The document provides an overview of the state of the housing market in Colorado in Q2 2009. It notes that while Colorado was less impacted than other states prior to late 2008, the struggling US economy has taken its toll. Job and employment growth in Colorado has slowed or turned negative. Consumer confidence and retail sales growth are also slowing. However, foreclosure activity and housing supply levels have decreased from their peaks. The outlook remains uncertain but there are some signs of stabilization in the Colorado housing market.

1. The Genesis Perspective
Gaining Clarity in a
Chaotic Market
Second Quarter 2009 Housing Briefing
Tuesday, May 19, 2009
The Landmark Theatre
www.TheGenesisGroup.net Page 1

2. Prior to 4Q08…
Colorado Was Less Impacted
Job Growth – 4th in Nation
Positive In-migration
Low Unemployment
Growing Retail Spending
Home Price Appreciation
Reduction in Foreclosure Activity
National Headlines of Stability Were True
www.TheGenesisGroup.net Page 2

3. We are still reading those
same headlines…
but the U.S. economy is
taking it’s toll
www.TheGenesisGroup.net Page 3

4. P erce n t C ha ng e from 2 0
-7.0%
-6.5%
-6.0%
-5.5%
-5.0%
-4.5%
-4.0%
-3.5%
-3.0%
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
M ic hig a n
A r izo na
-6.4%
F lo rid a
N e v a da
-5.1%
Id a ho
S ou th C ar o lina
O r eg o n
-4.4%
N o r th C a ro lin a
G e o rg ia
O h io
D e la w a re
-4.1%
V e rm o nt
R ho d e Is la n d
Te n ne s s e e
I nd ia na
C alifo rn ia
A la ba m a
-3.8% -3.7%
Illino is
W is c on s in
K e ntu ck y
Source: U.S. Bureau of Labor Statistics
M iss is s ip pi
-3.1% M inn e s ota
C o nn e c tic u t
H a w a ii
N e w J e rs e y
M a ss a c h us e tts
M ain e
W a s h ing ton
C o lor a do Colo rad o
V irg inia
-2.5%
U ta h
A r k an s a s
M a ry la n d
M is s ou r i
P e nn s yl va n ia
W es t Vir g inia
N e w Y or k
First Quarter 2009 Employment Growth by State
N e w M e x ic o
Job Growth by State
Io w a
M o nta n a
N ew H am p s hir e
-1.4%
N eb r as k a
K an s a s
Colorado’s Ranking Has Dropped
S o uth D a ko ta
Te x a s
O kla h o m a
N or th D a k o ta
Lo u isi an a
www.TheGenesisGroup.net
W y om in g
+0.9%
A la s ka
D is tr ic t o f C ol um b ia
+1.2%
Page 4

5. Reversal of Fortune
Denver Metropolitan Area Wage & Salary Employment
Monthly Total Employment & Employment Change
90 1,500
80 1,400
70 1,300
Total E m ploym ent in 00
60 1,200
Net New Jobs in 000
50 1,100
40 1,000
30 900
20 800
10 700
0 600
-10 500
-20 400
-30 Mar 300
2009
-40 -51,100 200
-50 100
-60 -
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year/Year Monthly Employment Change Total Employment
Sources: The Genesis Group; Bureau of Labor Statistics
Source: U.S. Bureau of Labor Statistics
www.TheGenesisGroup.net Page 5

6. Metro Denver Job Growth
12 Mo thru 1Q2009 = - 0.4% (vs. -1.3% for U.S.)
Denver Metropolitan Area
Job Growth & Forecast - 12 Month Averages
70,000 7.0%
56,300
60,000 51,900 6.0%
48,600 50,100
50,000 43,900 44,100 5.0%
40,000 35,400 4.0%
4.2% 4.1% 4.4% 4.3% 27,500 29,800
Net Job Growt
4.0% 3.9% 25,400
30,000 3.0%
Percent Chang
3.1%
20,000 10,700 12,200 2.0%
2.2%
10,000 1.9% 2.0% 1.0%
300 0
0.8% 0.9% -0.4%
0 0.0%
-1.4% 0.0%
-10,000 -2.0% -1.0%
0.0% -6,100
-20,000 -18,800
-2.0%
-30,000 -3.0%
-28,400
-40,000 -3.1% -4.0%
-42,400
-50,000 -5.0%
-60,000 -6.0%
12 Months Through:
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1st 2009 2010
Qtr Proj. Proj.
2009
Net Job Growth
Sources: The Genesis Group; Bureau of Labor Statistics Percent Change in Employment
Source: U.S. Bureau of Labor Statistics
www.TheGenesisGroup.net Page 6

