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

MARKET AREA UPDATE Report as of: 1Q 2Q 3Q 4Q Year: 2013 Market Area (City, State): Washington DC Metropolitan Area Provided by (Company / Companies): LONG & FOSTER REAL ESTATE, INC. What are the most significant trends in your current real estate market? (Attach addenda, charts, graphs, etc. as appropriate) * Activity in the Washington DC Metro Region continues to be steady and strong as we enter fall. However, the Federal Shutdown and debt ceiling situation, even after being temporarily resolved, will no doubt show its full impact in the coming months in our region. During the Shutdown itself, mortgage lending was greatly affected, especially FHA loans. It limited the pool of buyers and made sellers anxious to accept any offer with any sort of loan contingency. Many would be sellers decided to postpone listing their property altigether. Define Market Area: Urban (city limit area only) Metro Area (as defined by MSA) Other: Please explain: *VA: Alexandria City, Arlington County, Fairfax City, Fairfax County, Falls Church City. MD: Montgomery County, Prince George's County. Washington, DC Single Family (detached) Condominiums / Townhomes (attached) **Sales Price (current) Choose one: Average Median $ 482,697 $ 284,900 / 381,000 **Sales Price (same time prior year) Choose one: Average Median $ 438,950 $ 270,000 / 357,250 Average Days on Market list to contract (current) # 46 # 38 / 28 Increase Decreasing Stable Increase Decreasing Stable Active Listings # 5,440 # 1,764 / 2,126 Closed # 1,707 # 939 / 1,005 Change in Home Values % -9.6 % -4.6 / -2.3 Sold LP/SP Ratio (last 3 months) REAL ESTATE MARKET DATA Increase in past 3 months Stable Decreasing in past 3 months Increase in past 3 months Stable Decreasing in past 3 months % 97.1 % 98.1 / 99.4 **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: % % 5.7 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.) * The recent Federal Shutdown and debt ceiling issue has and will continue to have an effect on our region's economic condition. Thousands of dollars in revenue were lost from the closure of monuments, parks, museums, etc. During the furloughs, retail spending dropped dramatically and even after the issue was temporarily resolved, people are still nervous about what will happen in the next couple of months when the debt ceiling issue comes up again. 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 n/a Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent n/a Apartment Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent n/a

DC Metro Quarterly Market Statistics - Detailed Report 3rd Quarter 2013 Sold Summary Financing (Sold) Days on Market (Sold) Q3 2013 Q3 2012 % Change Sold Dollar Volume $6,656,838,829 $5,392,153,574 23.45% Avg Sold Price $493,684 $453,961 8.75% Median Sold Price $410,000 $375,000 9.33% Units Sold 13,484 11,878 13.52% Avg Days on Market 36 57-36.84% Avg List Price for Solds $499,360 $463,736 7.68% Avg SP to OLP Ratio 98.2% 96.2% 2.16% Ratio of Avg SP to Avg OLP 97.4% 95.7% 1.74% Attached Avg Sold Price $395,153 $363,164 8.81% Detached Avg Sold Price $600,072 $547,197 9.66% Attached Units Sold 6,995 6,009 16.41% Detached Units Sold 6,487 5,866 10.59% Assumption 5 Cash 2,236 Conventional 8,026 FHA 1,756 Other 292 Owner 10 VA 1,159 0 467 1 to 10 5,278 11 to 20 2,169 21 to 30 1,256 