credit suisse monthly survey of real estate agents november 2013 results

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CREDIT SUISSE SECURITIES (USA) LLC DISCLOSURE APPENDIX CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, INFORMATION ON TRADE ALERTS, ANALYST MODEL PORTFOLIOS AND THE STATUS OF NON-U.S ANALYSTS. FOR OTHER IMPORTANT DISCLOSURES, visit www.credit-suisse.com/ researchdisclosures or call +1 (877) 291-2683. U.S. Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. December 5, 2013 Daniel Oppenheim, CFA Homebuilding & Building Products 212-325-5726 [email protected] Michael Dahl 212-325-5882 [email protected] William Alexis 212-538-3992 [email protected] Patrick Murray, CFA 212-325-5292 [email protected] Monthly Survey of Real Estate Agents – November 2013 0 10 20 30 40 50 60 70 80 90 100 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Buyer Traffic Index <50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations Traffic was slightly higher in November, but still missed agents' expectations, as buyers remained concerned about the political landscape in Washington, personal financial implications from the new healthcare legislation, and the overall economy. 0 10 20 30 40 50 60 70 80 90 100 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Home Price Index <50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month Home price appreciation was a bit better in November, though the momentum remains below what we saw earlier this year. Source: Credit Suisse

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This is the monthly survey results from Credit Suisse survey of real estate agents for November 2013. It's an overview of the housing market across the Nation.

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Page 1: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

CREDIT SUISSE SECURITIES (USA) LLC

DISCLOSURE APPENDIX CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, INFORMATION ON TRADE ALERTS, ANALYST MODEL PORTFOLIOS AND THE STATUS OF NON-U.S ANALYSTS. FOR OTHER IMPORTANT DISCLOSURES, visit www.credit-suisse.com/ researchdisclosures or call +1 (877) 291-2683. U.S. Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

December 5, 2013

Daniel Oppenheim, CFA Homebuilding & Building Products 212-325-5726 [email protected] Michael Dahl 212-325-5882 [email protected] William Alexis 212-538-3992 [email protected] Patrick Murray, CFA 212-325-5292 [email protected]

Monthly Survey of Real Estate Agents – November 2013

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Traffic was slightly higher in November, but still missed agents' expectations, as buyers remained concerned about the political landscape in Washington, personal financial implications from the new healthcare legislation, and the overall economy.

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Home price appreciation was a bit better in November, though the momentum remains below what we saw earlier this year.

Source: Credit Suisse

Page 2: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 2

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 60.5 87.3 54.1 61.8 75.9Jul-13 52.9 82.3 55.3 63.3 68.6Aug-13 45.2 75.7 52.8 57.2 57.6Sep-13 36.2 71.5 49.1 56.3 56.4Oct-13 28.1 57.0 42.2 51.8 41.9Nov-13 31.9 58.0 41.1 57.4 40.8

Point Change 3.8 0.9 (1.0) 5.6 (1.1)

33%26%

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Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

November Survey of Real Estate Agents: Uncertainty Surrounding Political Landscape, Economy Keeps Buyers at Home

• Lack of confidence in government drives cautious buyer behavior: The government shutdown may have passed, but its effect on demand lingered in November. Agents indicated that buyer confidence remained weak in the aftermath of the debt ceiling debates, and that uncertainty over healthcare costs (and resulting monthly income) was another drag on traffic. Pricing power remains sluggish as buyers are no longer willing to bid aggressively for homes, especially with higher interest rates. On a positive note, some agents noted that buyers are waiting for 2014, which could set up for a good spring season; however many also noted that buyers expect more political stalemate, which could eat into demand.

• Buyer traffic rebounds slightly, but levels still low: Our traffic index crept slightly higher to 32 in November, but the increase was off a two-year low of 28 in October. Levels still pointed to traffic below expectations (below 50). Agents cited issues from the government shutdown, including uncertainty and a lack of confidence. There was also little mention of investors, with the occasional comment noting how they were absent from the market. 35 out of 40 markets we survey saw lower than expected traffic, 3 saw traffic in-line with expectations, and 2 saw better than expected traffic. Weakness was led by Sacramento, Orlando, and Seattle. San Antonio, Inland Empire, and Atlanta saw sequential gains.

• Pricing power remains moderate: Our home price index came in at 58, up slightly from 57 in October, and above a neutral reading of 50 (higher prices). However, the level of our index continues to indicate that pricing power remains much less broad-based than what we saw earlier this year (from January through September, our price index averaged a reading of 81). 5 out of 40 markets saw falling prices, 9 saw flat prices, and 26 saw higher prices.

• Time to sell lengthens for second consecutive month: Our time to sell index pointed to an increased time to sell again in November (the first back-to-back increases since November/December 2011). This suggests buyers are increasingly patient and is a negative for price appreciation, though inventories edged lower. This can partially offset the negative impact on future pricing power.

12%

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Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

Source: Credit Suisse

Page 3: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 3

Table of Contents

Key Housing Markets: Key Housing Markets Continued: 4 Atlanta, Georgia 26 Orlando, Florida 5 Austin, Texas 27 Philadelphia-Southern New Jersey 6 Baltimore, Maryland 28 Phoenix, Arizona 7 Boston, Massachusetts 29 Portland, Oregon 8 Charleston, South Carolina 30 Raleigh, North Carolina 9 Charlotte, North Carolina 31 Richmond, Virginia

10 Chicago, Illinois 32 Sacramento, California 11 Cincinnati, Ohio 33 San Antonio, Texas 12 Columbus, Ohio 34 San Diego, California 13 Dallas, Texas 35 San Francisco, California 14 Denver, Colorado 36 Sarasota, Florida 15 Detroit, Michigan 37 Seattle, Washington 16 Fort Myers, Florida 38 St. Louis, Missouri 17 Houston, Texas 39 Tampa, Florida 18 Inland Empire (Riverside-San Bernardino), California 40 Tucson, Arizona 19 Jacksonville, Florida 41 Virginia Beach, Virginia 20 Las Vegas, Nevada 42 Washington, D.C. 21 Los Angeles, California 43 Wilmington, North Carolina 22 Miami, Florida Appendix: 23 Minneapolis, Minnesota 45 Historical Trends by Market 24 Nashville, Tennessee 50 Agent Recommendations 25 New York-Northern New Jersey 52 Survey Methodology

Page 4: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 4

Atlanta, GA – Traffic Bounces Back, but Prices Flat and Time to Sell Lengthens in November

Source: Credit Suisse; Census Bureau

(9,146 single-family building permits in 2012, 5th largest market in the country)

Comments from Real Estate Agents: • “Rates came in for a little bit and they helped get buyers

moving.”

• “There are still concerns about job security, but those working feel good about growth.”

• “There are a lot of CDC and federal employees here and they don’t know whether or not they’re going to have a job.”

• “First-time and move-up buyers have been waiting for good properties. They have been circling and when the properties are placed on the market they sell quickly.”

Our Take: • Our buyer traffic index saw a rebound in November, coming in

at 42, up nicely from 13 in October, though levels still just missed expectations. Agents said that while some buyers who are employed feel good about the economy, others are still worried about job security.

• Home prices were flat in November, as our price index came in at 54 from 64 in October. This is the first time prices have not increased since January.

• The time to sell increased even with still declining inventories. We view this as a negative for future pricing.

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IndexJun-13 42.9 80.0 35.7 56.7 70.0Jul-13 47.1 81.3 50.0 78.1 59.4Aug-13 35.7 78.6 42.9 64.3 46.4Sep-13 17.4 61.9 52.5 80.4 43.5Oct-13 12.5 63.6 36.4 63.6 27.3Nov-13 41.7 54.2 29.2 66.7 29.2

Point Change 29.2 (9.5) (7.2) 3.0 1.9

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Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 5: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 5

Austin, TX – Demand Remains Soft in November, as Buyers Wait for More Attractive Prices

Source: Credit Suisse; Census Bureau

(7,970 single-family permits in 2012, 7th largest market in the country)

Comments from Real Estate Agents: • “Post the government shutdown I’ve seen some better

activity. Good homes are still in short supply.”

• “Some buyers feel that the market has peaked and that waiting a little may result in better pricing. Builders, who just months ago had taken away all incentives are starting to offer all kinds of things, including price reductions.”

• “Leads have fallen off and the word on the street is that buyers feel uncomfortable about the fallout in D.C. Nobody can really forecast the landscape past January 15, 2014 and that has lowered consumer confidence.”

Our Take: • Buyer traffic remained short of agents’ expectations again in

November, as our traffic index came in at 35, unchanged from our reading in October (still short of 50). Agents noted low consumer confidence and buyers waiting for prices to ease before entering the market.

• Home prices continued to increase in November, as our price index came in at 60 (from 62 in October), with readings above 50 pointing to sequentially higher prices.

• The time to sell was flat in November, though the index has come in lately. The time could lengthen as traffic remains low.

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IndexJun-13 63.3 85.7 65.4 60.7 76.7Jul-13 61.1 94.4 44.4 55.6 72.2Aug-13 65.4 84.6 50.0 69.2 69.2Sep-13 46.7 80.0 43.3 56.7 63.3Oct-13 34.6 61.5 50.0 53.8 53.8Nov-13 35.0 60.0 45.0 65.0 50.0

Point Change 0.4 (1.5) (5.0) 11.2 (3.8)

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Increased Remained the same Decreased

Page 6: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 6

Baltimore, MD – Weak Buyer Confidence and Economic Uncertainty Hold Activity Back

Source: Credit Suisse; Census Bureau

(3,876 single-family permits in 2012, 30th largest market in the country)

Comments from Real Estate Agents: • “It looks like some buyers came back with the end of the

shutdown. It could be because rates fell a bit, or because of lower inventory, or the seasonal retail spirit. I’m not sure.”

• “The government shutdown and the affordable healthcare act that may not be so affordable have shaken consumer confidence.”

• “Buyers are dissatisfied with the current inventory and have some lingering concerns about the next government budget crisis.”

• “Economic disruption and uncertainty.”

Our Take: • Buyer traffic came in at bit higher in November, but off very low

levels in October, as demand still fell short of expectations. Our traffic index came in at 25 from 8 in October. Agents noted that some buyers returned after the shutdown, but low confidence and uncertainty continued to weigh on the market.

• Prices were higher in November after briefly falling in October. Our price index came in at 60 from 42 (readings above 50 point to higher prices).

• The time to sell increased in November, as did inventories. These are typically negatives for future pricing.

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IndexJun-13 30.0 100.0 60.0 50.0 70.0Jul-13 28.6 71.4 57.1 50.0 64.3Aug-13 50.0 56.3 42.9 75.0 50.0Sep-13 20.0 80.0 40.0 100.0 70.0Oct-13 8.3 41.7 40.0 60.0 30.0Nov-13 25.0 60.0 50.0 30.0 20.0

Point Change 16.7 18.3 10.0 (30.0) (10.0)

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Increased Remained the same Decreased

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Page 7: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 7

Boston, MA – Traffic Still short of Expectations on Economic Concerns

Source: Credit Suisse; Census Bureau

(4,075 single-family permits in 2012, 28th largest market in the country)

Comments from Real Estate Agents: • “Confidence in the economy is weak!”

• “Only 1 out 3 of my buyers ever qualifies.”

• “Appraisals are routinely coming in below market value.”

• “Buyers are worried about interest rates rising even higher so they feel compelled to jump into the market.”

• “There is not a lot of inventory out there and this has been motivating some buyers.”

• “Low inventory and rates have helped demand.”

Our Take: • Buyer traffic come in short of expectations once more in

November, as our buyer traffic index came in at 41 from 39 in October. Agents credited economic anxiety and tight approvals for the weak demand, though others did note that buyers were drawn by the threat of higher interest rates and low inventories.

• Home prices were higher in November, though pricing power has been volatile lately. Our price index came in at 63 vs. 75 in October and 66 in September.

• Inventories fell sharply in November, potentially aiding future pricing power.

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IndexJun-13 67.9 92.9 53.6 67.9 82.1Jul-13 46.9 80.0 64.3 70.0 70.0Aug-13 47.2 77.8 61.8 72.2 61.1Sep-13 25.0 65.8 52.8 60.5 60.5Oct-13 39.3 75.0 65.4 64.3 60.7Nov-13 40.6 62.5 66.7 84.4 57.1

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Increased Remained the same Decreased

Page 8: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 8

Charleston, SC – Traffic Slips Slightly, but Pricing Continues to Improve

Source: Credit Suisse; Census Bureau

(3,128 single-family permits in 2012, 34th largest market in the country)

Comments from Real Estate Agents: • “There is a lot of doubt and uncertainty in the market. Buyers

aren’t sure what to expect when it comes to the economy, government, or housing. There is a bit of a waiting game right now.”

• “I have been seeing pretty steady demand across all buyer segments, including first-time and move-up buyers.”

Our Take: • Our buyer traffic index fell slightly to 38 in November from 40

in October, indicating that demand remained below agents’ expectations (readings below 50). Agents noted that buyers in the market exhibited uncertainty and preferred to say on the sidelines.

• Home prices were higher in November, as our price index came in at 63 (from 70 in October). Readings above 50 point to sequentially higher prices.

• Inventory levels fell further, while the time to sell was unchanged. We view low inventories as a positive for pricing.

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IndexJun-13 50.0 91.7 58.3 66.7 58.3Jul-13 80.0 90.0 60.0 80.0 70.0Aug-13 41.7 75.0 50.0 58.3 66.7Sep-13 43.8 75.0 42.9 50.0 68.8Oct-13 40.0 70.0 37.5 60.0 60.0Nov-13 37.5 62.5 50.0 62.5 50.0

Point Change (2.5) (7.5) 12.5 2.5 (10.0)

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Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 9: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 9

Charlotte, NC – Buyers Slowly Returning to the Market, but Only Kicking Tires as they Look to 2014

Source: Credit Suisse; Census Bureau

(6,704 single-family permits in 2012, 10th largest market in the country)

Comments from Real Estate Agents: • “There is surprisingly good traffic for November. There

seems to be a recognition that prices and rates are likely to move higher.”

• “Inventory is low and buyers are cautious, which is leading the market to stall. Most buyers are waiting until early 2014 to make a decision.”

• “The government shutdown really slowed down traffic.”

• “Open houses are seeing a bit more demand. Buyers are preparing to bid in early 2014. They are currently looking for homes in their areas of interest to become available.”

Our Take: • Buyer traffic came in higher in November, but levels still fell

short of expectations. Our traffic index came in at 42 from 33 in October (still short of a reading of 50). Agents noted that while traffic did pick up, buyers are postponing any decisions until 2014.

• Agents pointed to stronger pricing power in November, as our price index came in at 77 from 61 in October (readings above 50 point to higher prices).

• Inventories edged lower, while the time to sell was flat. These trends typically help pricing power.

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Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

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Mar

-13

Apr

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Jul-1

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

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Mar

-13

Apr

-13

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Jun-

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Jul-1

3

Aug

-13

Sep

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Oct

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Nov

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Hom

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 60.0 90.0 70.0 65.0 70.0Jul-13 50.0 80.0 65.0 80.0 70.0Aug-13 31.3 92.9 50.0 71.4 71.4Sep-13 38.9 77.8 50.0 61.1 55.6Oct-13 33.3 61.1 56.3 55.6 44.4Nov-13 42.3 76.9 53.8 57.7 50.0

Point Change 9.0 15.8 (2.4) 2.1 5.6

15%

54%

31%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

62%

15% 8%

31%

62%

85%

8%23%

8%0%

20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 10: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 10

Chicago, IL – Traffic a Bit Higher, but Still Short of Expectations in November

Source: Credit Suisse; Census Bureau

(5,665 single-family permits in 2012, 14th largest market in the country)

Comments from Real Estate Agents: • “There is economic uncertainty, proposed property tax

increases, and issues with the healthcare mandate that are hurting traffic.”

• “Larger national and economic issues seem to have made an already skittish customer base even more skittish.”

• “Some buyers are becoming a bit more serious trying to close prior to a rise in interest rates.”

• “Lower rates led some buyers jump back in.”

• “There is still continued interest in short sales and foreclosures from investors.”

Our Take: • Buyer traffic returned modestly in November, as our traffic

index came in at 37 from 25 in October, though levels still fell short of agents’ expectations (readings below 50). Agents indicated that national (economy, healthcare) and local (taxes) issues kept buyers at bay, though others looked to close before rates increased further.

• Home prices were flat in November, as our home price index came in at 54, better than our reading of 44 in October.

• Inventories fell in November, while the time to sell was flat. We see this as a positive for pricing, though traffic remains low.

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Jun-

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Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

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Jun-

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Jul-1

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Aug

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

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May

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Jun-

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Jul-1

3

Aug

-13

Sep

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Oct

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Nov

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Hom

e Pr

ice

Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 64.0 80.0 45.2 76.0 79.2Jul-13 55.8 80.0 45.8 50.0 74.1Aug-13 50.0 61.7 50.0 66.7 66.7Sep-13 44.8 75.9 55.8 69.0 53.4Oct-13 25.0 43.8 53.7 51.6 42.2Nov-13 36.5 53.7 50.0 70.4 46.3

Point Change 11.5 10.0 (3.7) 18.8 4.1

12%

50%

38%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

30%

9%

37%48%

82%

33%22%

9%

30%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 11: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 11

Cincinnati, OH – Traffic and Pricing Bounce Back, as Inventories Decline

Source: Credit Suisse; Census Bureau

(2,668 single-family permits in 2012, 47th largest market in the country)

Comments from Real Estate Agents: • “Prices are bringing some buyers to the market, as are need

and interest rates.”

• “There are more homebuyers and fewer homes for sale. This is helping create some additional motivation for buyers.”

• “The government shutdown led many homebuyers to pause.”

