the lates sales and pricing information for the Santa Clara County Housing market, Inventory numbers, Market snapshot Y interest rates

1. Santa Clara CountyMarket Update September 2010

2. Jul 2010 to Aug 2010 INVENTORY CLOSED SALES MEDIAN SALE 1.0 % 14.3 % 1.2 % 3280 864 $630,000

3. Aug 2009 to Aug 2010 INVENTORY CLOSED SALES MEDIAN SALE 12.5 % 11.7 % 41.4 % 3280 864 $630,000

4. Interest Rates Interest rates on conforming, 30 year fixed mortgages are now only 4.25%. Interest rates are at or near the bottom of the past 40 years. Act quickly to lock in these incredibly low fixed rates!

5. Timing the Bottom? The true cost of home ownership for buyers with mortgages is their monthly mortgage payment. September 2010 Purchase Price = $630,000 20% Down = $126,000 Mortgage = $504,000 30-Year Rate = 4.25% Monthly Payment = $2,479 September 2011? Purchase Price = $567,000 20% Down = $113,000 Mortgage = $454,000 30-Year Rate = 5.25% Monthly Payment = $2,507 1% increase in interest rate offsets 10% decrease in purchase price

6. Still Waiting to Move Up? The value of your old home may have fallen, but the marginal cost of moving up may have fallen more. September 2009 Old House = $700,000 Move Up = $1,000,000 MU Margin = $300,000 30-Year Rate = 5.25% Margin Payment = $1,657 September 2010 Old House = $630,000 Move Up = $900,000 MU Margin = $270,000 30-Year Rate = 4.75% Margin Payment = $1,408 As the market drops, the cost of moving up drops. This is a great time to think about moving up!

7. Thirty Second Update Market conditions vary by area and price range Inventory is up from a year ago, but flattening out Closed sales have declined sharply since May 2010 August 2010 median sale price was up 12.5% over August 2009 as our market mix has stabilized 30-year fixed rates are currently 4.25% All real estate is local, especially in this market, which area and price range are you interested in?

8. More Talking Points 36.5% of listings sold for more than asking price Median sale price has been about $630,000 for the past four months with only minor fluctuations Many of the REO bargains have been snapped up by all cash investors and first time homebuyers Normal listings account for about 70% of closings Median initiated sale price is $545,000, which means that more offers are being accepted, but ultimately falling through, in lower price ranges

9. About Me Everything you need to know about buying or selling a home can be found by visiting my website at HeideWolfReid.com. As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. Call or email me today! Heide Wolf-ReidALTERA REAL ESTATE 1125 Meridian Avenue San Jose, CA 95125 Phone: 408-667-9298 Email: realreid@earthlink.net

10. Thank YouFor Choosing Altera Real Estate!