MARKET AREA UPDATE Year: 2017 Report as of: 1Q 2Q 3Q 4Q

MARKET AREA UPDATE Year: 2017 Report as of: 1Q 2Q 3Q 4Q Market Area (City, State): Essex, Hunterdon, Middlesex, Morris, Somerset & Union Provided by (Company / Companies): BHHS New Jersey Properties Provided by RDC Member(s): Susan Magenta, CIPS, CRP, GMS-T What are the most significant trends in your current real estate market? (Attach addenda, charts, graphs, etc. as appropriate) Define Market Area: Urban (city limit area only) Metro Area (as defined by MSA) Other: Please explain: * Single Family (detached) Condominiums / Townhomes (attached) **Sales Price (current) Choose one: Average Median $ 442,032 $ 320,318 **Sales Price (same time prior year) Choose one: Average Median $ 416,488 $ 329,679 Average Days on Market list to contract (current) Absorption Months of Inventory (last 3 months) Number of active listings divided by the average # of sales per month (for the last 3 months) = # of months needed to sell existing inventory Example: Active Listings = 4500 Closed sales in the past 3 months = 4000 RIGHT: 4,000/3 (months)=1,333 (sales per month) 4,500/1,333=3.37 months of inventory WRONG: 4,500/4,000=1 month of inventory # 80 Increase Decreasing Stable # 6.2 # 4.8 Absorption Months of Inventory (same time prior year) # 8.34 # 6.18 Active Listings # 7377 # 1471 Closed ( total last 3 months) # 3591 # 916 Expired Listings ( total last 3 months if available) # 1152 # 236 Change in Home Values REAL ESTATE MARKET DATA % 6.1 Increase in past 3 months Stable Decreasing in past 3 months Sold LP/SP Ratio (last 3 months) % 98 % 97.4 # 75 Increase Decreasing Stable % -2.8 Increase in past 3 months Stable Decreasing in past 3 months **Average = the result by adding all sales prices and dividing by the number of units sold Median = denoting the middle of the range of values GENERAL ECONOMY How would you rate the overall economic conditions in area as defined above: Mixed Stable Healthy Shrinking Depressed Supply of Listings: (Single family) Shortage Oversupply Balanced ~ (Condo/Town home) Shortage Oversupply Balanced Overall Market Conditions: Active Stable Sluggish Flat Depressed Unemployment Rate: % % 4.4 Average Please check trend: Increasing Decreasing Same Please describe local economic conditions/climate: (draw upon newspaper articles concerning the coming and going of corporations, layoffs, etc.) *NJ ended 2016 with the highest number of sales in over 10 years. Inventory is constricted. NJ is improving but it has been the slowest state to recover after the recession. RENTAL INFORMATION Is There a Charge for Rental Assistance: Yes No Outsourced Is Home/Condo Rental Information Available in Your MLS: Yes No Single Family Housing Availability: (3+Bedrooms) Shortage Oversupply Balanced Average Rent $3000-$6000 Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $1500-$3000 Apartment Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $1200-$2000

Monthly Indicators For residential real estate activity in the state of New Jersey 2017 We can comfortably consider the first quarter to have been a good start for residential real estate in 2017. There was certainly plenty to worry over when the year began. Aside from new national leadership in Washington, DC, and the policy shifts that can occur during such transitions, there was also the matter of continuous low housing supply, steadily rising mortgage rates and ever-increasing home prices. Nevertheless, sales have held their own in year-over-year comparisons and should improve during the busiest months of the real estate sales cycle. Single Family Closed Sales were up 18.6 percent to 5,896. Townhouse-Condo Closed Sales were up 16.9 percent to 1,910. Adult Communities Closed Sales were up 7.3 percent to 561. Single Family Median Sales Price increased 0.6 percent to $274,700. Townhouse-Condo Median Sales Price increased 3.3 percent to $240,000. Adult Communities Median Sales Price increased 3.9 percent to $165,000. The U.S. economy has improved for several quarters in a row, which has helped wage growth and retail consumption increase in year-over-year comparisons. Couple that with an unemployment rate that has been holding steady or dropping both nationally and in many localities, and consumer confidence is on the rise. As the economy improves, home sales tend to go up. It isn't much more complex than that right now. Rising mortgage rates could slow growth eventually, but rate increases should be thought of as little more than a byproduct of a stronger economy and stronger demand. Monthly Snapshot + 17.0% One-Year Change in Closed Sales All Properties - 21.2% One-Year Change in Homes for Sale All Properties Single Family Market Overview Townhouse-Condo Market Overview Adult Community Market Overview New Listings Pending Sales Closed Sales Months Supply of Inventory Total Market Overview + 2.8% One-Year Change in Median Sales Price All Properties Residential real estate activity comprised of single family properties, townhouses and condominiums combined, and properties in adult communities. Percent changes are calculated using rounded figures. Median Sales Price Average Sales Price Percent of List Price Received Days on Market Until Sale Housing Affordability Index Inventory of Homes for Sale 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Provided by New Jersey REALTORS. Report 2017 ShowingTime.

