Los Angeles. Los Angeles. LA area real estate prices flat in third quarter of Quarterly Report 3Q Los Angeles Metropolitan Region

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1 TM Quarterly Report 3Q 2006 A Review of the Metropolitan Real Estate Market Metropolitan Region LA area real estate prices flat in third quarter of 2006 The real estate market for the -Riverside-Orange County metropolitan region (, Orange, Riverside, San Bernardino and Ventura Counties) remained essentially flat in the third quarter relative to second quarter performance. While the third quarter value for the TM home value indicator of $555,391 represented a 7.3% increase year-over-year, it was just shy of the $555,414 value at the close of Q Compared to national trends, the metro market performed better than the nation on a year-over-year basis (5% increase in year-over-year for the U.S. overall), but worse on a sequential basis where the area was flat but the nation saw a 2.4% increase in its from the second quarter (increasing from $263,485 to $269,814 in the third quarter of 2006). In the metropolitan area, the for single-family homes ($568,208) remained virtually unchanged from the second quarter ($568,226) but was up 6.6% from the third quarter of Similarly, the for condominiums ($448,712) was down less than 1% from the second quarter of 2006 ($451,759) but was up 5.2% from the third quarter of [Table 1. Metro Market Performance] County All Residential All Residential [Table 2. Metro Counties Market Performance] Condominium Condominium United States 269, , , Riverside-Orange County, CA CMSA 555, , , County 575, , , Orange County 672, , , Riverside County 397, , , [Figure 1. Metro and Year-over-Year ] San Bernardino County 373, , , $800K YoY in 75% Ventura County 627, , , $600K $400K $200K 50% 25% 0% YoY in $0K 25%

2 Counties in the Metro Region San Bernardino County has highest appreciation in the metro LA region Market performance in the counties making up the metropolitan Los Angeles region is shown in Table 2. The strongest growth was seen in San Bernardino County with 11.7 % year-over-year growth in the third quarter versus the slowest appreciating county, Ventura County, with year-over-year growth of only 4.8%. Both Orange and Riverside Counties experienced declining values between the second and third quarters of 2006 (Orange County dropped from $687,479 to $672,703 and Riverside County dropped from $402,151 to $397,844). levels were highest in Orange County ($672,703) and lowest in San Bernardino County ($373,139). [Figure 3: County Map of Year-over-Year in ] Ventura +4.8% +7.9% San Bernardino +11.7% [Figure 2. Trends by County ] $800K Orange Riverside $600K San Bernardino Ventura Orange +5.6% Riverside +5.8% $400K $200K Year Over Year Up 4 to 5% Up 5 to 5.7% Up 5.7 to 7% $0K Up 7 to 10% Up 10 to 12% Cities in the Metro Region area cities show divergent performance The five cities in the metro region with the highest valued real estate (measured by the ) in the third quarter of 2006 were Pacific Palisades ($1,504,205), Newport Coast ($1,590,219), Malibu ($1,608,525), Beverly Hills ($1,804,695), Rolling Hills ($1,817,867) and Hidden Hills ($2,172,454). All cities in the metro region are shown in the appendix. The five fastest appreciating cities in the area (as measured by year-over-year change between Q and Q3 2006) were Avalon, Laguna Beach, Bell, Lake and Compton (all with year-over-year appreciation