Sacramento Real Estate Report for 2013

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Information about Sacramento Real Estate Report for 2013
Real Estate

Published on March 14, 2014

Author: sacappraiser

Source: slideshare.net

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The Wright Report is perfect bathroom reading to help understand local real estate. Well, maybe for some. This is a very detailed report to unpack the housing market in Northern California as well as other national economic influences. What is making value move? And where have values been moving? Compiled by Real Estate Broker Joel Wright (and yours truly contributed a couple pages). Counties covered include: Sacramento, Placer, Yolo, El Dorado & San Joaquin.

July - December, 2013 www.WrightRealEstate.us Page 1 (916) 726-8308 Wright Report Perspectives and Overview of Northern California’s Residential Real Estate Market: Statistics and Trends for the United States, State of California, and Northern California Counties: including Sacramento, Placer, Yolo, El Dorado & San Joaquin Counties. July to December, 2013 TTHHEE WWRRIIGGHHTT RREEPPOORRTT

July - December, 2013 www.WrightRealEstate.us Page 2 (916) 726-8308 Wright Report The Wright Report Prepared by: Prepared By: Joel Wright Document Version: Final Last Updated On: March, 2014

July - December, 2013 www.WrightRealEstate.us Page 3 (916) 726-8308 Wright Report This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

July - December, 2013 www.WrightRealEstate.us Page 4 (916) 726-8308 Wright Report TABLE OF CONTENTS TABLE OF CONTENTS....................................................................................................................... 4 EXECUTIVE SUMMARY:.................................................................................................................... 5 THE EXPERTS WEIGH IN:.................................................................................................................. 6 Sacramento Appraiser: Ryan Lundquist ............................................................................... 6 Rental Housing Association: Jim Lofgren.............................................................................. 8 Real Estate Attorney: Steve Beede....................................................................................... 9 MARKET UPDATE:.......................................................................................................................... 11 THE ECONOMY: ............................................................................................................................. 16 BANKING & LENDING: ................................................................................................................... 17 DISTRESSED PROPERTIES:.............................................................................................................. 19 COUNTY STATISTICS: ..................................................................................................................... 22 Sacramento County....................................................................................................................... 22 Placer County...................................................................................................................... 23 El Dorado County................................................................................................................ 24 Yolo County......................................................................................................................... 25 San Joaquin County ............................................................................................................ 27 HISTORICAL PRICE GRAPHS: .......................................................................................................... 29 PLACER COUNTY:........................................................................................................................... 30 SACRAMENTO COUNTY:................................................................................................................ 33 RESOURCES:................................................................................................................................... 41

July - December, 2013 www.WrightRealEstate.us Page 5 (916) 726-8308 Wright Report EXECUTIVE SUMMARY: Sacramento experienced some dramatic shifts through 2013. Q1-2 was equal in price gains to the white hot surge of 2004 and 2005 when the Sacramento market peaked. Q3-4 reflected the slow declines from 2009 - 2011. Overall the County saw very strong appreciation with the median price increasing 28% for the year, however only 1.7% of the gain was in the 2nd half of the year. Strong increases and positive growth are expected for the Sacramento region in 2014. The market has solidified for several reasons: increases in the number of homes for sale by more than 100%+ from January to December, interest rates remain near historic lows, affordability is above 50%, and the CA economy is improving. While housing fundamentals have improved dramatically (reduced foreclosure filings, low interest rates, greater inventory), other factors seemed to hamper the market during the last half of 2013 (political uncertainty, flight of large investors, unemployment). The Housing sector of the National Economy has regained much ground. The U.S. and California markets experienced substantial gains in 2013. However, the U.S. economy did not perform very strongly in 2013 and may turn out to be a drag on the housing recovery. Lending is also expected to become more difficult in 2014 with the implementation of the Qualified Mortgage (QM) standards which raises the requirements lenders must use to qualify potential borrowers. One upside of continued government intrusion into mortgage markets is that interest rates will likely remain low through 2014. More good news is the number of distressed property sales in Sacramento declined 60%+ to represent only 18% of sales in December 2013. Foreclosed property inventory still held by banks is also down (-27%) from December 2012 to December 2013.