31 to 60 2,149 61 to 90 954 91 to 120 434 121 to 180 367 181 to 360 301 361 to 720 90 721+ 19 Notes: SP = Sold Price OLP = Original List Price LP = List Price (at time of sale) Garage/Parking Spaces are not included in Detached/Attached section totals. Sold Detail Active Detail Residential Condo/Coop Active Listings 2 or Less BR 3 BR 4 or More BR All Residential Condo/Coop Price Ranges Detached Attached/TH Detached Attached/TH Detached Attached/TH Attached Detached Attached/TH Attached < $50,000 11 1 3 4 0 0 65 16 5 48 $50K to $99,999 21 13 44 52 20 1 211 27 19 105 $100K to $149,999 28 25 97 78 56 14 270 70 39 127 $150K to $199,999 23 40 140 116 147 32 444 209 115 229 $200K to $299,999 43 108 243 412 423 60 865 560 325 650 $300K to $399,999 39 132 299 599 500 112 725 604 405 369 $400K to $499,999 33 49 268 407 621 101 432 700 286 179 $500K to $599,999 18 62 149 249 646 65 250 598 164 125 $600K to $799,999 20 50 227 244 1,018 126 194 823 193 140 $800K to $999,999 3 9 92 76 567 49 50 519 67 52 $1M to $2,499,999 2 5 24 47 629 84 52 1,028 132 80 $2.5M to $4,999,999 0 0 0 1 25 8 5 231 12 17 $5,000,000+ 0 0 0 0 8 1 0 55 2 5 Total 241 494 1,586 2,285 4,660 653 3,563 5,440 1,764 2,126 Avg Sold Price $320,130 $383,190 $423,091 $420,563 $674,785 $650,167 $333,778 Prev Year - Avg Sold Price $288,215 $333,119 $374,397 $384,708 $622,562 $548,134 $316,564 Avg Sold % Change 11.07% 15.03% 13.01% 9.32% 8.39% 18.61% 5.44% Prev Year - # of Solds 223 435 1,481 2,036 4,162 579 2,959 Source: RealEstate Business Intelligence, LLC. An MRIS company. Statistics generated on 10/04/2013. Copyright 2013 - All Rights Reserved. Information deemed reliable, but is not guaranteed.

Presented by Mike Uhing September 2013 DC Metro - Condo & Coop Long & Foster Real Estate, Inc. Email: mike.uhing@longandfoster.com New Listings 1,609 New Pendings 1,196 Closed Sales 1,005 16.3% 26.5% 1,384 1,272-1.6% 7.7% 1,216 1,110-21.2% 19.2% 1,276 843 13,499 11,806 14.3% : 1,519 12,019 10,874 10.5% : 1,042 9,965 8,423 18.3% : 892 Median $284,900 Sold Price -4.6% 5.5% $298,750 $270,000 $287,000 $269,000 6.7% : $264,220 Summary In DC Metro, the median sold price for Condo & Coop properties for September was $284,900, representing a decrease of 4.6% compared to last month and an increase of 5.5% from Sep 2012. The average days on market for units sold in September was 38 days, 40% below the 5-year September average of 64 days. There was a 1.6% month over month decrease in new contract activity with 1,196 New Pendings; a 0.1% MoM increase in All Pendings (new contracts + contracts carried over from August) to 1,948; and a 12% increase in supply to 2,126 active units. This activity resulted in a Contract Ratio of 0.92 pendings per active listing, down from 1.02 in August and a decrease from 1.02 in September 2012. The Contract Ratio is 33% higher than the 5-year September average of 0.69. A higher Contract Ratio signifies a relative increase in contract activity compared to supply, and indicates the market is moving in the seller's favor. A lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer's favor. Active Listings 2,126 2,126 38 Avg DOM 38 Avg Sold to 98.1% OLP Ratio 98.1% 2,120 3,230 4,570 38 64 79 93.1% 94.9% 98.1% Aug 2013 Sep 2012 1,899 2,120 36 58 40 97.9% 95.8% 98.0% Copyright 2013 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated October 04, 2013.

