The Luxury Distressed Market:

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The Luxury Distressed Market Tough Times Ahead
Beth Jo Zeitzer President/Broker R.O.I.
Properties
SLHT Distressed Property Symposium April 16th,
2009
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Foreclosures Buyers Respond To Low Prices

• The monthly median sales price (across all areas
  and types) is at the lowest level of the
  millennium.
• At 118,900, it is lower than the previous low
  point of 125,900 reached on January 16, 2001.
• It has now fallen 56 from the peak level of
  267,000 reached on June 16, 2006.
• As a Result
• Buyers are back in the market for smokin deals.
• Investors and first time buyers account for the
  increase.
• Purchases are focused where pricing is lowest
  including the west valley and the outer suburbs
• Medium-priced areas like Mesa, Gilbert, Chandler
  and Peoria are also seeing an increase
• The move up and top end of the market is not yet
  participating in the increased buying activity

Source The Cromford Report
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General Market Snapshot
Source The Cromford Report February 26th, 2009
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REO Market Snapshot
Source The Cromford Report
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1M-1.5M Market Snapshot
Source The Cromford Report
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Lender Owned Sales
Source The Cromford Report
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Days Inventory By Price Range
Source The Cromford Report
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Sales Per Month
Source The Cromford Report
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Investors Are Back
Source The Cromford Report Data based on the
intended use filed with the county recorder
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Spotlight on Paradise Valley

• Plenty of PV homes for sale, but sales are
  sluggish.
• Prognosis more For Sale signs ahead.

• Active Listings 581
• Pending Listings 21
• Properties Sold Last Month 9
• REOs Short Sales Sold Last Month 0
• Days On Market Monthly Sales 355
• Active Listings /SF 508.20
• Monthly Sales /SF 314.85
• Median Price Monthly Sales 1,025,000
• Appreciation Monthly Median -41.4
• Current NOTS 42
• Active REOS 9
• Active Pre-Foreclosures 34
• Current Pending Distressed Properties
• (Lender Owned, Short Sale, Pre-Foreclosure) 11
• Closed Distressed Sales, Last 6 Months
• (Lender Owned, Short Sale, Pre-Foreclosure) 19

Sources The Cromford Report, ARMLS
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Active Listings - PV
Source The Cromford Report
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Monthly Sales Trends - PV
Source The Cromford Report
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The Distressed Luxury Market

• While the low end of the distressed market is
  trading at high volume, the luxury market remains
  stagnant
• Pricing in the luxury market remains unrealistic
  especially when compared to banks pricing
• NOTS are steadily increasing in all luxury
  markets
• Continued economic uncertainty makes it difficult
  for luxury buyers to commit
• Lending standards remain tight, and only those
  with the best credit may qualify

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Thank You!
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