• “The environment seems very quiet with few inquiries on our listings and few showings in general. Our buyers traffic is also down.”

Our Take: • Our buyer traffic index saw a nice bounce in November,

coming in at 45 from 25 in October, with levels just meeting agents’ expectations (in-line with a reading of 50). Agents indicated that buyers were drawn to the market by prices and rates, though other agents mentioned that the shutdown continues to weigh on demand.

• Home prices increased in November following a brief decline in October, as our index came in at 60 from 40 in October.

• The time to sell was unchanged in November, while inventories fell, typically positive signs for future pricing.

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-12

Jun-

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Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

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Jul-1

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Oct

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

0102030405060708090

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-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

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May

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Jun-

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Jul-1

3

Aug

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Sep

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Oct

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Nov

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Hom

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 33.3 58.3 50.0 66.7 58.3Jul-13 42.9 71.4 50.0 78.6 64.3Aug-13 66.7 80.0 60.0 37.5 25.0Sep-13 20.0 60.0 50.0 40.0 40.0Oct-13 25.0 40.0 40.0 60.0 20.0Nov-13 45.0 60.0 30.0 65.0 50.0

Point Change 20.0 20.0 (10.0) 5.0 30.0

20%

50%

30%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

40% 40%30%

40%

60%

40%

20%

0%

30%

0%10%20%30%40%50%60%70%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 12: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 12

Columbus, OH – Traffic Remains Short of Expectations, Buyers Exhibit More Patience in their Search

Source: Credit Suisse; Census Bureau

(2,899 single-family permits in 2012, 38th largest market in the country)

Comments from Real Estate Agents: • “Buyers are concerned about the potential implications from

the government shutdown. Even though it has passed, their confidence is still a little shaken, plus there is some concern about what happens early next year.”

• “Traffic is a little slower but my inventories have increased. I’ve also seen lending loosen up a little, appraisals too.”

Our Take: • Buyer traffic was slightly better in November, as our buyer

traffic index came in at 36, up from 29 in October, but levels still fell short of agents’ expectations (readings below 50). Agents primarily attributed November’s traffic levels to concerns about the government shutdown and it’s lingering effects.

• Prices edged higher in November, as our price index came in at 57 from 50 in October (above a neutral reading of 50).

• Inventories were flat, while the time to sell increased. This suggests that buyers are exhibiting more patience.

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May

-12

Jun-

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Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

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Jul-1

3

Aug

-13

Sep

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Oct

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

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Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 70.0 100.0 40.0 40.0 90.0Jul-13 42.9 83.3 58.3 66.7 58.3Aug-13 37.5 75.0 62.5 75.0 62.5Sep-13 45.0 70.0 40.0 60.0 70.0Oct-13 28.6 50.0 41.7 41.7 58.3Nov-13 35.7 57.1 42.9 50.0 42.9

Point Change 7.1 7.1 1.2 8.3 (15.5)

0%

71%

29%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

14% 14%29%

86% 86%

57%

0% 0%14%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 13: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 13

Dallas, TX – Traffic Slips and Incentives Rise in November

Source: Credit Suisse; Census Bureau

(17,821 single-family permits in 2012, 2nd largest market in the country)

Comments from Real Estate Agents: • “I’ve been getting fewer calls lately.”

• “There is a serious lack of inventory in this market and uncertainty continues to act as a big cloud over buyers’ purchasing decisions.”

• “We have some buyers looking to close before the end of the year to take advantage of the homestead tax exemption.”

• “Corporate relocations continue to be a driving force in the DFW market.”

Our Take: • Buyer traffic took a step back in November, as our traffic index

fell to 39 from 50 in October, coming in short agents’ expectations (readings lower than 50). Agents indicated that uncertainty weighed on the market in November, though tax incentives and corporate relocations helped demand.

• Home prices continued to move higher in November, though the momentum in pricing power seemed to ease. Our price index came in at 63 from 72 in October.

• Inventories fell in November, though the time to sell increased. With lower traffic, we view this as a negative for future pricing.

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Jun-

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Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

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Mar

-13

Apr

-13

May

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Jun-

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Jul-1

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

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May

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Jun-

13

Jul-1

3

Aug

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Sep

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Oct

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Nov

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Hom

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Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 70.0 86.7 53.3 56.7 93.3Jul-13 56.3 75.0 75.0 62.5 75.0Aug-13 40.0 80.0 55.0 55.6 55.0Sep-13 50.0 80.0 50.0 80.0 70.0Oct-13 50.0 72.2 44.4 68.8 44.4Nov-13 38.9 62.5 25.0 75.0 31.3

Point Change (11.1) (9.7) (19.4) 6.3 (13.2)

22%

33%

45%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

25%

50%38%

75%

50%63%

0% 0% 0%0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 14: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 14

Denver, CO – Traffic Stagnates Below Expectations over Lingering Government Concerns

Source: Credit Suisse; Census Bureau

(5,616 single-family permits in 2012, 15th largest market in the country)

Comments from Real Estate Agents: • “In general, people are feeling significantly less confident in

the economy than they were six months ago. I also think the stories of how difficult it was for buyers to find a home earlier this year have put some new buyers off.”

• “The government shutdown and other uncertainties have made people hesitate.”

• “There is anxiety over issues with the government. Plus there are concerns about higher interest rates and healthcare.”

• “There is some concern about rising rates, which is pushing some buyers to look.”

Our Take: • Buyer traffic remained short of agents’ expectations in

November, as our traffic index came in at 41, unchanged from our reading in October (but still short of 50). Buyers were said to have less confidence in the housing market, with agents citing the government shutdown as a major factor.

• Prices were flat in November, as our home price index came in at 45, up from 39 in October, in-line with a neutral reading of 50 (points to flat pricing).

• Inventories fell sharply in November, while the time to sell was flat. These are positives for pricing, but lower traffic is a risk.

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2

Aug

-12

Sep

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Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

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Apr

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May

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

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Mar

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Apr

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May

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Jul-1

3

Aug

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Hom

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 63.2 86.8 44.1 28.9 76.3Jul-13 55.0 83.3 45.0 26.2 57.1Aug-13 34.0 72.0 48.0 24.0 42.0Sep-13 30.6 52.5 47.4 20.0 27.5Oct-13 40.5 39.1 32.5 39.1 21.7Nov-13 40.5 44.7 36.1 73.8 45.2

Point Change 0.0 5.6 3.6 34.7 23.5

19%

43%

38%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

16%28% 29%

58%72%

52%

26%

0%

19%

0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 15: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 15

Detroit, MI – Traffic Slips and the Time to Sell Increases in November, but Prices Hold Up for Now

Source: Credit Suisse; Census Bureau

(4,103 single-family permits in 2012, 27th largest market in the country)

Comments from Real Estate Agents: • “That Obamacare hasn’t really panned out has put a scare

into buyers. The government also still doesn’t seem to have its plans together.”

• “Buyers are being told to have their down payments ready when they go look. This isn’t doing so much to encourage activity.”

• “The government shutdown seems to have stopped our traffic and it has not picked up since.”

• “There are fewer buyers and homes are taking longer to sell.”

Our Take: • Traffic took a step back in November, as our traffic index fell to

25 after rebounding to 42 in October, again falling short of agents’ expectations (readings below 50). Agents noted that the government shutdown continues to weigh on confidence and that buyers are exhibiting more patience as they look.

• Home prices continued to increased in November, as our home price index came in at 64, unchanged from our reading in October.

• Inventories edged lower though the time to sell increased. Increased patience from buyers is a negative for pricing.

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-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

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Mar

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Apr

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

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May

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3

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Hom

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 47.5 90.0 50.0 60.0 73.7Jul-13 50.0 86.1 55.9 69.4 64.7Aug-13 46.9 81.3 43.3 34.4 50.0Sep-13 36.7 80.0 50.0 56.7 50.0Oct-13 42.1 63.9 44.1 58.3 47.2Nov-13 25.0 63.9 50.0 58.3 27.8

Point Change (17.1) 0.0 5.9 0.0 (19.4)

5%

39%56%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

33%

6%

50%61%

88%

44%

6% 6% 6%0%

20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 16: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 16

Ft. Myers, FL – Pricing Continues to Improve though Momentum Eases

Source: Credit Suisse; Census Bureau

(1,806 single-family permits in 2012, 65th largest market in the country)

Comments from Real Estate Agents: • “Some buyers have set out before the traditional season.”

• “There isn’t much inventory to move so buyers are hurrying to grab what they can.”

• “Buyers think that if they don’t buy now that prices will be much higher.”

• “Some sellers were overexcited. They priced too high and that quickly led to a slowdown in transactions.”

• “There is still some economic uncertainty, Obamacare is a bit of a concern as well.”

Our Take: • Traffic edged higher in November, coming in to meet agents’

expectations, as our index increased to 45 after falling to 39 in October. Agents noted that buyers wanted to get in before the spring, and that low inventories have worked to create motivation as buyers want to beat additional price increases.

• Prices continued to improve, though the rate of increases eased. Our price index came in at 75 from 85 in October.

• Inventories declined, while the time to sell was flat. This suggests better pricing, though our time to sell index lost a bit of momentum (50 in November vs. 69 in October).

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Nov

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Dec

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Jan-

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Feb-

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Mar

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Apr

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

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Mar

-12

Apr

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May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

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Oct

-12

Nov

-12

Dec

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Jan-

13

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Mar

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Apr

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Hom

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 60.0 83.3 43.3 86.7 76.7Jul-13 59.1 95.5 40.9 86.4 80.0Aug-13 60.0 94.4 33.3 80.0 66.7Sep-13 61.1 83.3 38.9 68.8 83.3Oct-13 38.5 84.6 42.3 57.7 69.2Nov-13 45.0 75.0 45.0 75.0 50.0

Point Change 6.5 (9.6) 2.7 17.3 (19.2)

20%

50%

30%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

70%

10%20%

10%

90%

60%

20%0%

20%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 17: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 17

Houston, TX – Traffic Falls Sharply Lower in November though Pricing Remains Strong

Source: Credit Suisse; Census Bureau

(28,568 single-family permits in 2012, largest market in the country)

Comments from Real Estate Agents: • “In the first half of the year you could not keep a listing. A lot

of homes were also being sold to hedge funds at the court steps, but today we have fewer buyers and no hedge funds.”

• “It seems like traffic is about normal for this time of year, but given the buying frenzy we had in the first nine months this year it appears to be slower than in the past.”

• “Buyers are starting to show some frustration.”

• “Inventories are still at historic lows, meaning that we have unsatisfied buyers still chasing very few properties.”

Our Take: • Buyer traffic dipped lower in November, falling to 25 from 44 in

October, coming in short of agents’ expectations (readings of 50). Agented attributed the lower traffic to reduced activity from hedge funds and frustrated buyers, while better activity earlier this year could have reset agents’ expectations higher.

• Prices continued to move higher in November, as our price index came in at 75 from 80 in October, above a neutral 50.

• Inventories fell further, while the time to sell edged higher. Low inventories is a positive for pricing, but with lower traffic, the time to sell could increase, which is typically a negative.

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 71.4 92.3 66.7 88.5 96.2Jul-13 70.8 87.5 63.6 79.2 79.2Aug-13 68.2 86.4 54.5 59.1 77.3Sep-13 41.7 87.5 41.7 63.6 62.5Oct-13 44.4 80.0 60.0 60.0 65.0Nov-13 25.0 75.0 33.3 70.0 44.4

Point Change (19.4) (5.0) (26.7) 10.0 (20.6)

10%

30%60%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

50%44% 44%

50%44%

22%

0%11%

33%

0%10%20%30%40%50%60%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 18: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 18

Inland Empire, CA – Canadian Buyers and Investors Help Drive a Rebound in Demand in November

Source: Credit Suisse; Census Bureau

(4,229 single-family permits in 2012, 26th largest market in the country)

Comments from Real Estate Agents: • “Our ‘season’ in the desert has begun and Canadians and

investors are the primary buyers.”

• “Rates are still at good levels and some buyers recognize the opportunity to purchase now despite the recent volatility.”

• “Some of my buyers are turned off by higher rates. Inventories are also still low (poor selection) and prices are too high.”

• “The economy in our area is still a little slow.”

Our Take: • Buyer traffic bounced sharply higher in November, with levels

improving to meet agents’ expectations. Our traffic index came in at 50 from a very low 14 in October. Agents suggested that demand returned with typical seasonality (aided by investor activity), with low rates encouraging activity.

• Prices increased in November after being flat in October, with our price index increasing to 61 from 55 in October. However, agents pointed to higher incentives in November.

• Agents saw inventories and the time to sell both increase in November, which are usually negative signs for future pricing.

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 75.0 100.0 45.8 87.5 95.8Jul-13 53.3 90.0 64.3 70.0 46.7Aug-13 54.5 86.4 60.0 31.8 59.1Sep-13 22.7 63.6 36.4 36.4 36.4Oct-13 13.6 54.5 54.5 45.5 13.6Nov-13 50.0 61.1 37.5 33.3 38.9

Point Change 36.4 6.6 (17.0) (12.1) 25.3

34%

33%

33%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

44%38%

44%33%

50%

33%22%

13%22%

0%10%20%30%40%50%60%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 19: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 19

Jacksonville, FL – Demand Continues to Lag, though Pricing Improves on Lack of Inventory

Source: Credit Suisse; Census Bureau

(4,582 single-family permits in 2012, 23rd largest market in the country)

Comments from Real Estate Agents: • “Buyers feel uneasy about the national budget situation.”

• “Some buyers are discouraged to enter the market because of Obamacare.”

• “The traffic is lower because I think people are afraid to make moves with all the issues the government is facing.”

• “There is the perception that we are in another bubble and that a market crash is pending.”

• “We’ve seen that buyers want to contract, but they can’t. The inventory is too low. We’re still getting multiple bids in some instances.”

Our Take: • Traffic remained well short of agents’ expectations in

November, as our traffic index came in at 28 from 25 in October (3 consecutive months of lower than expected traffic). Agents noted that economic and political concerns surrounding the federal budget and healthcare bill continued to drag on demand.

• Prices continued to power through soft demand, as our home price index came in at a strong 72, up from 50 in October.

• We think prices should at least hold steady, as inventories were flat and agents pointed to a decreased time to sell.

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 55.0 75.0 45.0 50.0 75.0Jul-13 37.5 62.5 50.0 62.5 75.0Aug-13 75.0 62.5 43.8 71.4 62.5Sep-13 11.1 72.2 44.4 43.8 55.6Oct-13 25.0 50.0 33.3 54.2 58.3Nov-13 27.8 72.2 44.4 50.0 61.1

Point Change 2.8 22.2 11.1 (4.2) 2.8

11%

33%56%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

44%

11% 11%

56%

89%

56%

0% 0%

33%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 20: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 20

Las Vegas, NV – Weak Demand, Higher Inventories and an Increased Time to Sell in November

Source: Credit Suisse; Census Bureau

(6,112 single-family permits in 2012, 12th largest market in the country)

Comments from Real Estate Agents: • “It appears that buyers have taken a breather in recent

weeks. Some feel that prices will decline in the coming months.”

• “Prices are too high. There is no sense of urgency. Clients want to see if prices come down a bit.”

• “Institutional investors have pulled back significantly. Inventory is up and prices are softening in all but the very lowest price point.”

• “There is a shortage of available properties and consumer confidence is lacking.”

Our Take: • Buyer traffic slipped in November after a brief increase in

October, as our traffic index fell to 28 from 39. Agents noted that traditional buyers are waiting for prices to ease, while investors have also exited the market. Low inventories and a lack of confidence contributed to the lower demand.

• Despite the lower demand, prices increased as our home price index improved to 61 from 55 in October.

• Prices may come under pressure, as our home listings and time to sell indexes pointed to increases in both metrics. These are negatives for future pricing.

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 61.1 100.0 61.8 63.9 79.4Jul-13 46.2 90.4 64.0 60.0 65.4Aug-13 36.1 86.1 55.6 41.2 52.8Sep-13 23.7 75.0 30.6 25.0 30.6Oct-13 38.6 54.8 21.4 31.0 26.2Nov-13 27.8 61.1 32.4 8.3 25.0

Point Change (10.9) 6.3 10.9 (22.6) (1.2)

6%

44%50%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

39% 41%

61%

44%53%

28%17%

6% 11%

0%10%20%30%40%50%60%70%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 21: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 21

Los Angeles, CA – Higher-end Remains Soft while Pricing Power is Likely to Ease in Coming Months

Source: Credit Suisse; Census Bureau

(4,921 single-family permits in 2012, 22nd largest market in the country)

Comments from Real Estate Agents: • “Prices are higher, rates are higher, and the government is

non-functional. All of this has led to a general nervousness in the marketplace.”

• “Demand for homes over $650,000 has stalled. Lower prices are getting lots of looks but fewer offers. The number of properties on the market is weak.”

• “The economy is cause for concern.”

• “There are fewer investors looking.”

• “The market is lacking inventory.”

Our Take: • Buyer traffic fell in November, as our traffic index came in at

24, down from 37 in October, short of agents’ expectations for this time of year (readings below 50). Agents noted that the higher-end of the market remained slow, while the lower-end homes received more attention but still lacked offers. Buyers were also said to be looking for more attractive affordability.

• Prices edged higher in November, as our price index came in at 58, up slightly from 56 in October.

• We would expect pricing power to ease in the coming months given increases in both inventories and the time to sell.

