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): Arlington, Virginia Provided by (Company / Companies): McEnearney Associates, Inc. Realtors What are the most significant trends in your current real estate market? (Attach addenda, charts, graphs, etc. as appropriate) The largest factor in the Northern Virginia real estate market over the last 18 months is the paltry number of listings available to buyers. These limited choices resulted in an upward trend in pricing, thus tempting more sellers to enter the market. Between April and August, 15% more listings came on the market than during the same time period last year throughout Northern Virginia. It's really Economics 101. On the supply side, we have seen this modest increase in inventory. On the demand side, we've seen an increase in mortgage interest rates - up a full point since April. That represents a loss of more than 13% in buying power and that, coupled with the lingering impact of sequestration, is serving to keep the number of buyers in the market a bit less than it was earlier in the year. This will ease - but not reverse - the significant upward pressure on home prices we have seen this year. 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 $ 850,308 $ 431,101 / $827,290 **Sales Price (same time prior year) Choose one: Average Median $ 792,921 $ 405,898 / $739,188 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 Absorption Months of Inventory (same time prior year) Active Listings Closed ( total last 3 months) # 31 Increase Decreasing Stable # 30 / 30 Increase Decreasing Stable # 2.12 # 1.58 / 1.96 # n/a # n/a # 202 # 227 / 32 # 286 # 432 / 49 Expired Listings ( total last 3 months if available) # 5 # 12 / 3 Change in Home Values % n/a % n/a 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 % 99.36% % 99.03 / 99.37% **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: % % 3.7% 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.) Despite sequester and recent government shutdown, activity remains healthy. Housing inventory is stable entering the 4th quarter however overall shortage is expected into the 2014 spring market. 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 $3,500/month Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $3,000/month Apartment Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $2,800/month

tyui7 Northern Virginia StatPak October 2013 Market in a Minute A Summary of Market Conditions for September 2013 CONTRACTS: Contract activity in September 2013 was up just 1.0% from September of last year, and was down for homes priced less than $500,000. Through the first nine months of 2013, total activity is up 5.0%. Of those properties going under contract in September, 66% were on the market for 30 days or less. For some perspective, 79% of homes going under contract at the peak of the market in September 2004 were on the market for 30 days or less; in 2008, it was just 35%. INVENTORY: The number of homes on the market at the end of September was up 5.7% from the end of September 2012. For the sixth month in a row, more new listings came on the market than the same month the previous year an increase of 15.8%. The modest increase in contract activity and the rise in month-end inventory increased overall supply to 2.4 months, up slightly from 2.3 months last September. INTEREST RATES: Mortgage interest rates continue to float in the mid-4% range, ending September at 4.32%. That s almost a full point higher than the 3.4% figure end of September 2012, but is 19 basis points lower than a month ago at the end of August. As we have noted here in recent months, rates are still very low when viewed from any historical perspective, but the recent increases will cause borrowers to take a fresh look at adjustable-rate programs. AFFORDABILITY: The payment on a no-money-down, 30-year fixed mortgage for a median-priced home is 18.7% lower today than it was in September 2005. But for the fifth month in a row, the mortgage payment for a median priced home in September ($2,317) was more than the median rented price ($2,000). Homeownership is still more affordable than this time last year, but the combination of higher prices and higher interest rates are gradually making house payments climb. DIRECTION OF THE MARKET: As we have noted here over the past few months, the market is adjusting from a very hot spring to a slightly more balanced one now. Overall supply has risen a bit to 2.4 months, largely due to the number of new listings coming on the market as rising prices have coaxed more homeowners into putting their homes up for sale. We continue to expect inventory to rise through the rest of the year. Rising interest rates are putting a bit of a damper on demand, but overall home prices continue to rise modestly as well. The prospect of rising prices will continue to motivate purchasers, however, and if historic norms hold true there will be more new contract activity in October than we saw in September. The overall fundamentals remain strong, and we remain convinced that we headed toward a balanced and sustainable market. Unless otherwise noted, data derived from Metropolitan Regional Information Systems, Inc. (MRIS ). Northern Virginia is defined as Arlington and Fairfax counties and the cities of Alexandria, Falls Church & Fairfax. Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 1