rates between 20% and 25%), while the five slowest appreciating cities were Thermal, Culver City, El Segundo, Laguna Woods and Palos Verdes Peninsula (-32%, -8.7%, -5.2%, -5.1%, and -4.0% year-over-year appreciation, respectively). [Table 3. Highest and Lowest Valued/Appreciating Cities] All Residential (See appendix for the complete list for City Performance) Condominium Avalon 837, , , Bell 503, , , Beverly Hills 1,804, ,039, ,041, Compton 423, , , Culver City 603, , , El Segundo 777, , , Hidden Hills 2,172, ,172, Laguna Beach 1,242, ,266, , Laguna Woods 356, , , Lake 297, , Malibu 1,608, ,774, ,012, Newport Coast 1,590, ,025, ,021, Pacific Palisades 1,504, ,616, ,038, Palos Verdes Peninsula 1,190, ,204, , Rolling Hills 1,817, ,876, ,076, Thermal 201, ,

3 City of Neighborhoods Southern neighborhoods fare well over the past quarter The southern neighborhoods of fared particularly well in the third quarter of 2006 in terms of home value appreciation (see neighborhood data in Table 4 and a map of year-over-year change in values by neighborhood in Figure 4). The five highest appreciating neighborhoods in were Hyde Park, Central City, South, Southeast and Watts with year-over-year changes between 16% and 23%. Also performing well were the northern neighborhoods between Portar Ranch and Granada Hills to the Northwest, and North Hollywood and Sun Valley to the Southeast (most with year-over-year growth in excess of 7%). Some of the more expensive LA neighborhoods such as Venice, Playa Del Ray, Pacific Palisades, Mar Vista, Hollywood Hills, West, Century City and Westchester experienced the lowest appreciation over the quarter (some with negative year-over-year changes greater than 4%). The five most expensive neighborhoods in were Beverly Glen (Q3 of $1,006,336), Hollywood Hills ($1,107,676), Brentwood ($1,392,935), Pacific Palisades ($1,445,489) and Bel Air ($1,676,021). The five least expensive neighborhoods were Lincoln Heights (Q3 of $393,162), Watts ($407,446), Civic Center/Little Tokyo ($413,929), Boyle Heights ($418,839) and Southeast ($419,289). [Figure 4. Neighborhood Map of Year-over-Year in ] West Hills Chatsworth Canoga Park Woodland Hills Portar Ranch Winnetka Tarzana Pacific Palisades Year Over Year Down 1 to 5% Down 1 to Up 3% Up 3 to 6% Up 6 to 10% Up 10 to 23% Northridge Granada Hills Reseda Encino Brentwood North Hills Bel Air Sylmar Mission Hills Van Nuys Studio City Venice Arleta Pacoima Panorama City North Hollywood Beverly Glen Westwood Mar Vista Palms Lakeview Terrace Shadow Hills Valley Village Westchester Sun Valley Hollywood Hills Century City Pico/ Robertson SawtelleWest Playa Vista Playa Del Ray Toluca Lake Mid City West Sunland Glendale Hollywood Tujunga Eagle Rock Mid Wilshire Chinatown Westlake Lincoln Heights New Downtown South Park Downtown Mid City Fashion DistrictBoyle Heights West AdamsJefferson Park CrenshawLeiment Park South Hyde Park Atwater Village Glassell Park Highland Park Los Feliz Mount Washington Cypress Park Silver Lake Montecito Heights Echo Park El Sereno Central City East Central City Southeast Harbor Gateway Watts [Table 4. Neighborhood Market Performance ] Neighborhood Rank 607, Arleta , Atwater Village , Bel Air 1 1,676, Beverly Glen 5 1,006, Boyle Heights , Brentwood 3 1,392, Canoga Park , Central City , Century City , Chatsworth , Civic Center/Little Tokyo , Crenshaw , Cypress Park , Eagle Rock , Echo Park , El Sereno , Encino , Glassell Park , Glendale , Granada Hills , Harbor City , Harbor Gateway , Highland Park , Hollywood , Hollywood Hills 4 1,107, Hyde Park , Jefferson Park , Lakeview Terrace , Leiment Park , Lincoln Heights , Los Feliz 7 978, Mar Vista , Mid City , Mid City West 6 988, Mid Wilshire , Mission Hills , Montecito Heights , Mount Washington , New Downtown , North Hills , North Hollywood , Northridge , Pacific Palisades 2 1,445, Pacoima , Palms , Panorama City , Pico/ Robertson , Playa Del Ray , Playa Vista , Portar Ranch , Reseda , San Pedro , Sawtelle , Shadow Hills , Silver Lake , South , South Park , Southeast , Studio City , Sun Valley , Sunland , Sylmar , Tarzana 8 948, Toluca Lake 9 947, Tujunga , Valley Village , Van Nuys , Venice , Watts , West Adams , West Hills , West , Westchester , Westlake , Westwood , Wilmington , Winnetka , Woodland Hills ,

4 Zillow Interest Index Pricey Rancho Palos Verdes, Beverly Hills and Santa Monica attract eyeballs on Zillow As with our previous quarterly reports, we are again providing detail via the Zillow Interest Index (ZII) on where people are most often looking at homes in the metro area. The ZII is a simple ratio of the number of page views of individual homes in a geographic area divided by the number of homes in that area. The more people look at homes in an area, the more page views are generated on Zillow servers and the higher the ZII. This quarter, we are displaying ZII data down to the census tract level, a finer level of geography than the ZIP code level which was used previously. The geographic distribution of the ZII across the greater region is shown in Figure 5. The hottest areas of interest include the expensive areas of Rancho Palos Verdes, Beverly Hills, Santa Monica, Simi Valley, Encino and West Hollywood. [Figure 5. Zillow Interest Index] Santa Monica Beverly Hills Montebello Culver City Commerce Hacienda Heights View Park-Windsor Hills Maywood Pico Rivera Huntington Park Bell West Whittier-Los Nietos Walnut Park Cudahy Bell Gardens Whittier Inglewood Carson Torrance West Carson Lomita Pasadena Monrovia Duarte Arcadia San Marino East San Gabriel South Pasadena Temple City San Gabriel Vincent Alhambra Baldwin Park Rosemead El Monte Monterey Park West Covina South El Monte Avocado Heights Valinda La Puente Artesia Buena Park Lakewood La Palma Hawaiian Gardens Cypress Rossmoor Lennox Westmont South Gate Downey South Whittier El Segundo Lynwood Hawthorne Willowbrook Norwalk La Mirada Gardena Compton Paramount Manhattan BeachLawndale Bellflower Hermosa Beach Redondo Beach Palos Verdes Estates East Long Beach Los Alamitos Stanton La Habra Fullerton Garden Grove Zillow Interest Index Rancho Palos Verdes Seal Beach Westminster Fountain Valley Huntington Beach Costa Mesa About the TM The home value indicator is the median Zestimate valuation for a given geographic area on a given day. Exactly half the Zestimates for a region are below this number and half the Zestimates are above it. It is expressed in dollars and is for a particular geographic region (e.g., = $245,000 for Baltimore on July 1, 2005). Zillow believes the is the best measure of market performance because it is based on estimates of the current value of every home in the area and, thus, approximates the median sale price of the whole area were every home sold on the same day. This is in contrast to the median sale price of homes which is biased potentially by the mix of housing sold in the period of