Monthly Monitor Report Pierce County, WA June 2012

“Your Source for New Construction Real Estate Information” Serving Puget Sound, Portland Metro, Salem, Spokane and Boise

4314 148th Street Southeast, Bothell, Washington 98012 425-742-8040 www.NewHomeTrends.com Pierce County, WA New Home Trends Inc. 5/11/2012 Monthly Monitor Pierce County, WA

New Construction - Single-Family Residential Real Estate

Unsold Available Spec Homes Remaining Months of Unsold Spec Inventory (based on 12 mos sales) 500 5 449 418 4.6 377 3.9 346 4 3.6 3.2 3 250 2

0 0 May-2011 Mar-2012 Apr-2012 May-2012 May-2011 Mar-2012 Apr-2012 May-2012

% of Change from Last Year -16.0% % of Change from Last Year -21.3%

New Home Sales Written by Year New Home Sales Written by Month 2,000 150 140 137 129

1,449 111 1,261 1,167 1,182 100 1,000

0 May 2007 - Apr May 2009 - Apr May 2010 - Apr May 2011 - Apr 0 2008 2010 2011 2012 Apr-2011 Feb-2012 Mar-2012 Apr-2012

% of Change from Last Year 6.7% % of Change from Last Year -7.9%

Median New Home Sales Price by Year Median New Home Sales Price by Month $300,000 $289,970 $300,000

$253,021 $254,970 $249,845 $239,950 $241,950 $243,475 $233,075

$200,000 May 2007 - Apr May 2009 - Apr May 2010 - Apr May 2011 - Apr $200,000 2008 2010 2011 2012 Apr-2011 Feb-2012 Mar-2012 Apr-2012

% of Change from Last Year 0.8% % of Change from Last Year 9.4%

New Construction - Single-Family Residential Real Estate

# of New Lots Applied for and # of New Lots Recorded (Detached Single Family Product) 125 105 New Lots Applied For New Lots Recorded 100

# of Lots # of 50 31 25 11 14 000 0 0 Apr-2011 Feb-2012 Mar-2012 Apr-2012

New Lots Applied for % of Change from Last Year 0.0% New Lots Recorded % of Change from Last Year -54.8%

Resale - Single Family Residential Real Estate

Resale Sales Resale Sales Median Sale Price 1,000 $178,925 $200,000 $195,500 $172,750 $195,000 Median Sales Price

755 752 697 600 500 $100,000 Resale Sales Resale

0 $0 Apr-2011 Feb-2012 Mar-2012 Apr-2012

Resale Sales % of Change from Last Year -7.7% Median Price Resale Sales % of Change from Last Year -0.3%

Single Family Building Permits Issued

Building Permits Issued by Year Building Permits Issued by Month 2,000 250 1,706

1,495 200 194 1,245 155 150 1,000 117 121 583 100

0 0 2009 2010 2,011 2012 (Jan. - Apr-2011 Feb-2012 Mar-2012 Apr-2012 Apr.) % of Change from Last Year 32.5%

Employment & Foreclosures

Unemployment Rate Change from Apr-11 Dec-11 Mar-12 Apr-12 last year Pierce 9.8 9.1 9.8 9.0 -0.8

Employment Change from Apr-11 Dec-11 Mar-12 Apr-12 last year Pierce 353,700 360,070 359,140 359,020 5,320 Change -930 -120

Foreclosures (Properties with Forclosure Filings) Change from Apr-11 Dec-11 Mar-12 Apr-12 last year Pierce 748 365 448 264 -65% Change 23% -41%

Employment by Industry

Tacoma MSA % of Industry Apr-11 Apr-12 Change Goods Producing 32,500 33,400 10% Service Providing 229,300 235,400 7% Mining, Logging, and Construction 300 300 2% Construction 16,100 16,500 5% Manufacturing 16,100 16,600 7% Trade, Transportation, and Utilities 52,300 55,600 1% Wholesale Trade 11,000 11,100 -1% Retail Trade 30,600 32,400 4% Transportation, Warehousing, and Utilities 10,700 12,100 6% Information 2,900 2,700 - Financial Activities 11,800 11,100 2% Professional and Business Services 23,300 23,500 9% Educational and Health Services 43,600 44,700 -1% Leisure and Hospitality 24,300 27,900 1% Other Services 12,200 13,000 1% Government 58,900 56,900 0% Source: Washington State Employment Security Department

Out of State Drivers Licenses Surrendered By County, By State of Origin: May 2011 - Apr 2012

Pierce County FROM / TO Total Rank CALIFORNIA 9,893 1 TEXAS 3,300 2 OREGON 3,092 3 ARIZONA 2,203 4 FLORIDA 2,193 5 NEW YORK 1,775 6 ILLINOIS 1,646 7 COLORADO 1,621 8 MICHIGAN 1,347 9 NORTH CAROLINA 1,269 10 GEORGIA 1,172 11 NEVADA 1,117 12 KOREA 1,111 13 VIRGINIA 1,088 14 UTAH 1,010 15 IDAHO 975 16 PENNSYLVANIA 925 17 MINNESOTA 889 18 HAWAII 879 19 MASSACHUSETTS 848 20

Detached Single Family New Home Closed Sales - US and Pierce County, WA

Detached Single Family New Home Closed Sales by Month 120,000 400

US - Pierce Sales Closed Home New 100,000 Pierce County 300 80,000 County

60,000 200

40,000 100

New Home Closed Sales - US 20,000

0 0 1-2006 7-2006 1-2007 7-2007 1-2008 7-2008 1-2009 7-2009 1-2010 7-2010 1-2011 7-2011 1-2012 Month - Year

US Source: US Census, Pierce County Source: New Home Trends

Detached Single Family Building Permits Issued - US and Pierce County, WA

Detached Single Family Building Permits Issued by Month 150,000 600

US Building Permits - Pierce County Pierce County

100,000 400

50,000 200 Building Permits - US

0 0 1-2006 7-2006 1-2007 7-2007 1-2008 7-2008 1-2009 7-2009 1-2010 7-2010 1-2011 7-2011 1-2012 Month - Year

Data Sources:

New Construction - New Home Trends Inc. Foreclosures: realtytrac.com Resale & Bank/REO - NWMLS Building Permits: U.S. Census Bureau Employment: Washington State Employment Security Department

Company Profile

Data and Research - “Informed Choices - Not Chances”

If you are part of – or affected by – the residential real estate industry, NewHomeTrends will provide a competitive advantage to help you stay ahead of the market.