July - December, 2013 www.WrightRealEstate.us Page 6 (916) 726-8308 Wright Report THE EXPERTS WEIGH IN: Sacramento Appraiser: Ryan Lundquist The two chapters of real estate for 2013 There was one real estate market in 2013, but it was split into two chapters. The first chapter took place from January to June and it was marked by rapid appreciation, incredibly low housing inventory, very low interest rates and high levels of investor cash. Between May and June though, the market began to shift, which then became more noticeable in stats in July. This leads us to chapter two, which took place between July and December 2013, and was marked by flat values, increasing interest rates, a doubling of housing inventory and cash investors exiting the market. It was as if the market was on fire for half the year, but then the momentum shifted in early summer to really slow things down for the rest of the year. One of the byproducts of an increase in inventory and flight of cash investors has been FHA and conventional buyers gaining a better share of the market. In fact, there are now more FHA sales than cash sales in Sacramento County, which hasn’t happened in almost two years. The market is ultimately normalizing as inventory increases, which is

July - December, 2013 www.WrightRealEstate.us Page 7 (916) 726-8308 Wright Report leading to buyers generally having more power to negotiate. It is still a Seller’s market, but buyers are gaining ground. Foreclosures have basically hit the bottom and short sales have persisted to decline too. There has been a 1% increase in foreclosures over the past quarter. Now a new chapter has begun for 2014 and the market is poised to be much more driven by the fundamentals. It is going to be an interesting ride this coming year to see how the market unfolds. Ryan Lundquist is a Certified Real Estate Appraiser in the Greater Sacramento Area. He also specializes in reducing property taxes. Check out his great Blog at www.SacramentoAppraisalBlog.com or contact directly at (916) 595-3735.

July - December, 2013 www.WrightRealEstate.us Page 8 (916) 726-8308 Wright Report Rental Housing Association: Jim Lofgren After struggling for many years, rental housing investors finally are experiencing increases in both property values and rental income. However, these gains are offset by increases in utility rates, parcel taxes and regulatory fees. Tired of cutting programs to balance their budgets, local governing bodies think the modest improvement in the economy gives them the green light to pursue revenue enhancements. While many of the proposed or approved increases by themselves seem minor in terms of the actual percentage or dollar amount, the cumulative effect could be significant. Rental owners should anticipate increases in water and waste hauling rates, approval of new parcel taxes to fund library and fire services, and bumps in regulatory fees, such as fire inspection fees for multifamily properties. Fortunately, industry advocates, particularly the Rental Housing Association (RHA), managed to temper most increases. One bright spot was the changes to the Rental Housing Inspection Program in the City of Sacramento. At the request of RHA, the City Council amended its mandatory rental inspection program to include a self-certification option. This change allows rental owners, whose properties passed the initial inspection, to perform the annual inspection rather than code enforcement officials. The cost saving change reduced the need for additional city staff and allowed the City Council to reduce the annual inspection program fee by 46 percent, from $28 per unit to $16. On the regulatory front, the forecast of persistent and serious drought conditions will lead to stricter water conservation measures throughout the region. The voluntary call for citizens to reduce water consumption by 20 to 25 percent reductions helped, but residential properties, especially apartment communities, can be water gluttons and, therefore, will be targets for further conservation measures. Smoking restrictions continue to be a pesky topic for city and county governments as their elected officials grapple with both shifts in public opinion and changes in voter- approved laws within and outside of California. Beyond just restrictions on tobacco smoke, elected officials now must deal with the cultivation and use of marijuana as well