MONTHLY SUMMARY September 2012 vs. September 2013 September September % NORTHERN VIRGINIA 2012 2013 Change Number of Sales 1,424 1,546 8.6% Fully Available Inventory on 9/30 3,553 3,755 5.7% Number of New Listings 2,135 2,472 15.8% Number of New 1,550 1,565 1.0% Days on Market - New 44 34-22.7% Average Sales Price $498,709 $543,821 9.0% Average Seller Subsidy $3,318 $2,221-33.1% Months' Supply 2.3 2.4 4.7% LOUDOUN COUNTY Number of Sales 428 481 12.4% Fully Available Inventory on 9/30 1,404 1,507 7.3% Number of New Listings 602 689 14.5% Number of New 453 478 5.5% Days on Market - New 55 41-25.5% Average Sales Price $432,619 $453,176 4.8% Average Seller Subsidy $3,786 $3,305-12.7% Months' Supply 3.1 3.2 1.7% PRINCE WILLIAM/MANASSAS/MANASSAS PARK Number of Sales 555 584 5.2% Fully Available Inventory on 9/30 1,168 1,433 22.7% Number of New Listings 663 829 25.0% Number of New 616 651 5.7% Days on Market - New 42 39-7.1% Average Sales Price $309,734 $326,614 5.4% Average Seller Subsidy $4,237 $3,732-11.9% Months' Supply 1.9 2.2 16.1% WASHINGTON, DC Number of Sales 525 577 9.9% Fully Available Inventory on 9/30 1,478 1,349-8.7% Number of New Listings 962 1,089 13.2% Number of New 670 700 4.5% Days on Market - New 58 36-37.9% Average Sales Price $539,067 $624,524 15.9% Average Seller Subsidy $2,559 $2,347-8.3% Months' Supply 2.2 1.9-12.6% MONTGOMERY COUNTY Number of Sales 761 880 15.6% Fully Available Inventory on 9/30 2,374 2,496 5.1% Number of New Listings 1,105 1,478 33.8% Number of New 944 948 0.4% Days on Market - New 56 46-17.9% Average Sales Price $461,584 $466,706 1.1% Average Seller Subsidy $3,660 $2,832-22.6% Months' Supply 2.5 2.6 4.7% * Note: Percentages depicted in red indicate a negative market trend; black indicates a positive market trend Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 2

SUMMARY YEAR-TO-DATE 2012 vs. 2013 Year-to-Date Jan-Sep Jan-Sep % NORTHERN VIRGINIA 2012 2013 Change Number of Closed Sales 14,578 16,254 11.5% Average Month-End Available Inventory 3,455 2,807-18.8% Number of New Listings 20,779 22,525 8.4% Number of New 17,157 18,013 5.0% Days on Market - New 49 32-34.5% Average Sales Price $504,862 $541,362 7.2% Average Seller Subsidy $3,122 $2,139-31.5% Average Months' Supply 1.8 1.4-22.6% LOUDOUN COUNTY Number of Closed Sales 3,958 4,696 18.6% Average Month-End Available Inventory 1,380 1,273-7.7% Number of New Listings 6,115 6,826 11.6% Number of New 4,818 5,247 8.9% Days on Market - New 58 39-32.5% Average Sales Price $423,577 $456,852 7.9% Average Seller Subsidy $3,746 $2,866-23.5% Average Months' Supply 2.6 2.2-15.3% PRINCE WILLIAM/MANASSAS/MANASSAS PARK Number of Closed Sales 5,132 5,579 8.7% Average Month-End Available Inventory 1,233 1,088-11.7% Number of New Listings 7,163 8,001 11.7% Number of New 6,758 6,719-0.6% Days on Market - New 44 33-25.1% Average Sales Price $294,617 $326,056 10.7% Average Seller Subsidy $4,220 $3,713-12.0% Average Months' Supply 1.6 1.5-11.2% WASHINGTON, DC Number of Closed Sales 5,183 5,921 14.2% Average Month-End Available Inventory 1,557 1,104-29.1% Number of New Listings 7,437 8,097 8.9% Number of New 6,133 6,716 9.5% Days on Market - New 63 43-31.1% Average Sales Price $546,368 $593,268 8.6% Average Seller Subsidy $2,798 $2,097-25.0% Average Months' Supply 2.3 1.5-35.3% MONTGOMERY COUNTY Number of Closed Sales 7,579 8,709 14.9% Average Month-End Available Inventory 2,500 1,976-21.0% Number of New Listings 10,918 12,575 15.2% Number of New 9,449 10,208 8.0% Days on Market - New 67 44-34.3% Average Sales Price $468,318 $502,044 7.2% Average Seller Subsidy $3,574 $2,799-21.7% Average Months' Supply 2.4 1.7-26.8% * Note: Percentages depicted in red indicate a negative market trend; black indicates a positive market trend Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 3

