Seven Hills Annual Report

THE SEVEN HILLS REPORT Quarter Ended September 30, 2004

A definitive analysis of Seven Hills custom and executive real estate activity

• Terracina • Rapallo • Venezia • Portofino • Villa Cortina • Renaissance • Presidio • Villagio • Palazzo Monte • Palantine Hill

Beth Naef Owner / Broker

®

THE SEVEN HILLS REPORT A definitive analysis of Seven Hills custom and executive real estate activity Quarter Ended September 30, 2004 Portofino • Rapallo • Terracina • Venezia • Villa Cortina Palazzo Monte • Palantine Hill • Presidio • Renaissance • Villagio

INTRODUCTION This comprehensive analysis focuses exclusively on the custom and executive neighborhoods within the prestigious Seven Hills master planned community. Specifically, with respect to closed properties, this edition of THE SEVEN HILLS REPORT® measures the change in real estate activity between the quarter ended September 30, 2004 and the quarter’s ended June 30, 2004 and September 30, 2003 respectively. Additionally, with respect to currently listed properties, we look at potential trends in asking prices, selling prices, square footage and inventory absorption.

On a neighborhood-by-neighborhood basis, the following key economic indicators are compared and evaluated: • Dollar Volume • Median Sales Price • Median Asking Price • Median Adjusted Asking Price • Average Square Footage • Number of Sales • Inventory • Median Sales Price per Square-Foot • Median Asking Price per Square-Foot • Median Adjusted Asking Price per Square-Foot • Average Number of Days-on-the-Market • Average Percentage of Asking Price to Sales Price Analysis of the custom communities includes both the comparison of the homes and home-sites on a neighborhood-byneighborhood basis as well as a comparison of “Like Properties” to “Like Properties” regardless of which neighborhood the property is located. This Like Properties analysis is much more difficult to compile but adds significantly more insight into the micro markets existing in these elite Seven Hills neighborhoods. In order to compare Like Properties, each of the following Location Attributes were evaluated and ranked on a scale of 1 to 5 (5 being the highest) for every custom home and home-site in Seven Hills: • Interior • Mountain View • Golf View • Valley View • Strip View Because each of the above attributes has had a materially different historical impact on the value of the property, a mathematical formula must be applied to the raw attribute scores to determine the weighted average total rating. For example, market demand for a property with a Mountain View rating of 5 has not been nearly as strong as a property with a Strip View rating of 5. Finally, the properties are placed into one of three groups based upon their total weighted average rating. Group one consists of Like Properties with the lowest total weighted average rating and on the opposite end of the spectrum, group three consists of Like Properties with the highest weighted average rating, in the finest locations, regardless of neighborhood.

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

K

Although this sophisticated analysis helps evaluate past and future trends in the various micro markets, it does not necessarily support the price of any one specific home or home-site. The latter requires a thorough understanding of the features of the specific home, lot and the ever-changing market conditions. Likewise, just because the Like Properties analysis was not compiled for the executive neighborhoods, it does not mean that such micro markets do not exist there. As a case in point, there is currently a 74% list price spread between the least expensive and most expensive home in the Renaissance neighborhood. This seemingly wide gap helps underscore the impact that the above stated Location Attributes can have on what are otherwise similar properties. The point is know the product and know the market.

THE DATA

For each of the three Property Types (Custom Homes, Custom Home-sites and Executive Homes) the following Tables are included: 1. Overall Analysis 2. Like Property Analysis Excluding Executive Homes (custom home and home-site Property Types) 3. Neighborhood by Neighborhood Analysis And, each of the Tables, includes the three following Table Subsections: 1. Closed Properties Analysis 2. Currently Available Properties 3. Price Adjusted-Currently Available Properties Analysis

The first Table Subsection (Closed Properties) includes the benchmark data that all the other information is measured against. This data, collected from properties that have closed in the current quarter (quarter ended 9/30/04) is highlighted in orange and is initially compared to data derived from closings in the previous quarter (quarter ended 6/30/04) as well as data derived from closings in the same quarter, one-year ago (quarter ended 9/30/2003). The next Table Subsection is the Currently Available Properties section. Here, we compare the above stated benchmark data to data derived from all the unsold properties that were still available for purchase as of September 30, 2004. This forward looking analysis can be used as one more indicator of where prices may be heading and which types of properties buyers may be most interested in purchasing.