7. Consumer Confidence Shattered
Improvement in 2009…Still historically at very low levels
Consumer Confidence Index - Monthly Comparison
170
U.S. Index is Seasonally Adjusted
Mountain Region Index is Unadjusted
155
Consumer Confidence Index
140
125
110
95
80
65
Apr
50 2009
41.8
35
Apr
2009
20 39.2
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
-9
-9
-9
-9
-9
-9
-9
-9
-0
-0
-0
-0
-0
-0
-0
-0
-0
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
ec
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
U.S. Composite Index
Sources: The Genesis Group; The Conference Board
Mountain Region Index
Source: The Conference Board
Note: Mountain Region Includes Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah, Nevada
www.TheGenesisGroup.net Page 7

8. Mounting Concerns…
Unemployment
Retail Sales Growth Slowing
Consumer Confidence
www.TheGenesisGroup.net Page 8

9. Is There Any Good News?
Foreclosure Notices Down
Distressed Property Sales Activity Strong
In-migration
Supply levels continue to lessen
www.TheGenesisGroup.net Page 9

10. Foreclosures Abating?
First time this decade…
Seven County Metro Denver
Total Foreclosure Activity
1991 Through First Quarter 2009
30,000
27,133
25,241
25,000
Number of Foreclosures
20,000 19,016
15,728
15,000
12,216
9,424
10,000 8,335
7,184
6,165
5,400
5,000 3,612 3,338 3,329 3,567
2,595 2,232 2,562 3,067
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2003 2004 2005 2006 2007 2008 1Q 1Q
Sources: The Genesis Group; County Public Trustees; U.S. Census Bureau; Colorado State Demography Office 2008 2009
Source: SKLD Information Services, LLC
www.TheGenesisGroup.net Page 10

11. Foreclosures – by Price Range
Lower Price Ranges First to Improve
Seven County Denver Area Foreclosure Activity
By Original Loan Value Price Range
First Quarter Comparisons - 2005 to 2009
3,500
2 ,8 9 1 2005 1Q
2 ,7 5 8
3,000
2006 1Q
2 ,21 8
2,500
F ore c lo s ur e
2007 1Q
1 ,8 8 7
2,000
1 ,51 0
2008 1Q
1 ,4 0 9
1 ,2 7 7
1,500
1 ,2 0 7
1 ,1 5 4
2009 1Q
1,0 7 8
1 ,0 1 2
945
1,000
752
738
73 7
704
567
516
539
491
495
41 7
3 84
442
500
250
15 8
13 4
14 8
1 25
135
1 19
1 17
96
86
57
51
53
55
48
48
33
90
28
31
25
41
11
8
5
8
0
< $100K $100K- $170K- $200K- $250K- $300K- $400K- $500K- $750K - Over $1M
$170K $200K $250K $300K $400K $500K $750K $1M
Sources: The Genesis Group; County Public Trustees; U.S. Census Bureau; Colorado State Demography Office
Source: SKLD Information Services, LLC
www.TheGenesisGroup.net Page 11

12. Foreclosure Rates
By Zip Code
Metro Denver
Adams County – 1.4%
Denver – 1.1%
Arapahoe – 0.9%
Overall Metro – 0.9%
*Total foreclosures as a percentage of
owner-occupied homes
www.TheGenesisGroup.net Page 12

13. The Genesis Perspective
The Current State
of Housing
www.TheGenesisGroup.net Page 13

14. EXISTING HOME Sales Down 21%
in First Quarter 2009
Metropolitan Denver Area
Historical Closing Trends of Existing Homes
1999 Through First Quarter 2009
60,000
52,460 51,830
48,307 48,119 47,197 47,326
To tal Num ber of Closin
50,000 47,183 47,946 47,295
45,801
40,000
75.2% 75.0% 74.8%
30,000 73.3% 72.6% 72.9% 74.0% 74.7%
73.3%
76.6%
20,000
9,427
10,000 7,461
26.7% 26.7% 27.4% 27.1% 26.0% 76.4%
24.8% 25.0% 25.3% 25.2% 23.4% 77.7%
23.6% 22.3%
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1Q08 1Q09
Attached Closings Detached Closings
Sources: The Genesis Group; Metrolist, Inc. & IRES, LLC
Source: Metrolist Inc., IRES, LLC
www.TheGenesisGroup.net Page 14