time associated with it. For example, if high-end homes are not selling very well, but mid-range homes are, then the median sale price will be lower than a true measure of the typical value of homes in the market because the median sale price is taken from the set of mid-range home sales that transact in the period, ignoring the high-end homes that don t transact. Report authors are Stan Humphries, Ph.D., Zillow.com Director of Advanced Analytics and Tommy Unger, Data Analyst. For more information or to request an interview, please contact Amanda Hoffman, (206) or press@zillow.com. Zillow.com, Zestimate and are all trademarks of Zillow, Inc Zillow, Inc. All rights reserved. 4

5 Appendix City Performance -Riverside- Orange County, CA CMSA All Residential Condominium 555, , , Acton 635, , Adelanto 290, , Agoura Hills 760, , , Agua Dulce 773, , Aguanga 278, , Alhambra 552, , , Aliso Viejo 612, , , Alta Loma 550, , , Altadena 695, , , Anaheim 600, , , Anza 239, , Apple Valley 312, , , Arcadia 771, , , Arleta 523, , , Artesia 526, , , Avalon 837, , , Azusa 451, , , Baldwin Park 443, , , Banning 297, , , Barstow 191, , , Beaumont 354, , Bell 503, , , Bell Canyon 1,492, ,492, Bell Gardens 532, , , Bellflower 533, , , Bermuda Dunes 446, , , Beverly Hills 1,804, ,039, ,041, Big Bear City 278, , , Big Bear Lake 376, , , Big River 170, , , Bloomington 379, , Blythe 232, , , Brea 660, , , Buena Park 591, , , Burbank 654, , , Cabazon 202, , Calabasas 1,084, ,186, , Calimesa 332, , , Camarillo 627, , , Canoga Park 564, , , Canyon Country 528, , , Canyon Lake 477, , , Capistrano Beach 870, , , Carson 517, , , Castaic 575, , , Cathedral City 323, , , Cedarpines Park 238, , Cerritos 667, , , Chatsworth 608, , , Cherry Valley 313, , Chino 488, , , Chino Hills 596, , , Claremont 622, , , Coachella 289, , Colton 338, , , Compton 423, , , Corona 541, , , Corona del Mar 1,426, ,550, ,156, Costa Mesa 713, , , Coto de Caza 1,206, ,257, , Covina 516, , , Crestline 259, , Cudahy 500, , , Culver City 603, , , Cypress 615, , , Dana Point 867, , , Desert Hot Springs 266, , , Diamond Bar 609, , , Dove Canyon 1,023, ,023, Downey 615, , , Duarte 479, , , El Monte 471, , , El Segundo 777, , , El Toro 683, , , Encino 764, ,016, , Etiwanda 706, , Fawnskin 352, , Fillmore 566, , , Fontana 416, , , (Table continued) All Residential Condominium Foothill Ranch 740, , , Forest Falls 272, , , Fountain Valley 705, , , Fullerton 627, , , Garden Grove 593, , , Gardena 517, , , Glendale 695, , , Glendora 584, , , Granada Hills 634, , , Grand Terrace 401, , , Green Valley Lake 257, , Hacienda Heights 613, , , Harbor City 566, , , Hawaiian Gardens 415, , , Hawthorne 567, , , Hemet 283, , , Hermosa Beach 1,031, ,026, , Hesperia 313, , , Hidden Hills 2,172, ,172, Highland 373, , , Hinkley 168, , Homeland 167, , Huntington Beach 723, , , Huntington Park 481, , , Idyllwild 342, , Indian Wells 765, , , Indio 314, , , Inglewood 511, , , Irvine 707, , , Joshua Tree 178, , La Canada Flintridge 1,230, ,234, , La Crescenta 729, , , La Habra 565, , , La Habra Heights 1,046, ,048, , La Mirada 573, , , La Palma 720, , , La Puente 476, , , La Quinta 479, , , La Verne 602, , , Ladera Ranch 851, , , Laguna Beach 1,242, ,266, , Laguna Hills 677, , , Laguna Niguel 778, , , Laguna Woods 356, , , Lake Arrowhead 437, , , Lake Elsinore 395, , , Lake Forest 636, , , Lake Hughes 351, , Lake 297, , Lakewood 555, , , Lancaster 333, , , Landers 152, , Lawndale 555, , , Lennox 