Because most sellers and buyers negotiate the ultimate purchase price to be something less than the sellers full asking price and since THE SEVEN HILLS REPORT® tracks this data (Average % of Asking Price) we included the final Table Subsection (Price Adjusted – Currently Available) section. Here we can attempt to further refine our analysis of future pricing trends by adjusting the asking prices by the “normal” reduction in asking prices that buyers and sellers have most recently negotiated. This is easily accomplished by multiplying the current asking prices by the Average % of Asking Price factor achieved in the current quarter.

Assuming future market forces remain constant and future buyers and sellers negotiate close to the same price discounts we have experienced in the current quarter then we have one more key economic indicator of what the future may hold.

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

QUARTER ENDED SEPTEMBER 30, 2004 HIGHLIGHTS Custom Homes Overall, Median Sales Prices Per Square-Foot, appear to be escalating rapidly (up 10% in just one quarter). However, by analyzing the micro market data, we find that this increase is due to the type of homes sold in the current and previous quarter rather than to a per square-foot sales price increase. Specifically, in the prior quarter (quarter ended 6/30/2004) there were a total of ten homes sold, nine of which were in the Rating-1 micro market class. Therefore, the previous quarter’s overall median sales price of $242 per square-foot is drastically influenced by homes in this rating class which are historically less than homes in the higher rating classes (rating class-2 and rating class-3). Conversely, there were only six homes sold during the current quarter (quarter ended 9/30/04), with exactly two homes coming from each of the three rating classes. Unlike the previous quarter, the current quarter’s overall median price per square-foot is a uniform reflection of the median prices of all three rating classes and is not disproportionately weighted by the median price of homes comprising the rating-1 class of properties. In fact, the overall median price per square-foot in the current quarter is almost exactly equal to the median price per square-foot of homes in the rating-2 class ($266). In conclusion, sometimes we must look deeper than the overall custom home table in order to more accurately evaluate potential price trends.

Notwithstanding the above paragraph, there does appear to be signs that prices may be ready to escalate over the next two to three quarters. If we switch our focus from recent closings to what is currently available for sale and adjust those asking prices by the historical discount sellers have settled for in order to close their properties, we see an interesting pricing trend. Specifically, the Available Properties - Price Adjusted section of all three rating class tables, suggest that prices may rise 23%, 16% and 23% for properties in rating class 1, 2 and 3 respectively. The question is, will prices actually increase or will the market force sellers to significantly reduce their asking prices, as measured by the Average % of Asking Price factors, beyond the historical 88%, 88% and 84% we have historically witnessed for properties in rating class 1,2 and 3 respectively. We will be monitoring this exciting development closely in order to best represent our clients.

Custom Home-sites Overall, custom home-site activity decreased 25% between the previous and current quarter. This decrease is most notable in rating classes 1 and 3. However, rating class-2 experienced a significant 57% increase in activity over the prior quarter. Across the board, we are looking at less than one years supply of inventory, which should continue to fuel potential price increases. Median Sales Price Per Square-Foot is down 7% overall, but once again, this is a function of the type of lots sold between the current and previous quarter (quarter ended 9/30/2004 vs. quarter ended 6/30/2004) rather than a function of falling prices. In fact, the pricing trend for custom home-sites appears to be significantly more conclusive than the data supporting a potential upward pricing trend for custom homes. Both Average Days on-the-market and Average % of Asking Price indicators suggest a healthy demand for properly priced custom home-sites.

Median Sales Price Per Square-Foot is up 23% and 10% for properties with a class rating of 2 and 3 respectively. Once again we need to exercise caution when we are only looking at one quarter’s worth of activity. The next two quarterly editions of THE SEVEN HILLS REPORT® should include enough sales activity to help identify and validate trends we may be seeing in this first quarter.