Single Family Market Overview Key metrics for Single Family Properties Only, excluding Manufactured Housing, for the report month and for year-to-date (YTD) starting from the first of the year. Key Metrics Historical Sparklines 3-2016 3-2017 Percent Change YTD 2016 YTD 2017 Percent Change New Listings 13,800 13,094-5.1% 33,273 33,305 + 0.1% Pending Sales 7,101 8,598 + 21.1% 16,700 20,173 + 20.8% Closed Sales 4,970 5,896 + 18.6% 13,305 15,269 + 14.8% Median Sales Price $273,000 $274,700 + 0.6% $274,000 $275,000 + 0.4% Avg. Sales Price $347,865 $360,677 + 3.7% $352,188 $361,309 + 2.6% Pct. of List Price Received 95.9% 97.0% + 1.1% 95.9% 96.8% + 0.9% Days on Market 96 84-12.5% 97 86-11.3% Affordability Index 155 148-4.5% 154 147-4.5% Homes for Sale 45,030 35,651-20.8% -- -- -- Months Supply 7.8 5.4-30.8% -- -- -- Provided by New Jersey REALTORS. Report 2017 ShowingTime. 2

Townhouse-Condo Market Overview Key metrics for Townhouses and Condominiums Only for the report month and for year-to-date (YTD) starting from the first of the year. Key Metrics Historical Sparklines 3-2016 3-2017 Percent Change YTD 2016 YTD 2017 Percent Change New Listings 3,994 3,682-7.8% 10,035 9,614-4.2% Pending Sales 2,176 2,515 + 15.6% 5,334 6,148 + 15.3% Closed Sales 1,634 1,910 + 16.9% 4,252 4,725 + 11.1% Median Sales Price $232,375 $240,000 + 3.3% $236,000 $237,500 + 0.6% Avg. Sales Price $293,925 $306,380 + 4.2% $305,720 $304,693-0.3% Pct. of List Price Received 96.2% 96.7% + 0.5% 96.2% 96.5% + 0.3% Days on Market 85 78-8.2% 91 81-11.0% Affordability Index 182 169-7.1% 179 171-4.5% Homes for Sale 12,827 9,917-22.7% -- -- -- Months Supply 7.1 5.1-28.2% -- -- -- Provided by New Jersey REALTORS. Report 2017 ShowingTime. 3

Adult Community Market Overview Key metrics for properties in Adult Communities Only for the report month and for year-to-date (YTD) starting from the first of the year. Key Metrics Historical Sparklines 3-2016 3-2017 Percent Change YTD 2016 YTD 2017 Percent Change New Listings 1,002 896-10.6% 2,476 2,364-4.5% Pending Sales 651 718 + 10.3% 1,603 1,707 + 6.5% Closed Sales 523 561 + 7.3% 1,340 1,411 + 5.3% Median Sales Price $158,750 $165,000 + 3.9% $155,000 $165,000 + 6.5% Avg. Sales Price $194,443 $204,011 + 4.9% $193,897 $205,694 + 6.1% Pct. of List Price Received 96.0% 96.8% + 0.8% 96.0% 96.4% + 0.4% Days on Market 80 80 0.0% 85 79-7.1% Affordability Index 273 252-7.7% 279 252-9.7% Homes for Sale 2,853 2,329-18.4% -- -- -- Months Supply 4.9 3.7-24.5% -- -- -- Provided by New Jersey REALTORS. Report 2017 ShowingTime. 4

