Manhattan condo prices rose to

Manhattan Market Report Q4 4 by the numbers +.8% StreetEasy Condo Price Index (QuarteroverQuarter) +.4% StreetEasy Condo Price Forecast (MonthoverMonth).7% Total (QuarteroverQuarter) +5.7% Number of Pending Sales (Quarterover Quarter) days Median Time on Market $94, $,4 Median Price per Square Foot Recordbreaking Manhattan prices in final quarter give way to slowdown in 5 Manhattan condo prices rose to their highest level on record in the final quarter of 4, ending a year in which inventory failed to rebound from a five and a half year slide from the market s 9 peak. The median sale price across all property types jumped to $94,, a 6.4 percent jump from the previous quarter and nearly percent above last year s level. Condo prices inched up nearly percent from November, according to the StreetEasy Condo Price Index, and were 8.4 percent above yearago levels. December marked the 4th consecutive month of price growth among condos the second longest rally on record behind the month growth streak between May and November 5 during which prices surged 48 percent. Manhattan condo prices have grown 6 percent since January (the beginning of this rally). Price growth is fueled by historically low inventory across Manhattan. Overall, there were,9 units available in the fourth quarter, a steep.7 percent decline from the third quarter. In a sign of the market s anemic inventory, the total number of units available in the fourth quarter was a staggering 9 percent below Manhattan s peak inventory total set in the second quarter of 9. A steep dropoff in coop listings sent total Manhattan inventory nearly percent below last year s level. Coop listings fell 6.5 percent from last year while condo and townhouse listings increased 4.7 percent and 8. percent, respectively. For sidelined buyers wondering how much longer the market will continue to be constrained, relief may be on the horizon. A small increase in the median time on market, a slight uptick in discounts, and slowing price growth point to a slackening market ahead. Manhattan homes took a median time of days to sell in the fourth quarter, und from the third quarter and two days longer than last year. In another sign of waning buyer demand, the share of all available units that saw a price cut in the fourth quarter edged up slightly from last year, rising from. percent to. percent. While prices remain high, growth is anticipated to decelerate. Condo prices are expected to grow by 4.9 percent in 5 (December to December), according to the StreetEasy Condo Price Forecast, down from 8.4 percent in 4. StreetEasy is pleased to present the Quarterly Manhattan Real Estate Market Report, an indepth analysis of New York City s largest and most comprehensive database of listings and sales. To see more analysis on Manhattan real estate trends from StreetEasy, visit our market report page at: http://streeteasy.com/market/reports

Manhattan Quarterly Market Report Q4 4 StreetEasy Condo Price Index Quarterly condo price growth slows to lowest level in years; Downtown prices jump percent ahead of Manhattan Manhattan condo prices grew for the 4th consecutive month in December, posting a new record high price and continuing the second longest rally on record according to the StreetEasy Condo Price Index. Condo prices rose.8 percent from the third quarter of 4 and closed the year.5 percent higher than the previous market peak set in October 7. This was the lowest quarterly gain since the final quarter of. The rate of growth continued to slow through the second half of 4 in a sign that the market may soon reach a cyclical peak. The strongest annual growth was in the Downtown condo market, which posted.9 percent growth since December. Condo prices were. percent higher in Downtown than the rest of Manhattan in December. Price growth will continue to slow in 5, according to the StreetEasy Condo Price Forecast. Prices are expected to rise.4 percent in January from December and yearly growth in 5 is expected to slow to 4.9 percent, down from 8.4 percent growth seen in 4. +.8 % (4) StreetEasy Condo Price Index December 4 (QuarteroverQuarter) +.4 % (44) StreetEasy Condo Price Forecast January 5 (MonthoverMonth) 5 5 Previous market peak October 7 4 Current December 4 StreetEasy Condo Price Index Value 5 77 Previous market trough November 9 Indexed to January 5 Manhattan Downtown Midtown Upper East Upper West 995 996 997 998 999 4 5 6 7 8 9 4

