$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE 2005/2006 "Average" &"Median" New Home Base Price Comparisons

(12 month perspective - Single Family Homes)

AverageMedian

A “Watershed” event!

“The impact of fees”

$205,319$205,319

$240,090$234,620

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE 2005/2006 "Average" &"Median" New Home Base Price Comparisons

(12 month perspective - Single Family Homes)

AverageMedian

$205,319$205,319

$165,740$165,740

$240,090

$200,990$200,990

$234,620

“Average” & “Median” percentage increase for Albuquerque (1-year comparison)

* NEW HOME BROCHURE BASE ASKING PRICE (Single Family Homes)

June 2005 average = $205,319

May 2006 average = $234,620

June 2005 median = $171,950

May 2006 median = $200,990

14.3% increase

16.9% increase

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

$280,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE / RIO RANCHO 2005/2006 "Average" New Home Base Price Comparisons

(12 month perspective - Single Family Homes)

ABQRR

$205,319$205,319$199,256$199,256

$271,719$271,719

$234,620

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE / RIO RANCHO 2005/2006 "Median" New Home Base Price Comparisons

(12 month perspective)

ABQRR$182,500$182,500

$242,484$242,484

$165,740$165,740

$200,990

Current “Average” & “Median” percentage differences between

Albuquerque and Rio Rancho (as of May 2006)* NEW HOME BROCHURE BASE ASKING PRICE (Single Family Homes)

Current ABQ average = $234,620

Current RR average = $271,719

Current ABQ median = $200,990

Current RR median = $242,484

+15.8% difference

+20.6% difference

METAMORPHOSISDUKE CITY’S

GROWTH WILL BE ACCELERATED BY

FOUR KEY TRENDS.

FOUR KEY TRENDS1. CALIFORNIA BUYERS2. DEMOGRAPHICS –

FOUR BYTES3. E* VILLAGE --DEMOGRAPHICS

4. THE MAGIC MILLION MARK.

ENTERTAINMENT• Retail is entertainment.

• Technology is entertainment.• Dining is entertainment.

• Urban Villages need to be built around entertainment venues.

ENTERTAINMENT• It used to be the home entertainment center that

was important.• Now the home must be in the

center of entertainment.

DEMOGRAPHICS•Every 7 seconds Every 7 seconds

another Baby another Baby Boomer turns 50.Boomer turns 50.

DEMOGRAPHICS• OVER 50 …OVER 50 …

• DUAL INCOMESDUAL INCOMES• RISING HOME PRICESRISING HOME PRICES• RECORD LEVELS OF RECORD LEVELS OF

INHERITANCE.INHERITANCE.

EQUALLY IMPORTANT• TIME IS THE MOST PRECIOUS TIME IS THE MOST PRECIOUS

COMMODITY FOR THESE PEOPLE.COMMODITY FOR THESE PEOPLE.• LOCK ‘N LEAVELOCK ‘N LEAVE• SECOND HOMESECOND HOME• DO IT FOR ME andDO IT FOR ME and• WALK TO ENTERTAINMENTWALK TO ENTERTAINMENT

THE MAGIC MILLION MARK

• WHEN THE AFFORDABILITY

CRUNCH REALLY HITS, THAT’S THE FIRST STEP

TO CONDO-CONVERSIONS.