Market Update3Q/08Stacey P. AnfindsenBirch Appraisal Group of Carywww.tarreport.comStacey@staceypeter.com

• 98.83% of all outstanding mortgages are rated as current

• New foreclosures initiated are up 60% in 1Q/08 versus the ‘07 monthly average (1Q/08 average was 36k per month, equal split between prime and non-prime loans)

• New foreclosures completed are up 64% in 1Q/08 versus the ‘07 monthly average (1Q/08 average was 10k per month, 0.3% of all mortgages)

• Moody’s states that 1 in 6 homeowners are upside down

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

Summary of Triangle Wide Activity

The Ugly• 29 consecutive months of inventory growth, 20

consecutive months of lower pending sales• 63% of all price points have an oversupply of housing

product• 9/08 expired listings were 227% higher than 9/07

expired listings• 9/08 employed workforce was lower than the 9/07

workforce for the first time since ‘01 v. ‘00

The Good• TMLS 3rd quarter closings were the 6th highest in

history• Durham supply of 7 months is lower than national

current supply of 10 months• Average house price appreciation in Durham has

been 3.11%. National rate is -5.9%• Average list price +1%, inventory is shrinking• Houses priced correctly in Durham sell in an average

of 60 days