511, , , Leona Valley 454, , Littlerock 338, , Loma Linda 427, , , Lomita 608, , , Long Beach 565, , , Los Alamitos 887, , , , , , Lucerne Valley 197, , Lynwood 473, , , Malibu 1,608, ,774, ,012, Manhattan Beach 1,335, ,335, ,242, Marina del Rey 806, ,387, , Maywood 482, , , Mecca 248, , Menifee 418, , Mentone 315, , , Midway City 608, , , Mira Loma 516, , Mission Hills 563, , , Mission Viejo 690, , , Monrovia 598, , , Montclair 424, , , Montebello 538, , , Monterey Park 541, , , Montrose 589, , , Moorpark 644, , , Moreno Valley 384, , , Morongo Valley 224, , (Table continued) 5

6 Appendix (continued) City Performance (continued) All Residential Condominium Mountain Center 454, , Murrieta 466, , , Needles 166, , Newberry Springs 194, , , Newbury Park 712, , , Newhall 511, , , Newport Beach 1,198, ,297, , Newport Coast 1,590, ,025, ,021, Norco 569, , North Hills 559, , , North Hollywood 591, , , Northridge 713, , , Norwalk 492, , , Nuevo 372, , Oak Hills 429, , Oak Park 733, , , Oak View 638, , ,764 Ojai 679, , , Ontario 422, , , Orange 658, , , Oxnard 598, , , Pacific Palisades 1,504, ,616, ,038, Pacoima 502, , , Palm Desert 408, , , Palm Springs 337, , , Palmdale 367, , , Palos Verdes Estates 1,440, ,461, , Palos Verdes Peninsula 1,190, ,204, , Panorama City 467, , , Paramount 422, , , Pasadena 704, , , Pearblossom 334, , Perris 343, , , Phelan 282, , Pico Rivera 496, , , Pinon Hills 286, , Placentia 656, , , Playa del Rey 598, , , Playa Vista 727, ,449, , Pomona 433, , , Port Hueneme 471, , , Quartz Hill 412, , Rancho Cucamonga 495, , , Rancho Mirage 552, , , Rancho Palos Verdes 1,080, ,110, , Rancho Santa Margarita 635, , , Redlands 409, , , Redondo Beach 774, , , Reseda 536, , , Rialto 386, , , Riverside 420, , , Rolling Hills 1,817, ,876, ,076, Rolling Hills Estates 1,196, ,255, , Romoland 340, , Rosemead 522, , , Rowland Heights 590, , , Running Springs 285, , San Bernardino 315, , , San Clemente 897, , , San Dimas 581, , , San Fernando 532, , , San Gabriel 613, , , San Jacinto 302, , , San Juan Capistrano 656, , , San Marino 1,397, ,397, San Pedro 591, , , Santa Ana 600, , , Santa Clarita 559, , , Santa Fe Springs 497, , , Santa Monica 973, ,321, , Santa Paula 563, , , Santa Rosa Valley 1,307, ,311, Saugus 612, , , Seal Beach 863, , , Sherman Oaks 754, , , Sierra Madre 819, , , Signal Hill 501, , , Silverado 667, , Simi Valley 595, , , Somis 1,102, ,116, South El Monte 477, , , South Gate 494, , , (Table continued) All Residential Condominium South Pasadena 840, , , Stanton 553, , , Stevenson Ranch 822, , , Studio City 917, ,027, , Sugarloaf 217, , Sun City 277, , , Sun Valley 542, , , Sunland 576, , , Sylmar 530, , , Tarzana 703, , , Temecula 482, , , Temple City 602, , , Thermal 201, , Thousand Oaks 708, , , Toluca Lake 916, ,054, , Topanga 927, , , Torrance 650, , , Trabuco Canyon 757, , , Trona 152, , , Tujunga 560, , , Tustin 642, , , Twentynine Palms 165, , Twin Peaks 268, , , Upland 536, , , Valencia 602, , , Valley of Enchantment 243, , Valley Village 684, , , Van Nuys 567, , , Venice 1,032, , , Ventura 620, , , Victorville 319, , , Villa Park 1,258, ,261, , Walnut 683, , , West Covina 529, , , West Hills 663, , , West Hollywood 741, , , Westlake Village 864, , , Westminster 612, , , Whittier 543, , , Wildomar 400, , Wilmington 490, , , Winchester 472, , Winnetka 550, , , Woodland Hills 785, , , Wrightwood 336, , , Yorba Linda 819, , , Yucaipa 394, , , Yucca Valley 221, , ,