NORTHERN VIRGINIA Detail Pages (Fairfax & Arlington Counties, Alexandria, Falls Church and Fairfax Cities) 30-YEAR FIXED AND 1-YEAR ADJUSTABLE RATES Month-End Mortgage Rates - 2006-Current MORTGAGE RATES Interest Rate 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1-Year ARM 30-Year Fixed 30-year fixed interest rates at the end of Sept. averaged 4.32%, compared to 3.40% at the end of September 2012. One-year adjustable rate mortgages were 2.63% at the end of Sept. 2013 vs. 2.60% at the end of September 2012. Those extraordinarily low ARMs will entice some borrowers as 30-year rates climb, but we believe it far more likely that cautious buyers will look at 5- and 7- year ARMs more than 1-year. BUYING POWER Mortgage Amount with $1,000 Payment BUYING POWER Mortgage Amount w/$1,000 Payment $230,000 $220,000 $210,000 $200,000 $190,000 $180,000 $170,000 $160,000 $150,000 $140,000 $161,591 $159,733 $165,234 September 2006 September 2007 September 2008 $187,561 September 2009 $201,594 September 2010 $209,209 September 2011 $225,515 September 2012 $201,594 September 2013 A $1,000 principal and interest payment supported a loan of $197,130 at the end of Sept. which is $23,921 less than this time last year, but $40,003 more than September 2006. In September 2005, it would have taken a monthly PI payment of $2,850 to purchase a median priced home. With today s lower rates, it takes a payment of $2,317 that s an 18.7% drop. Average Sales Price $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 AVERAGE SALES PRICE Homes in Northern Virginia - 2004-Current January February March April May June July August September October November December 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 AVERAGE PRICES The average sales price in Sept. 2013 was $543,821, up 9.0% from the Sept. 2012 average price of $498,709. The median sales price was $467,000 in September 2013, up 8.6% from the median price in September 2012. Remember that these indicators are arithmetic computations based on all properties sold and do not indicate the appreciation or depreciation of any individual property. Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 4

FULLY AVAILABLE LISTINGS Northern Virginia - September 30, 2012 vs. September 30, 2013 377 375 399 435 485 465 510 564 September 2013 September 2012 851 872 954 1,021 FULLY AVAILABLE LISTINGS As noted on page 2, the month-end inventory increased 5.7% in September 2013 compared to September 2012 and there was a 15.8% increase in the number of homes coming on the market. 38.6% of all homes on the market have had at least one price reduction since coming on the market. This time last year, 40.1% of all homes on the market had at least one price reduction. 0 250 500 750 1,000 1,250 Northern Virginia - Sept. 2012 vs. Sept. 2013 By Price Range 23 19 63 53 125 156 312 368 385 420 September 2013 September 2012 591 600 The number of new contracts ratified in September 2013 was up 1.0% from the number of contracts ratified in Sept. 2012. As noted on page 3, contract activity YTD is up 5.0%. Just 26.6% of all homes going under contract in Sept. 2013 had at least one price reduction before going under contract. 65.8% of homes going under contract in September were on the market 30 days or less up from the 60.5% figure in September 2012. 0 100 200 300 400 500 600 700 # of New MONTHS' SUPPLY Northern Virginia - September 2012 vs. September 2013 by Price Range 2.0 1.7 1.6 2.4 3.1 4.1 6.3 7.1 18.9 19.8 September 2013 September 2012 MONTHS SUPPLY The overall supply of homes on the market at the end of September was 2.4 months, which was an increase of 4.7% compared to the end of September 2012. This is the first time since September 2011 that we have had a month-over-year increase in months supply. 1.2 1.8 0 5 10 15 20 25 # of Months' Supply Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 5