Executive Homes Overall, executive home real estate activity is down 42% from the previous quarter’s total sales of 17 homes and down 133% from a year ago when sales in the quarter ended September 30, 2003 totaled an impressive 28 homes. Conversely, median sales price per foot has increased 7% in just one quarter and has increased an amazing 35% since September 30, 2003.

This segment of the market enjoyed unparallel price appreciation over the last 12 months primarily due to the scarcity of land in the Las Vegas valley and unbridled investor speculation that pushed prices up week after week. Most of the national homebuilders that I stay in contact with believe that we are currently in a “cooling off” period. The majority of the investors have stopped buying and are now selling their Las Vegas valley properties. Some merchant builders have reduced their home prices as much as 25% in order to compete with the large amount of investor inventory recently put on the market. The current thinking of most national builders is that sellers will need to be more patient over the next two to three quarters until the above stated excess supply of investor related resales are absorbed.

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

Custom Home Tables

…it’s about lifestyle

Closed Properties:

Custom Homes - Overall Table Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

10,669

1,625,000

6,764

6

268

173

86%

27

Qtr. Ended 6/30/04

13,011

1,287,500

5,343

10

242

115

91%

25

Percentage Change

-22%

21%

21%

-67%

10%

34%

-6%

7%

Qtr. Ended 9/30/03

14,734

1,200,000

5,325

11

227

126

90%

N/A

Percentage Change

-38%

26%

21%

-83%

15%

28%

-5%

N/A

Average Square-Feet

Number of Sales

Currently Available Properties: Median Asking Price Currently Available

Average Square-Feet

Inventory (In Months) 14

7,032

354

35%

4%

24%

Price Adjusted - Currently Available Properties: Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

2,151,355

305

25%

12%

Percentage Difference

Closed Properties:

Median Asking Price Per Square-Foot

2,500,000

Percentage Difference

Currently Available

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Custom Homes - RATING OF 1 TABLE Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

2,819

1,409,500

6,095

2

235

134

88%

14

Qtr. Ended 6/30/04

11,361

1,200,000

5,268

9

237

92

92%

N/A

Percentage Change

-303%

15%

14%

-350%

-1%

31%

-4%

N/A

Qtr. Ended 9/30/03

10,234

1,137,059

5,007

9

227

79

93%

N/A

Percentage Change

-263%

19%

18%

-350%

3%

41%

-5%

N/A

Average Square-Feet

Currently Available Properties: Median Asking Price Currently Available Percentage Difference

Average Square-Feet

Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Median Asking Price Per Square-Foot

Inventory (In Months) 21

1,800,000

6,022

347

22%

-1%

32%

Price Adjusted - Currently Available Properties:

Currently Available

Number of Sales

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

1,585,688

306

11%

23%

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

Closed Properties:

Custom Homes - RATING OF 2 TABLE Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

3,250

1,625,000

6,156

2

266

117

88%

6

Qtr. Ended 6/30/04

1,650

1,650,000

6,011

1

275

318

87%

N/A

Percentage Change

49%

-2%

2%

50%

-3%

-173%

1%

N/A

Qtr. Ended 9/30/03

1,300

1,300,000

4,612

1

282

292

88%

N/A

Percentage Change

60%

20%

25%

50%

-6%

-151%

0%

N/A

Average Square-Feet

Number of Sales

Currently Available Properties: Median Asking Price Currently Available

Average Square-Feet

Inventory (In Months) 9

8,223

359

38%

25%

26%

Price Adjusted - Currently Available Properties: Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

2,306,551

316

30%

16%

Percentage Difference

Closed Properties:

Median Asking Price Per Square-Foot

2,624,500

Percentage Difference

Currently Available

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Custom Homes - RATING OF 3 TABLE Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

4,600

2,300,000

8,042

2

286

270

84%

7

Qtr. Ended 6/30/04

N/A

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

-

N/A

N/A

N/A

N/A

Qtr. Ended 9/30/03

3,200

3,200,000

8,900

1

360

375

85%

N/A

Percentage Change

30%

-39%

-11%

50%

-26%

-39%

-2%

N/A

Average Square-Feet

Currently Available Properties: Median Asking Price Currently Available Percentage Difference