Presented by Mike Uhing September 2013 DC Metro - Attached/Townhouse Long & Foster Real Estate, Inc. Email: mike.uhing@longandfoster.com New Listings 1,512 New Pendings 1,087 Closed Sales 939 17.0% 18.6% 1,292 1,275-9.3% -5.6% 1,198 1,152-20.4% 10.2% 1,179 852 12,684 11,681 8.6% : 1,467 11,601 11,418 1.6% : 1,066 9,652 8,593 12.3% : 926 Median $381,000 Sold Price -2.3% 6.6% $390,000 $357,250 $384,900 $349,000 10.3% : $333,050 Summary In DC Metro, the median sold price for Attached/Townhouse properties for September was $381,000, representing a decrease of 2.3% compared to last month and an increase of 6.6% from Sep 2012. The average days on market for units sold in September was 28 days, 45% below the 5-year September average of 51 days. There was a 9.3% month over month decrease in new contract activity with 1,087 New Pendings; a 4.6% MoM decrease in All Pendings (new contracts + contracts carried over from August) to 2,039; and a 24.2% increase in supply to 1,764 active units. This activity resulted in a Contract Ratio of 1.16 pendings per active listing, no change from August and no change from September 2012. The Contract Ratio is 22% higher than the 5-year September average of 0.95. A higher Contract Ratio signifies a relative increase in contract activity compared to supply, and indicates the market is moving in the seller's favor. A lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer's favor. Active Listings 1,764 1,764 28 Avg DOM 28 Avg Sold to 99.4% OLP Ratio 99.4% 1,723 2,647 3,741 28 51 69 94.5% 96.4% 99.4% Aug 2013 Sep 2012 1,420 1,723 26 43 31 99.4% 97.4% 99.3% Copyright 2013 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated October 04, 2013.

Presented by Mike Uhing September 2013 DC Metro - Detached Long & Foster Real Estate, Inc. Email: mike.uhing@longandfoster.com New Listings 2,843 New Pendings 1,977 Closed Sales 1,707 7.9% 10.5% 2,634 2,573-6.8% 2.4% 2,122 1,931-21.2% 9.6% 2,165 1,558 26,263 25,019 5.0% : 2,845 22,110 22,207-0.4% : 1,877 18,067 16,854 7.2% : 1,659 Median $482,697 Sold Price -9.6% 10.0% $534,000 $438,950 $505,000 $450,000 12.2% : $428,729 Summary In DC Metro, the median sold price for Detached properties for September was $482,697, representing a decrease of 9.6% compared to last month and an increase of 10% from Sep 2012. The average days on market for units sold in September was 46 days, 38% below the 5-year September average of 74 days. There was a 6.8% month over month decrease in new contract activity with 1,977 New Pendings; a 3.9% MoM decrease in All Pendings (new contracts + contracts carried over from August) to 3,842; and a 9.3% increase in supply to 5,440 active units. This activity resulted in a Contract Ratio of 0.71 pendings per active listing, no change from August and no change from September 2012. The Contract Ratio is 21% higher than the 5-year September average of 0.59. A higher Contract Ratio signifies a relative increase in contract activity compared to supply, and indicates the market is moving in the seller's favor. A lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer's favor. Active Listings 5,440 5,440 46 Avg DOM 46 Avg Sold to 97.1% OLP Ratio 97.1% 5,440 7,304 8,854 46 74 93 92.7% 94.4% 97.1% Aug 2013 Sep 2012 4,975 5,660 43 71 51 97.7% 95.3% 97.6% Copyright 2013 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated October 04, 2013.

