MARKET AREA UPDATE Report as of: 1Q 2Q 3Q 4Q

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1 MARKET AREA UPDATE Report as of: 1Q 2Q 3Q 4Q Year: 2013 Market Area (City, State): Metropolitan Area - Detroit, Michigan Provided by (Company / Companies): Real Estate One, Inc. What are the most significant trends in your current real estate market? (Attach addenda, charts, graphs, etc. as appropriate) January started at full speed. The activity level matched the spring markets of 2010 and The result, of course, is an even tighter listing market, since homes are selling faster than new ones are coming on the market. Good things happen with values when demand exceeds supply. Throw in a record low supply, add a touch of Buyers with record buying power and we can expect to see big value jumps. Certainly any one who has purchased a home in the last four years, particularly investors, should consider testing the market. Define Market Area: Urban (city limit area only) Metro Area (as defined by MSA) Other: Please explain: * Single Family (detached) Condominiums / Townhomes (attached) **Sales Price (current) Choose one: Average Median $ 113,000 $ 90,000 **Sales Price (same time prior year) Choose one: Average Median $ 86,000 $ 69,900 Average Days on Market list to contract (current) Absorption Months of Inventory (last 3 months) Number of active listings divided by the average # of sales per month (for the last 3 months) = # of months needed to sell existing inventory Absorption Months of Inventory (same time prior year) Active Listings Closed ( total last 3 months) # 50 Increase Decreasing Stable # 2.8 # 2.3 # 4.5 # 5.2 # 16,113 # 6,679 # 8,756 # 1,446 Expired Listings ( total last 3 months if available) # 5,789 # 625 Change in Home Values % 15 % 5 Sold LP/SP Ratio (last 3 months) REAL ESTATE MARKET DATA Increase in past 3 months Stable Decreasing in past 3 months % 94 % 96 # 40 Increase Decreasing Stable Increase in past 3 months Stable Decreasing in past 3 months **Average = the result by adding all sales prices and dividing by the number of units sold Median = denoting the middle of the range of values GENERAL ECONOMY How would you rate the overall economic conditions in area as defined above: Mixed Stable Healthy Shrinking Depressed Supply of Listings: (Single family) Shortage Oversupply Balanced ~ (Condo/Town home) Shortage Oversupply Balanced Overall Market Conditions: Active Stable Sluggish Flat Depressed Unemployment Rate: % % 8.8 Average Please check trend: Increasing Decreasing Same Please describe local economic conditions/climate: (draw upon newspaper articles concerning the coming and going of corporations, layoffs, etc.) State incentives will help bring a new digital marketing company and 150 new high-tech jobs to the Renaissance Center in Detroit RENTAL INFORMATION Is There a Charge for Rental Assistance: Yes No Outsourced Is Home/Condo Rental Information Available in Your MLS: Yes No Single Family Housing Availability: (3+Bedrooms) Shortage Oversupply Balanced Average Rent 1500 Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent 1000 Apartment Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent Unknown

2 April 2013 Monthly Update All, For the first quarter of 2013, Michigan is still a leader in the housing recovery but a number of states have caught up, extending the housing recovery across the nation. Throughout the state we are seeing inventory shortages and rising values. Southeast Michigan remains the most active with the lowest inventory and strongest buyer demand. A new term is being used in the industry: the Shadow Demand. Like the Shadow Inventory, which represented the potential bank-owned homes that could go on the market, the Shadow Demand represents the pent-up Buyers who have been holding back for the past 5 years. While the release of the shadow bank inventory has been slow and steady, the Shadow Demand seems to be jumping in all at once. We expect a shortage of homes for sale throughout 2013 and 2014 with inventories rising and demand slowing down a bit in 2015 as interest rates increase and the Shadow Demand is dissipated. How quickly home inventories will rise depends on two factors: the pace of appreciation, and more importantly, how quickly Sellers realize that home values are improving. For many Sellers, values have risen enough that it makes sense to sell now, especially if you are also buying. For anyone who has purchased a home in the past four years, particularly investors, it is a great time to test the market. You should be pleasantly surprised on the potential return on your investment. The same holds for those who leased their homes, waiting for the values to rise. Historically, with low For Sale inventories, home builders fill the gap. So far, local home builders, which traditionally make up the majority of new construction, have had difficulty obtaining financing so they have not been able to supply any inventory relief. Following the market trends over the past three years, you can see values have been moving off the bottom since the spring of 2011 and gaining speed these last three quarters. Average $/SQFT (FS, Sold) Real Estate One, Inc.

