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

MARKET AREA UPDATE Report as of: 1Q 2Q 3Q 4Q Year: 2014 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) Median sales price falls for the first time in over two years; Sixth month of year-over-year decreases for closed sales 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 $ 550,000 $ 350,000 **Sales Price (same time prior year) Choose one: Average Median $ 560,000 $ 359,900 Average Days on Market list to contract (current) # 14 days # 12 days Increase Decreasing Stable Increase Decreasing Stable Absorption Months of Inventory (last 3 months) # 4 months # 2 months Absorption Months of Inventory (same time prior year) Active Listings Closed ( total last 3 months) # 3 months # 2 months # 6,402 # 4,652 # 6,375 # 7,055 Expired Listings ( total last 3 months if available) # n/a # n/a Change in Home Values % 1.8 % 3.2 Sold LP/SP Ratio (last 3 months) REAL ESTATE MARKET DATA 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 % 99 % 99 GENERAL ECONOMY Increase in past 3 months Stable Decreasing in past 3 months Median = denoting the middle of the range of values 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: % % 5.0 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 mortgage industry faced a changing regulatory environment as the Dodd-Frank Wall Street Reform and Consumer Protection Act took effect in January 2014. Lenders of all sizes were faced with challenges implementing the new rules and we're just now beginning to see how it's impacted the loan business. Second, the real estate industry has seen a slowdown in investor demand, which attributed to about 1 in 5 purchases in 2013. Last, and perhaps most significant, the low interest rates of the past few years have left many homeowners unwilling to sell. 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 $3,522.23 Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $2,918.20 Apartment Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $1,451.25

Washington, D.C. Metro Area June 2014 Housing Market Update Median sales price falls for the first time in over two years Sixth month of year-over-year decreases for closed sales Rockville, MD (July 10, 2014) 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 June 2014 MRIS housing data. OVERVIEW Buyer activity remained below year-ago levels in the Washington, DC Metro Area. Closed sales declined by 4.5 percent and have now been below their 2013-level every month this year. New pending contracts also fell from this time last year and have done so for seven consecutive months. While buyer activity is lower than last year, both closed sales and pending sales continue to outpace 2011 and 2012 levels. The median sales price decreased from the prior year for the first time since January 2012, possibly tempered by the slowing pace of sales. All property segments had a decline in median sales price, but only three of the jurisdictions did: the city of Alexandria, Montgomery County, and Washington, DC. But at $433,000, the median sales price for the region was higher than any month except June 2013 since July 2007. The number of homes for sale continues to rise and active listings increased 33.6 percent from last year. The number of active listings reached its highest level in over two years but is only 42.7 percent of its 2007-peak. New listings increased 10.4 percent from last year, marking the fourth month in a row new listings have risen from the prior year. RBI Key Housing Trend Metrics [Washington, DC Metro Area] All Residential Jun-14 % M-O-M May-14 % Y-O- Y Jun-13 % Y-O- 5YAvg 5 Yr Avg Units Sold (Closed) 5,003 9.9% 4,551-4.5% 5,237 1.3% 4,939 Median Sales Price (Closed) $433,000 0.7% $430,000-1.6% $440,000 7.9% $401,398 Pending Sales (New) 5,156-9.3% 5,683-5.1% 5,434 4.1% 4,952 Active Listings 11,066 5.9% 10,446 33.6% 8,281-10.3% 12,333 New Listings 6,822-14.6% 7,986 10.4% 6,180 8.5% 6,290 Median DOM (Closed) 13 18.2% 11 44.4% 9-55.7% 29 Listing Discount (Average) 1.7% 1.4% 0.9% 3.2% Avg SP to OLP Ratio 98.3% 98.7% 99.1% 96.8% 2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 7/6/2014 CLOSED SALES Sixth consecutive month of year-over-year declines; higher June-level than 2012 and 2011. For the sixth consecutive month, the number of closed sales in the Washington DC Metro Area decreased from the prior year. 1