15. EXISTING HOME Inventory Down 18%
5.1 Month’s Supply Overall - Lowest in 3 Years
Metropolitan Denver Area
Existing Inventory Homes and Month's Supply
First Quarter Comparisons - 2000 Through 2009
20,000 10.0
15,985 15,835 16,122
15,135 15,404
16,000 8.0
7.3 7.0
Num ber of Listing
7.0 13,662 13,415
M onth's Supp
6.7 6.0
12,000 11,139 5.7 5.0 6.4 6.0
5.1
5.4 5.5
5.3 4.8
7,516 7,879
8,000 3.7 7,264 7,273 7,107 4.0
4.1
3.8 5,929 5,815
2.5 5,415
4,833
3,983
4,000 2.0 2.0
1.7
2,168
1,116
1.0
0 0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sources: The Genesis Group; Metrolist, Inc. & IRES, LLC
Attached Inventory Detached Inventory
Attached Month's Supply Detached Month's Supply
Source: Metrolist Inc., IRES, LLC
www.TheGenesisGroup.net Page 15

16. APARTMENT Market Weakening
Metropolitan Denver Area
Apartment Construction/Absorption
10,000 9,123
14%
7,949 8,123
7,761
8,000 12%
6,445 6,604
P eriod E nd Vacancy R
6,355 5,818
5,626
Num ber of Uni
5,669 5,594
6,000 5,432 5,465 10%
4,644
4,679
4,058
4,000 3,526 3,584
2,709
8%
2,970 2,887
2,033 2,752 2,548 2,517
2,262
1,728 1,729
2,000 1,404 6%
738
197 8.4%
0 4%
4.4% 5.0% 4.9% 4.6% 4.4% 5.2% 4.7% 8.7% 11.7% 10.9% 10.0% 7.9% 7.0% 6.1% 7.9% -142
3.8%
-2,000 2%
-2,421
-2,904
-4,000 0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1Q
2009
Units Added Units Absorbed Quarterly Vacancy Rate
Source: Apartment Association of Metropolitan Denver
Sources: Hanley Wood LLC, The Genesis Group
Absorption falls below new units added; vacancy pops up.
www.TheGenesisGroup.net Page 16

17. NEW HOME Sales down 45%
New Production Built Housing
Denver Metropolitan Area - Historical Sales Trends
1988 Through First Quarter 2009
21,000
19,432
18,759 17,784
Detached Sales 18,282 16,889
Total Num ber of New Hom e Sa
17,543
18,000 Attached Sales
75% 70% 16,577
15,608 77% 15,704
Percentage of Total Sa
15,000 70% 71% 68% 65%
14,002
13,641 77% 67%
12,112 61%
80%
12,000
9,801
9,590 81% 9,500
9,000 8,113 91%
87% 60%
94%
5,547
6,000 3,870 5,001
3,724 4,222
3,457 35%
30% 33% 32% 39%
30% 29%
3,000 23% 25% 61% 60%
40%
23%
9% 19% 20%
6% 39% 40%
13%
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 12mo
thru
1Q09
Source: Hanley Wood Market Intelligence
Sources: Hanley Wood LLC, The Genesis Group
Detached Sales down 47%
Attached Sales down 40%
www.TheGenesisGroup.net Page 17

18. Across the Board Declines Hit the Heart
of New Detached Housing Market
Denver Metropolitan Area - New Production Built Housing
Detached Sales by Price Range
First Quarter Comparisons - 2008 vs 2009
300
245 2008
250
2009
214
Num ber of S ale
206
195
200
161
150 137
110 113
100 78
50 37 34 40 34
16 23 23 18
5
0
Under $200K to $250K to $300K to $350K to $400K to $500K to $600K to $700K +
$200K $250K $300K $350K $400K $500K $600K $700K
Average Project Base Home Price
Sources: Hanley Wood LLC, The Genesis Group
Source: Hanley Wood Market Intelligence
Sales down 59% in $300K - $400K price ranges
www.TheGenesisGroup.net Page 18

19. Attached Sales Up in Lower Price Ranges but
Falter in Higher Price Segments
Denver Metropolitan Area - New Production Built Housing
Attached Sales by Price Range
First Quarter Comparisons - 2008 vs 2009
180
2008
146
150 137 2009
131
Num ber of Sale
120
94
90
69
64 60 61
60
44 41
38 36 39 36
31
30
16 15
0
Under $150K to $200K to $250K to $300K to $350K to $400K to $500K to $700K +
$150K $200K $250K $300K $350K $400K $500K $700K
Average Project Base Home Price
Sources: Hanley Wood LLC, The Genesis Group
Source: Hanley Wood Market Intelligence
Lower priced new homes compete with resale/distressed units
but 52% drop in $200K to $300K price ranges

