Pacific Union International Luxury Real Estate Report

Despite formidable world events across the Middle East and Japan and the resulting volatility of the equity markets, the first quarter of 2011 experienced positive trends in many San Francisco Bay Area real estate markets. Properties selling below $1 million, which are over 70% of the closings in the six counties served by Pacific Union International, are experiencing modest to very favorable increases in units sold. In many markets we are enjoying units sold up nearly double the closings in the marketplace from Q1 2009. A refreshing trend which we feel is always a precursor, albeit by twelve to eighteen months, to value/price appreciation.

Most importantly we are experiencing a recovery in our clients’ confidence. We believe this is a result of historic low interest rates, stabilized pricing in our real estate markets and a general feeling that “the worst” is behind us and that 2011 may be a better year than we expected in late 2010.

In Marin County we have begun to experience a refreshing rebound in units sold in the high end (over $1 million), this trend extends to northern Napa County, the Town of Sonoma, and San Francisco as well. This activity at the high-end will begin to motivate the “move-up” buyers throughout the San Francisco Bay Area. As a result, we expect more favorable results in our local market segment throughout 2011.

The table below illustrates the comparison Q1 2011 to Q1 2010 for volume ($) and units (#) sold below $1 million and above $1 million:

Even in the face of these statistics, the right homes, in the right locations with market based pricing are experiencing multiple offers. This is an indicator of pent up demand and client confidence. Pragmatic property sellers are finding that strategically wise price reductions are garnering multiple offers while homes with a 10% – 12% “pricing cushion” for which to negotiate are finding no one to negotiate with.

Sincerely,

A Member Of Real Living

Pacific Union International Luxury Real Estate Report Q1. 2011

MARIN COUNTY

Pacific Union International Luxury Real Estate Report Q1. 2011

MARIN COUNTY

Pacific Union International Luxury Real Estate Report

MARIN COUNTYA Member Of Real Living

Under $1M

35%

9%

23%

-6%

-6%

Over $1M

4%

7%

8%

-3%

13%

$1 - $3M

9%

6%

15%

3%

10%

$3M+

-9%

25%

-37%

-27%

-5%

2010 vs. 2011

Volume

Units Sold

AVG DOM

Average Price

Median Price

2010 v 2011

!eeaarr CClliieenntt,,

OOppppoorrttuunniittiieess eexxiisstt iinn aallll oouurr nneeiigghhbboorrhhooooddss -­- pplleeaassee ffeeeell ffrreeee ttoo ccaallll mmee ttoo eexxpplloorree yyoouurr llooccaall mmaarrkkeett

ccoonnddiittiioonnss aanndd rreeaall eessttaattee ooppppoorrttuunniittiieess yyoouu mmaayy bbee ccoonnssiiddeerriinngg..

Jimmy WanningerJJiimmmmyy WWaannnniinnggeerr

!iimmmmyy WWaannnniinnggeerr990011 SSiirr FFrraanncciiss !rraakkee BBllvvdd

KKeennttffiieelldd,, CCAA 9944990044

441155..999900..88999900

jjiimmmmyy@@jjiimmmmyymmaarriinn..ccoomm

wwwwww..JJiimmmmyyMMaarriinn..ccoomm

!RREE## 0011335522228877

441155..999900..88999900

jjiimmmmyy@@jjiimmmmyymmaarriinn..ccoomm

wwwwww..JJiimmmmyyMMaarriinn..ccoomm

990011 SSiirr FFrraanncciiss !rraakkee BBllvvdd,, KKeennttffiieelldd,, CCAA 9944990044

Q1. 2011

A Member Of Real Living

Pacific Union International Luxury Real Estate Report Q1. 2011

HOME COMPARISONA Member Of Real Living

Pacific Union International Luxury Real Estate Report

HOME PRICE & MKT. STATS

Marin County Median & Average Home PriceQ1 2009 - Q1 2011

Source: BAREIS, as of March 31, 2011

$1,300,000

$1,200,000

$1,100,000

$1,000,000

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000Q109 Q209 Q309 Q409 Q110 Q210

$760,088

$852,776$880,127

$866,680

$854,440

$947,714

$1,022,037 $1,030,255

$940,633

$705,250

Q310 Q410 Q111

Source: BAREIS, as of March 31, 2011

60%

40%

20%

0%

-20%

-40%

Volume ($) Units Sold Days On Market Average Price Median Price

Marin County Market StatisticsQ1 2010 vs Q1 2011

3% 4%9% 7%

23%

8%

-6% -6%-3%

Pe

rce

nta

ge

Ch

an

ge

Marin County $1-$3 Million - SFH

Source: BAREIS, as of March 31, 2011

Jan - Mar '09

$65,585,350

42

113

$1,382,500

$1,561,556

$2,625,000

Jan - Mar '10

$135,615,207

89

116

$1,315,000

$1,523,766

$2,950,000

Jan - Mar '11

$147,469,370

94

133

$1,450,000

$1,568,823

$2,770,000

'09 - '10% Change

107%

112%

3%

-5%

-2%

12%

'10 - '11% Change

9%

6%

15%

10%

3%

-6%

TIME PERIOD

VOLUME

HOMES SOLD

AVG. DAYS ON MKT

MEDIAN PRICE

AVERAGE PRICE

MAX PRICE SOLD

Marin County $3 Million & Higher - SFH

Source: BAREIS, as of March 31, 2011

Jan - Mar '09

$36,153,988

8

151

$3,664,494

$4,519,249

$9,000,000

Jan - Mar '10

$46,382,000

8

178

$4,025,000

$5,797,750

$14,000,000

Jan - Mar '11

$42,215,000

10

113

$3,825,000

$4,221,500

$6,215,000

'09 - '10% Change

28%

0%

18%

10%

28%

56%

'10 - '11% Change

-9%

25%

-37%

-5%

-27%

-56%

TIME PERIOD

VOLUME

HOMES SOLD

AVG. DAYS ON MKT

MEDIAN PRICE

AVERAGE PRICE

MAX PRICE SOLD

13%

$600,000

$700,000$695,500

$658,500 $650,500

$725,000

$790,000$768,000

Average Price Median Price

$1M to $3M $3 Million and Higher

WWee llooookk ffoorrwwaarrdd ttoo sseerrvviinngg yyoouu iinn 22001111..