Market Condition Report

Victor Valley Area June 2010

These comments are designed to accompany the Market Condition Report attached to this document. The report is sorted on Market Speed. The area at the top of the report is most favored by buyers when considering demand, supply, and time.

THE BIG PICTURE

OVERVIEW: Little change in market fundamentals and key measures from last month. Closing price posted a decline. This is unusual. Other areas surveyed indicate a rather firm market bottom in terms of price has been achieved. Continued price weakness in the Victor Valley area somewhat at odds with this trend.

ON MARKET (SUPPLY): About 100 unit increase over last month. This level of supply should be considered very tight, especially REO supply that dominates the current demand schedule.

CLOSED MONTH (DEMAND): Very slight increase from last month.

FAIL MONTH: Moderate decline. Failures are at a low level and are dominated by non-REO and higher priced point properties.

IN ESCROW : Declined marginally, signaling closings will tend to stabilize.

DOM: No significant change. Remaining stable in the current rang.

PERCENT SELLING: Relatively unchanged (up 4 percentage point).

MONTHS SUPPLY: Little changed and tight. This implies that supply/demand realities are remaining the same.

MARKET SPEED (ABSORB RATE): Market Speed (80) up from previous month, but not significant.

PRICES: See the schedule of median price for the last several months (Market History By Type Graph). Notice that median price is beginning to firm and is moving in a positive direction. The price schedule appears a bit unstable and tending to the weak side.

COMMENT:Notice there is some sales and escrow activity in the upper price ranges (Market Activity by Price Class Table). While this is favorable, it is too early to tell if it is a trend likely to continue.

MCR TIP: Months supply is a key indicator. It is the division of supply by demand. In Mid 2007, Months Supply in Victor Valley reached 25 months and median price was in a free fall..



Market Condition Report provided by Escrow Junction