$1,000,000 -$1,499,999 $750,000 -$999,999 $500,000 -$749,999 $300,000 -$499,999 AVERAGE NUMBER OF DAYS ON MARKET Northern Virginia - Sept. 2012 vs. Sept. 2013 - New 26.8 23.0 32.3 35.9 42.0 38.5 48.1 57.6 65.5 78.2 113.3 September 2013 September 2012 141.0 AVERAGE NUMBER OF DAYS ON THE MARKET New The average number of days on the market for homes receiving contracts in September was down for all but the two most expensive price categories. The average number of days on the market for all homes receiving contracts in September 2013 was 34, down 22.7% from 44 days in September 2012. 0 20 40 60 80 100 120 140 160 NUMBER OF NEW LISTINGS, NEW CONTRACTS, AND ACTIVE LISTINGS January 2007 - Current NUMBER OF NEW LISTINGS, CONTRACTS AND ACTIVE LISTINGS 12,500 10,000 7,500 5,000 2,500 0 New Listings New Active Listings August 2010 5,449 Active Sept. 2011 4,877 Active Sept. 2012 3,553 Active Sept. 2013 3,755 Active There were 2,472 new listings that came on the market in September 2013, up 15.8% from the 2,135 in Sept. 2012. The lines representing active listings (green), new listings (blue) and new contracts (red) remain tightly grouped, but inventory is starting to edge up a bit relative to new contracts. There were 900 more new listings in September than new contracts. Relationship of Sales Price to Original List Price 102% 100% 98% 96% 94% 92% 90% 88% RELATIONSHIP OF SALES PRICE TO ORIGINAL LIST PRICE vs. DAYS ON MARKET September 2012 vs. September 2013 - Resale Properties Sold in Northern Virginia 100.2% 99.9% 89.2% 89.0% 0-7 8-14 15-21 22-30 31-60 61-90 91-120 121+ Days on Market September 2012 September 2013 RELATIONSHIP OF SALES PRICE TO ORIGINAL PRICE vs. DAYS ON MARKET As we have noted in this space for years, initial pricing strategy is critical to the success of sellers. Homes settling in September 2013 that received contracts their first week on the market sold, on average, for 0.2% above list. Those that took 4 months or longer to sell sold for 11.0% below original list price. SOME DEFINITIONS AND EXPLANATIONS TO AID YOUR UNDERSTANDING OF THE DATA All data describing Northern Virginia include the counties of Arlington and Fairfax, the cities of Alexandria, Fairfax and Falls Church, and the towns of Vienna, Herndon and Clifton The data shown here are collected, in whole or in part, from the Metropolitan Regional Information System, Inc, and are believed to be reliable but are not guaranteed Sales are transactions that settled during the statistical period; Under are contracts negotiated during the statistical period, but not yet settled Available Listings reflects single-family homes, town homes, new homes and condos on the market at the end of the period in question. Months Supply is simply the number of Fully Available Listings on the market at the end of the month divided by the number of ratified that month. Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 6

Analysis by Property Type Condo/Co-op Listings CONDO/CO-OP LISTINGS Condo/Co-op New This Month Total Active Listings 2012 2013 % Change 2012 2013 % Change $299,999 and under 317 380 19.9% 381 498 30.7% 168 228 35.7% 237 255 7.6% 34 66 94.1% 73 79 8.2% 10 14 40.0% 17 25 47.1% 7 7 0.0% 15 13-13.3% $1,500,000 & higher 5 8 60.0% 17 13-23.5% Grand Total: 541 703 29.9% 740 883 19.3% The number of new listings for condos and co-ops coming on the market was up 29.9% compared to September 2012. The fully available inventory of condos as of September 30, 2013 is 19.3% more than the same time last year. CONDO/CO-OP CONTRACTS Condo/Co-op New This Month Year-To-Date 2012 2013 % Change 2012 2013 % Change $299,999 and under 282 267-5.3% 2830 2726-3.7% 125 157 25.6% 1281 1640 28.0% 31 38 22.6% 311 395 27.0% 8 5-37.5% 69 82 18.8% 0 4-20 36 80.0% $1,500,000 & higher 0 0-17 11-35.3% Grand Total: 446 471 5.6% 4528 4890 8.0% The number of condos and coops receiving ratified contracts increased 5.6% in Sept. 2013 compared to September 2012. Year-to-date, contract activity is up 8.0% compared to 2012. Settlements Condo/Co-op New This Month Year-To-Date Settlements 2012 2013 % Change 2012 2013 % Change $299,999 and under 240 238-0.8% 2276 2340 2.8% 121 151 24.8% 1121 1479 31.9% 30 39 30.0% 273 369 35.2% 3 12 300.0% 55 72 30.9% 1 8 700.0% 20 32 60.0% $1,500,000 & higher 1 2 100.0% 17 11-35.3% Grand Total: 396 450 13.6% 3762 4303 14.4% CONDO/CO-OP SETTLEMENTS AND AVERAGE PRICE The number of condos and co-ops settling in September 2013 increased 13.6% compared to September 2012. Year-to-date, the number of settlements is up 14.4%. The average price was up 15.4% compared to September 2012. Year-to-date, the average price is up 6.1%. Average Sales Price: Sep 2012 Sep 2013 % Change YTD 2012 YTD 2013 % Change Condo/Co-op $299,956 $346,092 15.4% $306,761 $325,364 6.1% Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 7