July - December, 2013 www.WrightRealEstate.us Page 9 (916) 726-8308 Wright Report as the emerging popularity of e-cigarettes. The outcome seems to be trending towards slightly inconsistent regulations for the various cities and counties in the region. Mandatory disclosure of no smoking policies, rather than banning of any tobacco smoking at apartment communities, may be where things are heading. Some other issues facing rental owners are the best means of eradicating bed bugs (new HUD guidelines offer some guidance), illegal dumping associated with renters moving out of apartment communities (new state law will establish used mattress recycling service), and income verification fraud during rental application process (renters using internet websites to create bogus paystubs). Jim Lofgren is the Executive Director of the Rental Housing Association of Sacramento Valley, a non-profit trade association representing owners and managers of over 80,000 rental units. For more information, call (916) 920-1120, visit www.RHA.org or email jim@RHA.org. Real Estate Attorney: Steve Beede LEGAL UPDATE - There has been a lot of change and clarification in the real estate market over the past several months. Here are some of the highlights as we move forward in 2014: 1. DEBT FORGIVENESS TAX RELIEF - The biggest question on the minds of upside-down property owners is whether there is still relief from the Debt Forgiveness Tax. Technically, there is no relief because the Federal Debt Forgiveness Act expired on December 31, 2013 and California didn’t even enact their Relief Act for 2013. However, last Fall, the IRS responding to a letter from Senator Barbara Boxer stated that there would be no debt forgiveness tax on short sales conducted under California Code of Civil Procedures Section 580e (this is the actual law created by the passage of SB458 in July 2011 and applies only to 1-4 unit residential properties). California quickly adopted the Fed’s position. So, that’s where it stands today.

July - December, 2013 www.WrightRealEstate.us Page 10 (916) 726-8308 Wright Report 2. COURTS WON’T FORCE THE LENDERS - Years of litigation by upside down owners complaining of lender misconduct and other errors have achieved nothing beyond costing those owners litigation costs. Courts have uniformly agreed that: (1) an oral agreement is not a loan mod; and (2) Foreclosures are generally final. So far, the Homeowners Bill of Rights has had little effect although lender fears of the attorney fee provision has led to some settlements. However, the real effect of these rulings may now be showing up in increased foreclosure starts since the first of the year. 3. SHORT SALES AND AUCTION.COM - Many Realtors have been complaining of Nationstar and Auction.com interfering with their Contracts by demanding that short sales be run through Auction.com. CA Bureau of Real Estate (“BRE”) has now determined that this process is legal for the purpose of validating the Buyer’s offer. If the auction bid is higher, the Contract Buyer can match the bid and get the Property; if lower, then the Contract Buyer’s purchase price is affirmed. 4. MARKET STABILIZING - We remain progressing through a slow stabilization of the real estate market. The low inventory and high demand of last year has now given way to higher inventory, higher prices, and less demand. In Sacramento, For Sale Listings are up 96% from last year but the Sold ratio is down 24%! New lending rules are making loans harder to get and the higher prices are pushing out investors and flippers. 5. GROWING CONCERN - Realtors are being cautioned to be sure that they are following procedures properly in doing short sales. BRE has been investigating Dual Agency and tanking Licenses if they find “Sham Agents” or other improprieties. Similarly, Lenders are stepping up their investigations of Mortgage Fraud and violations of Arms Length Disclosures. Brokers are being targeted. Steve Beede For over 20 years, the attorneys of BPE Law Group have been advising and representing property owners and real estate licensees in dealing with their legal concerns and maximizing their opportunities. If you would like a consultation with us, please call our office at (916) 966-2260.

July - December, 2013 www.WrightRealEstate.us Page 11 (916) 726-8308 Wright Report MARKET UPDATE: The median price across the United States declined slightly to close out 2013 at $197,000. In December, 2013 the CA median sold price hit $438,040, up 2.2% from June, 2013. That median price is up 55% of the way to where it was at the peak in 2006 ($594,530), which is a 79% from the 2009 bottom of $245,230. Affordability, the percent of people who can afford to purchase the median priced home with 20% down payment, is down 16 points to 32% in California for Q4-13 over last year Q4-12. Sacramento’s affordability is down 20 points from 71% in Q4-12 to 51% in Q4-13. In Sacramento County the median price rose 1.7% from June to December to end the year at $250,000. That is an increase of 28.2% from the $195,630 median price in December 2012. The average sold price for Sacramento County for December 2013 was $280,714 up 3% from June and up 25% from December 2012. COUNTY Average Sold Price % Change 12-Dec 13-Dec Sacramento $224,772 $280,714 25% Placer $338,571 $403,136 19% El Dorado $336,308 $381,985 14% Yolo $312,310 $334,559 7% Since the market turned downward in September 2005 the median price for single family homes (SFR) declined 59%, with the lowest point reaching $160,000 in January 2012. Since that point the market has risen 56% through December 2013.