There were 5,003 sales in the region in June, 4.5 percent, or 234 sales, fewer than this time last year. Closed sales were higher than in June 2012, June 2011 and the 5-year average for June, but they were below the 10- year average for June. Of the property segments, only condo properties had more closed sales than this time last year, increasing by one sale, or 0.1 percent. The number of closed sales of single-family detached homes decreased 5.3 percent, or by 137 sales, from last June. Townhomes had the steepest decline, falling 7.5 percent, or by 101 sales, from last year. As compared to last month, the number of sales increased 9.9 percent, which is a milder increase the 10-year average May to June change of 11.0 percent. PRICES Prices decline for all property segments; first year-over-year decrease in over two years. For the first time since January 2012, the median sales price for the region was lower than the prior year. At $433,000, the median sales price in the Washington, DC Metro Area decreased 1.6 percent, or by $7,000, from last June. Prices are still higher than their 5-year and 10-year averages for this time of year.. All property segments had a lower median sales price than in June 2013. The median sales price for townhomes fell 1.9 percent, or by $7,800, to $407,200. At $550,000, the median sales price for single-family detached homes decreased by $10,000, or 1.8 percent, from last year. The median sales price for condo properties decreased 1.6 percent, or by $5,000, from June 2013 to $300,000. Of the jurisdictions, Falls Church City had the highest growth in in median sale price, increasing 17.0 percent. But with 22 closed sales, the median sales price of the jurisdiction is sensitive to changes in property type and size. Three jurisdictions in the area had declines in median sales price from this time last year: the City of Alexandria (-3.9 percent), Montgomery County (-3.5 percent) and Washington, DC (-1.7 percent). This is the first year-over-year decline for Washington, DC in over two years. Median Sales Price by Jurisdiction [Washington, DC Metro Area] June Year to Date 2014 2013 YoY 2014 2013 YoY DC Metro $433,000 $440,000-1.6% $405,000 $399,000 +1.5% Falls Church City $745,000 $637,000 +17.0% $676,000 $632,000 +7.0% Arlington $575,000 $535,000 +7.5% $525,600 $525,500 +0.0% Washington, DC $520,000 $529,000-1.7% $496,000 $471,500 +5.2% Fairfax City $500,000 $465,000 +7.5% $475,000 $426,000 +11.5% Alexandria City $499,900 $520,000-3.9% $475,000 $489,900-3.0% Fairfax $497,500 $490,000 +1.5% $460,000 $453,000 +1.5% Montgomery $415,000 $430,000-3.5% $400,000 $397,500 +0.6% Prince George's $230,000 $205,000 +12.2% $215,000 $185,000 +16.2% June Year to Date Adjacent Counties* 2014 2013 YoY 2014 2013 YoY Loudoun $453,500 $450,000 +0.8% $430,000 $415,000 +3.6% Howard $400,584 $419,332-4.5% $380,000 $375,500 +1.2% Prince William $332,000 $335,000-0.9% $310,000 $305,000 +1.6% Anne Arundel $328,250 $320,000 +2.6% $310,000 $300,000 +3.3% Frederick, MD $296,100 $293,000 +1.1% $264,500 $269,000-1.7% *Adjacent county sales are not included in the DC Metro aggregate stats 2014 RealEstate Business Intelligence, LLC. Data Source: MRIS. Statistics calculated 7/6/2014 2

NEW CONTRACTS Seventh consecutive year-over-year decrease; declines in single-family detached homes and townhomes. The number of new contracts declined from last June, falling by 5.1 percent, or by 278 contracts, to 5,156 contracts. While this is the seventh consecutive month of year-over-year decreases, the number of contracts is above the June-levels in 2006 through 2012. Only condo properties had more new contracts than last year, increasing by one contract, or 0.1 percent. New contracts for townhomes declined 4.6 percent, or by 64 contracts, from last June. Contracts for detached single-family homes had the sharpest decline, falling8.1 percent, or by 217 contracts. New contracts decreased 9.3 percent from last month, which is a steeper decline than the ten-year average May to June change of -6.6 percent. INVENTORY Ninth consecutive month of year-over year increases for active listings; fourth consecutive month of yearover-year increases for new listings. Active listings in the Washington, DC Metro Area increased 33.6 percent, or by 2,785 listings, from last June to 11,066 listings. This is the highest level of any month since November 2011. Active listings have now increased from the prior year for nine months in a row. Even with this increase, active listings are 57.3 percent lower than their September 2007 peak. Active listings for townhomes increased 44.9 percent, or by 619 listings and led all property segments in growth. Active listings for condo properties increased by nearly as much, rising 36.1 percent, or by 704 listings. There were 6,402 single-family detached home active listings, 29.5 percent, or 1,459 listings, more than last year. New listings have increased from the prior year for four consecutive months. There were 6,822 new listings in June, an increase of 10.4 percent, or 642 listings, from June 2013. New listings for townhomes had the highest growth of the property segments and rose 14.8 percent, or by 220 listings from last year. New listings of singlefamily detached homes rose 10.0 percent, or by 308 listings, from this time last year, and those for condo properties increased 7.0 percent or by 113 listings. At 13 days, the median days-on-market is four days higher than last year but remains lower than the 10-year June-level average of 24 days. 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. About RealEstate Business Intelligence, LLC RealEstate Business Intelligence, LLC (RBI) is a primary source of real estate data, analytics and business intelligence for real estate professionals with business interests in the Mid-Atlantic region. The full monthly data report for all jurisdictions in the MRIS region, along with interactive charts and graphics, can be found at www.rbintel.com/statistics. RBI is the only company in the Mid-Atlantic region that provides timely, online access to statistical information directly from the MRIS Multiple Listing Service (MLS). Visit rbintel.com or www.facebook.com/rbintel to learn more. About the Center for Regional Analysis at George Mason University The Center for Regional Analysis conducts research and analytical studies on economic, fiscal, demographic, housing, and social and policy issues related to the current and future growth of the Virginia, Maryland, and DC areas. Through its range of research and programs major economic impact studies, economic forecasts, fiscal analyses, conferences and seminars, 3

publications, information services, and data products the Center s activities strengthen decision-making by businesses, governments, and institutions throughout the Greater Washington region. Visit http://cra.gmu.edu to learn more. ### Media Contact Gina Zuk, Abel Communications 443-604-5203 gina@abelcommunications.com 4