New Listings A count of the properties that have been newly listed on the market in a given month. 11,929 13,800 13,094 Year to Date 29,221 33,273 33,305 3,701 3,994 3,682 9,430 10,035 9,614 928 1,002 896 2,308 2,476 2,364 + 5.7% + 15.7% -5.1% + 3.9% + 7.9% -7.8% + 9.7% + 8.0% - 10.6% + 9.5% + 13.9% + 0.1% + 7.3% + 6.4% -4.2% + 6.7% + 7.3% -4.5% Historical New Listings by Month 15,000 12,500 10,000 7,500 5,000 2,500 0 April 2016 13,837 3,688 1,011 May 2016 13,014 3,567 887 June 2016 12,398 3,320 891 July 2016 10,839 3,014 897 August 2016 10,227 2,978 906 September 2016 10,468 3,136 780 October 2016 9,175 2,590 842 November 2016 7,606 2,191 702 December 2016 5,881 1,682 478 January 2017 9,592 2,965 723 February 2017 10,619 2,967 745 2017 13,094 3,682 896 12-Month Avg. 10,563 2,982 813 Provided by New Jersey REALTORS. Report 2017 ShowingTime. 5

Pending Sales A count of the properties on which offers have been accepted in a given month. Year to Date 7,101 8,598 16,700 20,173 5,632 13,947 1,937 2,176 2,515 4,657 5,334 6,148 550 651 718 1,384 1,603 1,707 + 14.9% + 26.1% + 21.1% + 10.4% + 12.3% + 15.6% -8.2% + 18.4% + 10.3% + 16.1% + 19.7% + 20.8% + 9.0% + 14.5% + 15.3% -1.5% + 15.8% + 6.5% Historical Pending Sales by Month 10,000 8,000 6,000 4,000 2,000 0 April 2016 7,812 2,297 713 May 2016 7,476 2,238 705 June 2016 7,598 2,169 692 July 2016 6,679 1,861 666 August 2016 6,972 2,064 739 September 2016 6,254 1,830 674 October 2016 6,236 1,865 599 November 2016 5,501 1,617 525 December 2016 4,754 1,467 442 January 2017 5,229 1,664 438 February 2017 6,346 1,969 551 2017 8,598 2,515 718 12-Month Avg. 6,621 1,963 622 Provided by New Jersey REALTORS. Report 2017 ShowingTime. 6

Closed Sales A count of the actual sales that closed in a given month. Year to Date 5,896 15,269 4,970 13,305 4,125 10,886 1,402 1,634 1,910 3,594 4,252 4,725 432 523 561 1,132 1,340 1,411 + 17.2% + 20.5% + 18.6% + 12.3% + 16.5% + 16.9% -1.8% + 21.1% + 7.3% + 12.9% + 22.2% + 14.8% + 7.5% + 18.3% + 11.1% -2.3% + 18.4% + 5.3% Historical Closed Sales by Month 10,000 8,000 6,000 4,000 2,000 0 April 2016 5,481 1,820 509 May 2016 6,390 2,059 627 June 2016 8,269 2,345 779 July 2016 7,369 2,089 673 August 2016 8,047 2,260 727 September 2016 6,820 2,050 726 October 2016 6,305 1,870 681 November 2016 6,134 1,762 593 December 2016 6,544 1,977 649 January 2017 5,000 1,463 445 February 2017 4,373 1,352 405 2017 5,896 1,910 561 12-Month Avg. 6,386 1,913 615 Provided by New Jersey REALTORS. Report 2017 ShowingTime. 7

Median Sales Price Point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month. Year to Date $275,000 $273,000 $274,700 $280,000 $274,000 $275,000 $236,750 $232,375 $240,000 $240,000 $236,000 $237,500 $144,000 $158,750 $165,000 $145,500 $155,000 $165,000 + 6.5% -5.2% -0.7% + 0.6% + 3.4% -1.8% + 3.3% -5.3% + 10.2% + 3.9% -1.9% -2.1% + 0.4% + 2.1% -1.7% + 0.6% -1.4% + 6.5% Historical Median Sales Price by Month $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 April 2016 $285,000 $240,000 $152,000 May 2016 $305,000 $255,000 $182,500 June 2016 $327,000 $250,000 $185,000 July 2016 $327,500 $250,000 $192,000 August 2016 $332,500 $256,900 $185,000 September 2016 $310,000 $257,500 $179,500 October 2016 $296,000 $253,500 $180,000 November 2016 $295,000 $241,000 $180,482 December 2016 $292,750 $250,000 $172,500 January 2017 $285,000 $235,000 $173,250 February 2017 $265,000 $235,000 $159,000 2017 $274,700 $240,000 $165,000 12-Month Med.* $302,000 $248,813 $176,000 * Median Sales Price for all properties from April 2016 through 2017. This is not the average of the individual figures above. Provided by New Jersey REALTORS. Report 2017 ShowingTime. 8

