1. 2008 YEAR IN REVIEW Serving Washington, DC and Montgomery County, MD © 2008 GCAAR

2. Joseph Himali 2009 Greater Capital Area Association of REALTORS ® President

3. Making sense of 2008...

4. Montgomery County Inventory Condos/Co-ops

5. Montgomery County Median Condo/Co-op Price

6. Montgomery County Sales Trends Condos/Co-ops Contracts Ratified Per Month

7. Montgomery County Inventory Single Family

8. Montgomery County Median Single Family Home Price

9. Montgomery County Sales Trends Single Family Contracts Ratified Per Month

10. Montgomery County Average Days on Market

11. Now A Look at DC…

12. Washington, DC Inventory Single Family

13. Washington, DC Single Family Median Home Price

14. Washington, DC Sales Trends Single Family Contracts Ratified Per Month

15. Washington, DC Inventory Condos/Co-ops

16. Washington, DC Median Condo/Co-op Price

17. Washington, DC Sales Trends Condos/Co-ops Contracts Ratified Per Month

18. Washington, DC Average Days on Market

19. What else happened in 2008 that changed the market? Rise in foreclosures Rise in foreclosures Sellers began to let go Sellers began to let go On-the-fence buyers budged On-the-fence buyers budged

20. Market Fundamentals Low interest rates Low interest rates Local job market comparatively strong Local job market comparatively strong Relatively stable local economy Relatively stable local economy Healthy inventory of houses Healthy inventory of houses New opportunities for first-time homebuyers New opportunities for first-time homebuyers

21. 2009 FORMULA Relatively stable job market region wide assures people it’s okay to buy Sellers realize that, if they sell, they will be able to buy after the sale Sellers then feel confident in lowering prices to realistic level Offers come in Inventory decreases Prices ultimately rise

22. For more information, please visit www.GCAAR.com Statistics available on the 6 th of every month Market report is sent to media soon thereafter