LO Market Update

Current prices for homes on the marketTrends in pricing

Current levels of supply and demandValue metrics

market updateMarket Update

LAKE OSWEGO

2009-07-24Report for the week of

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Fidelity National Titlewww.fidelityLO.com

Presented by Justin Tucker5039979922

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http://www.altosresearch.com

The Closing Company

The median single family homeprice in LAKE OSWEGO this weekis $689,500. The 499 homes havebeen on the market for anaverage of 128 days.

THIS WEEK

Most Expensive ListingLeast Expensive Listing

Median List PriceAverage List Price

Real-Time Market Profile Trend

Total Inventory

$ 689,500$ 953,550

$ 19,500,000$ 177,500

499128Average Days on Market

Asking Price per Square Foot $ 236

21Absorbed This Week*Percent of Properties with Price Decrease 44 %Percent Relisted (reset DOM) 14 %Percent Flip (price increased) 1 %

City Overview LAKE OSWEGO

0.25 - 0.50 acre

Altos Research Value StatisticsMarket Action Index

Median Number of BedroomsMedian Number of Bathrooms

Median House Size (sq ft)Median Lot Size

Median Age

3,129

4.03.034

13Cold! Buyer'sAltos Research calculates the Market Action Index which measures available supplyrelative to the current level of demand. Index value above 30 indicates conditions favorthe seller. See the section below for full details.

Days-on-market has been trendingup recently but the Market ActionIndex and inventory levels arebasically flat and not providingstrong indications for the market.

To get a tightly targetedunderstanding of homes in themarket, we break each locale intoquartiles. Each quartile is 25% of thehomes listed.

QUARTILES

Characteristics per Quartile

Last Month's Trend Last Quarter's

Trend Key

No Clear Monthly/Quarterly

Bed BathMed.Sqft.

Med.Age Inven. New

Ab-sorbedMed. Lot SizeMedian PriceQuart

Avg.DoM

*Metric "Absorbed this Week" covers properties sold and those taken off the market for other reasons.Since sales sometimes take months to close, it is impossible to discern in real-time exactly which propertiessold.

Most expensive 25% of homes0.25 - 0.50acre4,382 4.0 4.0 20 124 2 3$ 1,495,0001 179

Upper-middle 25% of homes0.25 - 0.50acre3,414 4.0 3.0 30 125 8 7$ 869,0002 137

Lower-middle 25% of homes2,827 4.0 2.5 31 125 7 58,001 - 10,000

sq ft$ 559,9503 112

Least expensive 25% of homes0.25 - 0.50acre1,934 3.0 2.0 40 125 16 6$ 379,8004 87

We'll refer to the quartiles in thetrend graphs below.

2Market Update Market Update for LAKE OSWEGO

The Closing Company

PRICEAgain this week we see a downwardnotch for prices. Prices continue topull back from the market’s highs.The Market Action Index is a goodleading indicator for the durabilityof this trend.

QUARTILE PRICES

Most of the market segments areshowing price weakness lately.Notice however, that Quartile 4 atthe low-end of the market is still onan up-trend. Often this conditionhappens in markets where demandhas fallen (for example, due tomicro-location variables) butsupply is still relatively short.Buyers are focusing on the lowestprice homes in the area.

Often, we find insights by watchingpricing trends within the quartilesegments.


The Closing Company

Despite recently falling prices, theprice per square foot has stayedreasonably flat. This implies thatthere’s a portion of the marketbeing priced at a premium. You caninvestigate this condition in thequartile details.

PRICE AND VALUE

INVENTORYInventory has been relativelysteady around these levels inrecent weeks.


The Closing Company

The LAKE OSWEGO market iscurrently quite strongly in theBuyer's Market zone (below 30).The 90-day Market Action Indexstands at 13. With several monthsof inventory available at thecurrent sales rate, buyers shouldfind ample choice.

The market has settled in at arelative stasis in inventory andsales conditions. It’s a Buyer’smarket that has seen prices trendlower. Expect that consistent uptrends in demand will be requiredbefore price trends changesignificantly.

The Market Action Index (MAI) illustrates the balance between supply and demandusing a statistical function of the current rate of sale versus current inventory.

