1. Jeff Davi Real Estate Commissioner DEPARTMENT OF REAL ESTATE UPDATE

2. DRE MISSION To protect the public in real estate transactions and provide related services to the real estate industry.

3. DRE AT A GLANCE 342 Authorized Positions Five Offices Statewide Special Fund Department $46.6 Million (Proposed) Annual Budget 6 Program Divisions Advanced Technology Base

4. eLICENSING PROCESS 53% of all license renewals 59% of all miscellaneous license transactions, and 79% of all examination scheduling requests, were conducted using eLicensing

5. LICENSEES AND EMPLOYEES

6. LICENSING ACCOMPLISHMENTS License processing down from 175 to 66 days

7. DEPARTMENT OF REAL ESTATE ENFORCEMENT OVERVIEW

8. Regulatory Cases (Cases Assigned) – FY 06/07

9. Real Estate Law Violations The following are approximate percentages based upon a statistical sampling: 2006/07 Fiscal Year

10. DEPARTMENT OF REAL ESTATE AUDITS OVERVIEW

11. AUDIT FINDINGS FY 2006/07

12. AUDIT VIOLATIONS FY 2006/07

13. DEPARTMENT OF REAL ESTATE SUBDIVISION OVERVIEW

14. Volume of Filings and Staff by Fiscal Year

15.  Website - good standing status  Publications  Seminars  Speaking engagements CALIFORNIA CONSUMER OUTREACH

16. http://www.dre.ca.gov/

19. Electronic License Exams Project Schedule  Exam Center construction plans being finalized.  Construction to be completed in Spring 2008  Phased deployment planned beginning in Sacramento after construction.

20. Project Target

21. HOUSING & REAL ESTATE MARKET

22. SOURCE: Construction Industry Research Board *2006 Projection from CBIA Household Growth: 220,000-250,000/yr New Housing Permits California 1988-2006

23. California vs U.S. Median Prices SOURCE: California Association of REALTORS®

24. HOUSING CYCLES Peaks and Valleys 1970-2006

25. Sales More Volatile Than Prices UNITS/MEDIAN PRICE $ Price Stickiness in Down Market …Most Owners Don’t Sell SOURCE: California Association of REALTORS®

26. Long-Term Perspective UNITS 2006 Sales Were 11th Highest On Record SOURCE: California Association of REALTORS® Long Run Average: 411,000

27. Variability Among Local Markets

29. Unsold Inventory Index California, April 2007: 10.0 Months SOURCE: California Association of REALTORS® MONTHS 2000 to Present

30. Unsold Inventory By Price Range California - Existing Homes April 2007 vs. April 2006 SOURCE: California Association of REALTORS®

31. 1990s vs. Now 1990s (1990-96)Now (2005-2007) Economy US: +2.6%, CA in Shambles US GDP: +3.1% CA ~ US Labor Market (Jobs) -450,000 (1990- 93) +453,000* Unempl. Rate 8.1%5.1% Mortgage Rates 8.0%6.3% Sales (# Homes) 362,500483,000** Median Price -12% (1991-96)+10%** *CA 2003-06: +680,000 jobs! **Since 2005-Q3

32. IN CONCLUSION Processing times have been significantly improved. (Licensing processing times down 65%) Department business continues to be strong. The Department continues to do more with less. The Department is always looking for better ways to reach consumers.

33. Our ducks are in a row...