Manhattan Quarterly Market Report Q4 4 Market Summary (quarteroverquarter) Q4 Q4 4 Q 4 (yearoveryear) Total Units Available,9,476.7%,.9% 4.9% 5.9% 7.% 8.6% 9.7% 8.% 46.5% 44.4% 44.8% Median Asking Price $,5, $,75, 5.9% $,75, 4.9% Median Asking Price per sq. ft. $,46 $,7.9% $,.5% Share of Listings w/ Price Increase 6.5% 6.% 6.8% Share of Listings w/ Price Cut.% 9.8%.% Recorded Sales Total Sales 4,9 4,6.%,796.7% $94, $885, 6.4% $85,.8% Total,88,675 5.7%,884.9% Median Days on Market 5 5 7 66 4 5 48 45 64 55, sales, and pending sales data includes condo, coop, and townhouse listings. Sales data is based on sale transactions recorded by the New York City Department of Finance as of January 9, 5. This may not represent all sale transactions for Q4 4. Just in 4 Manhattan homes were priced below $665 thousand in Q4. Manhattan s inventory got more pricey in 4. The share of all available homes in Manhattan that was priced in the top price tier grew to 46.5 percent in the fourth quarter, a slightly higher share than last year. The share of homes priced in the bottom tier (less than $665 thousand) shrunk to just 4.9 percent, or roughly one in four homes. Q4 4 Q 4 Q4 Total by Price Tier 4.9% 8.6% 46.5% 5.9% 9.7% 44.4% 7.% 8.% 44.8% How is inventory measured? Quarterly inventory is the sum of all condo, coop, and townhouse units that were available on StreetEasy at any point during the quarter. This method provides the most comprehensive picture of units that were available to buyers. How is days on market measured? The number of days from the original listing on StreetEasy to when it enters contract. After a buyer enters contract on a unit, it is pulled from the market and is no longer available to other buyers creating a logical end point to days on market. Quarterly inventory may not add up to % due to rounding. Price tier shares are based on total number of condo, coop, and townhouse units available during each quarter. For Q4 4, the bottom tier is comprised of units priced up to $665,; middle tier are units priced between $665, and $.49 million; top tier is units priced above $.49 million.

Manhattan Quarterly Market Report Q4 4 Nearly in Manhattan homes were priced above $.5 million in Q4, while just in 4 were priced below $665 thousand. Neighborhood by Price Tier % 4% 6% 8% % All Downtown Battery Park City Chelsea Chinatown Civic Center East Village Financial District Flatiron Gramercy Park Greenwich Village Little Italy Lower East Side Nolita Soho Tribeca West Village All Midtown Central Park South Kips Bay Midtown Midtown South Midtown West Murray Hill Roosevelt Island Sutton Place Turtle Bay All Upper East Side Carnegie Hill Lenox Hill Upper Carnegie Hill Upper East Side Yorkville All Upper West Side Lincoln Square Manhattan Valley Morningside Heights Upper West Side All Upper Manhattan Central Harlem East Harlem Hamilton Heights Inwood Manhattanville Washington Heights West Harlem Downtown was dominated by toptier homes in Q4. in 5 homes listed in Downtown were priced in the top tier (above $.5 million), with some neighborhoods like Little Italy, Nolita, Flatiron, Tribeca, and Soho seeing less than percent of all inventory priced in the bottom price tier. Tribeca: Manhattan s priciest neighborhood. With a median asking price of nearly $4.45 million in Q4, Tribeca continues to be the most expensive market in Manhattan. Of the homes available in Tribeca, just one was priced in the bottom tier. For buyers looking for lowerpriced homes, head above th Street. in 5 homes listed in Upper Manhattan were priced in the bottom tier the greatest share of any major Manhattan submarket in Q4. 4