Average Square-Feet

Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Median Asking Price Per Square-Foot

Inventory (In Months) 11

2,950,000

8,032

442

22%

0%

35%

Price Adjusted - Currently Available Properties:

Currently Available

Number of Sales

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

2,467,273

370

7%

23%

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

venezia custom homes - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

1,600

1,600,000

6,687

1

239

120

84%

3

Qtr. Ended 6/30/04

3,908

974,000

3,847

4

255

184

97%

N/A

Percentage Change

-144%

39%

43%

-300%

-7%

-53%

-15%

N/A

Qtr. Ended 9/30/03

465

1,200,000

4,650

4

249

172

87%

N/A

Percentage Change

71%

25%

31%

-300%

-4%

-43%

-4%

N/A

Average Square-Feet

Number of Sales

Currently Available Properties: Median Asking Price Currently Available

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months) 9

1,850,000

6,510

348

14%

-3%

31%

Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

1,559,536

294

-3%

19%

Percentage Difference

rapallo custom homes - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

0

N/A

N/A

0

N/A

N/A

N/A

4

Qtr. Ended 6/30/04

2,700

1,350,000

5,428

2

247

9

94%

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Qtr. Ended 9/30/03

4,200

2,100,000

6,710

2

290

188

85%

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Qtr. Ended 9/30/04

Average Square-Feet

Currently Available Properties: Median Asking Price Currently Available Percentage Difference

Average Square-Feet

Number of Sales

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Median Asking Price Per Square-Foot

Inventory (In Months) N/A

2,109,250

6,392

348

N/A

N/A

N/A

Price Adjusted - Currently Available Properties: Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

Currently Available

N/A

N/A

Percentage Difference

N/A

N/A

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

terracina custom homes - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

6,969

1,600,000

6,613

4

272

165

85%

19

Qtr. Ended 6/30/04

7,373

1,548,000

6,140

5

237

115

88%

N/A

Percentage Change

-6%

3%

7%

-25%

13%

30%

-4%

N/A

Qtr. Ended 9/30/03

5,154

1,170,000

5,493

4

228

41

97%

N/A

Percentage Change

26%

27%

17%

0%

16%

75%

-14%

N/A

Average Square-Feet

Number of Sales

Currently Available Properties: Median Asking Price Currently Available

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months) 14

2,300,000

7,226

363

30%

9%

25%

Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

1,954,720

309

18%

12%

Percentage Difference

portofino custom homes - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Qtr. Ended 9/30/04

0

N/A

N/A

0

N/A

N/A

N/A

1

Qtr. Ended 6/30/04

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Qtr. Ended 9/30/03

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Average Square-Feet

Currently Available Properties: Median Asking Price Currently Available Percentage Difference

Average Square-Feet

Number of Sales

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Median Asking Price Per Square-Foot

Inventory (In Months) N/A

2,790,000

7,468

374

N/A

N/A

N/A

Price Adjusted - Currently Available Properties: Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

Currently Available

N/A

N/A

Percentage Difference

N/A

N/A

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

villa cortina custom homes - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

2,100

2,100,000

7,446

1

282

261

91%

0

Qtr. Ended 6/30/04

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Qtr. Ended 9/30/03

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Qtr. Ended 9/30/04

Average Square-Feet

Currently Available Properties: Median Asking Price

Average Square-Feet

Number of Sales

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Median Asking Price Per Square-Foot

Inventory (In Months) N/A

Currently Available

N/A

N/A

N/A

Percentage Difference

N/A

N/A

N/A

Price Adjusted - Currently Available Properties: Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

Currently Available

N/A

N/A

Percentage Difference

N/A

N/A

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

Custom Home-Site Tables

…it’s about location

Closed Properties:

custom home-sites - overall table Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

6,482

542,500

20,546

12

26

114

97%

25

Qtr. Ended 6/30/04

6,115

390,000

18,528

15

27

276

97%

N/A

Percentage Change

6%

28%

10%

-25%

-7%

-143%

1%

N/A

Qtr. Ended 9/30/03

250

250,000

14,375

1

17

53

96%

N/A

Percentage Change

96%

54%

30%

92%

32%

53%

1%

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

599,000

24,777

34

6

9%

17%

24%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

581,374

33

7%

22%

Currently Available Percentage Difference

custom home-sites - rating of 1 table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