Washington, D.C. Metro Area September 2013 Housing Market Update Median price increases for all jurisdictions in the region Double-digit growth for new listings for the sixth straight month Rockville, MD (October 10, 2013) The following analysis of the Washington, D.C. Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI) and the GMU Center for Regional Analysis and is based on September 2013 MRIS housing data. OVERVIEW Activity in the Washington DC Metro Region continues to be steady and strong as we enter fall. Sales increased in September as compared to this time last year. Pending contracts also increased, but at a slower rate than earlier this year. The increase in pending contracts was driven by condos and detached homes. Total inventory continues to decline, but as in prior months, the pace of the decline is slowing. Both townhomes and condos had year-over-year increases in active listings, but were offset by the decline in detached home listings. Median sales prices reached their highest September-level in six years likely as a result of strong demand and tight supply. Condo properties led the growth in closed sales while detached homes had the highest increase in median sales price. Favorable market conditions continue to cause new sellers to enter the market, resulting in a 16.5 percent increase in listings from this time last year. This is the sixth consecutive double-digit increase for this indicator. Homes are selling quickly; the median-days-on-market was 17 days in September, which is the lowest September-level since the peak of the housing boom in 2005. Federal uncertainty may play a stronger role over the coming months as the impact of the Federal Shutdown and debt ceiling are felt. RBI Key Housing Trend Metrics [Washington, DC Metro Area] All Residential Sep-13 % M-O- M Aug-13 % Y-O- Y Sep-12 % Y-O- 5YAvg 5 Yr Avg Units Sold (Closed) 3,651-21.0% 4,621 12.1% 3,256 5.0% 3,479 Median Sales Price (Closed) $387,000-6.7% $415,000 7.5% $360,000 10.9% $349,000 Pending Sales (New) 4,260-6.1% 4,536 1.5% 4,195 6.9% 3,986 Active Listings 9,340 12.5% 8,301-1.8% 9,514-29.2% 13,189 New Listings 5,967 12.4% 5,311 16.5% 5,124 2.3% 5,832 Median DOM (Closed) 17 21.4% 14-34.6% 26-52.8% 36 Listing Discount (Average) 2.0% 1.8% 4.0% 5.0% Avg SP to OLP Ratio 98.0% 98.2% 96.0% 95.0% Copyright 2013 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 10/4/13 1

CLOSED SALES Sixth consecutive month of double-digit sales growth for the region. There were 3,651 sales in September in the Washington DC Metro Area, 12.1 percent more than a year ago, and the highest September-level since 2009. The number of sales decreased 21.0 percent from last month, which is in line with seasonal patterns. The 10- year average August to September change is -17.4 percent. Condos had the strongest sales growth of the property segments, increasing 19.2 percent from this time last year. The increase in condo sales from last year accounted for 41.0 percent of the increase in all sales. Strong demand has driven overall home prices up significantly over the past five years in the region, Jonathan Hill, President of RealEstate Business Intelligence, said of this surge in condo sales. The lower price-points and smaller unit size of condos may be attractive to first time homebuyers and investors, contributing to the strong gains in this segment. Townhome sales increased 10.2 percent from last September, the seventh consecutive month of double-digit growth for this segment. Detached home sales increased by 9.6 percent from this time last year. NEW CONTRACTS Slight increase in contracts driven by condos and single-family homes. There were 4,260 new contracts signed in September, 1.5 percent, or 65 contracts, more than this time last year. This is the highest September total in eight years. New contracts fell 6.1 percent from August, which is in line with the ten-year average August to September change of -6.8 percent. The year-over-year increase in new contracts was driven by condo properties and single-family homes. The 1,196 new contracts for condo properties represented an increase of 7.8 percent, or 86 more contracts. The 1,988 new contracts for detached homes represented a 2.4% increase. Contract activity for townhomes actually fell by 5.6 percent to 1,087 contracts, 65 fewer than September 2012. INVENTORY Increases in active listings for condo and townhomes; detached home inventory continues to decline. There were 9,340 active listings in the DC Metro Area at the end of September, a decrease of 1.8 percent, or 174 listings, from this time last year. Detached homes were the only property segment that had fewer listings compared to this time last year, however, with an increase of 3.9 percent. Active listings for detached homes are at their