Manhattan Quarterly Market Report Q4 4 Condos (quarteroverquarter) Q4 Q4 4 Q 4 (yearoveryear) Total Condo Units Available 4,64 5,77.4% 4,4 4.7% 8.4% 9.7% 9.5% 9.%.% 7.8% 6.4% 6 6.7% Median Asking Price $,75, $,695,.% $,675, 4.5% Median Asking Price per sq. ft. $,64 $,58.% $,478.6% Recorded Sales Total Sales,85,79 5.6%,65 9.9% $,4,5 $,85,5.4% $,75,.% Total,4, 4.%,49.9% Median Days on Market 6 6.7% 49 4.%, sales, and pending sales data includes only condo listings. Sales data is based on sale transactions recorded by the New York City Department of Finance as of January 9, 5. This may not represent all condo sale transactions for Q4 4. Q4 Condo Market 8.4% Manhattan condos take slightly longer to sell as asking prices increase. 6.4 percent of all available condo units were priced above $.5 million in the fourth quarter, a significant increase from the previous quarter. Condos took a median time of days to sell in the fourth quarter, an increase of 7 days from last year. Total Condo 9.% days median time on market 6.4% $.4million median sale price Price tier shares are based on total number of condo units available during Q4 4. Bottom tier is comprised of units priced up to $665,; middle tier are units priced between $665, and $.49 million; top tier is units priced above $.49 million. 5

Manhattan Quarterly Market Report Q4 4 Coops (quarteroverquarter) Q4 Q4 4 Q 4 (yearoveryear) Total Coop Units Available 5,4 5,9.% 5,489 6.5% 4.6% 4.6% 4.6%.9% 9.5% 8.4% 7.5% 7.9% Median Asking Price $775, $79,5 6.% $699,.9% Median Asking Price per sq. ft. $896 $88.7% $8 7.7% Recorded Sales Total Sales,97,69.%,7.7% $68,87 $685,.% $645, 5.9% Total,67,478.%,7.9% Median Days on Market 5 6 59, sales, and pending sales data includes only coop listings. Sales data is based on sale transactions recorded by the New York City Department of Finance as of January 9, 5. This may not represent all coop sale transactions for Q4 4. Q4 Coop Market 8.4% 4.6% Anemic coop inventory sends total Manhattan inventory below last year s level. Coop units were the only segment of the Manhattan market to see a yearoveryear decline in inventory. While there were more condo and townhouse listings in the fourt quarter of this year than last year, coop inventory fell 6.5 percent sending total Manhattan inventory.9 percent below last year s level. Total Coop 5days median time on market $68 thousand median sale price Price tier shares are based on total number of coop units available during Q4 4. Bottom tier is comprised of units priced up to $665,; middle tier are units priced between $665, and $.49 million; top tier is units priced above $.49 million. 6

Manhattan Quarterly Market Report Q4 4 Townhouses (yearoveryear) (quarteroverquarter) Q4 Q4 4 Q 4 Total Townhouse Units Available 77 6.% 8.%.6%.5%.%.7% 4.% 5.% 95.7% 95.4% 94.5% Median Asking Price $7,45, $7,9,.% $7,75,.9% Median Asking Price per sq. ft. $,759 $,68 8.7% $, 4.% Recorded Sales Total Sales 7 8 5.% 7.5% $9,45, $9,4,.4% $4,65,.% Total 5 4.% 65.6% Median Days on Market 5 99 86, sales, and pending sales data includes only townhouse listings. Sales data is based on sale transactions recorded by the New York City Department of Finance as of January 9, 5. This may not represent all townhouse sale transactions for Q4 4. Q4 Townhouse Market.6% Total Townhouse.7% Nearly all (95.7 percent) of townhouses listed for sale were priced above $.5 million. Townhouses saw the greatest annual increase in inventory (8. percent) than any other housing type but they remain the most expensive segment of the Manhattan real estate market. The median sale price of these homes jumped a staggering percent since last year to $9.4 million. 5days median time on market 95.7% $9.4 million median sale price Price tier shares are based on total number of townhouse units available during Q4 4. Bottom tier is comprised of units priced up to $665,; middle tier are units priced between $665, and $.49 million; top tier is units priced above $.49 million. 7

