000

$586,000

$560,000 $529,025

$500,000

$608,500

$645,000

$610,672

$565,000

$496,278

$500,000

$540,000

$555,000

May-14

Jun-14

$500,000

$477,000

$400,000 $300,000 $200,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes, condominiums, and farms/ranches in Sonoma Valley.

Months’ Supply of Inventory 5.1 4.4

4.6 4.1 3.6

3.0

3.1 2.6 2.1

2.4

2.1

2.0

Jun-13

Jul-13

2.5

2.4

Oct-13

Nov-13

3.0

3.3

3.1

3.0

2.3

2.3

1.6 1.1 0.6 0.1

Aug-13

Sep-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes, condominiums, and farms/ranches in Sonoma Valley.

Sonoma Valley pacificunion.com | A Member of Real Living

Average Days on the Market 120 105 94

100 80 60

68

80

76

69

64

53

78

77

61

51

50

40 20 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes, condominiums, and farms/ranches sold in Sonoma Valley.

Â

Percentage of Properties Under Contract 35%

31.7%

30.5% 27.7%

30%

23.4%

25%

24.3%

22.7%

23.9%

26.6%

29.1%

28.3% 23.2%

20.2%

20%

17.2%

15% 10% 5% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes, condominiums, and farms/ranches under contract in Sonoma Valley. Â

Sales Price as a Percentage of Original Price 102% 99.5%

100%

98.7%

98% 96%

96.8%

96.6% 95.2%

94.7%

94.6%

93.9%

94%

96.7%

92.4%

92%

92.2%

91.8%

Jan-14

Feb-14

92.5%

90% 88% 86%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes, condominiums, and farms/ranches under contract in Sonoma Valley.

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A Closer Look at Sonoma Valley

Sonoma Valley Snapshot: Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

Glen Ellen

$

12,125,270

$

17,756,900

46%

13

14

8%

63

62

-2%

$

745,000

$ 1,005,500

35%

Kenwood

$

11,891,000

$

9,914,000

-17%

10

7

-30%

83

202

143%

$

890,000

$ 1,260,000

42%

Sonoma

$ 121,738,193

$ 103,016,425

-15%

149

139

-7%

56

54

-4%

$

545,000

$

4%

569,000

Source: Terradatum, July 7, 2014. Data is for single-family homes, condominiums, and farms/ranches in selected Sonoma Valley cities.

Tahoe/Truckee Quarterly Real Estate Report Q2 2014

Sally Gardner Regional Executive, Tahoe/Truckee Tahoe City 530.581.1882 | Truckee 530.587.7098 | Squaw Valley 530.584.6282 sally.gardner@pacunion.com

Tahoe/Truckee pacificunion.com | A Member of Real Living

Tahoe/Truckee: Q2 Results Real estate activity operates on a different timetable in Pacific Union’s Tahoe/Truckee region than in the Bay Area. Whereas the second quarter is a beehive of activity for Bay Area homebuyers and sellers, it is the quietest time of the year in the Tahoe/Truckee region, with skiers gone home and summer vacationers not yet arrived.

That calm was a boon for second-quarter homebuyers in the region, who had an ample supply of homes from which to choose. Sellers, meanwhile, saw prices rise steadily amid pent-up demand for single-family homes and condominiums. Properties that were fairly priced sold quickly.

Tahoe/Truckee is primarily a second-home market, closely linked to the Bay Area’s economic health (as well as that of Sacramento and Reno), and the recession and housing-market troubles of recent years took a toll on the region. After more than a year of recovery, however, Tahoe/Truckee returned to a balanced market in the second quarter, with plenty of inventory and hopeful buyers alike.

Looking Forward: The third quarter is prime time for the Tahoe/Truckee real estate market, as vacationers pull double duty as homebuyers. With the Bay Area economy showing no signs of slowing, we expect to see increasing numbers of residents choose to invest in Tahoe/Truckee real estate.

