1. MARKET PULSE July 2015 1

2. Survey Methodology Monthly online survey of 300+ CA REALTORS® Respondents are asked about their last closed transaction and business activity in their market area for the previous month and the last year. 2

3. LAST TRANSACTION 3

4. Nearly 2/3 of Transactions Closed at the Asking Price or below Q: Did your last closed transaction sell over, at or below asking price? 4 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

5. Premium Paid Over Asking Price Flat Q: At what percentage was your last closed transaction sold over asking price? 5 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

6. Discount on Asking Price Increases Q: At what percentage was your last closed transaction sold below asking price? 6 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

7. 67% of Properties Receiving Multiple Offers Q: How many offers did the seller in your last closed transaction receive? 7 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

8. Number of Offers Received Remained Flat Q: How many offers did your last closed transaction receive? 8 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

9. Proportion of Properties with Listing Price Reductions increased significantly from prior month Q: Were there any listing price reductions before escrow opened in your last closed transaction? 9 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

10. A marginal increase of Previous Renters Q: Was the buyer of your last closed transaction a renter immediately prior to purchasing the property? 10 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

11. Fewer Sellers Becoming Renters Q: Did the seller of your last closed transaction become a renter immediately after selling the property? 11 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

12. Share of First-time Buyers Fluctuating Less in Recent Months Q: Was the buyer of your last closed transaction a first-time buyer? 12 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

13. Majority Purchases are Primary Residences Q: What was the intended use of the property? 13 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

14. International Buyers Fluctuate Q: Was the buyer an international client (one who was not a citizen or permanent resident of the U.S.)? 14 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

15. MARKET CONDITIONS 15

16. Floor Calls from Potential Clients Declining Q: Compared to last month, the number of floor calls from potential clients in your market area this month was … 16 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

17. Listing Appointments/Presentations to Clients Slowing Down Q: Compared to last month, the number of listing appointments and presentations to clients in your market area this month was … 17 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

18. Open House Traffic Declining Q: Compared to last month/year, open house traffic in your market area this month was … 18 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

19. Auctions Steady Q: Compared to last month/year, the number of auctions in your market area this month was … 19 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

20. All Cash Purchases Flattening Out Q: Compared to last month/year, the number of all cash purchases in your market area this month was … 20 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

21. 1 In 4 REALTORS® Are Concerned About Inventory 21 Q: What is your biggest concern about the current real estate market? SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

22. Majority of REALTORS® Expect Better/Similar Market Conditions Over the Next Year Q: What are your expectations for market conditions over the next year? 22 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

23. Why REALTORS® Expect Market Conditions to Worsen Rise in interest rates Poor economy Uncertainty in market Decrease in home affordability Q: Why do you expect real estate market conditions to worsen over the next year? 23 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

24. What are REALTORS® Saying? Market activity is stagnant.No longer a sellers marketEscrows are closing lateBuyer and seller expectations are not in sync Q: Do you have any specific comments, professional observations, or information that you would like to share with us--such as information on multiple bidding, changing buyer preferences, mortgage credit issues, or other topics? 24

25. Top 10 Counties Q: In which county do you live? 25 SERIES: Market Pulse Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® June 2015July 2015 1Los Angeles 2San DiegoOrange County 3RiversideSacramento 4OrangeSanta Clara 5AlamedaSan Diego 6Santa ClaraRiverside 7SacramentoContra Costa 8San Luis ObispoPlacer 9MarinAlameda 10SonomaSan Mateo