Neighborhood Summary Manhattan Quarterly Market Report Q4 4 8 All Downtown Battery Park City Chelsea Chinatown Civic Center East Village Financial District Flatiron Gramercy Park Greenwich Village Little Italy Lower East Side Nolita Soho Tribeca West Village All Midtown Central Park South Kips Bay Midtown Midtown South Midtown West Murray Hill Roosevelt Island Sutton Place Turtle Bay All Upper East Side Carnegie Hill Lenox Hill Upper Carnegie Hill Upper East Side Yorkville All Upper West Side Lincoln Square Manhattan Valley Morningside Heights Upper West Side All Upper Manhattan Central Harlem East Harlem Hamilton Heights Inwood Manhattanville Washington Heights West Harlem 77 5 4 8 4 4 49 6 4 65 7 47 8 5 89 85 7 68 4 5 4 888 96 8 9 58 45 794 87 9 6 79 46 5 4 45 8 7.8% 4.% 8.6% 9.7% 7.%.7% 4.9% 9.7% 66.7% 4.% 6.7% 6.7%.%.% 9.9% 6.%.5% 9.5% 5.4% 5.4% 6.4% 8.% 7.%.%.5% 5.8% 4.% 66.7%.% 5.6% 5.9% 6.9% 65.4% 4.8% 9.5% 7.7% 4.6% 7.4% 8.5% 5.5% 84.6% Total Sales Yearoveryear,5 5 49 7 5 87 7 47 6 9 4 9 4 49 6 67 4 5 9 6 74 85 58 88 5 7 48 7 65 87 7 948 85 4 76 4 59 6 5.6% 7.4% 6.7%.7% 68.8%.5%.6%.%.% 4.% 4.% 7.6% 4.9%.6%.%.%.9% 4.6%.9% 5.4% 6.4% 5.% 8.8% 6.%.7% 4.%.8% 4.8%.% 6.5% 5.% 5.%.7%.4% 8.8% 4.%.5%.9% 5.6% 4.% 9.% 8.6% Total Yearoveryear 5 6 6 5 78 5 57 5 4 5 4 88 5 5 59 8 65 6 85 4 6 7 5 6 6 4 48 5 6 49 44 68 7 4 89 7 67.5% 57.5%.7% 6.9%.9% 8.%.8% 6.6%.% 9.% 5.%.% 7.% 7.9% 5.% 4.% 75.%.% 8.6% 65.8% 8.%.6% 9.6% 4.% 58.8%.5%.8%.%.%.9% 9.%.% 5.6% 9.4% 4.5% 9.7% 5.%.% Median Days on Market Yearoveryear $,5, $77, $,5, $776,84 $694,5 $9, $,5, $,79, $,5,645 $,65, $,58, $645, $,75, $,95, $,4, $95, $87, $,,97 $58, $,8,5 $,5, $96, $64, $94, $85, $75, $999,65 $,8,5 $,7, $,, $,86,5 $755, $98, $88, $,5, $, $975, $448,8 $575, $45, $465,58 $9,5 $65, $445, $7,5.%.7% 8.% 8.4% 4.8%.4%.8%.8% 84.9% 48.8%.6%.6% 5.7% 5.%.9% 6.8% 7.6% 5.% 7.6%.5% 5.% 5.9%.% 4.8%.6% 4.4%.% 8.% 4.5% 4.5%.%.9%.5% 7.% 66.% 6.8% 5.7% 8.% 6.%.4% 6.9%.%.9% 6.6% Median Sale Price Yearoveryear $,95, $,85, $,, $,75, $79, $955, $,,5 $,4,995 $,75, $,675, $,585, $875, $,5, $,695, $4,45, $,5, $,5, $,9, $65, $,995, $,95, $,95, $75, $75, $,5, $98,98 $,595, $,5, $,995, $,75, $,495, $89,5 $,65, $,479, $975, $6, $,,5 $8, $747, $67,5 $488,475 $9,5 $575, $498,5 $9,.% 4.4% 8.%.%.9% 9.%.% 9.% 7.4% 8.%.% 9.6% 6.5% 8.% 8.%.4% 4.% 5.% 4.8% 9.6%.9%.5%.7% 4.% 4.% 4.% 5.6% 4.%.% 5.8% 6.%.% 6.%.6%.6% 4.5%.%.% 5.% 5.6% Median Listing Price Yearoveryear Recorded Sales Data Listings Data % Bottom Tier % Middle Tier % Top Tier.7% 6.8%.6%.% 4 7.7% 7.6% 5.6% 8.6% 7.4% 5.5% 5.5%.% 4.6% 5.7%.4% 6.6% 5.% 9.8% 47.% 4.4% 9.5%.7%.% 4.% 9.%.% 4.9%.8%.5% 5.% 9.%.9%.8% 6.% 4.9% 5.6% 7.% 86.4% 74.8% 7.% 6.% 4.% 7.8% 4 4.% 49.% 7.% 8.5% 9.%.6%.% 6.% 7.% 4.8% 8.6% 6.9%.5% 4.5% 45.%.6% 58.6% 4.5%.% 4.4%.%.7% 6.% 4.5%.4% 4.% 5.% 8.4%.9% 4.9% 6.% 6.% 4.% 4.9%.9% 9.% 6.% 57.% 64.4% 5 8.% 4.% 77.% 4.4%.% 5.5% 79.4% 8.% 9.4% 58.% 9.5% 8.4% 8.7% 6.9% 4.5% 4.9% 9.% 46.% 5.% 5.4% 64.% 6.% 7.% 5.6% 4.7% 4.6% 49.8% 4.5%.% 4.%.7%.%.% 4.%.7% 6.% Pending Sales Yearoveryear Data 85 9 6 97 7 66 7 8 89 85 59 9 9 6 9 7 84 6 76 89 5 69 7 5 6 94 94 4 78.4% 5.% 5.8%.%.%.9%.8% 5.% 9.8% 4 4.6% 4.5% 6.4% 4.% 85.7% 8.% 47.5% 4.% 5.% 5.9%.4% 5.7%.9%.4% 9.9%.5%.6%.%.9%.4% 8.% 4.% 6.7%.7%.6% 66.7% 4.%.5% 6.8%

