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PRICES UP, BUT RADARLOGIC SAYS 2ND HALF OF 2012 COULD SEE DECLINES measurement may show monthly and yearly gains, but contrary to other reports, the analytics company argues in its report that recent increases don't mean prices have hit bottom. "Those people looking at current results Radar Logic's composite home price and calling a bottom are being dangerously short-sighted," said Michael Feder, Radar Logic's CEO. "Not only are the immediate signs inconclusive, but the broad dynamics are still quite scary. We think housing is still a short." According to Radar Logic's RPX Network with the Valuation Thought Leaders Membership Benefits CRN FORUM: The CRN is a private email forum for members only. The purpose is for leadership within the valuation community to act as counsel to each other, share experiences, and assist each other in solving mutual problems. MEETINGS: Quarterly meetings are held across the United States with a specific agenda to return integrity to the appraisal profession. STRATEGY: Collaboration on building a road map for the future and effecting change. MEMBERS ACCESS: Private log in area on the site to access CRN Meeting presentations and CRN Membership Directory (updated yearly). www.collateralrisknetwork.com JOIN TODAY For more information contact Joan Trice at jtrice@allterragroup.com or 513.659.1656 34 Composite, which is based on 25 metropolitan statistical areas, prices in May rose 2.6 percent month-over-month and 0.7 percent year-over- year. But the company says based on previous trends, appreciation may not be consistent for the entire year. Radar Logic data from 2009 to 2011 reveals a pattern of price appreciation from the beginning of the year through the end of June, followed by price declines the rest of the year. For example, from January 1 to June 30, the RPX Composite increased 3 percent in 2009, 3.4 percent in 2010, and 2.2 percent in 2011. However, from July 1 to December 31, prices moved in the opposite direction and fell by 2.7 percent in 2009, 6 percent in 2010, and then by an even greater 7.7 percent in 2011. Radar Logic says the higher prices seen early in the year will lead to more supply as financial institutions start unleashing their foreclosure inventory and homeowners that were unable to sell due to negative equity start, at last, listing their homes. As supply increases, prices will move downward again, Radar Logic says. Also, with much of the current demand coming from investors, Radar Logic argues the rise in prices may mean fewer purchases with investors unable to yield the returns they seek. While the speculation is based on data from previous years, it's still hard to be certain where prices are headed for 2012. "From one year to the next, price trends tend to vary much more in the second half of the year than in the first," said Quinn Eddins, director of research at Radar Logic. "We will have to wait to see data for October or later to know whether 2012 will turn out to be a good year or a bad year for home prices."

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