July - December, 2013 www.WrightRealEstate.us Page 12 (916) 726-8308 Wright Report During December 2013 18.6% of sales were distressed sales (short sales or REO); down from 52% from December 2012. Short sales made up 11.4% of sold properties in December, and REOs (foreclosed bank owned sales) made up 7.2% of sales. The inventory of homes available for sale increase substantially during 2013. The year started January 1, 2013 with 989 units available for sale and on January 1, 2014 it was 2,055. December 2013 had approximately 1.95 months of unsold inventory for Sacramento County. COUNTY Inventory for Sale % Change Jan-13 Jan-14 Sacramento 989 2,055 108% Placer 472 709 50% El Dorado 428 513 20% Yolo 132 193 46% The difference between original listing price and sold price also varied dramatically in some cases. In December 2013 the average home sold

July - December, 2013 www.WrightRealEstate.us Page 13 (916) 726-8308 Wright Report for 1.6% below the original asking price. The biggest shift, however, was Short Sales which sold for an average of 11% over list price. Foreclosures, however, sold for an average of 9.8% below original list price. This underselling indicates that banks were overpricing their REO listings, and then had to reduce them to get them in order to sell. Inventory continues to remain low, especially distressed inventory which has declined through the year. Sales of homes across the nation reached just over 5 million units in 2013: up from 4.51 million in 2012. As sales prices have increased the amount of investor activity has declined. Cash sales declined dramatically representing 19.5% of sales in December 2013. Though still comparatively high for properties priced under $200,000 it is down from 39.6% in December 2012.

July - December, 2013 www.WrightRealEstate.us Page 14 (916) 726-8308 Wright Report SFR (Single Family Residence) New Home sales reached 428,000 units in 2013, not close to where it has been historically but much better than sales since 2009. The median New Home sales price for 2013 was $265,800; up 8.4% from 2012. The average sold price was up 10% from the prior year to $320,900.

July - December, 2013 www.WrightRealEstate.us Page 15 (916) 726-8308 Wright Report New construction numbers while improving are nowhere close to normal market numbers for the number of sales when compared to the last 50+ years. One interesting trend is the speed at which different counties are recovering their prices across California. While Sacramento County has returned in price 38% of the way back to its previous high in 2005, other counties vary dramatically. Overall CA median price has come up 55% of the way to the previous high. Some Counties have returned almost completely, like San Francisco at 87% and San Mateo County at 96%. Others have hardly moved off the low point like Shasta at 25% and Merced at 25.5%. Clearly the recovery across the state has not been evenly distributed. As markets in the bay area, specifically San Francisco and San Jose, drive upward, the investors and home buyers from that area will spill over into areas with lower prices and greater opportunity, like Sacramento, just as they did during the last price run up.

July - December, 2013 www.WrightRealEstate.us Page 16 (916) 726-8308 Wright Report THE ECONOMY: As housing led the U.S. economy into this recession, so it was expected to lead the it out again. That is not what seems to have happened. Housing has made a pretty good recovery with regard to prices and numbers of sales, but such a recovery has not been shared by the national economy. GDP growth for the U.S. economy in 2013 was 1.9% which is still unexpectedly low for the amount the residential markets have risen. At the time median home prices across the nation rose 11.5% to $197,100. In CA values rose 19.4% and Sacramento County saw a rise of 28.2%. Unemployment rates continue to haunt various sectors of the economy, and while we see positive monthly employment numbers there are some complaints that this job growth is at the lowest paying sectors of the economy. Unemployment in December nationally was 6.5% (not seasonally adjusted). In Sacramento it was 7.9; a bit better than in CA (8.3%). This also does not accurately reflect underemployment which is in double digits. Also, while unemployment has come down, the labor force participation rate (the

