Adam Brett - Eric Urban

market update
BREA

Current prices for homes on the market

Trends in pricing
Current levels of supply and demand
Value metrics

Report for the week of

Sunday September 19, 2010

Presented by Adam Brett - Eric Urban

714.496.8116 - 714.749.7427
RE/MAX
www.HomeSoldTeam.com

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www.altosresearch.com
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City Overview BREA

Real-Time Market Profile Trend THIS WEEK
Median List Price $ 495,000 The median single family home price
Average List Price $ 541,165 in BREA this week is $495,000. The 166
Least Expensive Listing $ 245,000 homes have been on the market for
Most Expensive Listing $ 1,595,000 an average of 122 days.
Asking Price per Square Foot $ 259
Average Days on Market 122
Total Inventory 166
Absorbed This Week* 6
Percent of Properties with Price Decrease 39 %
Percent Relisted (reset DOM) 4%
Percent Flip (price increased) 10 %
Median House Size (sq ft) 1,998 Inventory and days-on-market are
Median Lot Size Less than 4,500 sq ft
climbing, while the Market Action Index
Median Number of Bedrooms 4.0
has been flat recently. The trends point
Median Number of Bathrooms 2.0
Median Age to a weakening market.
33
Altos Research Value Statistics
Market Action Index Cold! Buyer's Market 14
Altos Research calculates the Market Action Index which measures available supply
relative to the current level of demand. Index value above 30 indicates conditions favor
the seller. See the section below for full details.

Trend Key QUARTILES

Last Month's Trend Last Quarter's Trend No Clear Monthly/Quarterly Trend To get a tightly targeted understanding
*Metric "Absorbed this Week" covers properties sold and those taken off the market for other reasons. of homes in the market, we break each
Since sales sometimes take months to close, it is impossible to discern in real-time exactly which properties
sold.
locale into quartiles. Each quartile is
25% of the homes listed.
Characteristics per Quartile
Med. Med. Ab- Avg.
Quart Median Price Sqft. Med. Lot Size Bed Bath Age Inven. New sorbed DoM
Less than
1 $ 685,000 3,000 4,500 sq ft 4.0 2.5 8 41 1 1 120 Most expensive 25% of homes
Less than
2 $ 550,000 2,147 4,500 sq ft 4.0 2.5 33 41 2 4 109 Upper-middle 25% of homes
Less than
3 $ 450,000 1,566 4,500 sq ft 3.0 2.0 45 42 0 0 121 Lower-middle 25% of homes
Less than
4 $ 349,000 1,288 4,500 sq ft 3.0 1.8 39 42 4 1 140 Least expensive 25% of homes

We'll refer to the quartiles in the trend

graphs below.

Adam Brett - Eric Urban Market Update for BREA 2

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

PRICE
The market seems to have paused
around this plateau. The Market Action
Index is a good leading indicator for the
durability of this trend.

QUARTILE PRICES
Often, we find insights by watching
pricing trends within the quartile
segments.
Price weakness is evident almost across
the board. Quartiles 2, 3, and 4 have
been in price decline in recent weeks,
with Quartile 1 remaining basically flat.
Look to the Market Action Index as a
leading indicator of the bottom of the
market.

Adam Brett - Eric Urban Market Update for BREA 3

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

PRICE AND VALUE

The market's downward trends are
shared across both price and value.
People are recently placing less value on
homes (you can see the recent declines
in price per square foot as evidence.)
Look for significant changes in the
Market Action Index as a precursor to
price and value changes, possibly as
inflection points for good investment
opportunities.

INVENTORY
Inventory has been climbing lately.
Note that rising inventory alone does
not signal a weakening market. Look to
the Market Action Index and Days on
Market trends to gauge whether buyer
interest is keeping up with available
supply.

Adam Brett - Eric Urban Market Update for BREA 4

 Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

Residential house prices are a function of supply and demand, and market conditions can be MARKET ACTION INDEX
characterized by analyzing those factors. Watch this index for sustained changes: if the index
falls into the Buyer’s Market zone for a long period, prices are likely in for a downward The BREA market is currently quite
correction. strongly in the Buyer's Market zone
(below 30). The 90-day Market Action
Index stands at 14. With several months
of inventory available at the current
sales rate, buyers should find ample
choice.

