Snapshot of the Real Estate Market - Gilroy CA - January 2009

•1. How many properties do you have for sale in your MLS? As of today we our current inventory is 642 single family homes.

•2. How does that figure compare with last year's and the year before? In the same period last year we had 724 single family homes in inventory.

•3. What is the sales activity per month on single family homes, condos, multi-family, land and commercial? 64 Single family homes closed, 6 common interest development sales, 1 Multi-family, 1 Residential lots & land, 0 commercial lots & land.

•4. What is the absorption rate for all of the above? The absorption rate for single family homes is about 10 months indicating that we are in a buyer's market. That is higher than the 6 month tipping point.

•5. How does that compare with last year and the year before? In January 2008: 21 Single family homes closed, 2 common interest development, 3 Multi-family, 0 Residential lots & land, 0 commercial lots & land. January 2007: 62 Single family homes closed, 5 common interest development sales, 0 Multi-family, 7 Residential lots & land. The absorption rate in January 08 for single family homes was 35 months and in the same period in 2007 was 7 months.

•6. How do January's sales figures compare with January of last year? How does that compare with November and December of last year? Single family homes: January 2008: 21, December 2008: 81, November 2008: 70: October 2008: 76, September 2008: 89.

•7. What is the best selling product in your market? Single Family homes. What is the worst selling product? Commercial lots and land.

•8. How much of your market is foreclosure related? Rough estimate is 55.6% (REO and Short Sale). How many foreclosures have occurred in your market in January and February? Foreclosure rate and short sale rate increased.

•9. What are your observations on local financing? We are in a high value market and financing seems to not be a problem.

•10. What are your observations on local appraisals? There are no problems appraising homes. Appraisals are coming in at market value. To be frank most homes have seen 1 or more price drops while on the market.

•11. What is the best advice you would give a Buyer in your market? It is a buyers' market. Inventory is down, sales are up and now is the time to purchase before prices start to increase due to the reduction of inventory.

•12. What is the best advice you would give a Seller in your market? Price your home in the bottom of the actives and at the top of the solds if you want to sell your home within a reasonable amount of time.