Average Sales Price Average sales price for all closed sales, not accounting for seller concessions, in a given month. Year to Date $362,977 $347,865 $360,677 $368,829 $352,188 $361,309 $294,977 $293,925 $306,380 $303,944 $305,720 $304,693 $181,589 $194,443 $204,011 $184,895 $193,897 $205,694 + 4.9% -3.5% -4.2% + 3.7% + 2.9% -0.4% + 4.2% -2.8% + 7.1% + 4.9% -2.1% -4.5% + 2.6% + 3.8% + 0.6% -0.3% -0.1% + 6.1% Historical Average Sales Price by Month $500,000 $400,000 $300,000 $200,000 $100,000 April 2016 $372,528 $311,547 $187,001 May 2016 $383,897 $318,448 $217,423 June 2016 $406,671 $317,344 $208,393 July 2016 $414,481 $322,014 $220,729 August 2016 $412,474 $324,458 $221,283 September 2016 $393,448 $320,393 $213,584 October 2016 $379,237 $330,282 $221,458 November 2016 $368,726 $310,364 $207,762 December 2016 $368,820 $318,218 $208,418 January 2017 $375,335 $309,725 $216,876 February 2017 $346,146 $296,867 $195,754 2017 $360,677 $306,380 $204,011 12-Month Avg.* $384,956 $316,370 $211,236 * Avg. Sales Price for all properties from April 2016 through 2017. This is not the average of the individual figures above. Provided by New Jersey REALTORS. Report 2017 ShowingTime. 9

Percent of List Price Received Percentage found when dividing a property s sales price by its most recent list price, then taking the average for all properties sold in a given month, not accounting for seller concessions. Year to Date 95.5% 97.0% 96.7% 96.8% 95.9% 96.1% 96.2% 96.0% 95.4% 95.5% 95.9% 96.8% 95.9% 96.2% 96.5% 96.4% 96.0% 95.4% + 0.6% + 0.2% + 0.4% + 1.1% + 0.3% + 0.1% + 0.5% -0.6% + 0.6% + 0.8% + 0.2% + 0.4% + 0.9% + 0.2% + 0.3% + 0.3% -0.1% + 0.4% Historical Percent of List Price Received by Month 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% April 2016 96.2% 96.1% 95.8% May 2016 96.8% 96.7% 97.1% June 2016 97.2% 96.7% 96.9% July 2016 97.4% 96.5% 96.7% August 2016 97.2% 97.0% 96.6% September 2016 96.8% 96.6% 96.4% October 2016 96.6% 96.5% 96.9% November 2016 96.9% 96.3% 96.5% December 2016 96.6% 96.4% 96.7% January 2017 96.5% 96.3% 96.2% February 2017 96.9% 96.4% 96.0% 2017 97.0% 96.7% 96.8% 12-Month Avg.* 96.9% 96.5% 96.6% * Pct. of List Price Received for all properties from April 2016 through 2017. This is not the average of the individual figures above. Provided by New Jersey REALTORS. Report 2017 ShowingTime. 10

Days on Market Until Sale Average number of days between when a property is listed and when an offer is accepted in a given month. Year to Date 102 96 84 92 85 86 78 80 80 100 97 86 92 91 85 85 81 79 0.0% 0.0% -5.9% - 12.5% - 4.2% -7.6% -8.2% + 6.2% -7.0% 0.0% -1.0% -3.0% - 11.3% -3.2% -1.1% - 11.0% + 4.9% -7.1% Historical Days on Market Until Sale by Month 160 140 120 100 80 60 April 2016 86 83 81 May 2016 80 74 75 June 2016 72 71 71 July 2016 70 71 76 August 2016 73 71 70 September 2016 78 77 71 October 2016 82 81 72 November 2016 81 81 74 December 2016 84 78 73 January 2017 88 84 80 February 2017 88 82 79 2017 84 78 80 12-Month Avg.* 80 77 75 * Days on Market for all properties from April 2016 through 2017. This is not the average of the individual figures above. Provided by New Jersey REALTORS. Report 2017 ShowingTime. 11