An MAI value greater than 30 typically indicates a “Seller's Market” (a.k.a. "HotMarket") because demand is high enough to quickly gobble up available supply. Ahot market will typically cause prices to rise. MAI values below 30 indicate a"Buyer's Market" (a.k.a. "Cold Market") where the inventory of already-listed homesis sufficient to last several months at the current rate of sales. A cold market willtypically cause prices to fall.

MARKET ACTION INDEXResidential house prices are a function of supply and demand, and marketconditions can be characterized by analyzing those factors. Watch this index forsustained changes: if the index falls into the Buyer’s Market zone for a long period,prices are likely in for a downward correction.

Not surprisingly given the overallMarket Action Index, all quartilesare in the Buyer’s Market zone withseveral months of inventory giventhe current rate of demand forhomes in the quartile. Watch thequartile for changes before theoverall market shifts. Often one endof the market (e.g. the low end) willimprove and signal a strengtheningmarket before the whole groupchanges.

The quartiles can help you answer the question, "How hot is the market for homesin my price range?"

MARKET ACTION


The Closing Company

DAYS ON MARKET (DOM)The properties have been on themarket for an average of 128 days.Half of the listings have comenewly on the market in the past112 or so days.

DOM PER QUARTILEIt is not uncommon for the higherpriced homes in an area to takelonger to sell than those in thelower quartiles.


The Closing Company

97035Neighborhood DetailLAKE OSWEGO




Total Inventory

$ 514,900$ 699,046

$ 7,500,000$ 177,500



8Absorbed This Week

The median single family homeprice in LAKE OSWEGO 97035 thisweek is $514,900.

THIS WEEK



Median Age

2,727

4.02.528

Altos Research Value Statistics

0.25 - 0.50 acre

Market Action Index 14Cold! Buyer's

Days-on-market has been trendingup recently but the Market ActionIndex and inventory levels arebasically flat and not providingstrong indications for the market.

PRICEAgain this week in this zip code wesee a downward notch for prices.Pricing has been weak in recentweeks and versus their absolute-high level. At this point, we will belooking for a persistent upwardshift in the Market Action Index asa leading indicator for a trough inprices.


The Closing Company

PRICE PER QUARTILEIn the quartile market segments, wesee the upper end of the market inthis zip code showing weakness.While there is enough demand inthe low end (Quartiles 3 and 4) tokeep prices flat, unless there is apersistent up-shift in the MarketAction Index, the entire marketmay resume a down trend soon.

QUARTILESCharacteristics per Quartile

Bed BathMed. Sqft Med.

Age Inven. NewAb-

sorbedMed. Lot SizeMedian PriceQuartAvg.DoM

Most expensive 25% of homes0.25 - 0.50acre3,575 4.0 3.0 18 47 0 1$ 998,8001 186

Upper-middle 25% of homes2,997 4.0 2.5 21 47 4 28,001 - 10,000

sq ft$ 574,9002 99

Lower-middle 25% of homes2,276 4.0 2.5 29 47 5 28,001 - 10,000

sq ft$ 434,9003 97


The market’s downward trends areshared across both price and value.People are recently placing lessvalue on homes (you can see therecent declines in price per squarefoot as evidence.) Look forsignificant changes in the MarketAction Index as a precursor to priceand value changes, possibly asinflection points for goodinvestment opportunities.

PRICE AND VALUE


The Closing Company

INVENTORYInventory has been climbing latelywith 189 properties available thisweek. Note that rising inventoryalone does not signal a weakeningmarket. Look to the Market ActionIndex to gauge whether buyerinterest is keeping up with availablesupply.

The LAKE OSWEGO 97035 is quitestrongly in the Buyer's Marketzone. The 90-day Market ActionIndex stands at 14. With severalmonths of inventory available atthe current sales rate, buyersshould find ample choice.

MARKET ACTION INDEX

MARKET ACTIONNot surprisingly, all quartiles are inthe Buyer’s Market zone withseveral months of inventory giventhe current levels of demand.Watch the quartiles for changesbefore the overall market shifts.


