Presentation to the Platinum Chapter of BNI on April 22nd 2010. Update on Real Estate in Santa Clarita Valley a/o March 2010.

1. Santa Clarita ValleyResidential Real Estate BNI Presentation on April 22, 2010 By Phil Levy, REALTOR®, CDPE Intero Real Estate Services 661.313.4717 phil@jpscvrealty.com

2. State of the SCV Residential Real Estate Market Four Questions: What’s new in the SCV? Has the residential real estate market turned? Has the mortgage meltdown ended? What’s going on with all those short sales? April 22, 2010 2 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

3. What’s New in the SCV? SCV – Great Place to Live and Work City of Santa Clarita is 51st most affluent in US Ranks in top 15% of all cities with a population greater than 75,000. Very giving community Source: The Signal, Monday April 12 2010. January 2010 unemployment was 8.2% vs 13.2% for LA County and State of CA Source: Santa Clarita Business Journal – April 2010. SCV – Preferred filming location for all sorts of films, TV series, and commercials – www.filmsantaclarita.com April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 3

4. Has the Residential Real Estate Market Turned? April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 4

5. State of the Market? April 22, 2010 5 Single Family Residences Peak Median – Apr ‘06 @ $643,000 DOM* 403,000 409,950 *DOM = Days on Market Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

6. April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 6 72 62 4 mos 2 mos

7. Has the Residential Housing Market Turned? Perhaps Some upward trend in overall median prices combined with low inventories Storm Clouds FED recently stopped supporting the secondary mortgage market – potential for increasing interest rates. Expiration of Fed Income Tax Credit – potentially offset by state credit as long as it lasts. Mortgage meltdown continues to depress prices. Sunny Skies Improving overall economy +++ April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 7

8. Has the Mortgage Meltdown Ended? April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 8

9. Has the Mortgage Meltdown Ended? Distressed Homeowners Dominate SCV Sales Stats (SRAR MLS) – Closed Sales (749) April 22, 2010 9 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

10. Has the Mortgage Meltdown Ended? Active Listings – as of March 2010 Total Active/Backup status – 1,230 April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 10

11. April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 11

12. Has the Mortgage Meltdown Ended? Then add several hundred thousand REO’s that bank’s have not released to the market. So no – “we still have miles to go before we sleep” (Robert Frost) April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 12

13. What’s Going On with all Those Short Sales Definition – Market Value < Loans: Requires lender(s) approval Application procedure is quite onerous, cumbersome and lengthy Here comes HAFA (not a coffee whitener) Home Affordable Foreclosures Alternative Program Implemented by the Treasury just on April 5, 2010. April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 13

14. What’s Going On with Short Sales? HAFA Cont. Administered by Fannie Mae Objective is to avoid valuation devastation to communities by resolving distressed properties through short sales or deeds in lieu of foreclosure rather than foreclosure Recent study revealed that lenders can expect on average 60% recovery via short sale vs 30% via foreclosure April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 14

15. What’s Going On with Short Sales? HAFA Cont. Promulgates major improvements for sellers Lenders must comply with standard documents & timelines. Pre-approved short sale terms prior to listing the property. Eliminates guesswork on behalf of sellers, buyers and agents wondering whether the lender will approve the price/terms Releases sellers from liability of delinquency balances Check with tax advisor re tax consequences $3,000 relocation assistance April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 15

16. What’s Going On with Short Sales? HAFA Cont. Generally borrowers are eligible if they do not/have not qualified for modification Lenders must subscribe to the standard and most of the majors have; Fannie Mae and Freddie Mae Owned are expected soon to adapt this standard Visit www.santa-clarita-home-solutions.com for free detailed information, surveys and reports. A useful survey is found at www.santa-clarita-home-solutions.com/eligibility April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 16

17. Conclusion Buyers - Beware the cost of waiting: Upward trending median prices Increasing interest rates Especially with economic recovery Loss of tax credits Sellers – Low inventories should generally result in quick sales Great opportunities for up scaling, relocating, or investing Distressed homeowners – HAFA presents a unique opportunity to start over April 22, 2010 17 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

18. Web Services for Clients www.jpscvrealty.com Marketsnapshot – gives market activity within the vicinity of a given address. Property searches Comprehensive Rent_v_Buy calculator customized for the California market Loan Calculator Resources for property tax reassessment Community Information Foreclosure Lists Resource information for distressed sellers and first time buyers Bios HAFA site (under construction) blog.jpscvrealty.com – contains timely updates on the status of the residential market . Text FINDSCV to 87778 for free smart phone GPS MLS app www.santa-clarita-home-solutions.com. Survey found on www.santa-clarita-home-solutions.com/eligibilty April 22, 2010 18 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

19. Appendix: What is the SCV? The Southland Regional Association of Realtors Multiple Listing Service defines SCV as: Constitutes City of Santa Clarita – Saugus south of Copper Hill. The SCV consists of 200 square miles. The City of Santa Clarita consists of 52 square miles making it geographically the largest city in LA County April 22, 2010 19 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

20. What is SCV – cont. Recently voted the most “Business Friendly” city in LA County Schools rank among the top 10% in CA according to the CA Assessment Program. Higher median city household income vs LA County overall - $76 vs $52 (data from 2006). Lower unemployment October 2009 7.8% vs 12.6% LA April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 20

21. What is SCV – cont. Enterprise Zone encompasses 97% of all commercial, business and industrial land w/in the city. Provides certain income tax incentives for employing eligible individuals. Volunteerism – Multitude of civic organizations All seem to have really cool galas. Example: Senior Center For more info on SCV – www.santa-clarita.com Also refer to city’s monthly “Economic Snapshot”. Link through to “Community Profile” section on the website. www.SCVchamber.com SCV is a GreAT Place to live and work. April 22, 2010 Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com 21