20. New Home Inventory –
SFD Restricted and SFA Jumps Up
New Production Built Housing
Denver Metropolitan Area - Historical Inventory and Month's Supply Trends
First Quarter Comparisons - 2000 Through 2009
3,000 24.0
2,826
2,608
2,500 20.0 20.0
2,209
# of H om es in Invento
M onth's Supp
2,000 1,757 1,811 16.0
1,639 1,636 1,688
1,502
1,500 1,333 1,307 1,380 12.0
1,253
1,144 1,178 1,186 1,108
9.3
1,000 780 835 844 8.0
4.5
4.0 3.7 3.3 4.0
2.9 3.1 3.1 5.3
500 2.7 4.0
1.6 1.9
1.2 1.4 0.8 1.3 1.5
0.7
0 0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Detached Inventory - 4th Quarter Attached Inventory - 4th Quarter
Detached Month's Supply
Sources: Hanley Wood LLC, The Genesis Group
Attached Month's Supply
Source: Hanley Wood Market Intelligence
SFD down 24% / SFA up 8%
Sales declines push month’s supply up sharply

21. Other Notable Indicators..
Cancellation Rates
• Stable at 23% in 1Q comparisons
Traffic UP from 3.8 visitors in 4Q08
• Averaging 5.7 visitors per week
Build-out of Finished Lots Exceptionally High
• 6 year supply
• Arapahoe & Northeast most vulnerable

22. Welcome to the New Market
2007 Top Builders 2009 Top Builders
D.R. Horton Homes 384 D.R. Horton Homes 109
Richmond American Homes 214 Richmond American Homes 83
KB Homes 171 Colorado & Santa Fe Real Estate 73
Shea Homes 145 KB Homes 55
Lennar Homes 134 Oakwood Homes 46
Standard Pacific Homes 121 Engle Homes 42
Ryland Homes 97 Pulte / Del Webb / Centex* 35
Beazer Homes 96 Shea Homes 34
Engle Homes 90 Lennar Homes 32
Centex Homes 83 Century Communities 31
www.TheGenesisGroup.net Page 22

23. Who Will Be Left Standing by Year End?
Richmond American Homes
D.R. Horton Homes
Colorado & Santa Fe Real Estate
KB Homes
Oakwood Homes
Nichols Partnership
Pulte/Centex
Shea Homes
Lennar Homes
Century Communities
www.TheGenesisGroup.net Page 23

24. The Genesis Perspective
The Geography of
The Market
Timing the Rebound
www.TheGenesisGroup.net Page 24

25. Boulder/Longmont
t
Metro Denver by Geography
5% capture
1Q 2009 sales: 50 m
on
ng a
New Home Sales Activity
Lo Are
Sales down -49% r/
de et 1Q 2008 vs. 1Q 2009
ul ark
Bo M
North
5 Miles
Overall Metro Denver Sales Activity
1Q 2008 – 1,744
Northwest 1Q 2009 – 965
Market Area Percent Change (-44.7%)
Northeast
Northwest Mkt Area Market Area
13% capture
1Q 2009 sales: 122 Northeast Mkt Area
Sales down -44% 19% capture
1Q 2009 sales: 179
Sales down -46%
Jefferson
Jefferson Mkt Area Market Area
8% capture
1Q 2009 sales: 74 Denver
Sales Down -49% Market Area
Arapahoe Mkt Area
25% capture
Arapahoe 1Q 2009 sales: 236
Market Area Sales down -20%
Denver Mkt Area
9% capture
1Q 2009 sales: 85
Douglas County
Sales down -69% Market Area
Douglas Mkt Area
Douglas 23% capture
Market Area 1Q 2009 sales: 219
Sales down -42%

26. ARAPAHOE – Two Distinct Markets
New Housing Market
• New vs. Resale ratio: 1 in 8
• SFA sales up 20%; Affordable at $231k with 36% price drop
• SFD prices down 10% to $311k (lowest of all mkt areas
except NE) – VALUE IS SELLING
Resale Market
• SFD closings down 17% - but a Low 4.0 mo’s supply
• Detached prices down 10%; Arap & NE most affordable
• SFA very affordable at $113k with low 4.6 mo’s supply
Eastern region faces high level of distress & remaining build-
out…prices falling dramatically. Rebound Late.
Central region is healthier, but limited product diversification.
Rebound Early.