Analysis by Property Type Fee Simple Attached Listings ATTACHED HOMES LISTINGS Fee Simple Attached New This Month Total Active Listings 2012 2013 % Change 2012 2013 % Change $299,999 and under 77 60-22.1% 70 59-15.7% 292 410 40.4% 347 436 25.6% 122 146 19.7% 154 161 4.5% 32 37 15.6% 46 49 6.5% 14 16 14.3% 25 24-4.0% $1,500,000 & higher 10 5-50.0% 16 14-12.5% Grand Total: 547 674 23.2% 658 743 12.9% The number of new listings coming on the market in September 2013 for fee simple attached homes increased 23.2% from September 2012. Nonetheless, fully active inventory at the end of September is up 12.9% compared to the available inventory at the end of September 2012. Fee Simple Attached New This Month Year-To-Date 2012 2013 % Change 2012 2013 % Change $299,999 and under 86 41-52.3% 1052 581-44.8% 261 259-0.8% 2504 2928 16.9% 75 101 34.7% 845 1021 20.8% 23 21-8.7% 181 231 27.6% 5 6 20.0% 44 66 50.0% $1,500,000 & higher 2 3 50.0% 14 15 7.1% Grand Total: 452 431-4.6% 4640 4842 4.4% ATTACHED HOMES CONTRACTS Contract activity for attached homes decreased 4.6% in September 2013 compared to September 2012. Year-to-date, contract activity is up 4.4%. Settlements Fee Simple Attached New This Month Year-To-Date Settlements 2012 2013 % Change 2012 2013 % Change $299,999 and under 75 47-37.3% 840 497-40.8% 239 250 4.6% 2156 2642 22.5% 91 98 7.7% 762 991 30.1% 16 15-6.3% 141 202 43.3% 6 5-16.7% 41 65 58.5% $1,500,000 & higher 2 2 0.0% 7 13 85.7% Grand Total: 429 417-2.8% 3947 4410 11.7% Average Sales Price: Sep 2012 Sep 2013 % Change YTD 2012 YTD 2013 % Change Fee Simple Attached $438,648 $448,066 2.1% $423,562 $458,668 8.3% ATTACHED HOMES SETTLEMENTS AND AVERAGE PRICE The number of settlements decreased 2.8% in September 2013 compared to September 2012. Year-to-date, the number of settlements has increased 11.7%. The average sales price increased 2.1%, in Sept. 2013 compared to September 2012. The average sales price yearto-date is up 8.3%. Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 8

Analysis by Property Type Fee Simple Detached Listings DETACHED HOMES LISTINGS Fee Simple Detached New This Month Total Active Listings 2012 2013 % Change 2012 2013 % Change $299,999 and under 12 3-75.0% 14 7-50.0% 270 218-19.3% 370 330-10.8% 367 419 14.2% 645 611-5.3% 204 236 15.7% 447 411-8.1% 124 134 8.1% 335 362 8.1% $1,500,000 & higher 70 85 21.4% 344 408 18.6% Grand Total: 1047 1095 4.6% 2155 2129-1.2% The number of new listings for fee simple detached homes was up 4.6% in Sept. 2013 compared to September 2012. The number of detached homes on the market on September 30, 2013 was down 1.2% compared to September 30, 2012, and is down significantly in the lowest price categories. DETACHED HOMES CONTRACTS Fee Simple Detached New This Month Year-To-Date 2012 2013 % Change 2012 2013 % Change $299,999 and under 17 4-76.5% 253 84-66.8% 214 175-18.2% 2562 2104-17.9% 262 281 7.3% 3142 3508 11.6% 94 130 38.3% 1188 1554 30.8% 48 53 10.4% 605 754 24.6% $1,500,000 & higher 17 20 17.6% 239 277 15.9% Grand Total: 652 663 1.7% 7989 8281 3.7% There was an increase of 1.7% in the number of contracts on detached homes in September 2013 compared to September 2012, with a huge drop for homes priced less than $300,000. There s just very little inventory for would-be purchasers to buy. The number of contracts yearto-date is up 3.7%. Settlements Fee Simple Detached New This Month Year-To-Date Settlements 2012 2013 % Change 2012 2013 % Change $299,999 and under 11 2-81.8% 169 81-52.1% 200 151-24.5% 2161 1807-16.4% 237 296 24.9% 2829 3261 15.3% 91 129 41.8% 1023 1431 39.9% 47 74 57.4% 498 715 43.6% $1,500,000 & higher 13 27 107.7% 198 246 24.2% Grand Total: 599 679 13.4% 6878 7541 9.6% Average Sales Price: Sep 2012 Sep 2013 % Change YTD 2012 YTD 2013 % Change Fee Simple Detached $669,675 $736,166 9.9% $659,965 $712,989 8.0% DETACHED HOMES SETTLEMENTS AND AVERAGE PRICE The number of settlements in September was up 13.4% compared to last September. Year-to-date, there has been an increase of 9.6%. The average sales price for detached homes increased 9.9% in September 2013 compared to Sept. 2012. The average sales price yearto-date is up 8.0%. Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 9

