GREATER METROPOLITAN DENVER MARKET UPDATE OCTOBER, 2012

Market Metrics: Looking at the October numbers, the inventory of available homes for sale is 10,470 homes at month end, 4,457 homes were placed under contract, and 3,949 homes closed for a closed dollar volume of $1.1 Billion. The outlook for the remainder of the year looks good as we continue through the fall season. Traditionally, this means fewer transactions each month. Monthly Market Recap: Single Family: Active Inventory is 8,700 homes at month end Sold homes is 3,147 Average Days on Market is 64 Median Sold Price is $255,000 Average Sold Price is $306,633 Condos: Active Inventory is 1,770 homes Sold homes is 802 Average Days on Market is 64 Median Sold Price is $147,500 Average Sold Price is $186,843

September Year-to-Date Market Recap (2012 versus 2011): Single Family: Active Inventory 8,700 versus 12,613 (31%) Sold Units 28,218 versus 23,956 (18%) Median Price $250,000 vs $229,970 (9%) Average Price $302,809 vs $281,782 (7%) Sales Volume $8.5B versus $6.7B (27%) Days on Market 79 versus 106 (25%)

Condos: Active Inventory 1,770 versus 2,920 (39%) Sold Units 6,894 versus 6,024 (14%) Median Price $140,000 vs $124,900 (12%) Average Price $176,961 vs $158,761(11%) Sales Volume $1.2B versus $956M (28%) Days on Market 81 versus 120 (33%) September Market Facts: We are seeing days on market down because 52% of the listings went under contract in 30 days or less due to the low inventory levels that we have been seeing this year. The most frequently used forms of financing are Conventional, FHA, and CASH. CASH is the number two form of financing for Condos. Rents continue to rise, rental unit availability is low, and home affordability remains high. Absorption ratio is 2.8 months for Single Family and 2.4 months for Condos.

Advice to Sellers: The fall buying season is not as robust as the spring season with different buyer motivations. There is a higher ratio of first time homebuyers and childless couples, a motivation to be in the new home by the start of the holidays, and a motivation to be in the new home by the end of the year to utilize tax benefits this year. First timers are changing the face of the market again. More first time home shoppers say the want a home they can grow into not a home they can quickly grow out of. With high home affordability and low interest rates, this is now possible. According to recently released information, the top three categories of fall season buyers are first timers, move up, and right sizing buyers. Additionally, it has been reported that buyers now expect to stay in homes now 15 years compared to 10 years. Traditionally, the number of available homes decreases during the fall buying season. As a seller, take an objective look at your home. From the curb, at the front door, inside the home, at the back door, looking out into the back yard, looking out into the front yard; what is memorable about your home and what home buyer will your home attract? Advice to Buyers: The fall home buying season is here and what does that mean to the home buyer? In summary, the number of available homes will decrease as we move to the end of the year, lifestyle

motivation will be the driving force of the market, rental availability will be minimal, home affordability will remain high, mortgage interest rates are expected to stay low, the time a home is available, days on market, will remain in the 60 plus day range, loan pre-approval is a must, and Be Prepared should be the home buyers motto. How does a Buyer prepare for home ownership as the home is the emotional center of our lives, and it remains a critical component of ones self. Make that call.