The market has settled in at a relative

stasis in inventory and sales conditions.
It's a Buyer's market that has seen
The Market Action Index (MAI) illustrates the balance between supply and demand using a prices trend lower. Expect that
statistical function of the current rate of sale versus current inventory. consistent up trends in demand will be
required before price trends change
An MAI value greater than 30 typically indicates a “Seller's Market” (a.k.a. "Hot Market")
because demand is high enough to quickly gobble up available supply. A hot market will significantly.
typically cause prices to rise. MAI values below 30 indicate a "Buyer's Market" (a.k.a. "Cold
Market") where the inventory of already-listed homes is sufficient to last several months at
the current rate of sales. A cold market will typically cause prices to fall.

MARKET ACTION QUARTILES

Not surprisingly given the overall
Market Action Index, all quartiles are in
the Buyer's Market zone with several
months of inventory given the current
rate of demand for homes in the
quartile. Watch the quartile for changes
before the overall market shifts. Often
one end of the market (e.g. the low end)
will improve and signal a strengthening
market before the whole group changes.

The quartiles can help you answer the question, "How hot is the market for homes in my price
range?"

Adam Brett - Eric Urban Market Update for BREA 5

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

DAYS ON MARKET (DOM)

The properties have been on the
market for an average of 122 days. Half
of the listings have come newly on the
market in the past 87 or so days.

DOM PER QUARTILE

It is not uncommon for the higher
priced homes in an area to take longer
to sell than those in the lower
quartiles.

Adam Brett - Eric Urban Market Update for BREA 6

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

BREA
Neighborhood Detail 92823

Real-Time Market Profile Trend

Median List Price $ 610,000 THIS WEEK
Average List Price $ 622,954 The median single family home price
Least Expensive Listing $ 410,000 in BREA 92823 this week is $609,999.
Most Expensive Listing $ 995,000
Asking Price per Square Foot $ 256
Average Days on Market 149
Total Inventory 22
Absorbed This Week 2
Median House Size (sq ft) 2,348 Inventory has been tightening and
Median Lot Size Less than 4,500 sq ft
days-on-market increasing recently.
Median Number of Bedrooms 3.8
The Market Action Index has been
Median Number of Bathrooms 2.5
Median Age basically flat, not providing strong
8
Altos Research Value Statistics indication for market conditions.
Market Action Index Cold! Buyer's Market 13

PRICE
This week prices in this zip code
bumped up a bit but the trend of recent
weeks is generally downward. A pickup
in demand will be reflected in the
Market Action Index, so watch that
chart to try to identify a trough in the
market.

Adam Brett - Eric Urban Market Update for BREA 7

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

PRICE PER QUARTILE

In the quartile market segments, we see
prices in this zip code have settled at a
price plateau across the board. Prices in
all four quartiles are basically mixed.
Look for a persistent shift (up or down)
in the Market Action Index before prices
move from these current levels.

Characteristics per Quartile QUARTILES

Med. Ab- Avg.
Quart Median Price Med. Sqft Med. Lot Size Bed Bath Age Inven. New sorbed DoM
Less than
1 $ 829,000 3,692 4,500 sq ft 4.0 4.0 7 5 0 1 136 Most expensive 25% of homes
Less than
2 $ 680,000 2,800 4,500 sq ft 4.0 2.0 8 5 0 0 155 Upper-middle 25% of homes
Less than
3 $ 552,500 1,998 4,500 sq ft 3.5 2.5 7 6 1 1 163 Lower-middle 25% of homes
Less than
4 $ 439,500 1,464 4,500 sq ft 3.0 2.5 8 6 0 0 140 Least expensive 25% of homes
PRICE AND VALUE
The market's downward trends are
shared across both price and value.
People are recently placing less value
on homes (you can see the recent
declines in price per square foot as
evidence.) Look for significant changes
in the Market Action Index as a
precursor to price and value changes,
possibly as inflection points for good
investment opportunities.

Adam Brett - Eric Urban Market Update for BREA 8

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

INVENTORY
Inventory has been falling in recent
weeks with 22 properties available this
week. Note that declining inventory
alone does not signal a strengthening
market. Look to the Market Action
Index to gauge whether buyer interest
is falling with the available supply.

MARKET ACTION INDEX

The BREA 92823 is quite strongly in the
Buyer's Market zone. The 90-day
Market Action Index stands at 13. With
several months of inventory available
at the current sales rate, buyers should
find ample choice.

MARKET ACTION QUARTILES

Not surprisingly, all quartiles are in the
Buyer's Market zone with several
months of inventory given the current
levels of demand. Watch the quartiles
for changes before the overall market
shifts.

