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Washington, D.C. Metro Area – October 2014 Housing Market Update

Prices reach highest October-level since 2005 New contracts only two percent off last year’s mark

Rockville, MD – (November 10, 2014) – The following analysis of the Washington, D.C. Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI) and the GMU Center for Regional Analysis and is based on October 2014 MRIS housing data.

OVERVIEW The housing market trends in October in the Washington DC Metro Area were little changed from prior months. The number of closed sales in the region fell 2.8 percent from the October 2013 level, but the decline was driven entirely by a decrease in distressed property sales. Sales of distressed properties (foreclosures and short sales) have been decreasing since mid-2010 and declined 21.5 percent between October 2013 and October 2014. Non-distressed sales in October were actually unchanged from last year. New pending contracts also saw an overall decrease, but as with closed sales, the decline was largely the result of fewer contracts for distressed properties. New contracts for distressed properties were 16.2 percent below the October 2013 level, while those for non-distressed homes increased by 1.4 percent. The median sales price for the region increased 5.3 percent from October 2013 with gains in every jurisdiction. Active listings continue to rise but are only 46.0 percent of their peak-level of 2007. The median days-on-market increased, marking the ninth month of year-over-year increases. But homes continue to sell more quickly than the five-year and 10-year October averages.

RBI Key Housing Trend Metrics [Washington, DC Metro Area]

All Residential Oct-14 % M-O-

M Sep-14 % Y-O-

Y Oct-13 % Y-O-5YAvg 5 Yr Avg

Units Sold (Closed) 3,784 6.0% 3,569 -2.8% 3,892 12.4% 3,366

Median Sales Price (Closed) $400,000 2.6% $390,000 5.3% $380,000 11.0% $360,505

Pending Sales (New) 4,446 4.6% 4,251 -2.0% 4,535 4.2% 4,265

Active Listings 11,919 -2.0% 12,164 28.8% 9,254 -1.5% 12,104

New Listings 5,818 -12.7% 6,667 6.4% 5,470 11.3% 5,228

Median DOM (Closed) 24 -7.7% 26 50.0% 16 -16.0% 29

Listing Discount (Average) 3.0% 2.8% 2.3% 4.4%

Avg SP to OLP Ratio 97.0% 97.2% 97.7% 95.6% ©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/2014

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PRICES Price gains in all jurisdictions; highest October-level regional median sales price in nine years. At $400,000, the median sales price for the region rose 5.3 percent, or by $20,000, from last October. This is the highest October-level since 2005 and the highest year-over-year percent increase in eight months. The median sales price for single-family detached homes increased 5.1 percent, or by $23,520, from last year to $480,000. Condo properties had a median sales price that was 2.9 percent, or $8,500, higher than last year. The median sales price for townhomes increased 2.1 percent, or by $8,000. Every jurisdiction in the region had an increase in its median sales price as compared to last year. Of the jurisdictions, Fairfax City had the highest growth in in median sale price and rose 14.0 percent. But with 14 closed sales in October, the city’s median sales price is sensitive to changes in the composition of the sales. The median sales price for Prince George’s County increased 13.0 percent from October 2013. The County has now had 32 consecutive year-over-year increases in median sales price and reached the highest October-level since 2008. While its year-to-date median sales price of $220,000 than the regional level, Prince George’s County has seen the highest appreciation compared to last year (+12.8 percent). Alexandria is the only jurisdiction with a lower year-to-date median sales price than 2013, with a modest 2.1 percent decrease.