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MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 63.0 95.7 53.1 71.4 84.1Jul-13 52.1 85.4 55.0 41.7 45.7Aug-13 47.2 77.8 43.8 38.9 41.7Sep-13 38.5 76.0 56.5 46.2 38.0Oct-13 37.0 56.3 50.0 33.3 32.6Nov-13 23.7 58.3 50.0 36.8 23.7

Point Change (13.3) 2.1 0.0 3.5 (8.9)

5%

37%58%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

33%

14%

68%

50%

71%

16%17% 14% 16%

0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 22: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 22

Miami, FL – Traffic Short of Expectations on Government Concerns, Significant Price Appreciation

Source: Credit Suisse; Census Bureau

(5,048 single-family permits in 2012, 21st largest market in the country)

Comments from Real Estate Agents: • “There is uncertainty because of Washington. People are

fearful to make big commitments.”

• “The government shutdown has scared clients.”

• “Prices are getting too high for buyers.”

• “There is a lack of inventory. The perception is that interest rates are very high and there are concerns about the future of the economy.”

• “Buyers very much have a wait and see mentality. The government has them scared.”

Our Take: • Buyer traffic slipped further below agents’ expectations in

November, as our traffic index fell to 30 from 33 in October. Agents noted that buyers felt uneasy entering the market because of concerns surrounding the government shutdown, while high prices further discouraged activity.

• Home prices continued to increase in November, as our price index came in at 73 from 81 in October.

• Inventories fell further, while the time to sell edged higher (index at 43 vs. 50). Given lower traffic, we think buyers may continue to show increased patience, a negative for pricing.

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MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 64.3 86.1 48.6 65.3 77.8Jul-13 55.9 92.6 46.9 77.3 77.3Aug-13 46.0 81.3 48.0 66.0 80.0Sep-13 30.0 84.0 50.0 66.0 60.0Oct-13 32.7 80.8 42.3 61.5 50.0Nov-13 29.5 72.7 45.5 59.1 43.2

Point Change (3.1) (8.0) 3.1 (2.4) (6.8)

5%

50%

45%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

59%

18%

41%27%

73%

32%

14% 9%

27%

0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 23: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 23

Minneapolis, MN – Demand Falls Further Below Expectations

Source: Credit Suisse; Census Bureau

(5,611 single-family permits in 2012, 16th largest market in the country)

Comments from Real Estate Agents: • “Traffic is even slower than normal right now because I think

a lot of demand was absorbed earlier this year during the spring and summer.”

• “Economic uncertainty.”

• “There is a lack of inventory. Buyers want more of a selection.”

• “Government tantrums.”

• “Some buyers want to get in before the end of year. Prices seem to be holding steady; same with rates. There is no real urgency in the air.”

Our Take: • Buyer traffic fell sharply in November, as our traffic index

slipped to 18 from 32 in October, pointing to traffic well below agents’ expectations. Agents suggested that demand was pulled into the spring, while economic and government uncertainties further chipped away at traffic.

• Prices were flat in November, as our price index came in at 53 from 50 in October (in-line with a neutral reading of 50).

• Inventories fell in November, though the time to sell increased. We view the latter as a risk for future pricing, especially given the drop in November traffic.

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MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 55.3 92.1 52.8 60.5 84.2Jul-13 55.9 85.3 55.9 76.5 76.5Aug-13 62.5 68.2 45.5 63.6 54.5Sep-13 37.5 58.3 50.0 41.7 58.3Oct-13 32.1 50.0 46.4 64.3 35.7Nov-13 17.6 52.9 46.9 61.8 38.2

Point Change (14.5) 2.9 0.4 (2.5) 2.5

6%

23%

71%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

24%13%

47%59%

81%

29%18%

6%24%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 24: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 24

Nashville, TN – Traffic Remains Weak, but Prices Edge Higher in November

Source: Credit Suisse; Census Bureau

(5,343 single-family permits in 2012, 17th largest market in the country)

Comments from Real Estate Agents: • “Consumer confidence has come under pressure.”

• “Obamacare seems to have taken some demand with it.”

• “Traffic has been better for a mixed bag of reasons. Upsizing, downsizing, and relocations. We have all three right now.”

• “It’s slower right now, it could be seasonal, but not 100% certain.”

• “There has been a decline in consumer confidence.”

Our Take: • Traffic came in slightly higher in November, but levels still fell

short of agents’ expectations. Our traffic index came in at 33, up from 27 in October, but still short of 50. Buyers were said to have lost confidence, with uncertainty about Obamacare driving more buyers out of the market.

• Home prices increased in November, as our home price index came in at 61, up from 59 in October.

• Inventories and the time to sell both decreased in November, a positive for pricing. However, lower traffic levels could signal greater patience from buyers in the near future.

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Jun-

13

Jul-1

3

Aug

-13

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Oct

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Nov

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 68.2 81.8 70.0 72.7 86.4Jul-13 54.5 90.9 72.7 86.4 90.9Aug-13 61.1 88.9 68.8 83.3 77.8Sep-13 21.4 64.3 64.3 85.7 42.9Oct-13 27.3 59.1 50.0 45.5 45.5Nov-13 33.3 61.1 38.9 72.2 55.6

Point Change 6.1 2.0 (11.1) 26.8 10.1

11%

45%

44%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

22% 22%

0%

78% 78%89%

0% 0%11%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 25: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 25

New York-Northern NJ – Buyers Anxious over the Economy, Traffic Continues to Decline

Source: Credit Suisse; Census Bureau

(6,794 single-family permits in 2012, 9th largest market in the country)

Comments from Real Estate Agents: • “Rates are higher and there is less inventory. Sellers are also

not adjusting their prices because they feel the market is improving.”

• “The economy and a glut of potential foreclosures has people sitting out.”

• “I think we exhausted the buyer pool earlier. It takes time for new qualified buyers to appear.”

• “There is economic uncertainty and confusion over the shutdown and how that could impact the market.”

• “There isn’t enough inventory.”

Our Take: • Buyer traffic fell further in November, as our traffic index

decreased to 23 from 28 in October, marking the fourth consecutive decline in the region’s index (and fourth straight month below expectations). Agents credited economic uncertainty and a lack of inventory for weaker demand.

• Home prices were flat in November, as our price index came in at 51 from 56 in October (in-line with a neutral reading of 50).

• Inventories continued to decline, though the time to sell increased. Lower inventories can support pricing, though we see the increased time to sell as a risk to future pricing power.

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 46.7 64.8 59.0 52.2 56.7Jul-13 52.3 70.5 53.6 50.0 50.0Aug-13 42.9 71.4 51.7 62.9 64.3Sep-13 30.6 55.1 58.0 56.1 54.2Oct-13 27.5 56.4 44.6 59.0 43.6Nov-13 23.3 51.1 53.8 76.7 36.7

Point Change (4.2) (5.3) 9.3 17.7 (6.9)

15%

16%

69%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

22%15%

44%58% 62%

38%

20% 23% 18%

0%10%20%30%40%50%60%70%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 26: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 26

Orlando, FL – Traffic Still Weak in November, but Prices Increase even with Higher Inventories

Source: Credit Suisse; Census Bureau

(7,240 single-family building permits in 2012, 8th largest market in the country)

Comments from Real Estate Agents: • “Demand is weak because buyers are worried they’re going

to have large premium increases in their health insurance. Plus they think the current inventory is overpriced.”

• “Buyers are skeptical about the economy.”

• “Buyers are worried about an economic meltdown.”

• “Traffic is a bit slower than usual around this time of year because of the hike in interest rates.”

• “Inventory is too low and prices are too high.”

• “The government has shaken the market.”

Our Take: • Buyer traffic was slightly better in November after a very weak

October, but levels still came in well below agents’ expectations. Our traffic index came in at 16 from 4 in October, still well shot of a reading of 50. Agents cited economic concerns, higher rates, and a limited, overpriced inventory.

• Prices were higher in November despite the very weak traffic, as our price index came in at 63 from 46 in October. However, incentives did increase.

• Inventories and the time to sell both increased in November. We view these as negatives for future pricing.

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Sep

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Feb-

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Mar

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Apr

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2

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Sep

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 45.0 95.5 50.0 63.6 90.9Jul-13 46.9 86.7 57.1 63.3 73.3Aug-13 25.0 80.0 55.0 65.0 60.0Sep-13 38.9 77.8 50.0 50.0 94.4Oct-13 4.2 45.8 29.2 54.2 37.5Nov-13 15.6 62.5 34.4 40.6 28.1

Point Change 11.5 16.7 5.2 (13.5) (9.4)

6%

19%

75%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

31%44%

50%63%

44% 44%

6%13%

6%

0%10%20%30%40%50%60%70%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 27: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 27

Philadelphia, PA-Southern NJ – Demand Continues to Fall and Pricing Starts to Follow

Source: Credit Suisse; Census Bureau

(5,240 single-family building permits in 2012, 19th largest market in the country)

Comments from Real Estate Agents: • “The fallout from Obamacare has hurt traffic.”

• “Traffic is maybe down because of the government shutdown and/or Obamacare issues, or just plain consumer confidence.”

• “Sellers are withdrawing listings until the New Year hoping that the market continues to improve.”

• “Higher rates have kept people out.”

• “Some buyers are out looking now because inventories are low and they expect prices and rates to increase next year.”

Our Take: • Traffic continued to decline in November, as our traffic index

fell to 25 from 30 in October, further below agents’ expectations (fourth consecutive month). Agents attributed the lower demand to the economy, higher interest rates, and uncertainty over the implications of healthcare legislation.

• Prices fell in November, as our price index fell to 36 from 47 in October (first time prices have fallen since November 2012).

• Inventories declined, while the time to sell was flat in November. This is usually good for pricing, but we think lower traffic poses a risk.

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Sep

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Oct

-12

Nov

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Dec

-12

Jan-

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Feb-

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Mar

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Apr

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Nov

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Dec

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Jan-

12

Feb-

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Mar

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Apr

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May

-12

Jun-

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Jul-1

2

Aug

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Sep

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Oct

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Nov

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Dec

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Jan-

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Feb-

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Mar

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Apr

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May

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Jul-1

3

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Inde

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 61.5 69.2 54.2 65.4 80.8Jul-13 52.6 63.2 50.0 71.1 65.8Aug-13 37.5 65.6 60.0 50.0 61.8Sep-13 41.7 57.9 44.4 39.5 60.5Oct-13 30.0 46.7 50.0 63.3 56.7Nov-13 25.0 36.1 40.0 61.1 50.0

Point Change (5.0) (10.6) (10.0) (2.2) (6.7)

5%

39%56%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

11%

27% 22%

50%

67%56%

39%

7%

22%

0%10%20%30%40%50%60%70%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 28: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 28

Phoenix, AZ – Economic and Financial Uncertainties Keep Buyers away from the Market

Source: Credit Suisse; Census Bureau

(11,859 single-family building permits in 2012, 3rd largest market in the country)

Comments from Real Estate Agents: • “Traffic is down because rates are higher and buyers are

unsure about the economy.”

• “Last month the inventory of single-family homes jumped by 2,600 homes. Inventory is up 56% since the summer!”

• “There are fears and uncertainties about the cost of Obama care. Buyers don’t have any idea what their monthly net income will be.”

• “The rebound may have run its course. You had prices move 25% off the bottom with no income growth. The bargains are no longer there and interest rates are up.”

Our Take: • Traffic edged lower in November, as our traffic index fell to 18

from 19 in October, once again short of expectations (fifth consecutive month). Agents indicated that higher rates and inventories, economic uncertainty and concern over the financial impact of Obamacare all kept traffic low.

• Prices were again flat in November, as our price index came in at 52 from 47 in October, though incentives did increase (second consecutive month).

• Pricing power is likely to remain under pressure, as inventories and the time to sell both increased in November.

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12

Feb-

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Mar

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Apr

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2

Aug

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Sep

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Dec

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 65.2 95.7 50.0 67.4 69.6Jul-13 38.0 82.7 47.9 62.0 57.7Aug-13 43.1 82.8 55.4 60.7 55.4Sep-13 22.1 78.6 54.8 48.6 47.1Oct-13 18.6 47.1 34.8 31.4 25.7Nov-13 17.6 51.5 37.1 20.0 18.8

Point Change (0.9) 4.4 2.2 (11.4) (7.0)

3%

29%

68%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

21%32%

69%61% 61%

25%18%

6% 6%0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 29: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 29

Portland, OR – Traffic Remains Sluggish and Prices Fall for First Time Since February 2012

Source: Credit Suisse; Census Bureau

(4,489 single-family building permits in 2012, 24th largest market in the country)

Comments from Real Estate Agents: • “Buyers are questioning the status of the government and

the economy.”

• “Buyers seem to lack urgency. Rates have gone up slightly and buyers are expecting levels to come back down.”

• “My clients are tired of fighting over low inventory.”

• “People are focused on healthcare issues and other political distractions.”

• “Buyers don’t know what to expect with all the talk about the new health insurance.”

Our Take: • Buyer traffic remained below agents’ expectations in

November, as our traffic index came in at 27 from 25 in October (still below a neutral reading of 50). Agents noted that buyers were losing confidence in the economy, and that the market lacked a sense of urgency.

• Home prices fell in November, as our home price index decreased to 42 from 63 in October, marking the region’s first price decline since February 2012.

• Inventories fell while the time to sell was flat, which is a positive for pricing (though traffic remains weak).

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 63.3 90.0 53.3 56.7 83.3Jul-13 29.2 87.5 54.2 41.7 79.2Aug-13 38.5 69.2 50.0 50.0 57.7Sep-13 38.5 66.7 50.0 33.3 41.7Oct-13 25.0 62.5 45.5 45.8 37.5Nov-13 26.9 42.3 45.8 73.1 46.2

Point Change 1.9 (20.2) 0.4 27.2 8.7

8%

38%54%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

15% 8%

31%

54%

92%

46%31%

0%

23%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 30: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 30

Raleigh, NC – Traffic Better in November, but Levels Just Miss Expectations

Source: Credit Suisse; Census Bureau

(6,423 single-family building permits in 2012, 11th largest market in the country)

Comments from Real Estate Agents: • “Buyers are concerned about having to save more for a

down payment and not having enough money for repairs or renovations. They are also not sure about the future of the economy because of what’s happened with Obamacare.”

• “Traffic came back when the shutdown ended but NC still struggles with the jobless rate and a lack of new jobs. The employment landscape hurts everything.”

• “There is not a lot of inventory for homes under $250,000. Financial guidelines also remain an issue.”

Our Take: • Traffic came in a bit higher in November, but levels just

missed expectations (fifth consecutive month), as our index came in at 43, up from 40 in October (but still short of 50). Buyers were said to be turned off by higher down payments and a lack of inventory, though some demand did return following the end of the government shutdown.

• Prices edged higher in November, as our home price index came in at 57 from 60 in October.

• We see continued support for higher prices, as inventory and the time to sell both declined in November.

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Feb-

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Mar

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Apr

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2

Aug

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 70.0 90.0 50.0 90.0 100.0Jul-13 38.9 72.2 68.8 66.7 83.3Aug-13 30.0 50.0 50.0 80.0 50.0Sep-13 30.0 70.0 60.0 90.0 90.0Oct-13 40.0 60.0 40.0 70.0 75.0Nov-13 42.9 57.1 40.0 71.4 64.3

Point Change 2.9 (2.9) 0.0 1.4 (10.7)

14%

57%

29%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

29%20% 14%

57%

80%

43%

14%0%

43%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 31: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 31

Source: Credit Suisse; Census Bureau

(2,827 single-family building permits in 2012, 41st largest market in the country)

Comments from Real Estate Agents: • “The government shutdown has made prospects more

nervous about their economic future. The market has slowed, but it’s still better than the past 5 years. There is also a lack of inventory.”

• “People are scared of Obamacare. They aren’t sure what will happen. There have also been several plant layoffs.”

• “Appraisal issues are starting to become more common.”

Our Take: • Traffic edged higher in November, but still remained below

agents’ expectations. Our index came in at 33 from 31 in October, short of a reading of 50. Agents noted that buyers were still shaken by the government shutdown and had additional concerns surrounding the impact of Obamacare.

• Prices were slightly higher in November, as our home price index came in at 58 from 50 in October, though incentives also increased.

• Inventories and the time to sell saw broad increases in November. We think pricing will likely come under pressure.

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Apr

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2

Aug

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Sep

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Dec

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Mar

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<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 58.3 66.7 41.7 41.7 75.0Jul-13 70.0 80.0 70.0 75.0 100.0Aug-13 50.0 83.3 66.7 83.3 50.0Sep-13 83.3 83.3 66.7 66.7 75.0Oct-13 31.3 50.0 42.9 50.0 37.5Nov-13 33.3 58.3 33.3 16.7 33.3

Point Change 2.1 8.3 (9.5) (33.3) (4.2)

17%

33%

50%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

50%33%

50%

17%

67%

33%33%

0%17%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Richmond, VA – Government Shutdown Has Lingering Effects on November Demand

Page 32: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 32

Sacramento, CA – Traffic Depressed in November, Prices Fall for Frist Time in Nearly Two Years

Source: Credit Suisse; Census Bureau

(2,860 single-family building permits in 2012, 40th largest market in the country)

Comments from Real Estate Agents: • “Buyers think that the inventory is too low and that prices are

too high.”

• “The middle-class has a lot of national economic uncertainty, doubts about Obamacare, and doubts that the local economy isn’t growing.”

• “The economy isn’t helping demand at all.”

• “I’m seeing decent traffic, but that demand is driven by personal needs, not the market.”

Our Take: • Traffic remained well below agents’ expectations in November,

as our traffic index came in at 13 (from 9 in October). Agents indicated that a poor economic outlook, tight inventories and high prices all contributed to the lower than expected demand.

• Home prices were lower in November, as our home price index came in at 38, down from 46 in October, marking the first price decline since December 2011. Incentives increased as well.

• We think prices are likely to come under additional pressure, as inventories and the time to sell both increased. These are negative indicators for future pricing.