NewHomeTrends’ combination of expertise, experience and knowledge can help you gain confidence with virtually any development, building, or sales and marketing situation. Our team approach taps the talents of builders, developers, government officials, sales and marketing professionals, and financial institutions to give you a complete picture of the market.

It starts with an extensive database that is updated daily. NewHomeTrends tracks almost all data related to the residential building industry, including plat submittals/approvals, construction start dates, lot sizes, square footages, selling prices, amenities, sales and closings.

We gather this information the old-fashioned way; by personal, face-to-face contact with builders, realtors, and city and county officials. We have the “feet on the street” to search through jurisdiction records, visit sites, track published information, and conduct focus groups and other surveys.

By utilizing our website, you can access the most current information available regarding new residential construction 24/7. Our database is more comprehensive than ever, offering:

• Detailed information on residential new housing construction

• Complete tracking for each community from plat submittal to final closing

• Continual updates for active communities

• A comprehensive selection of reports for your business solutions. Consulting and Custom Reporting – “If you don’t know, don’t build!”

Data itself is not knowledge. Knowledge comes from interpreting data and understanding how it might impact the real estate industry. Our experience, vision, and understanding of the marketplace allow us to provide both quantitative and qualitative reports and make realistic recommendations to our clients for successful projects.

We tell our clients what they need to hear, even if it isn’t what they want to hear. While this may not make us the most popular folks at the table, it certainly makes us among the most valuable.

NewHomeTrends Consulting Services

Market • Trend tracking Land • Lot sizing Research • Absorption studies Planning • Lot evaluation • Market intelligence Assistance • Market segmentation • Market opportunity • Phasing analysis • Street layout • Pricing strategies • Entrance • Feasibility analysis • Footprint–Placement • Master plan strategies • Amenities • Land acquisition • Buyer identification consultation • Absorption projection • Buyer identification • Demographics

Master • Market segmentation Consumer • Exit surveys Planned • Competitive analysis Attitude • Post closing surveys Communities • Phasing Surveys • Focus groups • Amenities research • New product acceptance • Absorption projection • New home owner analysis prospective buyers • Team participation Product • Site evaluation Development • Product evaluation Analysis • Marketing evaluation Feasibility • Upside issues • Hourly consulting Studies • Downside issues • Market niche targeting Marketing • Specifications • Identification of buyer • Pricing strategy & phasing trends • Positioning, theme & image • Sales office

New Home Trends • Team players Is Committed • Extensive database To Providing • Flexibility The Best • Market knowledge

Information you can build on! New Home Trends Clients

We are pleased to have served large and small builders, major developers of master-planned communities, financial institutions, and others involved in the residential building industry. Some of the companies that have relied on us are:

Developers Redevelopment Projects Sales and Marketing Companies Aoki Corporation High Point Windermere–Ryness Finkbeiner Development New Holly Team Builder–John L. Scott Intracorp Othello Station Williams Marketing Jaquith Development Rainier Vista Miller Condominium Marketing Jenamar Westpark Windermere On-Site Marathon Development Mt. Vernon Associates Builders Public Offices, Financial Newland Communities Arbor Homes Institutions and Others Northwest Commercial Bennett Homes Bank of America Novastar Enterprises, Inc. John F. Buchan Homes City of Mercer Island Olympic Resources Wm. Buchan Homes City of Renton Olympic Property Group Burnstead Construction City of Tacoma Pacific Land Management Brownstone Homes City of Kent Pope Resources Carino Homes City of Everett Port Blakely Communities CamWest Development, Inc. City of Seattle Quadrant Land Centex Seattle EDC Star Development Conner Development Cohen Financial Triad Crest Builders Homestreet Bank Tucci & Sons Dally Development Resmark Ueki America Corporation Fortune Development Carlyle Group Weyerhaeuser Real Estate Co. Capstone Homes, Inc. Price Waterhouse Henderson Homes Renton School District Master Planned Communities Intracorp Threshold Housing Cascadia J. Scott Development Master Builders Assoc. of Pierce Harbor Ridge Jefferson Homes County Northwest Landing Lexington Fine Homes Master Builders Assoc. of King & Sunrise Lozier Homes Snohomish Counties Lakeland Lyle Homes Security Capital Pacific Trust Blakely Ridge McCaugherty Companies Hearthstone Advisors Klahanie Newhall Jones, Inc. Heartland Northridge Pan-Terra Homes Schnitzer Snoqualmie Ridge Quadrant Homes Seattle First National Bank Glen Eagle Shea Homes Bremerton Housing Authority Harbour Pointe Stafford Homes Seattle Housing Authority Port Ludlow Lancaster Homes King County Housing Authority McCormick Woods Wallace Properties Meridian Campus Willamette Builders Group Architectural Firms Thurston Highlands Triad Mithun Overlake in Utah Rice Fergus Miller Briggs Village GGLO Issaquah Highlands The Lakes at Black Diamond East Village Port Gamble Villbois