Median Sales Price by Jurisdiction [Washington, DC Metro Area]

October Year to Date

2014 2013 YoY 2014 2013 YoY

DC Metro $400,000 $380,000 +5.3% $406,000 $400,000 +1.5%

Falls Church City $615,000 $590,000 +4.2% $700,000 $634,750 +10.3%

Arlington $536,000 $527,500 +1.6% $530,000 $525,000 +1.0%

Washington, DC $500,000 $455,000 +9.9% $499,000 $475,000 +5.1%

Alexandria City $497,500 $462,575 +7.6% $475,000 $485,000 -2.1%

Fairfax $450,000 $440,000 +2.3% $460,000 $457,000 +0.7%

Fairfax City $473,250 $415,000 +14.0% $475,000 $436,750 +8.8%

Montgomery $387,310 $379,000 +2.2% $400,000 $400,000 0.0%

Prince George's $235,000 $208,000 +13.0% $220,000 $195,000 +12.8%

October Year to Date

Adjacent Counties* 2014 2013 YoY 2014 2013 YoY

Loudoun $419,990 $399,000 +5.3% $432,000 $417,000 +3.6%

Howard $370,000 $375,000 -1.3% $388,950 $387,000 +0.5%

Anne Arundel $310,750 $299,550 +3.7% $314,000 $309,900 +1.3%

Prince William $309,500 $299,000 +3.5% $315,266 $309,000 +2.0%

Frederick, MD $261,500 $259,200 +0.9% $268,000 $269,900 -0.7% *Adjacent county sales are not included in the DC Metro aggregate stats

©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/2014

CLOSED SALES Continued year-over-year declines; stronger than average month-over-month growth. In October, closed sales in the DC Metro area decreased 2.8 percent, or by 108 sales, from last year to 3,784 sales. This is the tenth month in a row of year-over-year declines, but closed sales were higher than in October of 2010, 2011 and 2012. Closed sales of condo properties increased by a modest 0.7 percent from this time last year, the only property

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segment with sales gains. The number of closed sales of single-family detached homes decreased 3.4 percent. Townhomes had the sharpest decrease in closed sales, falling 5.5 percent from the October 2013 level. As compared to last month, the number of sales increased 6.0 percent, bucking the seasonal pattern typically seen between September and October, when closed sales usually begin to slow. The 10-year average September to October change is -2.4 percent. The 3,387 non-distressed sales was exactly the same as the number sold in October 2013, while distressed sales dropped 21.5 percent, due entirely to continued double-digit decreases in short sales. Foreclosures actually saw a modest 2.1 percent gain with 193 closed sales, but the 204 closed short sales were 35.6 percent below the October 2013 level. Distressed sales accounted for 10.5 percent of all sales, down from a 13.0 percent share in October 2013.

NEW CONTRACTS 11th month in a row of year-over-year declines; growth in non-distressed contract activity. There were 4,446 new contracts signed in October, which is 2.0 percent fewer than last year. New contracts have been below their prior year level for 11 consecutive months. Among the property segments, the number of new contracts for condo properties had the steepest decline, dropping 3.4 percent from October 2013. New contracts for townhomes decreased 2.4 percent while those for single-family detached homes decreased 1.0 percent. Compared to September, new contracts increased 4.6 percent, which is in line with the ten-year average September to October increase of 4.3 percent. The 3,711 new contracts signed for non-distressed properties were 1.4 percent more than the number signed in October 2013, the second month in a row with gains. New contracts for foreclosures had the largest increase, rising 24.7 percent and accounting for 7.0 percent of new contracts compared to 5.5 percent in October 2013. New short sale contracts were down more than 20 percent for the 23rd consecutive month, dropping 32.6 percent and the main driver in the 16.2 percent dip for the distressed category.

©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/2014

The rate at which contracts for short sales “fall through” continues to keep a lid on their proportion of closed sales. Though they account for more than one in four listings currently under contract (ignoring the actual

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month in which the contracts were signed), short sale contracts have an average fallout rate of 58 percent this year. The average time under contract for those short sales that actually closed in October is 150 days, compared to 38 days for non-distressed sales and 50 days for foreclosures. Thus, whether the number of new short sale contracts had been up or down in October (or August or September for that matter), it is of minimal consequence to the sales trends to be reported in the months ahead.