lowest September-level in eight years. There were 1,764 townhome listings, 2.4 percent, or 41 listings, more than last year. This is the first year-over year increase for townhomes in over two years. Active listings for condo properties increased 0.3 percent, or 6 listings, from this time last year. The year-over-year change in total active listings is the mildest decline in two years as the rise in new listings continues to play a role. Active inventory is actually up in half of the jurisdictions, led by an 11.1 percent gain in Alexandria City. Fairfax and Montgomery, the counties with the highest sales volume in the region, both had annual inventory growth, up 4.7 percent and 4.8 percent, respectively. Prince George s County continues to experience the sharpest decline in inventory, 15.1 percent fewer active listings as compared to this time last year. The inventory freefall of the last several years has slowed due to the strong gains in new sellers entering the market outpacing contract activity gains. New listings increased by 16.5 percent from this time last year, for a total of 5,967 new listings in September. This is the sixth consecutive month of double-digit growth for this indicator and the highest September-level of new listings since 2010. Condos continue to lead all property segments in new listing growth, increasing 26.5 percent from last September. New listings of townhomes increased 18.6 percent, and single-family detached new listings increased 10.5 percent from this time last year. The median-days-on-market remains historically low at 17 days and is the lowest September-level in eight years. All jurisdictions saw a lower median DOM compared to last September. Montgomery County had the highest level, but with a median DOM of only 21 days, half of the homes sold there were on the market for three weeks or less. 2

PRICES Median sale price increases in all jurisdictions. At $387,000, the median sales price in the Washington DC Metro Area is 7.5 percent higher than this time last year, an increase of $27,000. This is the highest Septemberlevel since 2007. Detached homes led all property segments in median sales price rate of growth, increasing 10.0 percent from September 2012 for a gain of $43,747. The median sales price for townhomes in the region increased 6.6 percent, or $23,750, from this time last year. Condo property median sales prices rose 5.5 percent, a gain of $14,900 from last year. Among the jurisdictions in the region, Prince George s County had the highest growth rate, increasing 18.2 percent from September 2012. This was the seventh consecutive double-digit increase for Prince George s County. For only the third time this year, all jurisdictions in the region had year-over-year price increases. The year-to-date median sales price for the region as a whole increased to $400,000 from $365,000, for a 9.6 percent gain over the 2012 year-to-date period. Median Sales Price by Jurisdiction [Washington, DC Metro Area] September Year to Date 2013 2012 YoY 2013 2012 YoY DC Metro $387,000 $360,000 +7.5% $400,000 $365,000 +9.6% Falls Church City $650,000 $552,200 +17.7% $640,000 $560,750 +14.1% Arlington $530,000 $460,000 +15.2% $525,000 $510,000 +2.9% Alexandria City $480,000 $461,000 +4.1% $485,000 $460,000 +5.4% Fairfax $456,000 $421,000 +8.3% $460,000 $423,000 +8.7% Washington, DC $460,000 $417,500 +10.2% $475,000 $427,000 +11.2% Fairfax City $424,500 $413,800 +2.6% $441,000 $435,000 +1.4% Montgomery $379,000 $370,000 +2.4% $402,500 $370,000 +8.8% Prince George's $201,000 $170,000 +18.2% $191,580 $168,000 +14.0% September Year to Date Adjacent Counties* 2013 2012 YoY 2013 2012 YoY Loudoun $407,000 $389,000 +4.6% $420,000 $386,910 +8.6% Prince William $309,000 $289,900 +6.6% $310,000 $274,000 +13.1% Frederick, MD $271,000 $250,000 +8.4% $271,000 $250,000 +8.4% Anne Arundel $299,550 $290,000 +3.3% $307,000 $295,000 +4.1% Howard $228,000 $230,000-0.9% $233,000 $228,000 +2.2% *Adjacent county sales are not included in the DC Metro aggregate stats. Copyright 2013 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 10/4/13 About the RBI Metro Housing Market Update The DC Metro Area Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI s proprietary database. The bulk of this report s content is readily available, down to the ZIP code level of granularity, via interactive charts and reports offered via rbiexpert, a premium subscription service offered to real estate professionals interested in growing their business with the help of industry-leading and user-friendly analytics. The DC Metro Area housing market includes: Washington, D.C., Montgomery County and Prince George s County in Maryland, and Alexandria City, Arlington County, Fairfax County, Fairfax City, and Falls Church City in Virginia. 3