Brokers cite tax credit and rising consumer confidence

with stabilizing housing activity around Washington state

KIRKLAND, Wash. (May 5, 2010) – “While the tax credit has gone away, the buyers haven’t,” observed
OB Jacobi, a board member of the Northwest Multiple Listing Service. Commenting on the MLS
summary report for March, Jacobi described the tax incentives, which expired April 30, with being the
“lubricant the market needed,” but credits rising consumer confidence with “driving the engine now.”

Northwest MLS member brokers reported 9,438 pending sales during April, and increase of more than 36
percent from the same month a year ago. Of these mutually accepted offers, 7,368 of them were in the
four county Puget Sound region – the highest volume in this area since August 2006.

Two counties, Grant and Pacific, reported a twofold increase in the number of units sold last month
versus a year ago.

MLS figures show inventory is nearly equal to year-ago levels, closed sales jumped almost 51 percent,
and sales prices in many areas reflect little variation during the past six months.

Commenting on the latest report, two industry leaders referred to market stability. “The home buyer tax
credit did what it was designed to do; it helped with stabilizing the housing market which in turn helped
stimulate economic recovery,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.

“It’s exciting to see the stability of the real estate market continue to improve,” said NWMLS director
Bobbie Chipman, co-managing broker for Coldwell Banker Bain-Tacoma/Puyallup. “The tax credit
seems to have accomplished its purpose,” she added, noting, “It motivated home buyers to enter the
market place, creating a synergy that should propel us through the summer months.”

Brokers were also upbeat when commenting on inventory and the pace of sales. NWMLS members
added 12,664 new listings of single family homes and condominiums during April, up from 10,824 for
the same period a year ago. At month’s end, with these additions, there were 39,999 active listings in the
MLS database, about the same number as a year ago when inventory totaled 40,147 listings.

With pending sales outperforming a year ago (9,438 for last month compared to 6,918 for April 2009), the
months’ supply (an industry indicator of sales velocity) is shrinking. System-wide, there’s about a 4.24
month supply, meaning at the current sales rate, if no other homes were put on the market it would take
just over four months to exhaust the supply. For the four-county Puget Sound market, there is a supply of
about 3.5 months.
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page two – NWMLS News Release: April 2010 activity May 5, 2010

Chipman said the current ratio of listings to pending sales speaks favorably to market growth. “Whereas
listings were static compared to April ’09, the number of pending sales increased more than 36 percent.”
That dynamic should keep buyers motivated, she stated.

Scott said the positive effects of the tax credit were first felt in the more affordable price ranges,
accounting for about half of all housing sales. “We then saw increased sales activity move up the price
points. This activity combined with the $6,500 tax credit motivated many repeat buyers to jump off the
fence and make a move to their next new home. As a result, the mid price ranges saw an uptick in sales,
followed by some additional sales in the upper end,” Scott reported.

NWMLS figures show big gains in the number of high-end sales. Last month, members reported 93
closed sales of homes priced at $1 million or more, improving on the year-ago total of 52 such sales.
Through the first four months of 2010, the number of closed sales that fetched $1 million or more
increased 65 percent from a year ago (304 versus 184 transactions).

Closed sales area-wide jumped nearly 51 percent from a year ago. Members notched 5,243 closings
during April, up from the year-ago total of 3,478. Condo sales jumped nearly 74 percent last month for
all counties combined. In King County, the number of condo sales nearly doubled, rising from 238
transactions to 454 closed sales.

Prices continue to show modest dips from a year ago, with the overall median price, at $261,000, down
3.3 percent from twelve months ago. Compared to January, half the counties in the MLS service area are
showing increases in median prices.

In King County, the median price for last month’s sales (including single family homes and condos
combined) was $340,000. That’s down $10,000 (2.86 percent) from a year ago. For single family homes,
the median price on last month’s closed sales was $375,000, only $5,000 (1.32 percent) less than a year
ago. The median selling price increased in MLS map areas encompassing Seattle, North King County and
the Eastside.