INVENTORY 13th consecutive month of year-over-year inventory gains; region remains a seller’s market. New listings increased 6.4 percent from last year and the consistent gains in new seller activity continue to bolster available inventory. This is the eighth consecutive month of year-over-year gains in new sellers entering the market, and the highest October-total in five years. New listings of townhomes increased 8.4 percent compared to last October, leading all property segments in year-over-year growth. New listings for single-family detached homes increased 8.0 percent and new listings for condo properties increased 1.7 percent. There were 11,919 active listings at month’s end, 28.8 percent more than in October 2013. Active listings have now increased from the prior year for 13 months in a row. Of the property segments, active listings for townhomes had the largest growth from last year, rising 34.8 percent. Active condo inventory is 27.6 percent higher and there are 27.3 percent more single-family detached listings than October 2013. While inventory has grown considerably over the course of 2014 and now stands at the highest October-level since the 13,953 listings in October 2011, it remains 14.6 percent below that previous mark. More importantly, the steady improvement in the “health” of the market is obvious when contrasting the distressed composition of active inventory now versus the same point three years ago. Only one out of ten current listings (10.9 percent) is a distressed property, while one out of four listings (25.5 percent) in October 2011 was a short sale or foreclosure.

©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/2014

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Though the number of current listings represents 3.2 months of supply, based on the recent 12-month sales pace, and this is more balanced than the 2.4-month level in October 2013, the region remains a seller’s market. The median days-on-market is now 24. While this is eight days more than in October 2013, it is shorter than the 10-year average October-level of 37 days. Typical seasonal patterns suggest homes will take longer to sell in the winter months ahead, but supply is sufficiently tight in the DC Metro area for listings to continue seeing contracts more quickly than other markets in the country. About the RBI Metro Housing Market Update The DC Metro Area Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI’s proprietary database. The bulk of this report’s content is readily available, down to the subdivision level, via interactive charts and reports offered via SmartCharts Pro, a premium service offered to real estate professionals interested in growing their business with the help of industry-leading analytics. The DC Metro Area housing market includes: Washington, D.C., Montgomery County and Prince George’s County in Maryland, and Alexandria City, Arlington County, Fairfax County, Fairfax City, and Falls Church City in Virginia. About RealEstate Business Intelligence, LLC RealEstate Business Intelligence, LLC (RBI) is a primary source of real estate data, analytics and business intelligence for real estate professionals with business interests in the Mid-Atlantic region. The full monthly data report for all jurisdictions in the MRIS region, along with interactive charts and graphics, can be found at www.getsmartcharts.com. About the Center for Regional Analysis at George Mason University The Center for Regional Analysis conducts research and analytical studies on economic, fiscal, demographic, housing, and social and policy issues related to the current and future growth of the Virginia, Maryland, and DC areas. Through its range of research and programs — major economic impact studies, economic forecasts, fiscal analyses, conferences and seminars, publications, information services, and data products — the Center’s activities strengthen decision-making by businesses, governments, and institutions throughout the Greater Washington region. Visit http://cra.gmu.edu to learn more.

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Media Contact Gina Zuk, Abel Communications 443-604-5203 gina@abelcommunications.com

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Baltimore, MD Metro Area – October 2014 Housing Market Update

New contract activity hits highest October-level in nine years REO listings and sales growth continues

Rockville, MD – (November 10, 2014) – The following analysis of the Baltimore, MD Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI) and GMU Center for Regional Analysis, and is based on October 2014 MRIS housing data.

OVERVIEW The Baltimore Metro Area housing market had its highest year-over-year increase in closed sales since last fall, increasing 13.1 percent. Every jurisdiction in the region had more closed sales than in last October, with the largest increases in Baltimore City (+21.2 percent) and Carroll County (+21.1 percent). New pending contracts for the region also increased from last year, rising 16.6 percent. Bank-owned (REO) properties played a role in this growth as new contracts for REO listings more than doubled compared to last October. The median sales price for the region was virtually unchanged, rising only 0.3 percent, though pricing for non-distressed properties rose 4.3 percent. The number of active listings increased 20.9 percent, bringing inventory to 70.8 percent of its peak-level. New listings contributed to these gains, rising 11.7 percent from last year.