July - December, 2013 www.WrightRealEstate.us Page 17 (916) 726-8308 Wright Report percent of the population that is employed) has also come down to a 35 year low, ending the year at 62.8%. Languishing employment undoubtedly takes its toll on home sales. One political occurrence that had a direct impact on the residential markets last year was the shutdown of the national government from October 1st to 16th . Not only did it shake Main Street’s faith in a functioning government, but we saw the largest decline in the number of local sales (17%) and drop in median sales price (3.35%) for a November since the start of the recession in 2008. BANKING & LENDING: Some of the big shifts in the lending world are the introduction of QM (Qualified Mortgages). These increased standards raise the requirements of many loans with the intentions of ensuring the quality of loans being created, which hopefully results in fewer defaulted loans and foreclosures. It will certainly be more difficult for lenders to qualify some borrowers and shrink the pool of qualified borrowers trying to buy today. Interest Rates after the June FED meeting rose when FED President Bernanke mentioned, almost in passing, that the purchase of bonds by the Federal Reserve would need to be decreased. The shock to the market was immediate and dramatic with interest rates spiking 1 point within days. Ironically, the FED did actually lower their purchases of bonds in December 2013 from 85 Billion to 75 Billion and there was almost no reaction in the markets as far as interest rates are concerned. As the year ended so did Bernanke’s term. Janet Yellen his replacement as president seems to be in lock step with previous FED policy decisions and the carrying forward the monthly government bond purchases.

July - December, 2013 www.WrightRealEstate.us Page 18 (916) 726-8308 Wright Report While the 30 year mortgage interest rate remains well below 5%, 4.46% in December, it is still at historically low rates. In fact, the average mortgage interest rate over the last 32 years is just a bit over 8.5%. Congress still continues to ponder how to remove Fannie & Freddie and return private capital to the secondary loan markets; but it is unlikely to happen until interest rates rise and investors become convinced that they can make money holding mortgages. One interesting entrant into the residential lending arena is Blackstone Group (NYSE:BX) which purchased some 40,000 SFR (Single Family Residences) over the last couple of years. First, they created a bond using over 3,000 of the residential properties they own and manage. The bond was separated into different tiers each paying successively higher returns based on the amount of risk they are willing to share with Blackstone. Next they created B2R Finance (Buy to Rent Finance - http://www.b2rfinance.com/) a lending group that loans to existing owners and new owners of residential investment properties. These groups (or pods as they call them) are assembled with the intent of creating additional bonds.

July - December, 2013 www.WrightRealEstate.us Page 19 (916) 726-8308 Wright Report The strategy is a stroke of managerial genius as forward thinking Blackstone makes money several different ways. First, they receive origination fees as they create the loans, next they get paid to service the loans, thirdly they make the interest rate on the capital they used to fund the loans, and lastly they do it one better by bundling the properties, selling bonds, and using the money from the bonds to free their capital so they can provide more loans. The bond concept has 2 distinct benefits over conventional capital: first bond money can be very inexpensive – under 2%, and second bond purchasers are also willing to share the risk of reduced rental collections with Blackstone. All of these provide a very high ROI for Blackstone Group and its investors. Another interesting development is the progress of law suits filed by FHFA (Federal Housing Finance Agency) against 18 lenders for their fraudulent lending practices between 2005 and 2007. These practices resulted in huge losses for Fannie Mae and Freddie Mac for whom FHFA is responsible. By the end of 2013 six of the eighteen lenders had settled with FHFA. The three largest of the settlements was Chase for 4 Billion, Deutsche Bank for 1.925 Billion, and UBS Americas for 885 Million. Wells Fargo, Citigroup and Ally Financial were the other three lenders that settled for together just over 1.06 Billion. It will be interesting to see how the other 12 suits unfold. DISTRESSED PROPERTIES: In February of 2012 the attorney generals of 49 states sued and won a 25 Billion dollar settlement against the five largest loan servicers in the U.S. From that time residential lenders began wondering why they foreclose on properties and play foreclosure roulette with borrowers and states alike if there are other options available to them. It appears they decided it is easier to modify mortgages, complete short