27. DOUGLAS – Move-up SFD Woes
New Housing Market
• New vs. Resale ratio: 1 in 4
• SFD hit hard – down 52%...low supply
• SFA - lowest month’s supply at 5.7 mo’s
• Base prices for SFD & SFA holding steady
Resale Market
• SFD down 29% - One of hardest hit in metro area
• Supply increases to a high 7.7 mo’s SFD
• Least price discounting of all market areas (-4% – 5%)
Last to fall…Move-up SFD paralysis is stifling. Less
foreclosure pressures will help this area Rebound Early.
www.TheGenesisGroup.net Page 27

28. NORTHEAST – Big Corrections
New Housing Market
• SFD sales drop dramatically (down 55%)
• Most affordable new homes offered in metro Denver region
• Month’s supply also low (SFA 6.8 mo’s & SFD 3.4 mo’s)
• Remaining lot build-out highest in city
Resale Market
• Closings down but LEAST decline of all market areas
• Supply drops significantly (SFD lowest supply at 3.0 mo’s)
• Significant price decreases stimulating sales.
• Lowest $ Housing in Metro Area - SFD @ $148,000.
Biggest surprise in the metro region. Low supplies are
promising, but remaining build-out is highest in the city.
Foreclosure activity will suppress recovery. Demand will remain
weak long after rebound begins. Will Rebound Late.

29. NORTHWEST – Little Competition
New Housing Market
• New vs. Resale ratio: 1 to 7
• SFD supplies are low. Remaining build-out concentrated
(Anthem)
• Lower priced SFD projects out-performing higher priced
opportunities
• Immature SFA market - vulnerable w/ high inventory levels
Resale Market
• While closings are down, supply levels are low
• Foreclosures in check
Low remaining build-out, little price depreciation and low
supplies levels make this an Early Rebound Area.
www.TheGenesisGroup.net Page 29

30. DENVER – SFA is Struggling
New Housing Market
• New vs. Resale ratio: 1 in 19
• Overall sales down 69% to just 85 units in 1Q09
• SFD healthiest market in city. Low supplies/High $’s
• SFA mo’s supply extraordinarily high (48 mo’s)
Resale Market
• Foreclosure pressure is high in SFA.
• Look for further price erosion (down 20%) in SFA to
reduce inventory.
Healthy SFD markets points to opportunity today. SFA has
had a dramatic reversal of fortune. Target markets have
retreated and bloated inventory point to slow recovery.
SFD is today opportunity; SFA Will Rebound Late.
www.TheGenesisGroup.net Page 30

31. JEFFERSON – Non-starter
New Housing Market
• New vs. Resale ratio: 1 to 17
• SFD sales down significantly, but $’s holding
• Month’s supply levels remain comparatively high at 5.2
(SFD) and 13 mo’s (SFA)
Resale Market
• SFD closings & prices erode while mo’s supply levels up
• SFA holding steady with pricing & mo’s supply
Limited pipeline and land availability make this area different
from the rest of the region. Can’t ignore price elasticity…but
opportunities for SFD exist now. Will rebound early.
www.TheGenesisGroup.net Page 31

32. BOULDER / LONGMONT
New Housing Market
• SFD prices UP 11%!
• Sales volume down 40% and mo’s supply higher than
metro averages. Glut of high priced housing.
• Proves that affordability…even in under-supplied markets
is critical.
Resale Market
• Like Douglas it looks worse statistically because it was the
last to fall. Sales down 37%, inventory built up.
Prolonged recession is taking its toll on this historically immune
market. Longmont has been hit particularly hard and is
responsible for weak numbers. Rebound early in most areas
www.TheGenesisGroup.net Page 32

33. Recognizing the Bottom
Foreclosures Improving
Interest Rates Low
Supply Conditions Improving
Apartment Market
Stability in Home Prices
Job Losses & Rising Unemployment
New Home Sales At Record Lows
Consumer Confidence At Record Lows
www.TheGenesisGroup.net Page 33

34. Leading Indicators for 2009 Forecast
2009 Job Negative Job Growth
Impact of Distressed Properties
New Home Building Environment
fewer players…fewer replacement projects
access to credit
limited inventory restricted start paces
Bottom line: Demand for housing will remain largely
unchanged…new housing will continue to erode
www.TheGenesisGroup.net Page 34