RBI Key Housing Trend Metrics [Baltimore, MD Metro Area]

All Residential Oct-14 % M-O-

M Sep-14 % Y-O-

Y Oct-13 % Y-O-5YAvg 5 Yr Avg

Units Sold (Closed) 2,562 1.9% 2,514 13.1% 2,266 27.8% 2,005

Median Sales Price (Closed) $239,000 -2.3% $244,700 0.3% $238,250 2.6% $232,930

Pending Sales (New) 3,113 10.8% 2,810 16.6% 2,670 25.2% 2,487

Active Listings 14,293 -1.2% 14,460 20.9% 11,825 0.4% 14,229

New Listings 4,526 -3.5% 4,692 11.7% 4,052 20.4% 3,759

Median DOM (Closed) 50 13.6% 44 28.2% 39 -13.4% 58

Listing Discount (Average) 7.0% 6.4% 6.2% 8.5%

Avg SP to OLP Ratio 93.0% 93.7% 93.8% 91.5% ©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/14

CLOSED SALES Double-digit growth in closed sales; highest October-level in eight years. In October, the number of closed sales increased 13.1 percent, or by 296 sales, to 2,562 sales. This is the third month of year-over-year gains and the highest October-total since 2006. All property segments had more sales than in last year. Single-family detached home sales had the highest growth, rising by 19.5 percent, or by 230 sales, from last October. Closed

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sales for townhomes increased 6.3 percent, or by 51 sales, from last year. The number of sales of condo properties increased 5.4 percent or by 15 sales. As compared to last month, the number of sales increased 1.9 percent, which is a stronger increase than is typically seen between September and October, when closed sales usually begin to slow. The 10-year average September to October change is -6.0 percent. Bank-owned (REO) sales have continued to increase in the Baltimore Metro area compared to 2013. The 434 REO sales in October represented a 73.6 percent increase compared to last year. The share of October sales that were REO was 16.9 percent, representing the highest proportion since March 2011. While Baltimore City’s 578 closed sales made up only 23 percent of all sales in the region, its 173 REO sales accounted for 40 percent of the region’s 434 REO sales. Within Baltimore City, 29.9 percent of October sales were REO, likely the primary reason why the median sales price for the city was 13.2 percent lower than October 2013, when REO properties made up only 20 percent of sales.

©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/2014

PRICES Prices flat overall; non-distressed sales prices up 4.3 percent. At $239,000, the median sales price for the region increased 0.3 percent, or by $750, from last year. The increased proportion of REO sales influenced the flat price movement, as the median sales price for REO properties was only $87,500. The median sales price for non-distressed properties actually climbed 4.3 percent year-over-year to $273,250. The median sales price for townhomes decreased 3.5 percent to $167,950 and had the sharpest decline. At $298,000, the median sales price for single-family detached homes decreased 2.6 percent, or by $8,000. The median sales price for condo properties decreased 0.5 percent, or by $1,050, from last October. Of the jurisdictions in the region, Baltimore County had the highest median sales price growth and increased 7.6 percent from last year. The median sales price increased in Carroll County (+7.5 percent) and Howard County (+5.7 percent) from October 2013 and were the only other jurisdictions that had gains. The year-to-date median sales price for the region of $242,906 is virtually unchanged from the same period last year. The year-to-date median sales price for non-distressed listings of $275,000 is 1.9% higher than the $270,000 for non-distressed sales.

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Median Sales Price by Jurisdiction [Baltimore, MD Metro Area]

October Year to Date

2014 2013 YoY 2014 2013 YoY

Baltimore Metro $239,000 $238,250 +0.3% $242,906 $243,000 -0.0%

Howard County $400,000 $378,350 +5.7% $388,950 $387,000 +0.5%

Anne Arundel County $295,000 $316,450 -6.8% $314,000 $309,900 +1.3%

Carroll County $285,000 $265,000 +7.5% $282,500 $280,000 +0.9%

Harford County $225,000 $231,250 -2.7% $232,000 $234,000 -0.9%

Baltimore County $212,000 $197,000 +7.6% $215,000 $210,000 +2.4%

Baltimore City $99,825 $115,000 -13.2% $120,000 $126,400 -5.1% ©2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 11/5/2014

