<Mesa Market Activity>

Mesa Residential Market Activity in March Compared to the Activity in June

Snapshot Market Summary for Mesa, March 2009
	Active Listings	Pending Sales	Closed Sales	Months of Inventory
Total Units	3,912	963	521	7.5
Short Sales	26% 1,032	123	11% 56	18.4
Bank Owned	23% 885	563	60% 313	2.8
Other	51% 1,995	277	29% 152	13.1

Closed Sales
	Average Price	Average Size	$/Sq. Ft.	Days on Market
Short Sales	198,000	2,026	93.60	149
Bank Owned	115,000	1,594	69.00	106
Other	194,000	1,825	109.80	128

Snapshot Market Summary for Mesa, June 2009
	Active Listings	Pending Sales	Closed Sales	Months of Inventory
Total Units	2933	1084	804	3.65
Short Sales	33% 957	239	13% 108	8.86
Bank Owned	16% 61	520	55% 442	1.04
Other	52% 1515	328	32% 254	5.96

Closed Sales
	Average Price	Average Size	$/Sq. Ft.	Days on Market
Short Sales	158,557	1800	80.48	158
Bank Owned	112,982	1584	67.01	110
Other	185,752	1776	101.61	120

Significant Observations: Overall, there has been a significant improvement in the Mesa real estate market since our last report in March. The number of listed residential resale properties dropped by 25% (3912 vs 2933), the number of closed transactions in June (804) exceeded the number in March (521) by 54%. Within the three categories of property being tracked bank-owned properties continued to dominate the market. Only 16% of the inventory, bank owned closings accounted for 55% of the closed transactions. Short sale properties (properties owned by private parties requiring concessions from the current lender to allow the sale) were 33% of available inventory and 13% of total closed transactions. The fact that these two categories combined make up almost 50% of the inventory and almost 70% of closed transaction is the best indicator of the overall economic environment.

The category “Other” represents transactions that would be considered “normal” transactions in historical terms. These are transactions in which the seller is still an individual or family selling the home without the necessity of asking for concessions from the lender.The effect of having so many “distressed’ sales (short sales or foreclosed property) is clearly visible in the sales prices. Average prices in all three categories decreased significantly over the period in terms of $ per square foot. It’s also clear why bank owned properties are dominating the marketplace.