The Closing Company

DAYS ON MARKETThe properties have been on themarket for an average of 118 days.Half of the listings have come newlyon the market in the past 91 or sodays. Watch the 90-day DOM trendfor signals of a changing market.

DAYS ON MARKET

It is not uncommonfor the higher priced homes in anarea (Quartiles 1 and 2) to takelonger to sell than those in thelower quartiles.


The Closing Company

97034Neighborhood DetailLAKE OSWEGO




Total Inventory

$ 875,000$ 1,108,716

$ 19,500,000$ 264,950



13Absorbed This Week

The median single family homeprice in LAKE OSWEGO 97034 thisweek is $875,000.

THIS WEEK



Median Age

3,433

4.03.036

Altos Research Value Statistics

0.25 - 0.50 acre

Market Action Index 11Cold! Buyer's

Inventory and days-on-market areclimbing, while the Market ActionIndex has been flat recently. Thetrends point to a weakeningmarket.

PRICEPrices in this zip code have been ona downward trend recently andthis week, while essentially flat,doesn’t break us out of that cycle.


The Closing Company

PRICE PER QUARTILEIn the quartile market segments, wesee this zip code showing mild priceweakness lately. Quartiles 2 and 3are basically flat while Quartile 1 isdown in recent weeks. Noticehowever, that Quartile 4 at the low-end of the market is still on an up-trend. Often this condition happensin markets where demand hasfallen (due to economic pressuresperhaps) but supply is stillrelatively short. Buyers are focusingon the lowest price homes in thearea.

QUARTILESCharacteristics per Quartile

Bed BathMed. Sqft Med.

Age Inven. NewAb-

sorbedMed. Lot SizeMedian PriceQuartAvg.DoM

Most expensive 25% of homes0.25 - 0.50acre4,818 4.0 4.0 21 77 2 3$ 1,650,0001 172

Upper-middle 25% of homes0.25 - 0.50acre3,871 4.0 3.5 29 77 3 4$ 999,0002 150

Lower-middle 25% of homes0.25 - 0.50acre3,090 4.0 2.5 36 78 7 4$ 719,4753 123



The Closing Company

The market’s downward trends areshared across both price and value.People are recently placing lessvalue on homes (you can see therecent declines in price per squarefoot as evidence.) Look forsignificant changes in the MarketAction Index as a precursor to priceand value changes, possibly asinflection points for goodinvestment opportunities.

PRICE AND VALUE

INVENTORYInventory has been climbing latelywith 310 properties available thisweek. Note that rising inventoryalone does not signal a weakeningmarket. Look to the Market ActionIndex to gauge whether buyerinterest is keeping up with availablesupply.

The LAKE OSWEGO 97034 is quitestrongly in the Buyer's Marketzone. The 90-day Market ActionIndex stands at 11. With severalmonths of inventory available atthe current sales rate, buyersshould find ample choice.

MARKET ACTION INDEX


The Closing Company

MARKET ACTIONNot surprisingly, all quartiles are inthe Buyer’s Market zone withseveral months of inventory giventhe current levels of demand.Watch the quartiles for changesbefore the overall market shifts.

DAYS ON MARKETThe properties have been on themarket for an average of 134 days.Half of the listings have come newlyon the market in the past 115 or sodays. Watch the 90-day DOM trendfor signals of a changing market.

DAYS ON MARKET

It is not uncommonfor the higher priced homes in anarea (Quartiles 1 and 2) to takelonger to sell than those in thelower quartiles.


About Altos Research CorporationAltos Research Corp. reports real-time analysis of the residential real estate market in local markets acrossthe country. All information contained herein is based on properties currently listed for sale and availablepublicly. When evaluating a particular property, make sure you use comparable sales data in addition tothe market trend information available in this report. The data presented in this report is accurate to thebest of our knowledge, but cannot be guaranteed as such. Use this report as one input in the real estatedecision making process, but do not rely on it for accuracy. Nothing in this report or any other AltosResearch publication is a recommendation to buy or to sell real estate. We recommend you work with alicensed real estate agent or broker.

Altos Research LLC Copyright 2005-2009. All Rights Reserved www.altosresearch.com

http://www.altosresearch.com

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