NEW CONTRACTS Fifth straight month of year-over-year gains; highest October-level since 2005. There were 3,113 new contracts signed in October, which is an increase of 16.6 percent, or 443 contracts, from last year. This is the highest year-over-year growth since mid-2013 and the highest October-total in nine years. New contracts for non-distressed properties were up 10.9 percent versus October 2013. New contracts for REO properties more than doubled, jumping from 283 in October 2013 to 615 this October. Their percentage of all contracts increased from 10.6 percent to 19.8 percent. Townhomes led the property segments in growth, rising 19.9 percent, or by 189 contracts, from last year. New contracts for single-family detached homes increased 15.1 percent, or by 216 contracts, from last October, while those for condo properties increased 12.9 percent, or by 38 contracts. As compared to last month, new contracts increased 10.8 percent which is a sharper increase than the ten-year average September to October change of 3.1 percent.

INVENTORY Highest October-level of active listings since 2011; double-digit increases in new listings for all segments. The number of active listings increased 20.9 percent, or by 2,468 listings, from last year to 14,293 listings. This is the 13th consecutive month of year-over-year increases with double-digit gains for the past eight months. Inventory reached its highest October-total in three years and 70.8 percent of its 2008 peak. Among the property segments, active listings of single-family detached homes continue to have the highest year-over-year growth. In October, inventory of single-family detached homes increased 22.2 percent, or by 1,531 listings, from last year. Inventory of condo properties increased 21.3 percent, or by 227 listings, from last year and inventory of townhomes increased 18.3 percent or by 710 listings. New listings also had a double-digit increase, rising 11.7 percent, or by 474 listings, from last year for a total of 4,526 listings. New listings have now increased from the prior year for 19 consecutive months and reached their highest October-total since 2007. Condos led all property segments in growth, rising 20.2 percent, or by 74 listings, from last October. New listings for townhomes increased 10.9 percent, or by 166 listings, from last year. Those for single-family detached homes increased 10.8 percent, or by 235 listings, as compared to last year. The median days-on-market is 50 days. While this is 11 days more than last year, homes are selling more quickly than the 10-year average October-level of 57 days.

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### About the RBI Metro Housing Market Update The Baltimore Metro Area Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI’s proprietary database. The bulk of this report’s content is readily available, down to the ZIP code level of granularity, via interactive charts and reports offered via rbiEXPERT, a premium subscription service offered to real estate professionals interested in growing their business with the help of industry-leading and user-friendly analytics. The Baltimore Metro Area housing market includes the City of Baltimore, Anne Arundel County, Baltimore County, Carroll County, Harford County and Howard County in Maryland. About RealEstate Business Intelligence, LLC RealEstate Business Intelligence, LLC (RBI) is a primary source of real estate data, analytics and business intelligence for real estate professionals with business interests in the Mid-Atlantic region. The full monthly data report for all jurisdictions in the MRIS region, along with interactive charts and graphics, can be found at www.rbintel.com/statistics. RBI is the only company in the Mid-Atlantic region that provides timely, online access to statistical information directly from the MRIS Multiple Listing Service (MLS). Visit rbintel.com or www.facebook.com/rbintel to learn more. About the Center for Regional Analysis at George Mason University The Center for Regional Analysis conducts research and analytical studies on economic, fiscal, demographic, housing, and social and policy issues related to the current and future growth of the Virginia, Maryland, and DC areas. Through its range of research and programs — major economic impact studies, economic forecasts, fiscal analyses, conferences and seminars, publications, information services, and data products — the Center’s activities strengthen decision-making by businesses, governments, and institutions throughout the Greater Washington region. Visit http://cra.gmu.edu to learn more.

### Media Contact Debbie Freer, MRIS Communications 301-838-4638 debbie.freer@mris.net

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