3 The next two charts show both the decline in the number of new home listings entering the market as well as the increase in the number of homes being placed under contract. It is interesting to note the declining bankowned share of the market. New # Units (Bank, Non-Bank) Under Contract # Units (Bank, Non-Bank) The result is a big increase in Sales Absorption, which is the percent of the available homes being sold each quarter. Considering that about a third of homes for sale are not really saleable because of condition, motivation or price, a 44% rate this past quarter represents a true absorption of closer to 70%, which is the driving force behind the double digit appreciation rates. Sales Absorption As a company we continue to gain a bigger piece of the pie, and most importantly, we are gaining market share in the number of new listings taken. So if you are frustrated at not getting enough listings, just think what your competitors must be feeling. You are all doing a wonderful job of reaching out to your clients to show them the opportunities in this market. We are on our way to another record year! Dan

4 Total Company Summary - March 2013 # of Buyers to Open Houses 2,971 # of Showing Appointments 18,046 # of Homes Sold/Leased 1,797 # of Web Inquires (Unique Visitors) 150,452 # of Mortgage/Title/Insurance Closing 604 It is important to note in this improving market that a decline in the number of sales reflects the shortage of inventory, not a market slowdown. Over $100,000 in Home Values Past 90 Day Trends #of Homes Pending Homes for Sale Ave Price/sqft. Area March 2013 Trend March 2013 Trend March 2013 Trend Oakland County 1,203 Up 2,470 Down 121 Up Macomb County 580 Up 936 Down 95 Up Livingston County 241 Up 985 Down 110 Up Washtenaw County 121 Down 761 Down 140 Up Wayne County ( - Detroit & G.P.) 448 Up 682 Down 118 Up Detroit* 13 Down 54 Down 46 Neutral Grosse Pointe(s)** 63 Up 139 Down 127 Up Northwest Michigan*** 174 Up 1,367 Down 119 Neutral Total 2,843 Up 7,394 Down 115 Up Median Sale Price Months Supply Inv Area March 2013 Trend March 2013 Trend Oakland County $217,115 Up 2.1 Down Macomb County $167,750 Up 1.6 Down Livingston County $190,950 Up 4.1 Down Washtenaw County $244,000 Up 6.3 Neutral Wayne County ( - Detroit & G.P.) $201,000 Up 1.5 Down Detroit* $150,000 Up 4.2 Down Grosse Pointe(s)** $250,000 Up 2.2 Down Northwest Michigan*** $205,000 Neutral 7.9 Down Total $203,111 Up 2.6 Down $0 to $100,000 Home Values Past 90 Day Trends #of Homes Pending Homes for Sale Ave Price/sqft. Area March 13 Trend March 13 Trend March 13 Trend Oakland County 501 Down 682 Down 45 Up Macomb County 681 Up 796 Down 32 Neutral Livingston County 40 Down 112 Down 58 Up Washtenaw County 29 Down 81 Down 51 Up Wayne County ( - Detroit & G.P.) 523 Neutral 646 Down 47 Up Detroit* 634 Up 2,007 Down 9 Up Grosse Pointe(s)** 10 Down 9 Down 51 Neutral Northwest Michigan*** 58 Down 297 Down 47 Neutral Total 2,476 Down 4,630 Down 33.0 Neutral Median Sale Price Months Supply Inv Area March 13 Trend March 13 Trend Oakland County $55,778 Up 2.0 Down Macomb County $36,000 Up 1.2 Down Livingston County $73,250 Up 2.8 Down Washtenaw County $71,000 Up 2.8 Down Wayne County ( - Detroit & G.P.) $50,050 Up 1.2 Down Detroit* $7,400 Up 3.2 Down Grosse Pointe(s)** $80,086 Neutral 0.9 Down Northwest Michigan*** $59,900 Up 5.1 Down Total $37,396 Up 2.0 Down Data Source: MiRealsource, Realcomp, Ann Arbor Board, TAAR MLS & BrokerMetrics Months Supply Inventory represents the current sales pace to sell the existing inventory (months) The trend is based on the past 3 months over the same time period one year prior. * Includes Hamtramck and Highland Park ** Includes Eastpointe and Harper Woods *** Includes Grand Traverse, Kalkaska, Antrim, Leelanau & Benzie counties, waterfront properties & vacant land

5 Months Supply of Inventory (MSI) Analysis by Price and Time on Market Five County SE Michigan Market 85.3% of the Sales 14.7% of the Sales Market Average Homes Sold in 90 Days Homes Sold After 90 Days All Price Ranges 1.87 Months 1.3 Months 5.22 Months $0 - $200, Months 1.02 Months 4.4 Months $201,000 - $500, Months 1.72 Months 6.49 Months $501, Months 4.42 Months Months Under 3 months - Seller's Market / 3-6 months - Neutral / over 6 months - Buyer's Market Five County Grand Traverse Market 44.78% of the Sales 55.22% of the Sales* Market Average Homes Sold in 90 Days Homes Sold After 90 Days All Price Ranges 7.22 Months 5.34 Months 8.75 Months $0 - $200, Months 3.97 Months 6.09 Months $201,000 - $500, Months 7.46 Months 9.58 Months $501, Months Months** Months** Under 8 months - Seller's Market / 8-12 months - Neutral / over 12 months - Buyer's Market * Vacation homes tend to have longer market times, increasing the % over 90 days. ** With fewer sales in the +$500K market, the MSI can move dramatically month to month.