Manhattan Quarterly Market Report Q4 4 Glossary StreetEasy Condo Price Index The StreetEasy Condo Price Index (SECPI) measures how prices are moving in the Manhattan condo real estate market. It is based on a repeatsales method, which compares the sale prices of the same properties over time. Given this methodology, the index is a much more reliable measure of sale prices as it controls for the variety of condos sold in a given month. The SECPI is indexed to January with a value of. StreetEasy Condo Price Forecast The StreetEasy Condo Price Forecast (SECPF) predicts the in Manhattan condo sale prices one month out from the current reported period. Incorporating the StreetEasy Condo Price Index, StreetEasy s comprehensive database of listing prices and days on market two leading indicators to future condo prices we are able to accurately forecast what next month s condo prices will be before the release of publicly recorded sales data. Price Tiers Days on Market Home listings are placed into one of three price tiers bottom, middle, and top using price cutoffs derived from a month weighted moving average of recorded sale prices at the rd and 66th percentiles. Price tier cutoffs each month in order to capture evolving trends in homes that are being sold. The top tier corresponds with the most expensive listings. Quarterly inventory is the sum of all units that were available on StreetEasy at any point during the quarter. For example, if a unit was originally listed in February (Q) and sold in May (Q), it would be included in the inventory number for both quarters. This approach allows us to analyze what was available to buyers in a given quarter instead of at a specific moment or cutoff. The number of days from the original listing on StreetEasy to when it enters contract. After a buyer enters contract on a unit, it is pulled from the market and is no longer available to other buyers creating a logical end point to days on market. Measuring days on market by the number of days from the original listing to the recorded closing date may be skewed by lengthy closing periods during which the unit is not technically on the market. The number of units that entered contract during the quarter. Median Asking Price The exact middle sale price among all recorded sale prices of units that closed during the quarter. In general, median values are more accurate than average values which may be skewed by price outliers (a few sales that are extremely expensive or extremely inexpensive). In order to consider only armslength transactions, we do not include sale prices lower than $, in this calculation. The exact middle asking price among all asking prices of listed units during the quarter. About StreetEasy Launched in 6 and acquired by Zillow, Inc. in August, StreetEasy is New York City s leading real estate resource, providing accurate and comprehensive forsale and forrent listings from hundreds of real estate brokerages in New York City. The site adds layers of deep, proprietary data and useful search tools that help consumers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, Northern New Jersey, and the Hamptons. @StreetEasy /StreetEasy #StreetEasy