1,290

445,000

20,183

3

22

93

96%

6

Qtr. Ended 6/30/04

3,280

375,000

18,247

9

22

230

97%

N/A

Percentage Change

-154%

16%

10%

-200%

-1%

-146%

-1%

N/A

Qtr. Ended 9/30/03

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

512,500

20,110

30

6

13%

0%

28%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

491,543

29

10%

25%

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

custom home-sites - rating of 2 table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

3,904

560,000

20,349

7

27

60

98%

11

Qtr. Ended 6/30/04

1,365

430,000

19,312

3

21

229

98%

N/A

Percentage Change

65%

23%

5%

57%

23%

-281%

0%

N/A

Qtr. Ended 9/30/03

250

250,000

14,375

1

17

53

96%

N/A

Percentage Change

94%

55%

29%

86%

35%

12%

2%

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

585,000

19,721

32

5

4%

-3%

18%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

571,961

32

2%

16%

Currently Available Percentage Difference

custom home-sites - rating of 3 table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

1,288

643,750

21,780

2

30

332

96%

8

Qtr. Ended 6/30/04

1,470

510,000

18,586

3

27

462

95%

N/A

Percentage Change

-14%

21%

15%

-50%

10%

-39%

1%

N/A

Qtr. Ended 9/30/03

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

1,150,000

35,229

39

12

44%

38%

23%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

1,104,944

37

42%

20%

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

terracina custom home-sites - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

3,767

520,000

22,695

7

24

83

97%

14

Qtr. Ended 6/30/04

2,305

390,000

23,218

6

20

321

94%

N/A

Percentage Change

39%

25%

-2%

14%

17%

-287%

4%

N/A

Qtr. Ended 9/30/03

250

250,000

14,375

1

18

53

96%

N/A

Percentage Change

93%

52%

37%

86%

24%

36%

1%

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

699,500

26,136

29

6

26%

13%

17%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

681,144

28

24%

15%

Currently Available Percentage Difference

rapallo custom home-sites - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

400

400,000

16,988

1

24

205

89%

3

Qtr. Ended 6/30/04

390

390,000

17,860

1

22

118

99%

N/A

Percentage Change

3%

3%

-5%

0%

7%

42%

-11%

N/A

Qtr. Ended 9/30/03

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

639,000

20,168

38

9

37%

16%

37%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

568,000

33

30%

30%

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

venezia custom home-sites - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

1,770

560,000

17,555

3

31

19

98%

6

Qtr. Ended 6/30/04

915

457,500

15,464

2

29

46

96%

N/A

Percentage Change

48%

18%

12%

33%

4%

-142%

1%

N/A

Qtr. Ended 9/30/03

0

N/A

N/A

0

N/A

N/A

N/A

N/A

Percentage Change

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

Inventory (In Months)

572,500

18,426

33

6

2%

5%

6%

Qtr. Ended 9/30/04

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

558,306

32

-0%

4%

portofino/villa cortina home-sites

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

No Activity

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

Executive Home Tables

…it’s about you

Closed Properties:

executive homes - overall table Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

8,695

625,000

3,386

12

216

29

99%

44

Qtr. Ended 6/30/04

11,438

615,000

3,342

17

201

33

100%

N/A

Percentage Change

-32%

2%

1%

-42%

7%

-14%

-2%

N/A

Qtr. Ended 9/30/03

13,666

497,000

3,517

28

141

57

97%

N/A

Percentage Change

-57%

21%

-4%

-133%

35%

-97%

2%

N/A

Currently Available Properties:

Currently Available

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

766,750

3,484

229

19%

3%

6%

Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

757,790

226

18%

4%

Percentage Difference

Inventory (In Months) 11

renaissance - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

2,535

810,000

4,509

3

180

28

100%

16

Qtr. Ended 6/30/04

3,374

862,000

4,277

4

198

34

100%

N/A

Percentage Change

-33%

-6%

5%

-33%

-10%

-21%

0%

N/A

Qtr. Ended 9/30/03

5,883

555,000

3,613

11

145

62

97%

N/A

Percentage Change

-132%

32%

20%

-267%

20%

-121%

3%

N/A

Currently Available Properties:

Currently Available Percentage Difference

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

897,000

3,809

239

10%

-18%

25%

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

897,354

239

10%

25%

Inventory (In Months) 16

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

presidio - overall table

Closed Properties: Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

2,025

1,037,500

3,877

2

263

8

98%

6

Qtr. Ended 6/30/04

2,100

680,000

3,419

3

188

14

101%

N/A

Percentage Change

-4%

35%

12%

-50%

29%

-75%

-3%

N/A

Qtr. Ended 9/30/03

2,137

524,000

3,753

4

142

69

93%

N/A

Percentage Change

-6%

50%

3%

-100%

46%

-763%

5%

N/A

Currently Available Properties:

Currently Available

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

910,000

3,524

267

-14%

-10%

2%

Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

888,072

260

-17%

-1%

Percentage Difference

Closed Properties:

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Inventory (In Months) 9

villagio - neighborhood table Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

2,430

605,000

2,809

4

218

34

98%

9

Qtr. Ended 6/30/04

1,227

613,500

3,272

2

190

7

103%

N/A

Percentage Change

50%

-1%

-17%

50%

13%

79%

-5%

N/A

Qtr. Ended 9/30/03

1,568

529,000

3,858

3

136

104

97%

N/A

Percentage Change

36%

13%

-37%

25%

38%

-206%

1%

N/A

Currently Available Properties:

Currently Available Percentage Difference

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

699,900

3,701

191

14%

24%

-14%

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

686,121

187

12%

-17%

Inventory (In Months) 7

Prime Realty, Ltd 11201 S. Eastern Ave, Suite 100 702.682.6529 Beth Naef Owner / Broker Bnaef@PrimeRealtyNV.com www.PrimeRealtyNV.com

Closed Properties:

palazzo monte - overall table Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

755

755,000

4,220

1

179

0

96%

3

Qtr. Ended 6/30/04

1,925

615,000

3,006

3

202

32

97%

N/A

Percentage Change

-155%

19%

29%

-200%

-13%

N/A

-1%

N/A

Qtr. Ended 9/30/03

2,687

458,750

3,593

6

127

28

97%

N/A

Percentage Change

-256%

39%

15%

-500%

29%

N/A

-1%

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

785,000

3,912

188

4%

-8%

5%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

755,000

181

0%

1%

Percentage Difference

Inventory (In Months) 9

palantine hill - neighborhood table

Closed Properties:

Dollar Volume (000)

Median Sales Price

Average Square-Feet

Number of Sales

Qtr. Ended 9/30/04

1,705

560,000

2,706

3

214

38

100%

9

Qtr. Ended 6/30/04

2,813

590,000

2,776

5

203

54

102%

N/A

Percentage Change

-65%

-5%

-3%

-67%

5%

-42%

-2%

N/A

Qtr. Ended 9/30/03

1,391

332,000

2,646

4

133

37

99%

N/A

Percentage Change

18%

41%

2%

-33%

38%

3%

1%

N/A

Median Asking Price

Average Square-Feet

Median Asking Price Per Square-Foot

644,900

2,616

231

13%

-3%

7%

Currently Available Properties:

Currently Available Percentage Difference

Price Adjusted - Currently Available Properties:

Currently Available Percentage Difference

Median Sales Average % Price Per Average Days of Current Square-Foot on-the-market Asking Price Inventory

Adjusted Median Asking Price

Adjusted Median Asking Price Per Square-Foot

643,014

230

13%

7%

User to independently validate all data.

The Seven Hills Report is not meant to be a solicitation if your property is currently listed with another real estate agent.

Inventory (In Months) 9

11201 S. Eastern Ave, Suite 100 Henderson, Nevada 89052

PRSRT STD U.S. POSTAGE PAID HENDERSON, NV PERMIT NO. 375