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Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Buy

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 66.7 100.0 75.0 33.3 72.2Jul-13 61.1 100.0 64.3 44.4 66.7Aug-13 20.0 95.0 56.3 40.0 35.0Sep-13 40.0 63.6 45.0 25.0 31.8Oct-13 8.3 45.8 40.9 20.8 16.7Nov-13 12.5 37.5 37.5 31.3 25.0

Point Change 4.2 (8.3) (3.4) 10.4 8.3

0%

25%

75%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

13%25%

50%50%

75%

50%38%

0% 0%0%

20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 33: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 33

San Antonio, TX – Traffic and Pricing Power Bounce Back in November

Source: Credit Suisse; Census Bureau

(5,125 single-family building permits in 2012, 20th largest market in the country)

Comments from Real Estate Agents: • “The Eagle Ford oil boom is supporting demand. Interest

rates are also still attractive.”

• “Demand has slowed but it is still brisk, especially given the time of the year.”

• “Relocation and retirement buyers are leading my sales.”

• “There is very low re-sale inventory and that is getting some buyers off the couch.”

• “Buyers find current rates and prices still attractive (though they are rising).”

Our Take: • Traffic rebounded and just exceeded expectations in

November, as our traffic index came in at 56, up from a two year low of 25 in October. Agents indicated that a better local economy (oil production), low rates and inventories and relocation demand all contributed to better demand.

• Prices saw broad gains in November, as our home price index came in at 81 from 64 in October.

• We think prices are likely to see continued support, as our home listings and time to sell indexes pointed to declines in each metric. These are positives for future pricing.

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May

-12

Jun-

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Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

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Oct

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Nov

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 63.6 81.8 45.5 40.9 63.6Jul-13 78.6 64.3 42.9 35.7 78.6Aug-13 61.1 80.0 55.0 60.0 80.0Sep-13 31.3 75.0 35.7 62.5 68.8Oct-13 25.0 64.3 35.7 85.7 71.4Nov-13 56.3 81.3 12.5 87.5 75.0

Point Change 31.3 17.0 (23.2) 1.8 3.6

12%

88%

0%Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

63%75%

0%

38%25%

50%

0% 0%

50%

0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 34: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 34

San Diego, CA – Pricing Eases as Buyers think Levels are too High

Source: Credit Suisse; Census Bureau

(2,198 single-family building permits in 2012, 54th largest market in the country)

Comments from Real Estate Agents: • “Buyers are unsure about political issues and the

government closing; home prices also went up too fast.”

• “Buyers are reacting poorly to the uncertain state of affairs in Washington. Confidence suffered as a result of the nonsense that played out in Congress.”

• “There is uncertainty about healthcare costs and expendable income for mortgage payments. Several families are sitting it out until the healthcare ordeal is resolved.”

• “Entry-level is moving nicely but move-up is slower with buyers being VERY picky.”

Our Take: • Traffic missed expectations again in November (fourth

consecutive month), as our traffic index came in at 25 from 20 in October. Agents pointed to a lack of confidence stemming from the government shutdown and Obamacare politics, as well as pricing that buyers felt was too high.

• Prices saw a broad decline in November, as our price index fell to 18 from 42 in October, the region’s lowest price index reading since August 2011.

• Pricing is likely to remain pressured as agents overwhelmingly pointed to an increased time to sell in November.

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-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

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Sep

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Oct

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Nov

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

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Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 76.3 89.5 67.6 52.6 72.2Jul-13 50.0 80.8 54.5 57.7 65.4Aug-13 41.7 75.0 61.1 12.5 41.7Sep-13 29.5 47.7 50.0 50.0 27.3Oct-13 20.0 42.1 46.2 36.8 26.3Nov-13 25.0 17.9 46.2 46.4 10.7

Point Change 5.0 (24.2) 0.0 9.6 (15.6)

0%

50%50%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

0%

31%

79%

36%46%

21%

64%

23%

0%0%

20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 35: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 35

San Francisco, CA – Traffic Remains Soft though Price Increases Return in November

Source: Credit Suisse; Census Bureau

(3,105 single-family building permits in 2012, 35th largest market in the country)

Comments from Real Estate Agents: • “There is increased concern about the economy partly due,

maybe, to the inability for Congress to take action.”

• “Buyers are not sure about future prices and the condition of the economy.”

• “Inventory is short and poor. Buyers also don’t know what to expect when it comes to the economy and the new Fed chairman.”

• “Prices have risen too far. Higher interest rates certainly aren’t helping.”

Our Take: • Demand was short of expectations again in November, as our

buyer traffic index came in at 37, up slightly from 32 in October, but still short of a reading of 50. Agents indicated that buyers felt uneasy about the economy, that inventory was too low and prices were too high (especially with higher rates).

• Prices continued to increase in November after a brief pause in October, as our index improved to 69 from 55.

• Inventories were lower, while the time to sell edged higher. Given the broad declines in inventories we would expect higher pricing, though lower traffic does pose a risk.

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Feb-

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Mar

-12

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-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

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Buy

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

0102030405060708090

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 61.5 90.4 67.5 38.5 65.4Jul-13 47.6 90.5 52.8 45.0 47.4Aug-13 43.3 81.3 69.2 25.0 37.5Sep-13 40.9 76.2 52.8 40.0 45.0Oct-13 31.8 54.8 47.2 40.5 35.7Nov-13 37.0 68.8 50.0 76.1 43.8

Point Change 5.1 14.0 2.8 35.6 8.0

17%

39%

44%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

46%

10%

33%46%

80%

46%

8% 10%21%

0%20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 36: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 36

Sarasota, FL – Traffic a Bit Higher, but Congress Still Weighs on Buyers’ Decisions

Source: Credit Suisse; Census Bureau

(2,668 single-family building permits in 2012, 48th largest market in the country)

Comments from Real Estate Agents: • “The country is a mess.”

• “The return of snowbirds and demand from retirees has helped traffic.”

• “Cash investors have cut back, but this has allowed traditional buyers to enter the market.”

• “Snowbirds have started to comeback and buy.”

• “Most buyers are waiting to see if Congress can do anything to help consumer costs.”

Our Take: • Traffic improved slightly in November, but demand still fell short

of agents’ expectations. Our traffic index came in at 40, up from 31 in October, but still short of 50. Agents noted that while the snowbird season started well, most buyers still felt uncertain about the landscape in Congress.

• Prices edged higher in November, as our price index came in at 56 (from 67 in October), though momentum seems to have eased.

• Pricing momentum is like to continue to moderate, as agents pointed to an increased time to sell, a negative for pricing.

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Feb-

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Mar

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Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

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Buy

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

0102030405060708090

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 62.5 92.9 64.3 78.6 78.6Jul-13 57.1 87.5 68.2 87.5 86.4Aug-13 57.1 80.0 50.0 60.0 80.0Sep-13 64.3 83.3 58.3 83.3 83.3Oct-13 31.3 66.7 33.3 41.7 33.3Nov-13 40.0 55.6 50.0 55.6 33.3

Point Change 8.8 (11.1) 16.7 13.9 0.0

10%

60%

30%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

22%13%

44%

67%75%

44%

11% 13% 11%

0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 37: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 37

Seattle, WA – Price Increases Pause in November as Traffic Struggles to Recover

Source: Credit Suisse; Census Bureau

(8,092 single-family building permits in 2012, 6th largest market in the country)

Comments from Real Estate Agents: • “Consumer confidence is low. There are bad Obamacare

issues and lasting problems from the shutdown.”

• “Prices keep rising along with interest rates. Buyers are not so drawn to this type of environment.”

• “There is less inventory and some sellers won’t budge on price.”

• “The shutdown is having a ripple effect.”

• “Traffic is lower likely due to a combination of the political uncertainty in Washington and a general lack of urgency around this time of year.”

Our Take: • Demand was again short of expectations in November, as our

index came in at 17 from a low of 0 in October. Agents indicated that a lack of confidence, political and economic uncertainty all worked to keep demand low in November.

• Prices were flat in November, following 19 consecutive months of increases, as our price index fell to 55 from 64 in October. Agents also pointed to higher incentives in November.

• Buyers showed increased patience in November, as our time to sell index came in at 27 from 36 in October, below a reading of 50. This is a negative for future pricing.

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-12

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12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

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Jul-1

3

Aug

-13

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Oct

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Nov

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Buy

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

0102030405060708090

100

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 67.6 96.9 62.5 86.7 84.4Jul-13 46.7 85.7 57.1 67.9 53.6Aug-13 40.0 77.8 66.7 55.0 70.0Sep-13 37.5 65.4 54.5 61.5 38.5Oct-13 0.0 64.3 37.5 50.0 35.7Nov-13 16.7 54.5 36.4 59.1 27.3

Point Change 16.7 (9.7) (1.1) 9.1 (8.4)

8%

17%

75%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

27%36%

55%55% 55%

36%

18%9% 9%

0%10%20%30%40%50%60%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 38: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 38

Source: Credit Suisse; Census Bureau

(4,238 single-family building permits in 2012, 25th largest market in the country)

Comments from Real Estate Agents: • “I think that in general with everyone unsure of what

Congress was go to do, people didn’t feel confident enough to buy.”

• “People are waiting for the market to change before investing in a home.”

• “We’ve had some seasonally better traffic than normal. Levels will probably revert back to normal.”

Our Take: • Traffic bounced higher in November, with levels exceeding

agents’ expectations for the first time since July. Our traffic index came in at 63 from 13 in October, which was impacted by the government shutdown. Agents noted that buyers felt more comfortable entering the market, though some are still a bit uneasy about the national political landscape.

• Home prices were higher in November, as our home price index came in at 75, up form 50 in October.

• Inventories and the time to sell declined in November, which we think can support pricing, though levels remain volatile.

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2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

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-13

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Nov

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Buy

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 50.0 83.3 75.0 16.7 50.0Jul-13 75.0 87.5 25.0 37.5 62.5Aug-13 33.3 50.0 50.0 50.0 33.3Sep-13 16.7 66.7 75.0 33.3 50.0Oct-13 12.5 50.0 0.0 50.0 33.3Nov-13 62.5 75.0 50.0 100.0 87.5

Point Change 50.0 25.0 50.0 50.0 54.2

50%

25%

25%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

50%

0% 0%

50%

100%

25%

0% 0%

75%

0%20%40%60%80%

100%120%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

St. Louis, MO – Buyers Creep Back into the Market after Shutdown Scare

Page 39: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 39

Tampa, FL – Traffic Sees Moderate Bounce, Pricing Remains Strong

Source: Credit Suisse; Census Bureau

(5,885 single-family building permits in 2012, 13th largest market in the country)

Comments from Real Estate Agents: • “Builder incentives are way up right now.”

• “There aren’t many good homes for sale. Plus the new flood rates in some counties are hurting sales.”

• “New flood insurance rates are keeping demand at bay.”

• “The government issues have people staying away from looking at homes.”

• “Financing is difficult to obtain and buyers don’t have enough cash for a down payment.”

• “Low inventory has some buyers stepping into the market.”

Our Take: • Traffic was higher in November, though levels were still short of

expectations, as our traffic index came in at 31, up from 23 in October, but still short of a reading of 50. Agents indicated higher flood insurances rates was a key deterrent for buyers in November, while tough financing also took away from demand.

• Agents pointed to higher prices in November, as our price index came in at 73, unchanged from our reading in October, but still above a neutral reading of 50.

• Inventories increased slightly in November, and with lower traffic we think pricing may soon come under pressure.

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2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

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Mar

-13

Apr

-13

May

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Jul-1

3

Aug

-13

Sep

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Oct

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Nov

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Buy

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<50 - Below Expectations; =50 - Meets Expectations; >50 - Exceeds Expectations

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Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Hom

e Pr

ice

Inde

x

<50 - Lower than Prior Month; =50 - Flat vs Prior Month; >50 - Higher than Prior Month

MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 65.6 96.7 39.3 70.0 76.7Jul-13 50.0 100.0 56.3 77.8 77.8Aug-13 31.8 77.3 59.1 81.8 77.3Sep-13 42.9 76.7 42.9 70.0 56.7Oct-13 23.1 73.1 26.9 53.8 38.5Nov-13 30.8 73.1 37.5 41.7 46.2

Point Change 7.7 0.0 10.6 (12.2) 7.7

15%

31%54%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

62%

42% 38%

23%

42%31%

15% 17%31%

0%10%20%30%40%50%60%70%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 40: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 40

Tucson, AZ – Demand Remains Soft in November as Buyers Unsure what to Expect from D.C.

Source: Credit Suisse; Census Bureau

(2,162 single-family building permits in 2012, 55th largest market in the country)

Comments from Real Estate Agents: • “I think people are staying on the sidelines because of

healthcare legislation issues.”

• “The uncertainty in Washington, D.C. is bad for traffic.”

• “Snowbirds are starting to return.”

• “There is some uncertainty for what 2014 might bring.”

• “Interest rates are higher and lending requirements remain tight. Buyers aren’t reacting so well to this combination.”

Our Take: • Buyer traffic remained short of expectations in November, as

our traffic index came in at 30 from 28 in October, below a neutral reading of 50. Agents indicated that concerns over the government healthcare implications kept traffic subdued in November.

• Home prices were higher in November, as our home price index came in at 60, up from 44 in October, and above a neutral reading of 50, though incentives did increase.

• Both inventories and the time to sell increased in November. These are typically negative signs for future pricing.

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MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 70.8 83.3 45.5 83.3 87.5Jul-13 66.7 77.8 50.0 78.6 72.2Aug-13 27.3 72.7 54.5 54.5 40.9Sep-13 35.0 75.0 40.0 50.0 50.0Oct-13 27.8 44.4 50.0 27.8 27.8Nov-13 30.0 60.0 35.0 30.0 35.0

Point Change 2.2 15.6 (15.0) 2.2 7.2

10%

40%50%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

40%30%

50%40%

70%

30%20%

0%

20%

0%

20%

40%

60%

80%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 41: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 41

Virginia Beach, VA – Prices Fall for Second Consecutive Month, as Buyers Shun Housing in November

Source: Credit Suisse; Census Bureau

(3,544 single-family building permits in 2012, 31st largest market in the country)

Comments from Real Estate Agents: • “Our area is heavily supported by government contractors

and government workers. I believe that many are taking a wait and see attitude due to the shutdown.”

• “Activity has seemed weaker for about two months, ever since the budget and deficit debates started again.”

• “Some of the decline in traffic is ordinary seasonality, some is unease about the sequester, some is government indifference to housing programs, and some is a hostile lending environment.”

Our Take: • Traffic took a sharp step back in November, as our traffic index

fell to 0 from 33 in October. Agents highlighted that Virginia Beach is very much dependent on government spending, and the uncertainty out of D.C. has led buyers to hold off until debates centered around the budget are resolved.

• Agents pointed to lower prices in November, as our price index fell to 25 from 33 in October.

• Inventories fell, though the time to sell increased in November. We view this as a negative for future pricing, especially given the sharp drop in demand.

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MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 75.0 83.3 50.0 75.0 83.3Jul-13 50.0 66.7 41.7 66.7 83.3Aug-13 50.0 50.0 37.5 37.5 50.0Sep-13 33.3 70.0 33.3 58.3 91.7Oct-13 33.3 33.3 50.0 50.0 50.0Nov-13 0.0 25.0 25.0 87.5 12.5

Point Change (33.3) (8.3) (25.0) 37.5 (37.5)

0%0%

100%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

0%

50%

75%

50% 50%

25%

50%

0% 0%0%

20%40%60%80%

100%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 42: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 42

Washington, D.C. – Shutdown Keeps Demand Weak, Buyers Prepare for Similar Fallout in 2014

Source: Credit Suisse; Census Bureau

(10,970 single-family building permits in 2012, 4th largest market in the country)

Comments from Real Estate Agents: • “The shutdown introduced additional uncertainty into the

market and people are wondering if it will happen again in 2014.”

• “Traffic is down because of the shutdown, sequestration, and general feeling of uncertainty.”

• “The shutdown changed buyer confidence.”

• “When government workers lost their pay for several weeks amid the budget debates, they shelved plans to look for homes since they expect the same thing to happen again in 2014.”

Our Take: • Traffic was slightly higher in November, but levels still did not

meet expectations as our traffic index came in at 32 from 25 in October. Agents overwhelmingly attributed the weak demand to uncertainty surrounding the budget deficit and expectations for a similar scenario in 2014.

• Pricing was flat in November, as our price index fell to 46 from 64 in October. This is the first time prices have not increased since January 2012.

• We think prices are likely to come under additional pressure, as the time to sell increased again in November.

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MonthBuyer Traffic

IndexHome Price

IndexIncentive

IndexHome Listings

IndexTime to Sell

IndexJun-13 52.1 86.0 63.6 56.0 68.0Jul-13 52.2 63.0 50.0 47.8 54.5Aug-13 27.3 72.9 45.0 54.2 54.2Sep-13 34.2 63.2 55.3 52.8 47.4Oct-13 25.0 64.3 47.6 59.5 37.5Nov-13 31.5 46.4 44.0 44.4 28.6

Point Change 6.5 (17.9) (3.6) (15.1) (8.9)

11%

41%

48%

Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

18%28%

50%57% 56%

43%

25%16%

7%

0%10%20%30%40%50%60%

Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 43: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 43

Wilmington, NC – Traffic Continues to Fall, though Pricing Increases in November

Source: Credit Suisse; Census Bureau

(2,033 single-family building permits in 2012, 58th largest market in the country)

Comments from Real Estate Agents: • “Flood insurance has sunk deals close to the water.”

• “Luckily, most of my buyers can still afford health insurance.”

• “Appraisals continue to be a hurdle!”