Absorption Rate by Property Type The following tables track absorption rate by property type, comparing the rates in the just-completed month to the rates in the same month of the previous year. The absorption rate is a measure of the health of the market, and tracks the percentage of homes that were on the market during the given month and in the given price range that went under contract. [The formula is # /(# + # Available).] An example: The absorption rate for detached homes priced $500,000-$749,999 in September 2013 was 31.5%. That compares to a rate of 28.9% in September 2012, and the increase means the market was better in 2013 for that type of home. If the absorption rate was less in 2013 than in 2012, we have put the more recent absorption rate in red. This month there was improvement for 9 of 18 price categories, and 2 remained the same. Condo/Co-op September 2012 September 2013 Absorption Rates Listings Rate Listings Rate $299,999 and under 381 282 42.5% 498 267 34.9% 237 125 34.5% 255 157 38.1% 73 31 29.8% 79 38 32.5% 17 8 32.0% 25 5 16.7% 15 0 0.0% 13 4 23.5% $1,500,000 & higher 17 0 0.0% 13 0 0.0% Grand Total: 740 446 37.6% 883 471 34.8% ABSORPTION RATES CONDOS AND CO-OPS The overall absorption rate for condos and co-ops for September 2013 was 34.8%, a decrease from the 37.6% rate in September 2012. Fee Simple Attached September 2012 September 2013 Absorption Rates Listings Rate Listings Rate $299,999 and under 70 86 55.1% 59 41 41.0% 347 261 42.9% 436 259 37.3% 154 75 32.8% 161 101 38.5% 46 23 33.3% 49 21 30.0% 25 5 16.7% 24 6 20.0% $1,500,000 & higher 16 2 11.1% 14 3 17.6% Grand Total: 658 452 40.7% 743 431 36.7% ABSORPTION RATES ATTACHED HOMES The overall absorption rate for attached homes in September 2013 was 36.7%, a decrease from the 40.7% rate in September 2012. Fee Simple Detached September 2012 September 2013 Absorption Rates Listings Rate Listings Rate $299,999 and under 14 17 54.8% 7 4 36.4% 370 214 36.6% 330 175 34.7% 645 262 28.9% 611 281 31.5% 447 94 17.4% 411 130 24.0% 335 48 12.5% 362 53 12.8% $1,500,000 & higher 344 17 4.7% 408 20 4.7% Grand Total: 2155 652 23.2% 2129 663 23.7% ABSORPTION RATES DETACHED HOMES September 2013 s absorption rate for detached homes was 23.7%, a slight increase from the 23.2% rate in Sept. 2012. There were just seven homes priced less than $300K on the market at the end of the month. Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 10

Focus on McLean and Great Falls 3rd Quarter of 2012 vs. 3rd Quarter of 2013 McLean and Great Falls - July-Sept. 2012 vs. July-Sept. 2013 33 42 42 50 54 58 59 60 Contract activity in the 3rd quarter of 2013 decreased 3.3% for the postal addresses of McLean and Great Falls compared to the 3rd quarter of 2012; however two price categories had increases. 21 25 17 21 0 10 20 30 40 50 60 70 # of New AVERAGE DAYS ON MARKET FOR NEW CONTRACTS McLean and Great Falls - July-Sept. 2012 vs. July-Sept. 2013 21.9 46.9 41.8 48.7 44.1 55.0 63.2 80.9 146.8 200.8 AVERAGE NUMBER OF DAYS ON THE MARKET New The average number of days on the market for homes receiving contracts in the 3rd quarter of 2013 increased for the highest and lowest price categories compared to the same months in 2012. Overall days on the market increased 9.1% from the 3rd quarter of 2012. 22.1 33.9 0 25 50 75 100 125 150 175 200 225 # of Days on Market # of 200 180 160 140 120 100 80 60 40 59 NUMBER OF CONDO, ATTACHED AND McLean and Great Falls - July-Sept. 2012 vs. July-Sept. 2013 50 171 174 NUMBER OF CONDO, ATTACHED HOME AND The number of condos going under contract in the 3rd quarter decreased 15.3%. The number of attached homes receiving contracts decreased 13.3%. Detached homes receiving contracts increased 1.8%. 20 15 13 0 Condo/Co-op Attached Detached Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 11