July - December, 2013 www.WrightRealEstate.us Page 20 (916) 726-8308 Wright Report sales, or sell them in blocks to investors rather than to foreclose and sell to consumers. This liquidation of distressed properties through alternative avenues drastically reduced inventory of foreclosures on the open market which drove up prices, and kick started the real estate sector of our national economy. In Sacramento county inventories of REOs (bank foreclosed properties) were reduced dramatically as banks no longer desired to acquire and hold properties. Instead of doing short sales banks began to perform loan modifications with borrowers in distress which cut the number of short sales available for sale. Here are the numbers. Sacramento County Inventory for Sale % of Total Inventory Short Sales REO January 1, 2011 1,987 1,416 66% January 1, 2012 1,157 669 59% January 1, 2013 137 155 29% January 1, 2014 183 155 16% This strategy of reducing inventory to raise prices had been used in 2009 but did not work mostly because many buyers in 2009 were still working to get themselves out of owning and did not want to keep the loans they had with the bank. By 2012 buyers that were in trouble were survivors and wanted to keep their homes. They made their payments through the heart of the recession and, though in financial difficulty, they were far more committed to their homes than owners 3 years earlier. These owners, as survivors, were happy to find lending institutions willing to work with their difficult circumstances. New Foreclosure Filings: California NOD (Notice of Default) filings fell 44% and NOT (Notice of Trustee Sale) filings fell 59% from December 2012 to December 2013. The number of properties that

July - December, 2013 www.WrightRealEstate.us Page 21 (916) 726-8308 Wright Report went back to the bank fell 48% during the same period to 1,875 from 3,578 in December 2012. In Sacramento the number of filings of NODs fell 51% and NOT filings fell 58% from December 2012 to December 2013. The number of properties that went back to the bank fell 37% from December 2012. The number of days to foreclosure in Sacramento County increased 16% to 292 days and the number of days it took for the banks to sell to a 3rd party increased to 163 days on average. Existing Inventory: Pre-foreclosure inventory (NOD - Notice of Default) in California was down 33% to 38,563 (Dec. 2013) from 57,653 (Dec. 2012). NOT (Notice of Trustee Sale) inventory is down 68% for the same period to 19,332 units, and the number of bank owned inventory (REOs) is down 30% to 41,842 in December from 59,461 units in December 2012. Sacramento County Pre-foreclosure inventory went down 36% from 3,062 in Dec. 2012 to 1,956 in Dec. 2013. NOT inventory went down 72% for the same period to 755 units, and the number of bank owned inventory (REOs) is down 27% to 1,980 units from 2,722 units in December 2012.

July - December, 2013 www.WrightRealEstate.us Page 22 (916) 726-8308 Wright Report COUNTY STATISTICS: Sacramento County 2013 ended with 2055 listings on January 1, 2014, up 108% from the 989 listings 1 year earlier - January 1, 2013. REO (Real Estate Owned- foreclosed properties) inventory stayed the same year to year at 155 listings and Active Short Sale listings were up 33% over the same period. Conventional sales inventory was up 146%. Pending: Pending sales are down 47% from January 1, 2013 to January 1, 2014: from 3,345 to 1,769 homes. Pending foreclosures are down 63% and pending short sales are down 72% for the same period. Pending conventional sales are down .3% to 1,016 homes. Sold: Sales numbers for SFR (Single Family Residence) for December 2013 were 1,284 units sold in Sacramento County. Foreclosures accounted for 6% of properties on the market in June, and 7% of sales. Short sales accounted for 9% of all Active inventory, and 11%

July - December, 2013 www.WrightRealEstate.us Page 23 (916) 726-8308 Wright Report of sales. Conventional sales accounted for the rest (85%) of Active inventory and 82% of sales. AVERAGE SOLD PRICE by SELLER TYPE # Sold December 2013 # Sold December 2012 Yr/Yr % Change Average Sold Price Dec. 13 Average Sold Price Dec. 12 Yr/Yr % Change Total Sold 1284 1549 -17.1% $280,714 $224,772 24.9% REO 92 160 -42.5% $221,998 $182,022 22.0% Conventional 1046 745 40.4% $291,956 $260,775 12.0% Short Sale 146 644 -77.3% $237,175 $193,744 22.4% Placer County 2013 ended with 709 listings on January 1, 2014; up 50% from the 472 listings 1 year earlier in January 1, 2013. REO (Real Estate Owned- foreclosed properties) inventory was down 17% and Active Short Sale listings were up 44% over the same period. Conventional sales inventory are up 57%.