Our Take: • Buyer traffic fell further in November, as our traffic index

slipped to 25 from 41 in October, coming in short of agents’ expectations again. In November, agents indicated that the healthcare legislation, and more expensive flood insurance worked to drive demand lower.

• Prices increased in November, as our home price index came in at 58, unchanged from our reading in October.

• Prices may have some support in the near term as inventories and the time to sell were both flat in November, though lower traffic may soon lead to an extended time to sell.

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IndexHome Price

IndexIncentive

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IndexTime to Sell

IndexJun-13 62.5 87.5 37.5 62.5 25.0Jul-13 50.0 87.5 62.5 50.0 50.0Aug-13 50.0 66.7 50.0 66.7 66.7Sep-13 50.0 85.7 50.0 71.4 64.3Oct-13 41.7 58.3 41.7 50.0 50.0Nov-13 25.0 58.3 33.3 50.0 50.0

Point Change (16.7) 0.0 (8.3) 0.0 0.0

0%

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Traffic Levels Versus Expectations

More than expected Meets expectations Less than expected

33% 33%

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17%

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Home Prices Incentives Time to Sell

How Do the Recent 30 Days Compare to the Prior 30 Days...

Increased Remained the same Decreased

Page 44: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 44

Appendix:

Page 45: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 45

Historical Trends: Buyer Traffic Index

Source: Credit Suisse

BUYER TRAFFIC INDEX Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13Atlanta, GA 38.5 41.3 59.5 72.5 54.5 55.6 54.5 51.9 47.4 65.4 53.6 60.9 50.0 53.3 45.5 73.1 63.6 53.6 53.1 42.9 47.1 35.7 17.4 12.5 41.7Austin, TX 33.3 35.0 58.7 77.5 71.9 67.9 76.2 73.7 66.7 67.6 68.8 61.1 42.3 53.1 57.1 76.7 76.7 81.8 80.8 63.3 61.1 65.4 46.7 34.6 35.0Baltimore, MD 28.6 62.5 50.0 58.3 70.0 45.0 35.7 62.5 58.3 75.0 12.5 28.6 28.6 38.9 33.3 66.7 61.1 25.0 38.9 30.0 28.6 50.0 20.0 8.3 25.0Boston, MA 23.1 50.0 34.6 70.0 85.7 80.8 60.0 67.6 46.9 60.7 53.6 42.3 53.3 50.0 61.1 73.3 80.8 75.0 66.7 67.9 46.9 47.2 25.0 39.3 40.6Charleston, SC 0.0 0.0 37.5 42.9 50.0 66.7 25.0 50.0 8.3 50.0 50.0 50.0 50.0 50.0 25.0 25.0 57.1 33.3 64.3 50.0 80.0 41.7 43.8 40.0 37.5Charlotte, NC 46.4 45.8 60.0 82.1 55.0 61.5 46.4 39.3 44.4 38.9 36.4 26.9 59.1 50.0 75.0 86.4 90.9 65.4 66.7 60.0 50.0 31.3 38.9 33.3 42.3Chicago, IL 17.6 41.2 58.6 57.9 75.7 60.7 59.4 45.5 40.5 51.7 44.9 42.4 41.1 46.4 60.6 68.3 63.5 59.6 68.3 64.0 55.8 50.0 44.8 25.0 36.5Cincinnati, OH 11.1 25.0 46.7 45.0 88.9 81.3 64.3 78.6 35.7 33.3 35.7 25.0 66.7 59.1 71.4 70.0 66.7 50.0 50.0 33.3 42.9 66.7 20.0 25.0 45.0Columbus, OH 22.7 50.0 55.0 50.0 50.0 60.0 61.1 64.3 45.8 29.2 55.6 61.1 45.5 50.0 50.0 57.1 40.0 68.8 50.0 70.0 42.9 37.5 45.0 28.6 35.7Dallas, TX 19.4 30.0 45.2 50.0 63.3 66.7 56.3 42.9 44.4 50.0 54.2 63.6 59.1 58.3 56.3 70.8 91.7 80.0 65.0 70.0 56.3 40.0 50.0 50.0 38.9Denver, CO 41.7 46.3 50.0 50.0 69.2 69.6 73.9 63.0 56.3 60.0 56.8 53.3 63.5 56.8 69.6 73.9 70.8 75.0 68.8 63.2 55.0 34.0 30.6 40.5 40.5Detroit, MI 21.4 38.2 36.7 50.0 46.2 56.3 69.2 57.7 63.2 46.2 50.0 35.3 32.1 37.5 40.0 58.3 67.5 57.1 53.8 47.5 50.0 46.9 36.7 42.1 25.0Fort Myers, FL 46.9 45.8 43.3 76.3 52.9 37.5 46.2 40.9 25.0 40.9 25.0 46.4 62.5 28.6 47.4 50.0 37.5 53.3 58.3 60.0 59.1 60.0 61.1 38.5 45.0Houston, TX 41.3 36.1 50.0 67.5 61.8 62.5 52.5 61.5 53.3 47.2 56.3 42.1 40.0 50.0 61.9 77.8 62.5 91.7 77.8 71.4 70.8 68.2 41.7 44.4 25.0Inland Empire, CA 29.2 33.3 38.5 37.5 57.7 53.8 72.7 52.6 57.5 62.5 61.5 55.6 58.8 66.7 70.8 63.6 71.1 65.0 63.2 75.0 53.3 54.5 22.7 13.6 50.0Jacksonville, FL 37.5 16.7 45.8 50.0 55.0 66.7 54.5 69.2 37.5 25.0 59.1 50.0 64.3 56.3 75.0 68.8 66.7 68.8 71.4 55.0 37.5 75.0 11.1 25.0 27.8Las Vegas, NV 42.9 52.5 50.0 57.9 63.2 80.0 65.4 70.5 60.7 47.5 43.8 55.9 36.7 63.3 61.9 60.9 65.2 75.0 65.9 61.1 46.2 36.1 23.7 38.6 27.8Los Angeles, CA 23.4 35.2 50.0 53.7 60.0 61.5 60.3 75.0 55.4 59.6 65.4 64.7 62.5 68.0 66.7 59.3 66.7 66.7 76.5 63.0 52.1 47.2 38.5 37.0 23.7Miami, FL 44.2 40.0 60.8 56.8 60.2 61.1 56.9 67.2 53.8 46.6 60.8 48.7 50.0 55.3 60.3 57.6 69.7 66.7 75.8 64.3 55.9 46.0 30.0 32.7 29.5Minneapolis, MN 21.1 31.4 50.0 62.5 72.2 68.2 64.5 66.7 57.1 73.8 61.3 59.1 46.9 39.5 57.4 64.3 52.9 60.0 73.1 55.3 55.9 62.5 37.5 32.1 17.6Nashville, TN 37.5 31.8 62.5 66.7 72.7 75.0 62.5 61.5 31.3 25.0 35.7 18.8 50.0 61.1 61.1 83.3 75.0 80.8 72.7 68.2 54.5 61.1 21.4 27.3 33.3New York-Northern NJ 19.4 24.4 38.1 54.2 62.0 40.2 40.8 41.3 40.7 29.1 26.7 34.3 15.1 32.6 45.8 57.5 62.3 51.0 60.4 46.7 52.3 42.9 30.6 27.5 23.3Orlando, FL 18.4 41.7 29.2 63.3 45.5 53.1 53.1 58.3 52.3 46.4 47.5 36.8 42.3 35.7 34.6 47.1 52.9 34.4 61.8 45.0 46.9 25.0 38.9 4.2 15.6Phila.-Southern NJ 15.2 30.6 42.5 58.3 59.1 40.9 44.8 34.6 52.1 40.9 50.0 38.0 33.3 54.5 63.9 63.0 57.1 61.1 56.8 61.5 52.6 37.5 41.7 30.0 25.0Phoenix, AZ 27.9 50.0 53.4 73.6 84.4 78.1 73.6 68.8 54.4 63.0 53.2 43.2 48.0 39.6 42.6 53.9 50.0 58.3 55.8 65.2 38.0 43.1 22.1 18.6 17.6Portland, OR 36.8 36.8 50.0 75.0 61.1 55.9 60.0 65.0 65.8 62.5 53.8 55.3 50.0 54.2 57.5 63.2 75.0 68.2 60.7 63.3 29.2 38.5 38.5 25.0 26.9Raleigh, NC 60.0 50.0 62.5 57.1 33.3 50.0 42.9 60.0 50.0 58.3 37.5 33.3 35.7 40.0 42.9 50.0 57.1 56.3 57.1 70.0 38.9 30.0 30.0 40.0 42.9Richmond, VA 66.7 50.0 75.0 83.3 66.7 100.0 50.0 60.0 60.0 33.3 42.9 57.1 57.1 50.0 87.5 87.5 75.0 75.0 58.3 58.3 70.0 50.0 83.3 31.3 33.3Sacramento, CA 39.3 38.9 64.3 100.0 68.2 72.7 88.9 62.5 64.3 58.3 67.9 67.9 77.3 73.3 64.3 76.9 78.6 80.8 66.7 66.7 61.1 20.0 40.0 8.3 12.5San Antonio, TX 38.9 37.5 62.5 62.5 72.2 65.0 64.3 65.0 45.0 85.7 35.0 37.5 33.3 43.8 81.8 72.2 75.0 55.0 78.6 63.6 78.6 61.1 31.3 25.0 56.3San Diego, CA 14.3 29.5 30.8 56.3 50.0 66.7 63.9 65.2 68.4 57.9 50.0 53.6 65.0 60.0 68.2 71.1 81.8 72.2 61.1 76.3 50.0 41.7 29.5 20.0 25.0San Francisco, CA 39.7 26.5 54.3 73.9 84.8 84.1 68.0 67.7 67.4 75.0 73.8 76.1 67.9 70.0 80.4 80.4 81.3 82.6 68.8 61.5 47.6 43.3 40.9 31.8 37.0Sarasota, FL 50.0 46.2 70.0 72.2 77.3 70.8 66.7 47.4 58.3 60.0 41.7 41.7 43.8 62.5 50.0 50.0 55.0 70.0 66.7 62.5 57.1 57.1 64.3 31.3 40.0Seattle, WA 16.7 35.3 38.2 69.0 80.0 61.1 80.0 57.5 53.8 65.4 65.6 68.2 52.3 73.5 69.4 66.7 65.0 61.1 60.0 67.6 46.7 40.0 37.5 0.0 16.7St. Louis, MO 0.0 0.0 37.5 40.0 25.0 40.0 33.3 21.4 50.0 50.0 50.0 41.7 27.8 43.8 50.0 75.0 64.3 50.0 50.0 50.0 75.0 33.3 16.7 12.5 62.5Tampa, FL 31.0 53.1 43.5 60.0 75.0 57.9 67.5 60.3 38.9 50.0 51.8 42.5 40.0 39.5 53.3 66.7 52.4 63.9 76.9 65.6 50.0 31.8 42.9 23.1 30.8Tucson, AZ 30.8 35.0 27.3 61.1 33.3 60.0 71.4 62.5 57.1 40.9 61.1 50.0 50.0 55.0 50.0 36.4 65.0 70.0 62.5 70.8 66.7 27.3 35.0 27.8 30.0Virginia Beach, VA 80.0 50.0 61.1 71.4 60.0 61.1 50.0 75.0 40.0 42.9 58.3 60.0 57.1 37.5 70.0 63.6 78.6 64.3 62.5 75.0 50.0 50.0 33.3 33.3 0.0Washington, DC 29.2 31.7 48.2 66.7 75.0 68.3 68.0 55.6 51.8 50.0 46.7 52.2 50.0 48.2 63.8 69.0 63.0 64.6 61.7 52.1 52.2 27.3 34.2 25.0 31.5Wilmington, NC 60.0 30.0 60.0 60.0 70.0 75.0 62.5 58.3 80.0 66.7 50.0 25.0 50.0 75.0 75.0 70.0 58.3 83.3 50.0 62.5 50.0 50.0 50.0 41.7 25.0Total 32.5 37.1 49.8 62.3 63.0 63.5 59.2 58.7 51.0 52.3 50.1 47.7 49.0 52.0 59.0 65.1 66.1 64.4 63.4 60.5 52.9 45.2 36.2 28.1 31.9

Page 46: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 46

Historical Trends: Home Price Index

Source: Credit Suisse

HOME PRICE INDEX Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13Atlanta, GA 23.1 19.6 22.7 40.5 34.1 47.4 50.0 48.1 55.3 65.4 65.4 58.3 52.9 55.6 36.4 84.6 83.3 82.1 93.3 80.0 81.3 78.6 61.9 63.6 54.2Austin, TX 26.3 47.4 56.5 60.0 43.8 63.3 75.0 81.6 79.4 76.5 81.3 75.0 70.8 78.1 82.1 93.3 96.7 95.8 100.0 85.7 94.4 84.6 80.0 61.5 60.0Baltimore, MD 28.6 12.5 41.7 33.3 37.5 45.0 42.9 66.7 41.7 50.0 50.0 50.0 64.3 50.0 55.6 58.3 80.0 100.0 83.3 100.0 71.4 56.3 80.0 41.7 60.0Boston, MA 26.9 28.6 20.8 42.9 50.0 58.3 63.3 64.7 56.3 70.0 67.9 50.0 56.3 70.0 80.6 86.7 88.5 91.7 91.7 92.9 80.0 77.8 65.8 75.0 62.5Charleston, SC 0.0 0.0 25.0 7.1 16.7 62.5 25.0 50.0 33.3 70.0 70.0 66.7 60.0 70.0 75.0 66.7 85.7 66.7 85.7 91.7 90.0 75.0 75.0 70.0 62.5Charlotte, NC 21.4 33.3 33.3 38.5 30.0 42.3 46.4 60.7 50.0 55.6 63.6 73.1 72.7 72.2 85.0 81.8 100.0 83.3 87.5 90.0 80.0 92.9 77.8 61.1 76.9Chicago, IL 19.7 20.6 23.5 34.6 36.1 32.8 34.4 39.7 42.1 39.7 37.8 46.9 42.6 44.6 62.0 60.9 76.4 70.0 81.3 80.0 80.0 61.7 75.9 43.8 53.7Cincinnati, OH 22.2 35.7 30.0 35.0 50.0 50.0 58.3 57.1 35.7 33.3 57.1 60.0 66.7 54.5 57.1 60.0 58.3 81.3 78.6 58.3 71.4 80.0 60.0 40.0 60.0Columbus, OH 29.2 33.3 30.0 35.7 42.9 50.0 62.5 57.1 50.0 58.3 55.6 62.5 63.6 54.5 75.0 68.8 60.0 78.6 83.3 100.0 83.3 75.0 70.0 50.0 57.1Dallas, TX 33.3 27.3 33.3 46.4 53.6 72.2 66.7 64.3 66.7 73.1 66.7 65.4 63.6 54.2 81.3 79.2 83.3 96.7 90.0 86.7 75.0 80.0 80.0 72.2 62.5Denver, CO 36.4 41.7 48.1 47.8 67.3 76.1 78.3 73.2 86.4 80.0 78.3 82.8 68.5 65.9 82.1 87.5 89.6 93.8 85.7 86.8 83.3 72.0 52.5 39.1 44.7Detroit, MI 42.9 44.1 31.3 41.7 46.4 65.6 80.8 84.6 84.2 88.5 75.0 72.2 64.3 79.2 66.7 86.1 85.0 89.3 87.5 90.0 86.1 81.3 80.0 63.9 63.9Fort Myers, FL 62.5 66.7 80.0 78.9 88.2 86.7 83.3 77.3 63.9 75.0 75.0 75.0 87.5 85.7 85.0 75.0 77.3 78.6 75.0 83.3 95.5 94.4 83.3 84.6 75.0Houston, TX 37.0 47.2 46.2 47.7 50.0 68.8 50.0 71.4 73.3 80.6 71.9 69.4 76.7 79.4 83.3 81.6 79.2 86.8 97.2 92.3 87.5 86.4 87.5 80.0 75.0Inland Empire, CA 25.0 37.5 37.5 38.2 45.8 46.2 77.3 83.3 75.0 87.5 82.1 88.9 84.4 78.1 83.3 81.8 89.5 90.0 97.4 100.0 90.0 86.4 63.6 54.5 61.1Jacksonville, FL 25.0 31.3 37.5 16.7 45.5 33.3 68.2 50.0 50.0 50.0 63.6 65.0 64.3 75.0 75.0 87.5 91.7 87.5 71.4 75.0 62.5 62.5 72.2 50.0 72.2Las Vegas, NV 26.2 35.0 34.2 23.7 60.5 78.6 82.7 81.8 92.3 84.2 93.8 91.7 83.3 93.3 97.6 97.8 97.9 100.0 97.6 100.0 90.4 86.1 75.0 54.8 61.1Los Angeles, CA 28.1 37.5 30.0 38.8 51.4 57.7 64.7 66.0 80.3 83.3 92.0 86.8 88.9 88.0 83.9 94.4 98.0 96.6 97.1 95.7 85.4 77.8 76.0 56.3 58.3Miami, FL 53.4 54.3 53.9 59.2 68.2 72.4 74.3 84.8 85.5 73.3 88.9 85.0 86.2 88.2 92.6 88.2 92.1 92.4 93.9 86.1 92.6 81.3 84.0 80.8 72.7Minneapolis, MN 16.2 19.4 25.6 35.7 44.6 57.6 64.7 73.5 62.1 76.2 72.6 77.9 63.2 78.6 83.3 87.9 80.6 92.9 88.5 92.1 85.3 68.2 58.3 50.0 52.9Nashville, TN 25.0 36.4 50.0 33.3 54.5 58.3 56.3 57.7 62.5 56.3 71.4 50.0 64.3 50.0 77.8 83.3 70.8 73.1 81.8 81.8 90.9 88.9 64.3 59.1 61.1New York-Northern NJ 18.5 14.0 27.0 30.2 39.6 34.1 30.0 40.2 35.0 40.2 40.9 37.0 39.8 41.5 47.9 59.6 68.6 66.3 69.8 64.8 70.5 71.4 55.1 56.4 51.1Orlando, FL 47.2 47.1 45.8 53.3 60.0 68.8 76.7 72.2 83.3 82.1 85.0 73.7 75.0 80.0 73.1 73.5 82.4 81.3 91.2 95.5 86.7 80.0 77.8 45.8 62.5Phila.-Southern NJ 21.7 18.2 35.7 38.9 40.9 36.4 32.1 25.0 35.4 43.2 37.5 46.0 38.1 47.7 47.2 54.3 67.9 63.9 65.9 69.2 63.2 65.6 57.9 46.7 36.1Phoenix, AZ 48.5 56.3 64.8 71.4 83.9 96.9 95.7 88.5 81.8 87.0 85.5 86.4 82.0 78.3 75.9 87.8 87.1 93.2 92.3 95.7 82.7 82.8 78.6 47.1 51.5Portland, OR 26.3 34.2 34.1 39.3 47.2 52.8 67.9 76.3 81.6 71.9 61.5 77.8 67.9 75.0 82.5 81.6 85.7 86.4 86.7 90.0 87.5 69.2 66.7 62.5 42.3Raleigh, NC 40.0 33.3 37.5 42.9 83.3 66.7 50.0 20.0 55.6 100.0 56.3 66.7 57.1 60.0 50.0 60.0 78.6 81.3 78.6 90.0 72.2 50.0 70.0 60.0 57.1Richmond, VA 33.3 0.0 25.0 16.7 16.7 50.0 33.3 50.0 40.0 33.3 50.0 50.0 57.1 33.3 75.0 62.5 83.3 83.3 83.3 66.7 80.0 83.3 83.3 50.0 58.3Sacramento, CA 32.1 33.3 46.4 50.0 45.5 68.2 90.0 95.5 96.7 86.4 92.9 96.4 100.0 100.0 92.3 100.0 100.0 88.5 100.0 100.0 100.0 95.0 63.6 45.8 37.5San Antonio, TX 38.9 25.0 50.0 31.3 27.8 55.0 64.3 50.0 60.0 57.1 60.0 68.8 58.3 62.5 77.3 94.4 83.3 80.0 81.3 81.8 64.3 80.0 75.0 64.3 81.3San Diego, CA 21.4 25.0 28.8 47.8 41.7 57.1 76.5 75.0 81.6 65.8 62.5 85.7 75.0 76.7 90.9 94.7 97.6 94.4 91.7 89.5 80.8 75.0 47.7 42.1 17.9San Francisco, CA 40.7 29.4 45.8 63.0 65.2 73.9 88.5 83.9 91.3 95.2 95.2 91.3 89.3 89.5 96.3 98.2 100.0 100.0 95.5 90.4 90.5 81.3 76.2 54.8 68.8Sarasota, FL 50.0 53.8 60.0 61.1 81.8 75.0 81.8 77.8 54.2 55.6 83.3 72.7 64.3 85.7 92.9 92.9 88.9 80.0 90.0 92.9 87.5 80.0 83.3 66.7 55.6Seattle, WA 13.2 14.7 14.7 38.6 52.5 57.9 70.0 77.5 67.9 80.8 72.2 86.4 69.0 86.7 83.3 88.1 90.0 87.5 91.7 96.9 85.7 77.8 65.4 64.3 54.5St. Louis, MO 40.0 0.0 37.5 37.5 62.5 30.0 33.3 35.7 60.0 57.1 58.3 50.0 38.9 56.3 60.0 66.7 78.6 71.4 50.0 83.3 87.5 50.0 66.7 50.0 75.0Tampa, FL 32.8 44.1 45.7 47.5 55.6 47.2 71.4 55.2 55.9 77.1 76.8 80.0 67.5 73.5 83.3 75.0 88.1 88.2 79.2 96.7 100.0 77.3 76.7 73.1 73.1Tucson, AZ 33.3 35.0 22.7 50.0 62.5 60.0 67.9 73.1 71.4 66.7 83.3 65.0 65.0 75.0 71.4 81.8 85.0 80.0 68.8 83.3 77.8 72.7 75.0 44.4 60.0Virginia Beach, VA 30.0 10.0 27.8 14.3 20.0 33.3 50.0 50.0 60.0 64.3 58.3 30.0 57.1 50.0 40.0 54.5 85.7 78.6 87.5 83.3 66.7 50.0 70.0 33.3 25.0Washington, DC 39.6 32.8 33.9 61.4 65.2 73.3 75.0 63.9 59.3 58.6 68.3 65.2 66.7 70.7 78.9 92.9 84.1 95.8 85.0 86.0 63.0 72.9 63.2 64.3 46.4Wilmington, NC 10.0 10.0 30.0 10.0 40.0 12.5 37.5 25.0 25.0 60.0 41.7 50.0 42.9 25.0 66.7 60.0 50.0 66.7 60.0 87.5 87.5 66.7 85.7 58.3 58.3Total 30.7 30.6 37.6 41.0 50.2 56.9 62.4 63.2 63.0 67.7 68.7 68.3 66.4 68.3 74.6 79.3 83.7 84.8 84.9 87.3 82.3 75.7 71.5 57.0 58.0