Adam Brett - Eric Urban Market Update for BREA 9

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

DAYS ON MARKET
The properties have been on the market
for an average of 148 days. Half of the
listings have come newly on the market
in the past 129 or so days. Watch the 90-
day DOM trend for signals of a changing
market.

DAYS ON MARKET

It is not uncommon for

the higher priced homes in an area
(Quartiles 1 and 2) to take longer to
sell than those in the lower quartiles.

Adam Brett - Eric Urban Market Update for BREA 10

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

BREA
Neighborhood Detail 92821

Real-Time Market Profile Trend

Median List Price $ 487,000 THIS WEEK
Average List Price $ 528,669 The median single family home price
Least Expensive Listing $ 245,000 in BREA 92821 this week is $487,000.
Most Expensive Listing $ 1,595,000
Asking Price per Square Foot $ 259
Average Days on Market 119
Total Inventory 144
Absorbed This Week 4
Median House Size (sq ft) 1,959 Inventory and days-on-market are
Median Lot Size Less than 4,500 sq ft
climbing, while the Market Action Index
Median Number of Bedrooms 3.9
has been flat recently. The trends point
Median Number of Bathrooms 2.0
Median Age to a weakening market.
36
Altos Research Value Statistics
Market Action Index Cold! Buyer's Market 13

PRICE
We continue to see prices in this zip
code bouncing around this plateau.
Look for a persistent up-shift in the
Market Action Index before we see
prices move from these levels.

Adam Brett - Eric Urban Market Update for BREA 11

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

PRICE PER QUARTILE

In the quartile market segments, we see
prices across the quartiles of this zip
code not tightly correlated recently.
Prices in Quartile 1 and 4 have been
mixed recently, while the rest of the
market is trending downward. Look to a
strong, persistent up shift in the Market
Action Index as a leading indicator of
the trough in the market.

Characteristics per Quartile QUARTILES

Med. Ab- Avg.
Quart Median Price Med. Sqft Med. Lot Size Bed Bath Age Inven. New sorbed DoM
Less than
1 $ 672,900 2,984 4,500 sq ft 4.0 2.2 19 36 1 1 112 Most expensive 25% of homes
Less than
2 $ 539,950 2,060 4,500 sq ft 4.0 2.0 36 36 1 2 94 Upper-middle 25% of homes
Less than
3 $ 447,000 1,582 4,500 sq ft 3.0 2.0 45 36 0 0 127 Lower-middle 25% of homes
Less than
4 $ 342,500 1,218 4,500 sq ft 3.0 1.5 39 36 4 1 141 Least expensive 25% of homes
PRICE AND VALUE
While prices have been basically flat,
the price per square foot has been
heading downward. While not a sign of
broad strength in a market, larger
homes are coming more available and
buyers are tending to get more home
for their money.

Adam Brett - Eric Urban Market Update for BREA 12

Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

INVENTORY
Inventory has been steady around these
levels in recent weeks with 144
properties currently available.

MARKET ACTION INDEX

The BREA 92821 is quite strongly in the
Buyer's Market zone. The 90-day
Market Action Index stands at 13. With
several months of inventory available
at the current sales rate, buyers should
find ample choice.

MARKET ACTION QUARTILES

Not surprisingly, all quartiles are in the
Buyer's Market zone with several
months of inventory given the current
levels of demand. Watch the quartiles
for changes before the overall market
shifts.

Adam Brett - Eric Urban Market Update for BREA 13

 Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

DAYS ON MARKET
The properties have been on the market
for an average of 118 days. Half of the
listings have come newly on the market
in the past 77 or so days. Watch the 90-
day DOM trend for signals of a changing
market.

DAYS ON MARKET

It is not uncommon for

the higher priced homes in an area
(Quartiles 1 and 2) to take longer to
sell than those in the lower quartiles.

About Altos Research Corporation

Altos Research Corp. reports real-time analysis of the residential real estate market in local markets across
the country. All information contained herein is based on properties currently listed for sale and available
publicly. When evaluating a particular property, make sure you use comparable sales data in addition to
the market trend information available in this report. The data presented in this report is accurate to the
best of our knowledge, but cannot be guaranteed as such. Use this report as one input in the real estate
decision making process, but do not rely on it for accuracy. Nothing in this report or any other Altos
Research publication is a recommendation to buy or to sell real estate. We recommend you work with a
licensed real estate agent or broker.

Altos Research LLC Copyright 2005-2010. All Rights Reserved www.altosresearch.com

Adam Brett - Eric Urban Market Update for BREA 14