Focus on Arlington Co. & Falls Church City 3rd Qtr. of 2012 vs. 3rd Qtr. of 2013 Arlington County, Falls Church City - July-Sept. 2012 vs. July-Sept. 2013 12 13 27 62 99 124 216 225 Contract activity in the 3rd quarter of 2013 increased 4.6% in Arlington County and Falls Church City compared to the 3rd quarter of 2012. Contract activity decreased for three of the six price categories. 241 248 117 140 0 50 100 150 200 250 300 # of New AVERAGE DAYS ON MARKET FOR NEW CONTRACTS Arlington County, Falls Church City - July-Sept. 2012 vs. July-Sept. 2013 25.1 25.3 33.2 43.6 41.8 50.3 51.6 71.1 97.6 125.7 AVERAGE NUMBER OF DAYS ON THE MARKET New The average number of days a home was on the market before receiving a contract decreased for all but one price category. Overall time on the market decreased 31.8% to 32.6 days for the 3rd quarter of 2013. 34.2 54.9 0 20 40 60 80 100 120 140 # of Days on Market # of 450 400 350 300 250 200 150 100 50 NUMBER OF CONDO, ATTACHED AND Arlington County, Falls Church City - July-Sept. 2012 vs. July-Sept. 2013 394 423 78 75 273 281 NUMBER OF CONDO, ATTACHED HOME AND The condo market is the largest segment of the Arlington market, and the number of condos receiving contracts in the 3rd quarter of 2013 increased 7.4% from 2012. Attached home contracts were down 3.8%, while detached homes increased 2.9%. 0 Condo/Co-op Attached Detached Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 12

Focus on City of Alexandria 3rd Quarter of 2012 vs. 3rd Quarter of 2013 City of Alexandria - July-Sept. 2012 vs. July-Sept. 2013 4 5 14 21 55 70 145 166 Contract activity in the City of Alexandria increased 9.3% in the 3rd quarter of 2013 compared to the 3rd quarter of 2012. Contract activity was up for all but the highest price category. 164 158 164 162 0 20 40 60 80 100 120 140 160 180 # of New AVERAGE DAYS ON MARKET FOR NEW CONTRACTS City of Alexandria - July-Sept. 2012 vs. July-Sept. 2013 27.6 33.3 39.8 46.3 53.8 65.0 93.8 171.8 AVERAGE NUMBER OF DAYS ON THE MARKET New Overall days on the market decreased 28.1% for the 3rd quarter of 2013. The average number of days a home was on the market before receiving a contract increased for homes priced more than $750,000. 28.4 52.9 36.6 46.0 0 20 40 60 80 100 120 140 160 180 200 # of Days on Market 350 NUMBER OF CONDO, ATTACHED AND City of Alexandria - July-Sept. 2012 vs. July-Sept. 2013 NUMBER OF CONDO, ATTACHED HOME AND # of 300 250 200 150 100 50 251 294 197 187 91 108 The number of detached homes the smallest part of the Alexandria City market - going under contract increased 18.7%. Contract activity in the condo market increased 17.1%, and attached homes activity decreased 5.1%. 0 Condo/Co-op Attached Detached Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 13