Page 47: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 47

Historical Trends: Incentive Index

Source: Credit Suisse

INCENTIVE INDEX Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13Atlanta, GA 41.7 37.0 33.3 42.5 38.1 39.5 40.5 30.4 50.0 34.6 34.6 28.3 41.2 43.8 45.5 42.9 50.0 46.4 43.3 35.7 50.0 42.9 52.5 36.4 29.2Austin, TX 20.0 30.6 40.9 45.0 43.3 56.7 47.5 52.6 52.9 44.1 53.1 38.2 34.6 53.1 57.1 66.7 63.3 69.2 63.6 65.4 44.4 50.0 43.3 50.0 45.0Baltimore, MD 41.7 12.5 40.0 33.3 30.0 40.0 35.7 16.7 50.0 50.0 28.6 33.3 41.7 33.3 62.5 50.0 55.6 50.0 43.8 60.0 57.1 42.9 40.0 40.0 50.0Boston, MA 45.5 42.9 50.0 54.2 42.9 55.0 67.9 60.7 63.3 54.2 53.6 53.8 57.7 60.5 52.8 53.6 65.4 60.0 59.1 53.6 64.3 61.8 52.8 65.4 66.7Charleston, SC 50.0 50.0 50.0 33.3 66.7 50.0 50.0 25.0 40.0 50.0 50.0 50.0 50.0 40.0 50.0 50.0 50.0 50.0 50.0 58.3 60.0 50.0 42.9 37.5 50.0Charlotte, NC 42.9 37.5 26.7 42.9 40.0 41.7 50.0 50.0 55.6 33.3 40.9 53.8 40.9 44.4 54.5 45.5 63.6 46.2 66.7 70.0 65.0 50.0 50.0 56.3 53.8Chicago, IL 41.2 43.5 50.0 37.1 53.6 40.4 38.7 43.5 50.0 47.9 44.6 39.7 47.9 50.0 50.0 57.4 51.6 41.7 50.0 45.2 45.8 50.0 55.8 53.7 50.0Cincinnati, OH 38.9 35.7 40.0 50.0 61.1 50.0 50.0 58.3 57.1 50.0 58.3 50.0 50.0 55.0 42.9 50.0 58.3 50.0 57.1 50.0 50.0 60.0 50.0 40.0 30.0Columbus, OH 27.3 25.0 40.0 42.9 35.7 40.0 25.0 41.7 58.3 45.8 33.3 43.8 36.4 35.0 50.0 42.9 40.0 50.0 41.7 40.0 58.3 62.5 40.0 41.7 42.9Dallas, TX 34.4 50.0 23.8 30.8 42.3 43.8 44.4 64.3 44.4 41.7 45.8 53.8 40.0 45.0 50.0 50.0 54.5 67.9 66.7 53.3 75.0 55.0 50.0 44.4 25.0Denver, CO 50.0 43.5 48.0 54.5 51.9 52.3 43.2 39.6 42.5 55.3 50.0 52.0 43.5 50.0 51.9 52.2 54.5 65.0 60.9 44.1 45.0 48.0 47.4 32.5 36.1Detroit, MI 44.7 43.3 42.9 50.0 57.7 67.9 54.2 58.3 55.9 58.3 57.1 55.9 54.2 40.9 60.7 55.6 55.3 57.7 45.5 50.0 55.9 43.3 50.0 44.1 50.0Fort Myers, FL 40.6 37.5 46.7 42.1 50.0 50.0 41.7 45.0 32.4 36.4 40.0 53.8 45.8 50.0 40.0 38.9 45.5 42.9 41.7 43.3 40.9 33.3 38.9 42.3 45.0Houston, TX 34.1 27.8 35.4 38.1 50.0 43.8 47.4 50.0 50.0 52.8 43.3 50.0 42.3 44.1 45.2 50.0 45.8 47.4 62.5 66.7 63.6 54.5 41.7 60.0 33.3Inland Empire, CA 37.5 33.3 45.0 43.8 27.3 33.3 45.0 39.5 61.1 31.3 42.9 50.0 46.7 60.0 45.5 59.1 41.7 50.0 61.1 45.8 64.3 60.0 36.4 54.5 37.5Jacksonville, FL 40.9 43.8 25.0 27.8 35.0 50.0 40.9 46.2 43.8 33.3 36.4 50.0 35.7 31.3 35.7 43.8 58.3 37.5 50.0 45.0 50.0 43.8 44.4 33.3 44.4Las Vegas, NV 31.0 39.5 36.8 36.1 44.7 52.4 44.2 59.1 46.2 63.2 50.0 52.9 46.7 56.7 57.1 65.9 66.7 57.5 73.8 61.8 64.0 55.6 30.6 21.4 32.4Los Angeles, CA 50.0 46.0 40.6 47.0 33.9 45.8 43.1 52.4 56.5 52.0 50.0 44.8 56.3 57.1 59.5 48.0 52.3 63.5 65.0 53.1 55.0 43.8 56.5 50.0 50.0Miami, FL 41.3 45.6 50.0 47.1 50.0 44.1 52.8 54.7 56.9 51.2 56.9 50.0 50.0 45.9 50.0 48.5 54.5 40.0 51.6 48.6 46.9 48.0 50.0 42.3 45.5Minneapolis, MN 30.6 30.0 39.0 39.1 40.0 53.1 51.6 43.3 46.6 55.3 48.3 37.9 46.9 55.3 48.6 42.3 47.2 42.9 41.7 52.8 55.9 45.5 50.0 46.4 46.9Nashville, TN 37.5 45.5 37.5 27.3 50.0 45.8 50.0 53.8 50.0 62.5 42.9 56.3 42.9 55.6 68.8 50.0 70.8 65.4 68.2 70.0 72.7 68.8 64.3 50.0 38.9New York-Northern NJ 41.5 40.2 46.4 48.0 45.9 42.1 48.9 51.2 44.0 51.0 53.8 45.7 52.6 54.9 53.8 45.5 48.9 51.1 57.1 59.0 53.6 51.7 58.0 44.6 53.8Orlando, FL 30.6 25.0 41.7 33.3 40.9 43.8 40.6 50.0 45.5 57.7 44.7 42.1 57.1 40.0 53.8 47.1 38.2 50.0 58.8 50.0 57.1 55.0 50.0 29.2 34.4Phila.-Southern NJ 38.1 39.5 35.3 46.7 47.2 41.7 52.3 47.7 50.0 47.6 46.0 52.3 47.5 57.9 70.0 50.0 50.0 50.0 50.0 54.2 50.0 60.0 44.4 50.0 40.0Phoenix, AZ 46.9 43.1 44.0 48.5 53.7 53.2 54.7 50.0 47.7 60.0 48.3 52.5 45.7 41.7 50.0 56.1 48.3 60.0 44.0 50.0 47.9 55.4 54.8 34.8 37.1Portland, OR 50.0 50.0 45.5 50.0 40.0 53.1 50.0 52.8 42.1 50.0 41.7 47.2 46.4 45.8 47.5 50.0 57.1 50.0 56.7 53.3 54.2 50.0 50.0 45.5 45.8Raleigh, NC 30.0 16.7 50.0 50.0 83.3 100.0 50.0 40.0 62.5 50.0 35.7 66.7 50.0 37.5 58.3 50.0 50.0 57.1 57.1 50.0 68.8 50.0 60.0 40.0 40.0Richmond, VA 33.3 50.0 50.0 50.0 33.3 33.3 33.3 50.0 60.0 33.3 40.0 25.0 25.0 50.0 62.5 50.0 66.7 50.0 58.3 41.7 70.0 66.7 66.7 42.9 33.3Sacramento, CA 30.8 43.8 45.8 35.7 33.3 35.0 56.3 65.0 54.2 56.3 54.2 50.0 61.1 50.0 54.5 77.3 66.7 54.2 59.1 75.0 64.3 56.3 45.0 40.9 37.5San Antonio, TX 44.4 41.7 56.3 35.7 37.5 40.0 42.9 40.0 38.9 50.0 37.5 42.9 41.7 62.5 40.9 43.8 33.3 40.0 43.8 45.5 42.9 55.0 35.7 35.7 12.5San Diego, CA 41.2 36.4 30.4 40.9 46.9 44.4 43.8 52.6 53.6 47.1 54.5 53.8 56.3 60.7 60.0 64.7 65.0 59.4 56.7 67.6 54.5 61.1 50.0 46.2 46.2San Francisco, CA 38.1 46.4 50.0 50.0 47.6 47.2 52.5 53.7 58.8 58.3 61.5 57.5 58.3 65.6 58.3 64.6 62.5 67.6 61.5 67.5 52.8 69.2 52.8 47.2 50.0Sarasota, FL 40.9 45.5 44.4 43.8 50.0 40.9 44.4 56.7 50.0 50.0 41.7 40.9 41.7 57.1 42.9 50.0 50.0 60.0 50.0 64.3 68.2 50.0 58.3 33.3 50.0Seattle, WA 33.3 32.1 34.4 45.5 37.5 55.9 55.6 58.8 55.0 45.5 53.1 47.4 55.3 63.3 55.9 65.8 65.8 59.4 68.8 62.5 57.1 66.7 54.5 37.5 36.4St. Louis, MO 50.0 25.0 37.5 50.0 33.3 20.0 66.7 33.3 40.0 30.0 33.3 33.3 25.0 43.8 75.0 50.0 28.6 41.7 25.0 75.0 25.0 50.0 75.0 0.0 50.0Tampa, FL 42.9 50.0 47.8 52.5 40.6 33.3 42.1 46.3 50.0 55.3 41.3 44.1 44.7 46.7 53.3 50.0 50.0 52.9 54.5 39.3 56.3 59.1 42.9 26.9 37.5Tucson, AZ 37.5 50.0 45.5 44.4 37.5 33.3 57.1 54.2 64.3 59.1 61.1 70.0 65.0 50.0 46.4 31.8 38.9 44.4 56.3 45.5 50.0 54.5 40.0 50.0 35.0Virginia Beach, VA 20.0 30.0 38.9 50.0 30.0 38.9 50.0 25.0 40.0 57.1 41.7 50.0 50.0 50.0 40.0 45.5 57.1 64.3 33.3 50.0 41.7 37.5 33.3 50.0 25.0Washington, DC 28.3 32.7 35.7 38.1 47.5 37.9 43.2 44.1 48.1 46.0 50.0 43.2 42.6 50.0 45.8 55.0 57.1 54.3 57.1 63.6 50.0 45.0 55.3 47.6 44.0Wilmington, NC 60.0 50.0 40.0 60.0 30.0 37.5 50.0 50.0 50.0 50.0 50.0 66.7 50.0 62.5 50.0 50.0 40.0 50.0 50.0 37.5 62.5 50.0 50.0 41.7 33.3Total 39.0 38.7 41.5 43.4 44.0 45.7 47.4 47.7 50.4 48.9 46.3 48.2 46.7 49.9 52.4 51.5 53.0 52.9 54.1 54.1 55.3 52.8 49.1 42.2 41.1