Defining Tahoe/Truckee: Our real estate markets in Tahoe/Truckee include the communities of Alpine Meadows, Donner Lake, Donner Summit, Lahontan, Martis Valley, North Shore Lake Tahoe, Northstar, Squaw Valley, Tahoe City, Tahoe Donner, Truckee, and the West Shore of Lake Tahoe. Sales data in the charts below includes single-family homes and condominiums in these communities.

Single-Family Homes – Median Sales Price $800,000 $699,000

$700,000 $614,605

$600,000

$528,000

$550,000

$559,500

$550,000

Jun-13

Jul-13

Aug-13

Sep-13

$545,000

$560,000

Oct-13

Nov-13

$605,000

$620,000

$610,000

$529,277

$525,000

$500,000 $400,000 $300,000 $200,000 $100,000

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for single-family homes in the Tahoe/Truckee region.

Condominiums – Median Sales Price $450,000

$420,000

$400,000

$381,500 $350,250

$350,000 $289,000

$300,000

$390,000

$374,500

$387,500

$345,000

$350,000

$334,000

$300,000

$290,000 $262,000

$250,000 $200,000 $150,000 $100,000

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Median sales price for condominiums in the Tahoe/Truckee region.

Tahoe/Truckee pacificunion.com | A Member of Real Living

Single-Family Homes – Months’ Supply of Inventory 9.1

8.4

8.1

8.1 7.1 6.1

6.1

6.1 4.9

5.1

6.4

6.1 4.9

5.1

Sep-13

Oct-13

7.0

6.7 5.6

5.3

4.1 3.1 2.1 1.1 0.1

Jun-13

Jul-13

Aug-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for single-family homes in the Tahoe/Truckee region.

Condominiums – Months’ Supply of Inventory 14.1

12.9 11.4

12.1 10.1

10.8

9.9 8.4

8.1

8.8 7.5

6.1

6.9 5.5

5.2

Sep-13

Oct-13

8.8 7.7

7.1

4.1 2.1 0.1

Jun-13

Jul-13

Aug-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Months' supply of inventory for condominiums in the Tahoe/Truckee region.

Single-Family Homes – Average Days on the Market 160 140

140 120 100 80

89

90

97

101

107 94

93

102

100

96 72

66

60 40 20 0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for single-family homes sold in the Tahoe/Truckee region.

Tahoe/Truckee pacificunion.com | A Member of Real Living

Condominiums – Average Days on the Market 250 197

200

159

159

150

122

113 100

150

140

150

137 114 86

85 54

50

0

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Average days on market for condominiums sold in the Tahoe/Truckee region.

Single-Family Homes – Percentage of Properties Under Contract 20% 18% 16% 14%

17.5%

16.2% 13.7%

15.3%

14.8% 13.2%

14.0%

13.0%

11.5%

10.9%

12%

8.9%

10%

9.3%

9.2%

May-14

Jun-14

8% 6% 4% 2% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

Source: Terradatum, July 7, 2014. Percentage of single-family homes under contract in the Tahoe/Truckee region.

Condominiums – Percentage of Properties Under Contract 16%

14.1% 12.7%

14% 12%

12.4%

12.9% 11.5%

11.0%

10%

10.5% 9.0%

9.1% 7.2%

6.9%

8%

9.8% 8.3%

6% 4% 2% 0%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Percentage of condominiums under contract in the Tahoe/Truckee region.

Tahoe/Truckee pacificunion.com | A Member of Real Living

Single-Family Homes – Sales Price as a Percentage of Original Price 98% 96%

95.7%

95.0%

94%

95.3%

95.0%

94.6%

92.8%

92.3% 91.5%

92%

95.5% 94.0%

92.1%

91.3%

90%

89.2%

88% 86%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for single-family homes under contract in the Tahoe/Truckee region.

