Fresno County Real Estate and Agricultural Markets Update June 7, 2016 (Revised)

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1 County Land Use Type Vines / Grapes / Raisins Table Grapes Almonds Pistachios Field Crop Land Dry Land Farm Ground Pasture Land Various use type sales (Trees, vines, citrus, pears, field crops) Fresno County Real Estate and Agricultural Markets Update June 7, 2016 (Revised) Prepared by: James V. Cardoza, MBA Real Estate Broker and Business Consultant, Fresno, CA Representing Real Estate Sellers/Buyers (Agricultural and Residential) and Business Owners Throughout Fresno County and the Central San Joaquin Valley Tel: CA BRE Real Estate Broker License # Fresno County Agricultural Real Estate Fresno County Ag Land Sales Summary Closed Sales Reported to Fresno County: March 1-May 24, Data Source: Realist / Core Logic Public Records Search on 6/5/2016. Sales Summary* 16 sales reported. Prices ranging from $9,813 to $36,126 per acre. Average price of $26,165/acre. Median price of $25,389/acre. Note: The $9,813/acre sale appeared to be an intra-family transfer. Excluding this sale, the lowest price sale was $20,086/acre. Average market sale price was $27,187/acre. Median price market sale was $26,537/acre. 1 sale reported at $34,918/acre. 8 sales reported. Prices ranging from $9,813/acre to $36,421/acre. Excluding the $9,813/acre sale, which appeared to be an intra-family transfer, the lowest price sale was $24,851/acre. Average price market sale was $31,758/acre. Median price market sale was $32,096/acre. 3 sales reported. Prices ranging from $23,490/acre to $34,151/acre. Insufficient sales volume to report average or median price. 12 sales reported. Prices ranging from $3,715/acre to $15,666/acre. Average price of $9,486/acre. Median price of $9,501/acre. 1 sale reported at $3,034/acre. 14 sales reported. Prices ranging from $563/acre to $17,124/acre. Average price of $5,101/acre. Median price of $2,554/acre. Note: The $17,124/acre sale included some structures, utilities, wells (condition unknown), and FID water. Out of the 14 sales reported, 6 sales ranged from $1,042/acre to $1,982/acre, and 6 of the sales ranged from $3,125/acre to $12,506/acre. 5 sales reported. Prices ranging from $10,480/acre to 34,934/acre. Average price of $19,871/acre. Median price of $14,747/acre. *Disclaimer: Per acre prices reported above have not been adjusted to account for non-farmable portions of parcels, or additional value contribution of homes, shops or other structures. Average prices are not acreage weighted. Source data deemed to be reliable but not guaranteed.

2 Selected Agricultural and Commodity Markets Almonds CA Almond Production Forecast: The USDA is projecting a 2016 California almond harvest volume of 2 billion pounds, an increase of 5.8% over 2015 total production, driven by a 1.1% increase in bearing acreage and a 4.7% increase in yield per acre. Shipments and Inventory Position: The Almond Board of California (ABC) estimated total inventory of million pounds as of 4/30/16, which was 19.8% higher than the inventory on hand at 4/30/15. The higher inventory level was driven by a combination of carry-in inventory being 7.4% higher at 8/1/15 than at 8/1/14, and combined domestic and export shipments between 8/1/15 and 4/30/16 being down 5.6% vs. the same period twelve months earlier. Almond Export Prices: U.S. shelled almond export prices steadily increased for several years to a peak of $4.50/lb in September Subsequently, shelled almond export prices have declined 36%, reaching $2.89/lb in April Export prices were previously around this level in March Know someone who may be interested in receiving this type of information? Please feel free to forward this newsletter to them. To SUBSCRIBE to this Newsletter, James@JamesCardoza.com

3 Grapes / Raisins / Wine / Grape Juice Concentrate Raisins: U.S. raisin export prices increased from $2,486/short ton in April 2015 to a post harvest peak price of $2,658/short ton in November Export prices have subsequently leveled off, with the rolling average export price for the three months ending April 2016 being 2.2% higher than the rolling average price for the three months ending April Bulk Wine and Grape Concentrate: According to the May 2016 Ciatti Global Market Update, global bulk wine and concentrate prices have increased since 2015 largely due to poor weather conditions in South America. Dairy / Milk CA Overbase Milk Prices: The dairy industry s current downward cycle continued through April 2014, with the CA overbase milk price at $12.61/cwt, 9% lower than the April 2015 overbase price of $13.85/cwt, and 44% lower than the April 2014 price of $22.34/cwt. Historically, the dairy industry s price cycle has lasted 2-4 years from peak-to-peak or trough-trough. The most recent peak price of $22.47/cwt occurred in March CME Class III Milk Futures: Class III futures were showing an upward trend over the next year, with June 2016 futures trading at $13.22/cwt, and June 2017 futures trading at $15.80/cwt as of 6/6/16, vs. the announced May 2016 Federal Order Class III milk price of $12.76/cwt.

