1. MARKET UPDATE CAREFREE AND PINNACLE PEAK
November 2010
MARKET UPDATE CAREFREE AND PINNACLE PEAK

2. Annual Appreciation (Based on Monthly Average $/SF)
SCOTTSDALE
Annual Appreciation (Based on Monthly Average $/SF)
October 28,2010

3. Annual Appreciation (Based on Monthly Average $/SF)
CAVE CREEK
Annual Appreciation (Based on Monthly Average $/SF)
October 28, 2010

10. 85255

22. Comparisons by Zip Code
85331
85262
85255
85254
85266
85086
Sales/mo
Previous Month 41  53 25 42 51 72 52 23  20 96
128
Avg. Price/SF
$136 n
$207
$206
$216
$215
$135
$188 
$95
$96
Annual
Appreciation
-3% h
-6%
-7%
-9%
-8% - 8%
-5%
-11%
-2%
Listing Success Rate
48%
52%
39%
42%
41%
50%
45%
59%
76%
Market Distress Index
55.6%
56.7%
47.9%
38.7%
43.5%
45.8%
54.4%
39.1%
39.7%
66.8%
69.2%

23. A few observations….
There is a significant disconnect between list price and sales price in the zip codes analyzed
The differential range is 10% - 38% with an average of 24%
Related to the disconnect between LP and SP is reflected in the listing success rate which ranges from 39% - 59% with an average of 46%

24. Notes from Cromford Market Summary Dated 11/2/10
6,559 sales (all types) in October
Down 2.9% from September
Down 11.8% compared to October 2009
October REO sales down 4.4% from September
October Short Sales and Pre-foreclosures down 4.2% over September
Normal sales increased by 0.5%

25. Some unusual factors happened in October
Suspension of trustee sales by several lenders (i.e. B of A)
HUD changed management subcontractor from MCB to BLB which caused a hiatus in new HUD listings in MLS
REO inventory would have been 572 higher without the moratorium

26. BLB Resources, Inc. Summary of Services
BLB Resources, Inc. is a small woman owned real estate asset management company specializing in high-volume sales, marketing, managing and listing of HUD and REO properties nationwide. The two principals of BLB Resources have 54 years combined HUD and REO experience.
Rod Gaston, CEO, CA Real Estate Broker and AZ Real Estate Agent, has over 5,800 real estate sales since 1976 and has personally sold over 4,400 HUD properties from in Phoenix, AZ. Rod is a HUD sales and marketing expert with 26 years of experience.
Susie Gaston, Owner and President of BLB Resources, Inc., has personally sold over 1,200 HUD properties from in Phoenix, AZ and holds an AZ Real Estate License since 1981.Susie is a HUD and REO marketing, advertising and sales expert with 28 years of experience.

27. MCB: Michaelson, Connor and Boul, Inc.
MCB did not adequately provide oversight of the closing on the sales of HUD homes.
Specifically, it did not always request lead-based paint stabilization services and/or city presale inspections in a timely manner.
Further, it did not adequately monitor the closing agents and report to HUD deficiencies with closing sales of HUD home as required under its contract.

28. Notes from Cromford Continued
The effect of the 3 factors noted previously were noticeable but not dramatic
We have seen a lull in the REOs being listed in MLS
Also, short sales have contributed slightly less to overall sales
Cromford states concern that we may see inventory start to rise again.