July - December, 2013 www.WrightRealEstate.us Page 24 (916) 726-8308 Wright Report Pending: Pending sales are down 45% from January 1, 2013 to January 1, 2014: from 848 to 465 homes. Pending foreclosures are down 62% and pending short sales are down 60% for the same period. Pending conventional sales are down 5% to 286 pending homes. Sold: Sales numbers for SFR (Single Family Residence) for December 2013 were 386 units sold. Foreclosures accounted for 4% of properties on the market the end of Q4-13, and 4% of sales in December 2013. Short sales accounted for 7% of all Active inventory, and 8% of sales. Conventional sales accounted for the rest (90%) of Active inventory and 89% of sales in June. That is up from 53% of sales in December of 2012. AVERAGE SOLD PRICE by SELLER TYPE # Sold December 2013 # Sold December 2012 Yr/Yr % Change Average Sold Price Dec. 13 Average Sold Price Dec. 12 Yr/Yr % Change Total Sold 386 459 -15.9% $403,136 $338,571 19.1% REO 14 57 -75.4% $299,494 $241,008 24.3% Conventional 342 245 39.6% $407,912 $389,187 4.8% Short Sale 30 157 -80.9% $397,059 $295,004 34.6% El Dorado County 2013 ended with 513 listings on January 1, 2014; up 20% from the 428 listings 1 year earlier (January 1, 2013.) REO (Real Estate Owned- foreclosed properties) inventory is down 30% and Active Short Sale listings are up 9% over the same period. Conventional sales inventory is up 28%. Pending: Pending sales are down 26% from January 1, 2013 to January 1, 2014: from 340 to 252 homes. Pending foreclosure sales are down 58% and pending short sales are down 48% for the same period. Pending conventional sales are up 19% to 161 homes.

July - December, 2013 www.WrightRealEstate.us Page 25 (916) 726-8308 Wright Report Sold: Sales numbers for SFR (Single Family Residence) for December 2013 were 201 units sold. Foreclosures accounted for 4% of properties on the market the end of Q4-13, and 6% of sales in December 2013. Short sales accounted for 6% of all Active inventory, and 12% of sales. Conventional sales accounted for the rest (90%) of Active inventory and 82% of sales. That is up from 61.3% of sales in December of 2012. AVERAGE SOLD PRICE by SELLER TYPE # Sold December 2013 # Sold December 2012 Yr/Yr % Change Average Sold Price Dec. 13 Average Sold Price Dec. 12 Yr/Yr % Change Total Sold 201 186 8.1% $381,985 $336,308 13.6% REO 13 25 -48.0% $325,188 $229,199 41.9% Conventional 164 114 43.9% $384,687 $366,419 5.0% Short Sale 24 47 -48.9% $394,285 $320,244 23.1% Yolo County 2013 ended with 193 listings on January 1, 2014; up 46% from the 132 listings 1 year earlier (January 1, 2013.) REO (Real Estate Owned- foreclosed properties) inventory is up 17% and Active Short Sale listings are down 15% over the same period. Conventional sales inventory is up 62%. Pending: Pending sales are down 40% from January 1, 2013 to January 1, 2014: from 258 to 156 homes. Pending foreclosures are down 58% and pending short sales are down 82% for the same period. Pending conventional sales are up 13% to 103 pending homes.