Housing Affordability Index This index measures housing affordability for the region. For example, an index of 120 means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. Year to Date 303 273 252 300 279 252 155 155 148 180 182 169 152 154 147 177 179 171-7.0% + 15.7% 0.0% -4.5% + 5.9% + 1.1% -7.1% + 15.6% -9.9% - 7.7% + 10.9% + 1.3% -4.5% + 6.6% + 1.1% -4.5% + 11.1% -9.7% Historical Housing Affordability Index by Month 400 350 300 250 200 150 100 April 2016 149 177 286 May 2016 139 167 238 June 2016 132 173 239 July 2016 132 173 230 August 2016 130 168 239 September 2016 139 167 245 October 2016 147 172 248 November 2016 140 172 235 December 2016 137 160 238 January 2017 139 169 234 February 2017 153 173 262 2017 148 169 252 12-Month Avg.* 140 170 246 * Affordability Index for all properties from April 2016 through 2017. This is not the average of the individual figures above. Provided by New Jersey REALTORS. Report 2017 ShowingTime. 12

Inventory of Homes for Sale The number of properties available for sale in active status at the end of a given month. 43,826 45,030 35,651 13,261 12,827 9,917 2,817 2,853 2,329 + 2.2% + 2.7% - 20.8% + 4.0% -3.3% - 22.7% + 7.2% + 1.3% - 18.4% Historical Inventory of Homes for Sale by Month 60,000 50,000 40,000 30,000 20,000 10,000 0 April 2016 46,980 13,166 2,944 May 2016 48,326 13,345 2,960 June 2016 48,650 13,167 2,952 July 2016 48,433 13,107 2,972 August 2016 46,935 12,715 2,943 September 2016 45,828 12,594 2,797 October 2016 43,417 11,925 2,764 November 2016 40,742 11,273 2,699 December 2016 35,534 9,920 2,394 January 2017 35,248 10,006 2,437 February 2017 35,618 10,029 2,407 2017 35,651 9,917 2,329 12-Month Avg. 42,614 11,764 2,717 Provided by New Jersey REALTORS. Report 2017 ShowingTime. 13

Months Supply of Inventory The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months. 8.9 7.8 8.3 7.1 5.4 5.1 5.3 4.9 3.7-3.3% - 12.4% - 30.8% 0.0% - 14.5% - 28.2% + 15.2% -7.5% - 24.5% Historical Months Supply of Inventory by Month 20 15 10 5 0 April 2016 8.0 7.2 5.0 May 2016 8.1 7.3 5.0 June 2016 8.1 7.1 5.0 July 2016 8.1 7.1 5.0 August 2016 7.7 6.9 4.9 September 2016 7.4 6.8 4.6 October 2016 7.0 6.4 4.6 November 2016 6.5 6.0 4.4 December 2016 5.6 5.2 3.9 January 2017 5.5 5.2 4.0 February 2017 5.5 5.2 3.9 2017 5.4 5.1 3.7 12-Month Avg.* 6.9 6.3 4.5 * Months Supply for all properties from April 2016 through 2017. This is not the average of the individual figures above. Provided by New Jersey REALTORS. Report 2017 ShowingTime. 14

Total Market Overview Key metrics for single-family properties, townhouses, condominiums and properties in adult communities combined, for the report month and for year-to-date (YTD) starting from the first of the year. Key Metrics Historical Sparklines 3-2016 3-2017 Percent Change YTD 2016 YTD 2017 Percent Change New Listings 19,162 18,091-5.6% 46,741 46,322-0.9% Pending Sales 10,120 12,055 + 19.1% 24,134 28,607 + 18.5% Closed Sales 7,299 8,537 + 17.0% 19,323 21,871 + 13.2% Median Sales Price $252,000 $259,000 + 2.8% $255,000 $258,000 + 1.2% Avg. Sales Price $323,111 $336,691 + 4.2% $329,828 $337,741 + 2.4% Pct. of List Price Received 96.0% 96.9% + 0.9% 95.9% 96.6% + 0.7% Days on Market 93 83-10.8% 95 85-10.5% Affordability Index 168 156-7.1% 166 157-5.4% Homes for Sale 62,567 49,321-21.2% -- -- -- Months Supply 7.5 5.3-29.3% -- -- -- Provided by New Jersey REALTORS. Report 2017 ShowingTime. 15