Focus on South Alexandria 3rd Quarter of 2012 vs. 3rd Quarter of 2013 (The part of Fairfax County with an Alexandria mailing address) Fairfax County portions of Alexandria - July-Sept. 2012 vs. July-Sept. 2013 4 4 6 7 28 38 126 166 South Alexandria refers to those portions of Fairfax County with an Alexandria mailing address. Contract activity increased 7.4% in the 3rd quarter of 2013 compared to the 3rd quarter of 2012. 315 339 170 193 0 50 100 150 200 250 300 350 400 # of New AVERAGE DAYS ON MARKET FOR NEW CONTRACTS Fairfax County portions of Alexandria - July-Sept. 2012 vs. July-Sept. 2013 30.8 37.5 45.3 60.3 68.2 82.8 93.8 111.8 145.7 197.2 AVERAGE NUMBER OF DAYS ON THE MARKET New The average number of days a home was on the market before receiving a ratified contract increased for homes priced $1,000,000-$1,499,999. Overall days on market decreased by 32.8% for the 3rd quarter of 2013 compared to the same months for 2012. 25.6 47.7 0 50 100 150 200 250 # of Days on Market # of New 350 300 250 200 150 100 NUMBER OF CONDO, ATTACHED AND DETACHED HOME CONTRACTS Fairfax County portions of Alexandria - July-Sept. 2012 vs. July-Sept. 2013 140 161 221 241 312 321 NUMBER OF CONDO, ATTACHED HOME AND Condo contract activity increased 15.0% in the 3rd quarter of 2013 compared to the 3rd quarter of 2012. Attached home activity increased 9.0%, while detached home activity increased 2.9%. 50 0 Condo/Co-op Attached Detached Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 14

Focus on Oakton, Reston and Vienna 3rd Quarter of 2012 vs. 3rd Quarter of 2013 Oakton, Reston and Vienna - July-Sept. 2012 vs. July-Sept. 2013 3 7 53 66 74 88 166 162 Overall contract activity in Oakton, Reston and Vienna increased 12.0% in the 3rd quarter of 2013 compared to the 3rd quarter of 2012. Contract activity decreased for two of the six price categories. 165 178 114 124 0 50 100 150 200 # of New AVERAGE DAYS ON MARKET FOR NEW CONTACTS Oakton, Reston and Vienna - July-Sept. 2012 vs. July-Sept. 2013 17.5 23.1 31.3 30.6 44.1 47.3 61.9 66.6 78.2 99.3 AVERAGE NUMBER OF DAYS ON THE MARKET New The average number of days a home was on the market in Oakton, Reston and Vienna in the 3rd quarter of 2013 decreased 33.7% compared to the 3rd quarter of 2012. 22.1 28.3 0 20 40 60 80 100 120 # of Days on Market 300 NUMBER OF CONDO, ATTACHED AND Oakton, Reston and Vienna - July-Sept. 2012 vs. July-Sept. 2013 NUMBER OF CONDO, ATTACHED HOME AND # of 250 200 150 100 50 162 170 180 176 252 260 The number of condos going under contract in the 3rd quarter of 2012 increased 4.9%. The number of attached homes going under contract decreased 2.2%, and detached home contract activity increased 3.2%. 0 Condo/Co-op Attached Detached Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 15

Focus on Remainder of Fairfax County 3rd Qtr. of 2012 vs. 3rd Qtr. of 2013 Remainder of Fairfax County -July-Sept. 2012 vs. July-Sept. 2013 5 4 29 30 101 159 In the remainder of Fairfax County, including Fairfax City, contract activity in the 3rd quarter of 2012 increased 4.4% compared to the 3rd quarter of 2012. 559 677 1,061 1,031 480 584 0 200 400 600 800 1,000 1,200 # of New AVERAGE DAYS ON MARKET FOR NEW CONTRACTS Remainder of Fairfax County -July-Sept. 2012 vs. July-Sept. 2013 23.9 31.5 37.4 51.6 59.1 69.6 75.4 88.7 121.0 239.0 AVERAGE NUMBER OF DAYS ON THE MARKET New The average number of days a home was on the market before receiving a ratified contract decreased for all but the highest price category. Overall days on the market decreased 29.1% for the 3rd quarter of 2013 compared to the 3rd quarter of 2012. 20.7 24.3 0 50 100 150 200 250 300 # of Days on Market 1,400 NUMBER OF CONDO, ATTACHED AND Remainder of Fairfax County -July-Sept. 2012 vs. July-Sept. 2013 NUMBER OF CONDO, ATTACHED HOME AND # of 1,200 1,000 800 600 400 466 400 788 778 1,121 1,167 The number of condos going under contract increased 16.5% in the 3rd quarter of 2013 compared to the 3rd quarter of 2012. Attached home contract activity decreased 1.3%, and detached home contract activity increased 4.1%. 200 0 Condo/Co-op Attached Detached Copyright 2013 McEnearney Associates Northern Virginia StatPak Page 16