July - December, 2013 www.WrightRealEstate.us Page 26 (916) 726-8308 Wright Report Sold: Sales numbers for SFR (Single Family Residence) for December 2013 were 118 units sold. Foreclosures accounted for 6% of properties on the market the end of Q4-13, and 7% of sales in December 2013. Short sales accounted for 10% of all Active inventory, and 81% of sales. Conventional sales accounted for the rest (83%) of Active inventory and 12% of sales. That is up from 56% of sales in December of 2012. AVERAGE SOLD PRICE by SELLER TYPE # Sold December 2013 # Sold December 2012 Yr/Yr % Change Average Sold Price Dec. 13 Average Sold Price Dec. 12 Yr/Yr % Change Total Sold 118 118 0.0% $334,559 $312,310 7.1% REO 8 13 -38.5% $234,404 $255,931 -8.4% Conventional 14 66 -78.8% $277,250 $343,451 -19.3% Short Sale 96 39 146.2% $351,262 $278,403 26.2%

July - December, 2013 www.WrightRealEstate.us Page 27 (916) 726-8308 Wright Report San Joaquin County 2013 ended with 838 listings on January 1, 2014; up 32% from the 636 listings 1 year earlier (January 1, 2013.) REO (Real Estate Owned- foreclosed properties) inventory is down 25% and Active Short Sale listings are down 40% over the same period. Conventional sales inventory is up 66%. Pending: Pending sales are down 45% from January 1, 2013 to January 1, 2014: from 1,597 to 882 homes. Pending foreclosures are down 67%. Pending short sales are down 69%, and pending conventional sales are up 12% to 491 homes. Sold: Sales numbers for SFR (Single Family Residence) for December 2013 were 560 units sold. Foreclosures accounted for 7% of properties on the market the end of Q4-13, and 6% of sales in June

July - December, 2013 www.WrightRealEstate.us Page 28 (916) 726-8308 Wright Report 2013. Short sales accounted for 8% of all Active inventory, and 16% of sales. Conventional sales accounted for the rest (85%) of Active inventory and 77% of sales. That is up from 46.8% of sales in December of 2012. AVERAGE SOLD PRICE by SELLER TYPE # Sold December 2013 # Sold December 2012 Yr/Yr % Change Average Sold Price Dec. 13 Average Sold Price Dec. 12 Yr/Yr % Change Total Sold 560 725 -22.8% $262,437 $204,235 28.5% REO 36 135 -73.3% $180,880 $161,250 12.2% Conventional 434 339 28.0% $276,920 $224,778 23.2% Short Sale 90 251 -64.1% $225,219 $199,610 12.8%

July - December, 2013 www.WrightRealEstate.us Page 29 (916) 726-8308 Wright Report HISTORICAL PRICE GRAPHS:

July - December, 2013 www.WrightRealEstate.us Page 30 (916) 726-8308 Wright Report PLACER COUNTY:

July - December, 2013 www.WrightRealEstate.us Page 31 (916) 726-8308 Wright Report 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Placer Zip Code Comparison: Granite Bay, & Loomis Placer Market Median Loomis Granite Bay

July - December, 2013 www.WrightRealEstate.us Page 32 (916) 726-8308 Wright Report

July - December, 2013 www.WrightRealEstate.us Page 33 (916) 726-8308 Wright Report SACRAMENTO COUNTY:

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July - December, 2013 www.WrightRealEstate.us Page 41 (916) 726-8308 Wright Report RESOURCES: ABREVIATIONS CAR = California Association of Realtors HAFA = Home Affordable Foreclosure Alternative HAMP = Home Affordable Mortgage Program MLS = Multiple Listing Service NAR = National Association of Realtors NOD = Notice of Default NOT = Notice of Trustee Sale REO = Real Estate Owned by a bank, or foreclosure SAR = Sacramento Association of Realtors WRE = Wright Real Estate ADDITIONAL RESOURCES MetrolistMLS.com- to search for properties. www.metrolistmls.com NorthState Building Industry Association (BIA) www.northstatebia.org Rental Housing Association (RHA) www.rha.org Sacramento Association of Realtors (SAR) www.sacrealtor.org

July - December, 2013 www.WrightRealEstate.us Page 42 (916) 726-8308 Wright Report Serving Sacramento since 2000. Check out our BLOG and additional STATISTICS on the web at: www.WrightRealEstate.US For FREE Information and Consulting Services contact us: Office: 916.726.8308 Joel@WrightRealEstate.US

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