Page 48: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 48

Historical Trends: Home Listings Index

Source: Credit Suisse

HOME LISTINGS INDEX Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13Atlanta, GA 61.5 67.4 70.5 69.0 63.6 68.4 84.1 63.5 68.4 88.5 73.1 77.1 73.5 75.0 90.9 92.9 75.0 57.1 65.6 56.7 78.1 64.3 80.4 63.6 66.7Austin, TX 70.0 81.6 61.4 67.5 46.9 60.7 57.1 76.3 66.7 67.6 68.8 83.3 76.9 71.9 64.3 85.7 63.3 76.9 75.0 60.7 55.6 69.2 56.7 53.8 65.0Baltimore, MD 57.1 87.5 66.7 50.0 30.0 80.0 78.6 83.3 83.3 87.5 87.5 85.7 92.9 83.3 87.5 91.7 75.0 100.0 66.7 50.0 50.0 75.0 100.0 60.0 30.0Boston, MA 57.7 71.4 38.5 42.3 35.7 37.5 43.3 61.8 71.9 70.0 60.7 50.0 75.0 84.2 76.3 73.3 60.7 79.2 70.8 67.9 70.0 72.2 60.5 64.3 84.4Charleston, SC 50.0 50.0 62.5 57.1 66.7 50.0 25.0 62.5 66.7 50.0 50.0 66.7 60.0 41.7 25.0 50.0 57.1 66.7 64.3 66.7 80.0 58.3 50.0 60.0 62.5Charlotte, NC 67.9 91.7 50.0 71.4 70.0 50.0 69.2 67.9 72.2 81.3 81.8 92.3 81.8 83.3 86.4 72.7 72.7 46.2 62.5 65.0 80.0 71.4 61.1 55.6 57.7Chicago, IL 47.2 59.1 77.3 40.8 31.9 56.9 51.6 52.9 67.1 72.4 69.5 62.5 78.6 81.5 78.0 64.1 77.8 61.5 68.8 76.0 50.0 66.7 69.0 51.6 70.4Cincinnati, OH 44.4 64.3 53.3 70.0 55.6 75.0 57.1 57.1 78.6 61.1 71.4 75.0 75.0 81.8 92.9 60.0 83.3 81.3 57.1 66.7 78.6 37.5 40.0 60.0 65.0Columbus, OH 58.3 66.7 50.0 71.4 57.1 40.0 50.0 57.1 62.5 75.0 88.9 75.0 90.9 72.7 66.7 68.8 80.0 78.6 41.7 40.0 66.7 75.0 60.0 41.7 50.0Dallas, TX 63.9 65.0 47.6 64.3 57.1 66.7 50.0 64.3 44.4 53.8 62.5 88.5 50.0 72.7 75.0 75.0 70.8 78.6 65.0 56.7 62.5 55.6 80.0 68.8 75.0Denver, CO 81.3 83.3 81.5 83.3 75.0 67.4 56.5 60.7 76.1 68.4 63.0 77.6 70.4 93.2 76.8 84.8 69.6 77.1 56.5 28.9 26.2 24.0 20.0 39.1 73.8Detroit, MI 71.4 64.7 56.3 63.9 64.3 71.9 69.2 80.8 76.3 73.1 80.0 77.8 82.1 79.2 86.7 75.0 72.5 78.6 83.3 60.0 69.4 34.4 56.7 58.3 58.3Fort Myers, FL 59.4 70.8 76.7 75.0 82.4 78.1 88.5 86.4 72.2 72.7 68.2 60.7 70.8 71.4 72.5 83.3 72.7 82.1 79.2 86.7 86.4 80.0 68.8 57.7 75.0Houston, TX 67.4 63.9 61.5 56.8 53.1 65.6 50.0 67.9 86.7 73.5 68.8 80.0 75.0 82.4 76.2 78.9 92.3 78.9 91.2 88.5 79.2 59.1 63.6 60.0 70.0Inland Empire, CA 50.0 54.2 53.8 79.4 76.9 80.8 90.9 78.9 92.1 87.5 78.6 83.3 86.7 90.6 95.8 85.0 76.3 90.0 84.2 87.5 70.0 31.8 36.4 45.5 33.3Jacksonville, FL 62.5 56.3 70.8 77.8 54.5 83.3 72.7 73.1 68.8 72.2 72.7 80.0 85.7 62.5 75.0 87.5 83.3 81.3 71.4 50.0 62.5 71.4 43.8 54.2 50.0Las Vegas, NV 71.4 60.0 80.0 84.2 86.8 88.1 88.5 90.5 84.6 77.5 76.7 66.7 60.0 66.7 78.6 75.0 77.1 92.5 64.3 63.9 60.0 41.2 25.0 31.0 8.3Los Angeles, CA 46.8 51.8 55.7 50.0 52.9 55.8 67.6 74.0 84.2 74.1 85.4 88.7 76.8 93.5 86.2 75.0 80.0 70.7 65.3 71.4 41.7 38.9 46.2 33.3 36.8Miami, FL 72.0 70.0 65.8 72.4 81.0 85.1 81.1 79.7 82.9 81.8 87.5 82.1 85.0 85.9 80.0 89.7 87.8 87.9 72.6 65.3 77.3 66.0 66.0 61.5 59.1Minneapolis, MN 82.9 86.1 88.4 85.7 79.7 80.3 84.8 85.3 77.6 90.5 79.0 88.2 86.4 88.1 84.7 89.3 69.4 78.6 83.3 60.5 76.5 63.6 41.7 64.3 61.8Nashville, TN 54.2 59.1 31.3 50.0 50.0 45.8 50.0 65.4 56.3 81.3 50.0 56.3 64.3 66.7 66.7 70.8 91.7 53.8 72.7 72.7 86.4 83.3 85.7 45.5 72.2New York-Northern NJ 35.6 52.4 50.0 43.0 34.3 30.5 37.0 48.9 43.3 48.2 57.0 57.4 69.8 70.2 69.8 64.4 68.9 64.4 65.1 52.2 50.0 62.9 56.1 59.0 76.7Orlando, FL 66.7 61.8 75.0 80.0 63.6 87.5 84.4 88.9 88.6 89.3 70.0 81.6 75.0 86.7 73.1 82.4 67.6 84.4 79.4 63.6 63.3 65.0 50.0 54.2 40.6Phila.-Southern NJ 70.5 59.1 60.0 39.5 42.1 36.4 50.0 52.0 52.2 76.2 61.1 64.0 68.4 77.3 86.1 77.3 73.1 52.9 67.5 65.4 71.1 50.0 39.5 63.3 61.1Phoenix, AZ 73.5 76.6 79.5 78.6 83.9 93.8 87.5 80.8 76.7 67.4 53.2 33.3 48.0 39.6 46.3 47.3 67.7 71.7 61.5 67.4 62.0 60.7 48.6 31.4 20.0Portland, OR 76.3 73.7 63.6 46.4 94.4 88.9 85.7 71.1 78.9 75.0 84.6 72.2 85.7 83.3 82.5 63.2 71.4 81.8 60.0 56.7 41.7 50.0 33.3 45.8 73.1Raleigh, NC 60.0 66.7 93.8 42.9 66.7 33.3 50.0 40.0 55.6 100.0 50.0 83.3 71.4 60.0 71.4 50.0 64.3 68.8 71.4 90.0 66.7 80.0 90.0 70.0 71.4Richmond, VA 50.0 66.7 87.5 75.0 83.3 50.0 50.0 50.0 70.0 66.7 71.4 64.3 78.6 50.0 87.5 62.5 75.0 75.0 33.3 41.7 75.0 83.3 66.7 50.0 16.7Sacramento, CA 67.9 66.7 64.3 81.3 95.8 90.9 95.0 100.0 83.3 81.8 85.7 92.9 86.4 70.0 84.6 84.6 85.7 76.9 77.3 33.3 44.4 40.0 25.0 20.8 31.3San Antonio, TX 38.9 50.0 43.8 56.3 38.9 45.0 42.9 45.0 50.0 71.4 70.0 87.5 66.7 75.0 68.2 50.0 58.3 50.0 50.0 40.9 35.7 60.0 62.5 85.7 87.5San Diego, CA 50.0 65.9 48.0 52.1 66.7 88.1 75.0 79.5 77.8 94.7 84.6 92.3 90.0 83.3 81.8 89.5 84.1 69.4 58.3 52.6 57.7 12.5 50.0 36.8 46.4San Francisco, CA 79.6 79.4 62.5 88.6 80.4 91.3 74.0 69.4 71.7 76.3 67.5 82.6 82.1 97.2 78.8 81.5 72.9 63.0 43.5 38.5 45.0 25.0 40.0 40.5 76.1Sarasota, FL 63.6 61.5 50.0 83.3 95.5 91.7 81.8 94.4 69.2 94.4 91.7 68.2 71.4 78.6 92.9 64.3 83.3 80.0 100.0 78.6 87.5 60.0 83.3 41.7 55.6Seattle, WA 63.2 71.9 55.9 70.5 78.9 92.1 87.5 67.5 88.5 76.9 82.4 81.8 85.0 93.3 73.5 85.7 85.0 78.1 88.9 86.7 67.9 55.0 61.5 50.0 59.1St. Louis, MO 70.0 75.0 25.0 25.0 37.5 50.0 33.3 50.0 70.0 35.7 33.3 41.7 66.7 62.5 50.0 41.7 28.6 71.4 50.0 16.7 37.5 50.0 33.3 50.0 100.0Tampa, FL 70.7 79.4 80.4 75.0 70.6 81.6 73.8 74.1 67.6 97.9 78.6 82.5 72.5 87.5 63.3 77.8 71.4 88.2 83.3 70.0 77.8 81.8 70.0 53.8 41.7Tucson, AZ 36.4 80.0 63.6 77.8 70.8 76.7 92.9 91.7 78.6 81.8 83.3 85.0 65.0 55.0 53.6 54.5 65.0 70.0 68.8 83.3 78.6 54.5 50.0 27.8 30.0Virginia Beach, VA 60.0 70.0 62.5 64.3 70.0 72.2 75.0 50.0 70.0 71.4 83.3 70.0 71.4 75.0 80.0 68.2 64.3 71.4 62.5 75.0 66.7 37.5 58.3 50.0 87.5Washington, DC 66.7 75.9 63.0 43.2 32.6 50.0 60.0 66.7 63.5 75.9 71.7 58.7 73.3 79.3 73.1 72.7 65.9 82.0 53.3 56.0 47.8 54.2 52.8 59.5 44.4Wilmington, NC 50.0 62.5 80.0 40.0 40.0 50.0 62.5 33.3 87.5 60.0 50.0 50.0 35.7 75.0 50.0 62.5 25.0 50.0 50.0 62.5 50.0 66.7 71.4 50.0 50.0Total 61.2 68.0 62.7 63.6 62.9 67.2 66.6 68.6 72.1 75.0 71.3 73.7 74.0 75.7 74.7 72.7 71.7 73.7 67.1 61.8 63.3 57.2 56.3 51.8 57.4

Page 49: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 49

Historical Trends: Time to Sell Index

Source: Credit Suisse

TIME TO SELL INDEX Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13Atlanta, GA 42.3 43.5 45.5 64.3 50.0 63.2 64.3 53.8 55.3 79.2 75.0 56.3 61.8 68.8 59.1 76.9 87.5 71.4 81.3 70.0 59.4 46.4 43.5 27.3 29.2Austin, TX 40.0 50.0 58.7 65.0 65.6 80.0 76.2 89.5 77.8 76.5 75.0 63.9 76.9 71.9 75.0 93.3 93.3 92.3 87.5 76.7 72.2 69.2 63.3 53.8 50.0Baltimore, MD 21.4 37.5 25.0 30.0 50.0 55.0 64.3 83.3 58.3 75.0 56.3 57.1 71.4 66.7 72.2 91.7 65.0 87.5 88.9 70.0 64.3 50.0 70.0 30.0 20.0Boston, MA 23.1 25.0 19.2 50.0 60.7 75.0 60.0 70.6 62.5 76.7 71.4 53.8 63.3 72.5 81.6 76.7 82.1 75.0 91.7 82.1 70.0 61.1 60.5 60.7 57.1Charleston, SC 0.0 0.0 28.6 21.4 66.7 75.0 50.0 62.5 25.0 62.5 50.0 50.0 60.0 66.7 62.5 37.5 78.6 66.7 78.6 58.3 70.0 66.7 68.8 60.0 50.0Charlotte, NC 28.6 37.5 43.3 53.6 60.0 61.5 60.7 50.0 44.4 44.4 77.3 65.4 65.0 61.1 75.0 63.6 95.0 73.1 91.7 70.0 70.0 71.4 55.6 44.4 50.0Chicago, IL 23.0 33.8 47.0 30.8 54.2 63.8 54.7 59.1 53.9 60.0 53.7 54.7 58.9 62.5 59.2 68.8 75.0 73.1 77.4 79.2 74.1 66.7 53.4 42.2 46.3Cincinnati, OH 11.1 35.7 40.0 70.0 66.7 93.8 71.4 78.6 57.1 50.0 57.1 50.0 50.0 68.2 71.4 80.0 83.3 81.3 71.4 58.3 64.3 25.0 40.0 20.0 50.0Columbus, OH 27.3 33.3 30.0 42.9 64.3 60.0 66.7 64.3 62.5 70.8 72.2 75.0 77.3 59.1 83.3 87.5 90.0 92.9 75.0 90.0 58.3 62.5 70.0 58.3 42.9Dallas, TX 19.4 36.4 26.2 39.3 53.6 72.2 72.2 71.4 61.1 57.7 66.7 65.4 59.1 63.6 65.6 79.2 95.8 90.0 100.0 93.3 75.0 55.0 70.0 44.4 31.3Denver, CO 43.5 58.3 61.1 77.1 80.8 87.0 80.4 75.0 84.1 72.5 69.6 79.3 66.7 73.8 76.8 93.8 76.1 79.2 82.6 76.3 57.1 42.0 27.5 21.7 45.2Detroit, MI 40.0 44.1 43.8 55.6 53.8 68.8 88.5 80.8 81.6 76.9 83.3 63.9 60.7 66.7 63.3 79.4 84.2 82.1 83.3 73.7 64.7 50.0 50.0 47.2 27.8Fort Myers, FL 62.5 62.5 76.7 78.9 76.5 81.3 70.8 72.7 63.9 63.6 72.7 60.7 87.5 75.0 77.5 66.7 63.6 82.1 83.3 76.7 80.0 66.7 83.3 69.2 50.0Houston, TX 43.5 41.7 58.0 57.1 64.7 65.6 67.5 82.1 70.0 80.6 62.5 73.7 71.4 88.2 87.5 77.8 83.3 89.5 88.2 96.2 79.2 77.3 62.5 65.0 44.4Inland Empire, CA 25.0 50.0 50.0 52.9 62.5 69.2 81.8 75.0 86.8 81.3 82.1 66.7 78.1 80.0 70.8 86.4 77.8 80.0 92.1 95.8 46.7 59.1 36.4 13.6 38.9Jacksonville, FL 50.0 31.3 41.7 27.8 50.0 60.0 50.0 73.1 56.3 66.7 72.7 70.0 71.4 62.5 62.5 93.8 91.7 78.6 71.4 75.0 75.0 62.5 55.6 58.3 61.1Las Vegas, NV 50.0 52.5 60.5 57.9 77.8 88.1 82.7 84.1 84.6 75.0 62.5 75.0 66.7 73.3 78.6 84.1 85.4 95.0 81.0 79.4 65.4 52.8 30.6 26.2 25.0Los Angeles, CA 18.8 28.6 39.7 47.5 54.3 59.6 67.6 76.0 80.8 83.3 85.4 75.8 71.4 79.2 77.6 75.9 88.0 81.0 83.3 84.1 45.7 41.7 38.0 32.6 23.7Miami, FL 57.0 48.6 65.8 65.8 71.6 71.1 77.0 79.7 72.4 71.1 84.7 70.5 77.6 69.2 78.6 75.0 82.9 89.4 87.9 77.8 77.3 80.0 60.0 50.0 43.2Minneapolis, MN 31.1 36.8 52.4 65.7 71.6 75.8 86.8 73.5 81.0 73.8 83.9 75.8 74.2 81.0 81.9 84.5 77.8 92.9 88.5 84.2 76.5 54.5 58.3 35.7 38.2Nashville, TN 12.5 36.4 37.5 58.3 59.1 75.0 62.5 73.1 75.0 50.0 50.0 31.3 35.7 66.7 72.2 83.3 83.3 88.5 86.4 86.4 90.9 77.8 42.9 45.5 55.6New York-Northern NJ 14.2 15.1 28.7 42.1 51.9 45.2 43.0 42.4 32.2 34.5 35.2 45.4 29.1 40.4 52.1 62.5 66.0 72.1 72.6 56.7 50.0 64.3 54.2 43.6 36.7Orlando, FL 47.2 50.0 50.0 56.7 63.6 71.9 81.3 80.6 72.7 67.9 72.5 73.7 67.9 83.3 69.2 79.4 67.6 75.0 90.6 90.9 73.3 60.0 94.4 37.5 28.1Phila.-Southern NJ 20.5 27.3 35.7 50.0 45.0 45.5 51.8 44.2 50.0 54.5 59.3 68.0 54.8 63.6 63.9 69.6 88.5 77.8 75.0 80.8 65.8 61.8 60.5 56.7 50.0Phoenix, AZ 55.9 64.5 75.6 76.4 87.1 91.9 83.3 78.9 75.6 78.3 64.5 61.4 58.0 39.6 55.6 58.3 72.6 78.3 76.9 69.6 57.7 55.4 47.1 25.7 18.8Portland, OR 36.8 50.0 52.4 64.3 75.0 86.1 83.3 89.5 86.8 78.1 76.9 72.2 75.0 83.3 82.5 78.9 89.3 77.3 83.3 83.3 79.2 57.7 41.7 37.5 46.2Raleigh, NC 40.0 50.0 56.3 64.3 50.0 100.0 71.4 70.0 66.7 87.5 42.9 83.3 71.4 60.0 57.1 80.0 71.4 87.5 92.9 100.0 83.3 50.0 90.0 75.0 64.3Richmond, VA 66.7 16.7 50.0 83.3 50.0 100.0 66.7 62.5 50.0 25.0 66.7 71.4 71.4 66.7 87.5 87.5 83.3 100.0 58.3 75.0 100.0 50.0 75.0 37.5 33.3Sacramento, CA 38.5 44.4 57.1 75.0 58.3 81.8 85.0 95.8 86.7 81.8 82.1 82.1 72.7 86.7 69.2 88.5 85.7 80.8 81.8 72.2 66.7 35.0 31.8 16.7 25.0San Antonio, TX 27.8 16.7 25.0 18.8 43.8 55.0 57.1 50.0 50.0 50.0 60.0 56.3 50.0 68.8 72.7 61.1 79.2 70.0 75.0 63.6 78.6 80.0 68.8 71.4 75.0San Diego, CA 19.0 34.1 40.0 58.3 50.0 78.6 80.6 79.5 71.1 63.2 61.5 64.3 80.0 73.3 86.4 92.1 93.2 86.1 72.2 72.2 65.4 41.7 27.3 26.3 10.7San Francisco, CA 38.9 17.6 52.1 70.5 77.1 84.8 80.8 75.8 78.3 81.0 80.0 76.1 64.3 78.9 77.8 89.3 89.6 78.3 75.0 65.4 47.4 37.5 45.0 35.7 43.8Sarasota, FL 54.5 61.5 75.0 88.9 77.3 83.3 72.7 79.4 57.7 77.8 75.0 60.0 71.4 57.1 78.6 64.3 83.3 80.0 100.0 78.6 86.4 80.0 83.3 33.3 33.3Seattle, WA 47.4 38.2 41.2 63.6 73.7 92.1 90.0 87.5 88.5 84.6 73.3 84.1 71.1 83.3 83.3 83.3 87.5 84.4 86.1 84.4 53.6 70.0 38.5 35.7 27.3St. Louis, MO 20.0 0.0 0.0 37.5 62.5 40.0 33.3 57.1 80.0 57.1 41.7 33.3 16.7 62.5 62.5 60.0 78.6 64.3 50.0 50.0 62.5 33.3 50.0 33.3 87.5Tampa, FL 43.1 56.3 63.0 60.0 66.7 65.8 69.0 66.1 61.8 72.9 69.6 72.5 75.0 70.6 66.7 61.1 71.4 83.3 81.8 76.7 77.8 77.3 56.7 38.5 46.2Tucson, AZ 37.5 50.0 68.2 83.3 54.2 70.0 85.7 88.5 78.6 77.3 88.9 85.0 65.0 65.0 71.4 54.5 75.0 77.8 75.0 87.5 72.2 40.9 50.0 27.8 35.0Virginia Beach, VA 50.0 40.0 33.3 50.0 70.0 50.0 75.0 87.5 70.0 71.4 58.3 50.0 57.1 87.5 70.0 68.2 78.6 64.3 87.5 83.3 83.3 50.0 91.7 50.0 12.5Washington, DC 29.2 26.8 33.9 63.0 71.7 70.0 65.4 66.7 50.0 62.1 61.7 54.5 53.3 60.7 73.1 83.3 81.8 88.0 80.0 68.0 54.5 54.2 47.4 37.5 28.6Wilmington, NC 30.0 25.0 30.0 20.0 37.5 25.0 50.0 41.7 41.7 70.0 33.3 16.7 21.4 25.0 50.0 40.0 50.0 75.0 60.0 25.0 50.0 66.7 64.3 50.0 50.0Total 34.7 37.7 45.5 55.9 62.0 70.9 69.5 71.8 66.1 68.1 66.7 63.6 63.3 68.3 71.5 75.4 80.8 81.0 81.1 75.9 68.6 57.6 56.4 41.9 40.8

