Home sales in Sandy Springs are -30.4% lower year-to-date in 2008 than in 2007 Sales through 2Q 2008 were -45.8% lower than in 2006, but were significantly higher in 2Q 2008 than in 1Q Q 2008 sales were -38.5% lower than in 1Q 2007 Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

Median sales prices remained lower through 2Q 2008 than in the same period of 2007 The median sales price through 2Q 2008 is -5.1% lower than through 2Q 2007 and is slightly lower than in 1Q 2008 The YTD median sales price in 2008 is still higher than that of 2006 Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

The percent of original list price at which homes sell indicates the amount of price concession a Seller has to give their Buyer during contract negotiations This % S/L ratio becomes lower when the overall market grows more difficult for Sellers, which degrades the net sales price to the Seller This ratio dropped to the lowest level of the last three years during 1Q 2008, recovering 2 percentage points in 2Q 2008, still well below historical levels Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

Median Days on Market (DOM) increased substantially in 1Q 2008 from 4Q 2007, but have dropped during 2Q 2008 YTD DOM for 2008 are running 50% higher than in 2007 Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

The overall market trend toward Sellers paying some, or all, of their Buyer’s closing costs was evident in Sandy Springs during this period Year-to-date 2008, closing costs are being paid by Sellers in 56% of sales transactions and appear to have stabilized in the range of 50%-60% of transactions Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

“Failed” listings are those which have either expired or withdrawn from marketing and are shown here as a percent of total finalized listings (expired, withdrawn and closed) A slight downward trend was in place since the peak in January, 2007, however nearly 70% of all 2Q 2008 listings ended up in this category, due to overpricing Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

When Sellers initially price their home too high for the existing market, a price reduction is usually necessary in order to attract a buyer The percentage of transactions which follow a list price reduction normally ranges 25%-35%, across the metro area Reductions spiked to 46% in 3Q 2007 and again in 1Q 2008, and have remained higher than usual in most periods after 2Q 2007 Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

When Sellers are required to reduce their list price, their eventual % S/L ratio usually drops by 5-6 percentage points below that of the Seller not required to take a price reduction In Sandy Springs during 2008, that difference was above that range At the median 2008 sales price, this would represent -$38,200 less than for a Seller not required to reduce their list price Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

Even after a price reduction, those sellers usually end up with a Sales price/New List price ratio lower than sellers not having to reduce their list price 1Q 2008 was an exception to that with price-reduced Sellers realizing a higher percentage of their reduced list price Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

A price reduced property also takes longer to sell than a non-price reduced property In 2Q 2008, it took 3.6 times longer to sell a price-reduced property than one without a price reduction The results are higher carrying costs, greater inconvenience due to keeping the house in showing condition and delay in finding and moving to a new home Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

We now see that in 2Q 2008, out of every 100 finalized listings, 70 failed to sell and 30 sold Of the 30 sold listings, 11 (%) had a price reduction before a Buyer was found Therefore, if 70 failed due to overpricing and another 11 required a price reduction in order to sell, 81 out of every 100 listings were overpriced in 2Q 2008, resulting either in no sale, or sale at a much-reduced price after a much-longer listing period Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

Homes being listed for sale compete for buyers with the other listings currently on the market, based upon price and condition When there are more listings on the market, prices must be in line with the current market and properties must be in top condition in order to sell quickly, at top dollar The number of months it would take to sell the June 2008 listings is 89% higher than in June of 2007, at 21.9 months Sandy Springs Home Sales Profile (FMLS Areas 131, 132)

Overall home sales in Area 131 were 18% lower in 2007 than in 2006 and 22% lower than At the same time, the median sales price remains near that of 2007 with an early indication of a possible increase later in the year. It became evident late in 2006 that the market was becoming a bit more difficult for Sellers in that DOM and % S/L numbers were less favorable. Also more transactions took place after Sellers were required to reduce their listing price. Sellers of initially overpriced listings paid a high penalty in both % S/L and DOM, compared to sellers correctly pricing at the current market. CONCLUSION: Market slowing took place after 3Q 2006 and continues at this time. Pressure is greater on Sellers to price listings at the CURRENT market and prepare homes to a ready-to-sell condition to counter the large and still growing supply of competing listings currently on the market. Sandy Springs Home Sales Profile (FMLS Areas 131, 132)