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48 HOUSING INVENTORY CONTINUES FALL IN JANUARY Housing inventory declined more than 9 percent over the month of January in the 19 markets in which online real estate brokerage Redfin has a presence, according to the com- pany's Real-Time Price Tracker for January. e decline marks the fourth consecutive monthly drop in inventory, according to Redfin. "A year ago, we didn't think inventory could go any lower, yet we're beginning 2014 with another disappointment," Redfin stated in its January report. With the caveat that "it is too soon to tell," the brokerage did offer some optimism regard- ing inventory in coming months, revealing "Redfin agents report that most of their home selling clients are planning to list between March and May." Sellers say they believe they will receive better offers during spring home buying season, and they believe when they do list their homes, they will sell easily and quickly. e report also indicates the market is in somewhat of a catch-22: Sellers are reluctant to list their homes for sale while inventory is so low, as they are unsure they will be able to find and afford a new home, according to Redfin. Home sales declined closely in line with inventory, falling almost 10 percent in January. However, Redfin explains this is no surprise, as January's home sales result from offers made during the holiday season, often "the lowest point of the year." Home prices in Redfin's 19 markets in- creased 14.3 percent year-over-year in January, similar to last January's 14 percent year-over- year increase. Price appreciation, which acceler- ated over the first half of the year, slowed in the second half but ticked up again in December and January, according to Redfin's data. In April, prices rose 18.7 percent over the year. In October, price appreciation was down to 12.6 percent. West Coast markets experienced the great- est price appreciation in January, according to Redfin's observation of its markets. Prices rose most in Las Vegas, Nevada (24.6 percent); Ven- tura, California (21.1 percent); and Riverside, California (21 percent). Of the 19 markets, inventory dropped most in Boston, Massachusetts (-31.8 percent); Chicago, Illinois (-25.6 percent); and Portland, Oregon (-24.4 percent). INCREASED INVENTORY SLOWS HOME VALUE GROWTH In a report released by Zillow, national home values rose just 0.2 percent in January from December. Inventory rose in 22 of the na- tion's 35 largest metros, and helped slow down the rising value of homes. Year-over-year, home values rose 6.3 percent in January, down from previous gains of 7.1 percent in August, 2013. Home values are expected to rise another 3.4 percent in the next 12 months. e Zillow Home Value Index, which according to the report, "measures the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums, and cooperatives," noted that January's figure of $169,600 is the smallest monthly increase since May, 2012. Although inventory remains tight, the number of homes listed for sale on Zillow rose 11.1 percent annually in January. States that were hit the hardest from the housing recession showed some of the largest increases in home inventory; cites like Las Ve- gas (up 42.8 percent), Phoenix (up 30.5 percent) and Sacramento (up 26 percent) all showed large gains. Home appreciation slowed in January for these metros, as more available homes allowed buyers to stay away from bidding wars that drove up home prices. Last year, a smaller inventory of homes con- tributed to a rise in home values, but increased inventory is having a moderating effect. Dr. Stan Humphries, Zillow chief economist, said the increased supply is available because "more sellers are free to list their homes after being released from negative equity, builders continue to ramp up construction and many homeown- ers decide to list their homes and capitalize on recent gains." e outlook for January 2014 to January 2015, is expected to rise another 3.4 percent to $175,301, according to the Zillow Home Value Forecast. Large metro areas expected to show the most appreciation over the next year include Riverside (13.3 percent), Orlando (10.3 percent), and Sacramento (9 percent). FORECLOSURE DATA SUGGESTS "CONTINUED BUT SLOWER HOUSING RECOVERY" e data and analytics division of Black Knight Financial Services issued its "First Look" at January mortgage performance data, noting foreclosure inventory has hit a new post-crisis low. e percentage of foreclosures from the inventory of loans, 2.35 percent, is the lowest since November, 2008. Loans in serious delinquency, constituted by mortgages 90 or more days past due or in foreclosure, is 4.92 percent, the lowest in more than five years. Black Knight's previously reported Home Price Index increased 0.1 percent, and the two reports provided information signaling a pos- sible slowdown of the housing recovery. When asked for comment, Raj Dosaj, VP of Behavioral Models; HPI for Black Knight Financial Services, said, "Based upon the home price and mortgage performance data tracked by Black Knight, we anticipate a con- tinued—but slower—housing recovery. Areas with large inventories of distressed proper- ties will likely lag a bit behind the rest of the country as their pipelines continue to clear." e report noted that the number of days loans in foreclosure have been past due has risen to 943 days. e total U.S. loan delinquency rate is currently 6.27 percent. Month-over-month, the January rate has dropped by 2.96 percent. Yearly, the delinquency rate fell by 10.7 percent. Approximately 3.14 million properties are past due on mortgage payments for 30 days or more, and properties delinquent more than 90 days are approximately 1.2 million properties. Foreclosure filings in the month of February 2014 Source: RealtyTrac STAT INSIGHT 112,498

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