4 Fresno County Residential Real Estate Sales of existing single family residential (SFR) homes. Based on sales reported to Fresno Multiple Listing Service (Fresno MLS) through 6/6/2016. Demographic data source: US Census Bureau. Fresno County May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $225,000 $233,250 $235, % 0.8% Median Sold Home Size (Sq Ft) 1,700 1,681 1, % -0.2% Median Sale Price $/Sq Ft $132 $139 $ % 1.0% Median Cumulative Days on Market (4) (7) Number of Closed Transactions % -4.3% Demographics Population (7/1/2015): 974,861. Median household income (2014): $45,201. Overall market has continued to see quick sales and moderate price increases, with 2.2 months of unsold existing single family home inventory as of 6/6/16. Recent sale prices ranging from $60,000 to $80,000 for major fixer-uppers to $1.7 million for luxury homes. Fresno (City) May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $208,000 $219,475 $229, % 4.5% Median Sold Home Size (Sq Ft) 1,657 1,654 1, % 1.0% Median Sale Price $/Sq Ft $126 $133 $ % 3.5% Median Cumulative Days on Market (4) (7) Number of Closed Transactions % -2.0% Demographics Population (7/1/2015): 520,052. Median household income (2014): $41,455. Existing home prices have continued to increase, with only 1.7 months of existing single family home inventory available for sale as of 6/6/2016. Please contact James Cardoza for Zip Code level pricing information. Clovis May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $289,000 $315,000 $280, % -11.1% Median Sold Home Size (Sq Ft) 1,863 1,961 1, % -2.8% Median Sale Price $/Sq Ft $155 $161 $ % -8.5% Median Cumulative Days on Market (7) (18) Number of Closed Transactions % -0.6% Demographics Population (7/1/2015): 104,180. Median household income (2014): $63,662. Market is showing some signs of plateau and possible downward trend, though current unsold existing single family home inventory as of 6/6/16 remains low at 2.1 months. *Percentage change in sales volume adjusted for difference in number of days in May vs. April.

5 Coalinga May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $149,500 $137,500 $133, % -2.7% Median Sold Home Size (Sq Ft) 1,440 1,540 1, % 2.5% Median Sale Price $/Sq Ft $104 $89 $ % -5.0% Median Cumulative Days on Market Number of Closed Transactions % -3.2% Demographics Population (7/1/2015): 16,564. Median household income(2014): $50,373. Limited sales volume reported, with 6.2 months of unsold existing single Fowler May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $165,750 $110,000 No Sales NA NA Median Sold Home Size (Sq Ft) 1,373 1,144 No Sales NA NA Median Sale Price $/Sq Ft $121 $96 No Sales NA NA Median Cumulative Days on Market No Sales NA NA Number of Closed Transactions % % Demographics Population (7/1/2015): 6,266. Median household income (2014): $47,731. No closed sales reported to Fresno MLS during May 2016, though nearly a dozen existing single family homes are currently in escrow with median list price of $209,900. A similar number of homes are still for sale with median list price of $253,950. Kerman May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $159,900 $230,000 $244, % 6.3% Median Sold Home Size (Sq Ft) 1,324 1,510 1, % 19.4% Median Sale Price $/Sq Ft $121 $152 $ % -11.0% Median Cumulative Days on Market Number of Closed Transactions % -29.6% Demographics Population (7/1/2015): 14,475. Median household income (2014): $45,539. Kingsburg May-15 Apr-16 May-16 Limited sales volume reported, with 2.7 months of unsold existing single Median Price (Existing SFR Homes) $250,000 $218,000 $249, % 14.4% Median Sold Home Size (Sq Ft) 1,664 1,410 1, % 17.6% Median Sale Price $/Sq Ft $150 $155 $ % -2.7% Median Cumulative Days on Market (37) (38) Number of Closed Transactions % 38.2% Demographics Population (7/1/2015): 11,824. Median household income (2014): $60,361. Limited sales volume reported, with 2.1 months of unsold existing single

6 Reedley May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $188,000 $197,000 $187, % -4.8% Median Sold Home Size (Sq Ft) 1,822 1,519 1, % 4.1% Median Sale Price $/Sq Ft $103 $130 $ % -8.6% Median Cumulative Days on Market (5) Number of Closed Transactions % -10.7% Demographics Population (7/1/2015): 25,569. Median household income (2014): $46,002. Sanger May-15 Apr-16 May-16 Limited sales volume reported, with 3.8 months of unsold existing single Median Price (Existing SFR Homes) $201,681 $214,000 $205, % -4.2% Median Sold Home Size (Sq Ft) 1,734 1,643 1, % 3.5% Median Sale Price $/Sq Ft $116 $130 $ % -7.4% Median Cumulative Days on Market Number of Closed Transactions % -47.6% Demographics Population (7/1/2015): 24,950. Median household income (2014): $42,094. Prices appear to have plateaued with some risk of decline. 4.8 months of unsold existing single family home inventory as of 6/6/2016. Selma May-15 Apr-16 May-16 Median Price (Existing SFR Homes) $240,000 $197,500 $195, % -1.3% Median Sold Home Size (Sq Ft) 2,122 1,465 1, % 8.1% Median Sale Price $/Sq Ft $113 $135 $ % -8.7% Median Cumulative Days on Market Number of Closed Transactions % -3.2% Demographics Population (7/1/2015): 24,414. Median household income (2014): $43,143. Market appears to be showing some signs of leveling off, with 2.2 months of unsold existing single family home inventory as of 6/6/2016, with individual home asking prices ranging from $85,500 to $379,900. About James V. Cardoza: Based in Fresno, CA, James V. Cardoza is a real estate broker, business consultant and former Commercial/Agribusiness Bank Vice President with 7 years experience as an Agribusiness Consultant, working with farms, dairies, and food processing companies throughout the Western United States. He grew up on his family s dairy and diversified field crop farm in Tulare, CA, received a BSC degree in Finance, Magna Cum Laude, from Santa Clara University, studied Real Estate at De Anza Community College, Cupertino, CA, and received an MBA degree, with Distinction, from the Craig School of Business at California State University, Fresno. He received his CA Real Estate Salesperson License in 2003, and his CA Real Estate Broker License in To SUBSCRIBE to this Newsletter, James@JamesCardoza.com