Page 50: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 50

Agent Recommendations

Source: Credit Suisse

Agents recommend Toll Brothers, Meritage, and Standard Pacific. Toll Brothers received the highest percentage of recommendations by agents across the markets we survey. 29% of agents (net of positive responses less negative responses) responding said they would recommend Toll, while 24% said they would recommend Meritage Homes and 23% said they would recommend Standard Pacific. We believe this is important since 35-40% of new home sales involve an agent. This is a positive for those companies, in addition to others below that received strong recommendations.

Rank Ticker Company Name Net Recommendation1 TOL Toll Brothers 29%2 MTH Meritage Homes 24%3 SPF Standard Pacific Corp. 23%4 DHI D.R. Horton 23%5 PHM Pulte Group 23%6 TMHC Taylor Morrison 16%7 LEN Lennar Corp. 15%8 RYL Ryland Group 13%9 WCI WCI Communities 13%

10 BZH Beazer Homes 11%11 HOV Hovnanian Enterprises 9%12 WLH William Lyon Homes 8%13 MDC MDC Holdings 5%14 NVR NVR, Inc. 4%15 KBH KB Home (11%)

Page 51: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 51

Agent Recommendations

Source: Credit Suisse

Market BZH DHI HOV KBH LEN MDC MTH NVR PHM RYL SPF TMHC TOL WCI WLHAtlanta, GA 17% 33% -- -- 42% -- -- -- 50% 50% -- -- -- -- --Austin, TX -- 90% -- 20% 70% -- 50% -- 60% 60% 80% 60% -- -- --Baltimore, MD 0% -- 0% 0% 17% 0% -- 0% -- 0% -- -- 50% -- --Charleston, SC 0% 0% -- -- 0% -- -- -- 25% 0% -- -- -- -- --Charlotte, NC -- 31% -- -- 31% -- 8% 38% 31% 23% 38% -- 38% -- --Chicago, IL -- 26% 19% -- 15% -- -- 0% 26% 15% -- -- 41% -- --Cincinnati, OH -- -- -- -- -- -- -- 0% -- -- -- -- -- -- --Columbus, OH -- -- -- -- -- -- -- 14% -- -- -- -- -- -- --Dallas, TX 11% 44% 44% 0% 11% -- 0% -- 22% 0% 22% 22% 22% -- --Denver, CO -- 24% -- 5% 33% 14% 19% -- 14% 29% 19% 14% 24% -- 0%Detroit, MI -- -- -- -- -- -- -- -- 37% -- -- -- 63% -- --Fort Myers, FL -- 60% -- -- 50% -- -- -- 40% -- -- 20% 20% 40% --Houston, TX 10% 40% 10% 20% 0% -- 30% -- 40% 0% -- 10% 10% -- --Jacksonville, FL 22% 44% -- 44% 33% 0% -- -- 22% -- 33% 11% 33% 0% --Las Vegas, NV 28% 56% -- 28% 39% 22% -- -- 39% 28% -- -- 39% -- 22%Los Angeles, CA 11% -- -- 11% 16% 0% 0% -- -- -- 0% -- 16% -- 0%Miami, FL -- 23% -- -- 41% 0% -- -- 18% -- 5% -- 18% 9% --Minneapolis, MN -- 41% 24% -- 29% -- -- -- 41% 29% -- -- -- -- --Nashville, TN 44% -- -- -- -- -- -- 11% 33% -- -- -- -- -- --New York-Northern NJ, NY-NJ 9% 4% 17% -- 6% -- -- -- 9% -- -- -- 28% -- --Orlando, FL 25% 38% 19% 19% 31% -- 38% -- 44% 31% 25% 19% 38% -- --Philadelphia-Southern NJ 0% 0% 17% -- 0% 0% -- 6% 28% -- -- -- 39% -- --Phoenix, AZ 21% 24% 15% 0% 32% 15% 59% -- 38% 26% 26% 29% 62% -- 21%Port St. Lucie, FL -- 0% -- -- -- -- -- -- -- -- -- -- -- -- --Portland, OR -- 36% -- -- -- -- -- -- -- -- -- -- -- -- --Raleigh, NC 14% 43% 14% 14% 29% -- 14% 0% 14% 0% 29% -- 57% -- --Richmond, VA -- -- -- -- -- -- -- 0% -- -- -- -- -- -- --Riverside-San Bernardino, CA 10% 10% 0% 20% 20% 0% -- -- 30% 10% 20% 0% -- -- --Sacramento, CA -- 38% 0% 13% 25% -- 25% -- 25% -- 0% 0% 0% -- --San Antonio, TX -- 25% -- 13% 13% -- 38% -- 50% 50% -- -- 63% -- --San Diego, CA -- 21% 14% 21% 7% -- -- -- 21% 7% 36% -- 7% -- --San Francisco, CA -- 8% -- 8% 13% 0% 4% -- 13% -- 8% 4% 17% -- 0%Sarasota, FL -- 10% -- 0% 0% -- -- -- 10% 20% -- 10% -- 20% --Seattle, WA -- 50% -- -- 17% 17% -- -- 25% -- -- -- 25% -- --Tampa, FL 29% 50% 21% 14% 29% -- 7% -- 29% 21% 29% 36% -- 0% --Tucson, AZ -- 20% -- 10% 30% 30% 70% -- 40% -- -- -- -- -- --Virginia Beach, VA -- 0% -- -- -- -- -- 25% -- -- -- -- -- -- --Washington, DC 14% 25% 14% 4% 7% 4% -- 43% 29% 11% -- -- 43% -- --Wilmington, NC 33% -- -- -- -- -- -- 0% -- -- -- -- -- -- --TOTAL 17% 29% 15% 13% 23% 8% 26% 11% 30% 21% 25% 18% 33% 14% 9%

Which of the following homebuilders would you most highly recommend to clients? Market BZH DHI HOV KBH LEN MDC MTH NVR PHM RYL SPF TMHC TOL WCI WLHAtlanta, GA 8% 17% -- -- 0% -- -- -- 17% 0% -- -- -- -- --Austin, TX -- 0% -- 60% 20% -- 10% -- 10% 0% 0% 0% -- -- --Baltimore, MD 17% -- 17% 0% 33% 17% -- 33% -- 33% -- -- 0% -- --Charleston, SC 0% 0% -- -- 0% -- -- -- 0% 0% -- -- -- -- --Charlotte, NC -- 23% -- -- 0% -- 0% 8% 23% 15% 0% -- 8% -- --Chicago, IL -- 0% 4% -- 4% -- -- 0% 7% 7% -- -- 0% -- --Cincinnati, OH -- -- -- -- -- -- -- 20% -- -- -- -- -- -- --Columbus, OH -- -- -- -- -- -- -- 0% -- -- -- -- -- -- --Dallas, TX 11% 0% 0% 44% 0% -- 0% -- 11% 0% 0% 0% 0% -- --Denver, CO -- 10% -- 24% 0% 5% 5% -- 0% 0% 5% 5% 5% -- 0%Detroit, MI -- -- -- -- -- -- -- -- 21% -- -- -- 0% -- --Fort Myers, FL -- 0% -- -- 10% -- -- -- 0% -- -- 0% 0% 0% --Houston, TX 0% 0% 10% 30% 10% -- 0% -- 10% 10% -- 0% 0% -- --Jacksonville, FL 0% 0% -- 22% 11% 0% -- -- 22% -- 0% 11% 0% 0% --Las Vegas, NV 6% 6% -- 28% 6% 11% -- -- 22% 11% -- -- 11% -- 0%Los Angeles, CA 5% -- -- 5% 0% 0% 0% -- -- -- 0% -- 0% -- 0%Miami, FL -- 5% -- -- 23% 0% -- -- 5% -- 0% -- 0% 5% --Minneapolis, MN -- 0% 6% -- 12% -- -- -- 6% 12% -- -- -- -- --Nashville, TN 0% -- -- -- -- -- -- 0% 0% -- -- -- -- -- --New York-Northern NJ, NY-NJ 2% 2% 17% -- 4% -- -- -- 4% -- -- -- 4% -- --Orlando, FL 0% 19% 6% 19% 25% -- 0% -- 6% 6% 6% 13% 6% -- --Philadelphia-Southern NJ 0% 0% 6% -- 0% 0% -- 0% 0% -- -- -- 17% -- --Phoenix, AZ 15% 6% 12% 41% 9% 3% 0% -- 12% 3% 3% 0% 3% -- 3%Port St. Lucie, FL -- 0% -- -- -- -- -- -- -- -- -- -- -- -- --Portland, OR -- 7% -- -- -- -- -- -- -- -- -- -- -- -- --Raleigh, NC 14% 0% 0% 29% 0% -- 14% 0% 14% 0% 0% -- 14% -- --Richmond, VA -- -- -- -- -- -- -- 17% -- -- -- -- -- -- --Riverside-San Bernardino, CA 0% 0% 0% 0% 10% 0% -- -- 0% 0% 0% 0% -- -- --Sacramento, CA -- 0% 0% 13% 0% -- 0% -- 0% -- 0% 0% 0% -- --San Antonio, TX -- 25% -- 38% 0% -- 0% -- 0% 13% -- -- 0% -- --San Diego, CA -- 0% 0% 14% 7% -- -- -- 0% 0% 7% -- 0% -- --San Francisco, CA -- 8% -- 21% 13% 0% 0% -- 4% -- 0% 0% 0% -- 0%Sarasota, FL -- 30% -- 10% 20% -- -- -- 10% 10% -- 0% -- 0% --Seattle, WA -- 17% -- -- 0% 0% -- -- 0% -- -- -- 8% -- --Tampa, FL 14% 14% 0% 21% 7% -- 0% -- 0% 7% 0% 0% -- 0% --Tucson, AZ -- 10% -- 50% 10% 0% 0% -- 10% -- -- -- -- -- --Virginia Beach, VA -- 0% -- -- -- -- -- 0% -- -- -- -- -- -- --Washington, DC 11% 7% 11% 11% 11% 7% -- 14% 4% 18% -- -- 0% -- --Wilmington, NC 0% -- -- -- -- -- -- 0% -- -- -- -- -- -- --TOTAL 6% 7% 6% 24% 8% 3% 2% 8% 7% 7% 1% 2% 3% 1% 1%

From which of the following homebuilders would you most strongly discourage clients from buying?

Page 52: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 52

Survey Methodology

Source: Credit Suisse

We survey real estate agents, as we believe agents provide an accurate assessment of local housing market trends in both the new and existing home markets. We view an understanding of the existing home market as crucial to homebuilders as it represents over 90% of total sales, and trends in the existing home market often dictate trends in the new home market. Each month, we survey agents about trends in buyer traffic levels, home prices, incentives, inventory levels, and the length of time needed to sell a home. In October, we received responses from 700 real estate agents across the country. We review responses and calculate an index for each of the questions with levels above 50 indicating positive trends, levels below 50 indicating worsening trends, and a level of 50 indicating a neutral trend. 1) Are traffic levels in-line with, above, or below your expectations for this time of year? (Because of seasonality to traffic trends – generally more traffic in Spring and less in Fall/Winter – we ask about traffic relative to the expectations for this time of year rather than how traffic compared to the prior month). A traffic index above 50 means that traffic was above the expectations of agents, a traffic index of 50 means that traffic was in-line with expectations, and a traffic index below 50 means that traffic was below expectations. 2) Have prices remained the same, increased, or decreased over the past 30 days? A price index above 50 indicates that prices increased over the past 30 days, a price index of 50 indicates that prices were flat, and a price index below 50 indicates that prices decreased. 3) Have incentives remained the same, increased, or decreased over the past 30 days? An incentive index above 50 indicates that incentives decreased over the past 30 days, an incentive index of 50 indicates that incentives were unchanged, and an incentive index below 50 indicates that incentives increased. 4) Do you see the same, more, or fewer, listings as compared with 30 days ago? An inventory (listings) index above 50 indicates that the inventory of homes for sale decreased over the past 30 days, an inventory index of 50 indicates that inventories were unchanged, and an inventory index below 50 indicates that inventories increased. 5) Does it take the same, more, or less time to sell a house? A time to sell index above 50 indicates that the time needed to sell a home decreased over the past 30 days, a time to sell index of 50 indicates that the time needed to sell a home was unchanged, and a time to sell index below 50 indicates that the time needed to sell a home increased.

Page 53: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

CREDIT SUISSE SECURITIES (USA) LLC

DISCLOSURES

DISCLOSURE APPENDIX CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, INFORMATION ON TRADE ALERTS, ANALYST MODEL PORTFOLIOS AND THE STATUS OF NON-U.S ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Page 54: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 54

Companies Mentioned (Price as of 04-Dec-2013) Beazer Homes USA (BZH.N, $20.52) DR Horton (DHI.N, $19.08) Hovnanian Enterprises (HOV.N, $4.97) KB Home (KBH.N, $17.26) Lennar (LEN.N, $34.52) M.D.C. Holdings, Inc. (MDC.N, $28.93) Meritage Corp (MTH.N, $42.27) NVR Inc. (NVR.N, $952.47) Pulte (PHM.N, $18.35) Ryland Group (RYL.N, $37.96) Standard Pacific Corp. (SPF.N, $8.1) Taylor Morrison (TMHC.N, $20.84) Toll Brothers (TOL.N, $32.97) WCI Communities (WCIC.N, $19.03) William Lyon Homes (WLH.N, $20.83)

Disclosure Appendix

Important Global Disclosures I, Daniel Oppenheim, CFA, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts’ stock rating are defined as follows: Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark*over the next 12 months. Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months. Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months. *Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; Australia, New Zealand are, and prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe. For Australian and New Zealand stocks, 12-month rolling yield is incorporated in the absolute total return calculation and a 15% and a 7.5% threshold replace the 10-15% level in the Outperform and Underperform stock rating definitions, respectively. The 15% and 7.5% thresholds replace the +10-15% and -10-15% levels in the Neutral stock rating definition, respectively. Prior to 10th December 2012, Japanese ratings were based on a stock’s total return relative to the average total return of the relevant country or regional benchmark. Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances.

Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward.

Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation: Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months. Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months. Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months. *An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%) Outperform/Buy* 42% (54% banking clients) Neutral/Hold* 41% (49% banking clients) Underperform/Sell* 15% (40% banking clients) Restricted 3% *For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

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Please refer to the firm's disclosure website at https://rave.credit-suisse.com/disclosures for the definitions of abbreviations typically used in the target price method and risk sections.

Important Regional Disclosures Singapore recipients should contact Credit Suisse AG, Singapore Branch for any matters arising from this research report. Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares. Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report. For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit http://www.csfb.com/legal_terms/canada_research_policy.shtml. As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report. Principal is not guaranteed in the case of equities because equity prices are variable. Commission is the commission rate or the amount agreed with a customer when setting up an account or at any time after that.

For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at https://rave.credit-suisse.com/disclosures or call +1 (877) 291-2683.

Page 55: Credit Suisse Monthly Survey of Real Estate Agents November 2013 Results

November ‘13 Slide 55

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