Jacobi, the president of Windermere Real Estate Co., said the tax credit had only a moderate impact on
activity during April. “We saw lots of activity among first-time buyers who knew they were not going to
make the deadline for the (tax) credit, as well as an upswing in higher-end sales that did not qualify for
the credits.” What that means, he says, is buyers are ready to purchase at the right price. “I can’t
overemphasize the importance of pricing a home correctly,” he stated.

There are two types of homes on today’s market, according to Jacobi: Well priced homes in good
condition that are selling within 30 days, and over-priced homes that will be sitting on the market a long
time. He cited the example of a 2-bedroom home in Laurelhurst with a view of the lake that sold last
month in two days for the asking price. “It was not an entry-level home, but it was in immaculate
condition and at $717,000, was very well-priced for the neighborhood.”

Chipman echoed Jacobi’s advice. “As long as sellers remain realistic about the market value of their
homes and the expectations of buyers, the strength of the market will grow.” She also reported an uptick
in new construction activity as some builders have resumed buying land at reasonable prices. “If buyers
want to have a variety of houses from which to choose, this is a good time for them to look,” Chipman
suggested, adding, “The combination of current availability and incredibly low interest rates offers home
buyers a tremendous opportunity.”

Scott agreed, saying, “Moving forward, local home buyers will continue to experience a purchase power
advantage thanks to historically low interest rates and lower adjusted home prices.”

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page three – NWMLS News Release: April 2010 activity May 5, 2010

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the
Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in
Kirkland, currently serves 21 counties in Western and Central Washington.
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Statistical Summary by Counties: Market Activity Summary- April 2010

Single Fam. PENDING

Homes + LISTINGS SALES CLOSED SALES
Condos New Total # Pending # Closings Avg. Price Median
Listings Active Sales Price
King 5054 12986 3855 2096 $408,715 $340,000
Snohomish 1886 5357 1529 869 $297,564 $273,000
Pierce 1876 5906 1549 784 $237,767 $215,000
Kitsap 554 1924 435 263 $278,915 $228,500
Mason 193 783 80 49 $216,383 $187,000
Skagit 284 1254 177 117 $251,755 $220,000
Grays Harbor 175 923 114 81 $139,511 $128,900
Lewis 148 763 88 53 $155,353 $155,000
Cowlitz 170 657 128 62 $188,356 $180,000
Grant 149 662 140 68 $170,878 $156,700
Thurston 609 1886 456 259 $242,161 $226,850
San Juan 66 463 11 13 $476,331 $380,000
Island 245 1107 131 98 $292,660 $254,206
Kittitas 112 528 64 37 $315,321 $242,000
Jefferson 121 624 35 33 $341,682 $299,000
Okanogan 94 422 31 15 $218,560 $157,500
Whatcom 532 2036 372 203 $263,806 $240,000
Clark 70 283 60 47 $229,265 $202,000
Pacific 70 412 43 23 $164,822 $127,000
Ferry 9 44 5 0 0 0
Clallam 48 195 32 15 $194,410 $183,000
Others 199 784 103 58 $211,034 $195,450
MLS TOTAL 12,664 39,999 9,438 5,243 $317,565 $261,000

4-county Puget Sound Region Pending Sales (SFH + Condo combined)

(totals include King, Snohomish, Pierce & Kitsap counties)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2000 3706 4778 5903 5116 5490 5079 4928 5432 4569 4675 4126 3166
2001 4334 5056 5722 5399 5631 5568 5434 5544 4040 4387 4155 3430
2002 4293 4735 5569 5436 6131 5212 5525 6215 5394 5777 4966 4153
2003 4746 5290 6889 6837 7148 7202 7673 7135 6698 6552 4904 4454
2004 4521 6284 8073 7910 7888 8186 7583 7464 6984 6761 6228 5195
2005 5426 6833 8801 8420 8610 8896 8207 8784 7561 7157 6188 4837
2006 5275 6032 8174 7651 8411 8094 7121 7692 6216 6403 5292 4346
2007 4869 6239 7192 6974 7311 6876 6371 5580 4153 4447 3896 2975
2008 3291 4167 4520 4624 4526 4765 4580 4584 4445 3346 2841 2432
2009 3250 3407 4262 5372 5498 5963 5551 5764 5825 5702 3829 3440
2010 4381 5211 6821 7368