Condominiums – Sales Price as a Percentage of Original Price 98% 96% 94%

94.7% 92.7%

92%

92.7%

93.0%

91.8%

96.6%

96.1%

95.4%

94.6%

94.8%

Apr-14

May-14

92.5%

91.2% 89.5%

90% 88% 86% 84%

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Jun-14

Source: Terradatum, July 7, 2014. Sales price as % of original price (including adjustments) for condominiums under contract in the Tahoe/Truckee region.

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A Closer Look at Tahoe/Truckee Tahoe/Truckee Snapshot: SFH, Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

Alpine Meadows

$

1,735,000

$

4,270,000

146%

3

5

67%

42

127

202%

$

625,000

$

545,000

-13%

Donner Lake

$

3,669,500

$

10,821,000

195%

7

14

100%

61

100

64%

$

460,000

$

532,500

16%

Donner Summit

$

4,239,000

$

6,396,300

51%

8

10

25%

130

118

-9%

$

515,000

$

542,500

5%

Martis Valley

$

28,396,391

$

48,163,709

70%

29

25

-14%

77

122

58%

$

493,000

$ 1,735,000

North Lake Tahoe

$

38,659,900

$

42,773,450

11%

53

55

4%

86

94

9%

$

440,000

$

515,000

17%

Northstar

$

5,022,200

$

5,869,000

17%

6

6

0%

132

376

185%

$

768,600

$

839,500

9%

Squaw Valley

$

9,398,250

$

5,088,000

-46%

8

3

-63%

123

35

-72%

$

848,500

$

853,000

1%

Tahoe City

$

16,083,000

$

14,453,700

-10%

17

16

-6%

122

103

-16%

$

504,000

$

552,750

10%

Tahoe Donner

$

42,883,881

$

31,540,350

-26%

71

49

-31%

72

28

-61%

$

555,000

$

595,000

7%

Truckee

$

39,681,776

$

59,008,922

49%

56

47

-16%

53

77

45%

$

406,418

$

529,277

30%

West Shore

$

30,871,950

$

38,194,426

24%

33

38

15%

114

145

27%

$

592,500

$

508,250

-14%

252%

Source: Terradatum, July 7, 2014. Data is for single-family homes in the Tahoe/Truckee region.

Tahoe/Truckee Snapshot: Condos, Q2 2014 vs. Q2 2013 Sales Volume Q2 '13

Q2 '14

Homes Sold

Avg. Days on Market

% change

Q2 '13

Q2 '14

% change

Q2 '13

Q2 '14

% change

Median Price Q2 '13

Q2 '14

% change

Alpine Meadows

$

219,000

$

1,009,000

361%

1

3

200%

88

46

-48%

$

219,000

$

334,000

53%

Donner Lake

$

639,000

$

55,000

-91%

2

1

-50%

849

76

-91%

$

319,500

$

55,000

-83%

Donner Summit

$

$

115,000

n/a

0

1

n/a

0

274

n/a

$

$

115,000

n/a

North Lake Tahoe

$

9,968,500

$

8,907,969

-11%

21

20

-5%

141

90

-36%

$

290,000

$

348,000

20%

NorthStar

$

4,734,000

$

6,077,340

28%

10

12

20%

116

53

-54%

$

325,500

$

342,500

5%

Squaw Valley

$

4,075,700

$

4,927,000

21%

9

8

-11%

243

224

-8%

$

410,000

$

611,500

49%

Tahoe City

$

5,612,500

$

3,150,100

-44%

12

7

-42%

144

51

-65%

$

331,750

$

393,000

18%

Tahoe Donner

$

2,164,300

$

3,792,970

75%

9

15

67%

26

53

104%

$

242,900

$

256,000

5%

Truckee

$

3,054,950

$

3,863,000

26%

6

8

33%

56

99

77%

$

464,500

$

439,500

-5%

West Shore

$

765,000

$

n/a

1

0

n/a

14

0

n/a

$

765,000

$

-

-

-

-

n/a

Source: Terradatum, July 7, 2014. Data is for condominiums in the Tahoe/Truckee region.

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