June 2014 All Home Types Detached Attached/Townhouse Condo & Coop DC Metro Presented by Mike Uhing Long & Foster Email: mike.uhing@longandfoster.com Web: www.longandfoster.com

Presented by Mike Uhing June 2014 DC Metro Long & Foster Email: mike.uhing@longandfoster.com Web: www.longandfoster.com New Listings 6,822 New Pendings 5,156 5,003-14.6% 10.4% 7,986 6,180-9.3% -5.1% 5,683 5,434 9.9% -4.5% 4,551 5,237 36,839 35,225 4.6% : 6,290 29,235 31,566-7.4% : 4,952 22,224 23,945-7.2% : 4,939 Median $433,000 Sold Price Median Sold Price ($1,000s) 0.7% -1.6% $430,000 $440,000 5500 5000 4500 4000 $480 $460 $440 $420 $405,000 $399,000 1.5% 3500 3000 $400 $380 : $401,398 2500 2000 J J A S O N D J F M A M J J A S O N D J F M A M J $360 $340 2012 2013 2014 Active Listings 11,066 11,066 Avg DOM 34 34 Avg Sold to 98.3% OLP Ratio 98.3% 8,281 12,333 16,404 31 48 63 94.7% 96.8% 99.1% May 2014 Jun 2013 10,446 8,281 38 31 44 98.7% 99.1% 97.9% Copyright 2014 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated July 06, 2014.

Presented by Mike Uhing June 2014 DC Metro - Detached Long & Foster Email: mike.uhing@longandfoster.com Web: www.longandfoster.com New Listings 3,389 New Pendings 2,447 2,444-18.3% 10.0% 4,146 3,081-11.9% -8.1% 2,778 2,664 11.4% -5.3% 2,194 2,581 18,412 17,854 3.1% : 3,145 13,864 15,477-10.4% : 2,459 10,318 11,447-9.9% : 2,515 Median $550,000 Sold Price Median Sold Price ($1,000s) -0.5% -1.8% $552,634 $560,000 $515,000 $499,000 3.2% : $507,000 5000 4500 4000 3500 3000 2500 2000 1500 1000 J J A S O N D J F M A M J J A S O N D J F M A M J $575 $550 $525 $500 $475 $450 $425 $400 $375 2012 2013 2014 Active Listings 6,402 6,402 Avg DOM 38 38 Avg Sold to 98.1% OLP Ratio 98.1% 4,943 6,905 8,611 37 52 63 94.5% 96.5% 98.7% May 2014 Jun 2013 6,059 4,943 42 37 50 98.5% 98.7% 97.6% Copyright 2014 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated July 06, 2014.

Presented by Mike Uhing June 2014 DC Metro - Attached/Townhouse Long & Foster Email: mike.uhing@longandfoster.com Web: www.longandfoster.com New Listings 1,711 New Pendings 1,318 1,240-5.0% 14.8% 1,802 1,491-6.9% -4.6% 1,416 1,382 12.2% -7.5% 1,105 1,341 8,655 8,384 3.2% : 1,549 7,477 7,927-5.7% : 1,275 5,686 6,157-7.6% : 1,228 Median $407,200 Sold Price Median Sold Price ($1,000s) -3.0% -1.9% $420,000 $415,000 1800 1600 1400 $440 $420 $400 $399,000 $380,000 5.0% 1200 1000 $380 $360 : $372,670 800 600 J J A S O N D J F M A M J J A S O N D J F M A M J $340 $320 2012 2013 2014 Active Listings 1,998 1,998 Avg DOM 25 25 Avg Sold to 99.1% OLP Ratio 99.1% 1,379 2,366 3,388 23 37 51 95.7% 97.8% 100.0% May 2014 Jun 2013 1,809 1,379 26 23 35 99.3% 100.0% 98.7% Copyright 2014 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated July 06, 2014.

Presented by Mike Uhing June 2014 DC Metro - Condo & Coop Long & Foster Email: mike.uhing@longandfoster.com Web: www.longandfoster.com New Listings 1,719 New Pendings 1,387 1,314-15.2% 7.0% 2,028 1,606-6.7% 0.1% 1,487 1,386 5.0% 0.1% 1,251 1,313 9,749 8,974 8.6% : 1,595 7,883 8,153-3.3% : 1,215 6,213 6,335-1.9% : 1,194 Median $300,000 Sold Price Median Sold Price ($1,000s) -3.2% -1.6% $310,000 $305,000 2000 1800 1600 1400 $320 $310 $300 $290 $295,000 $285,000 3.5% 1200 1000 $280 $270 : $278,000 800 600 J J A S O N D J F M A M J J A S O N D J F M A M J $260 $250 2012 2013 2014 Active Listings 2,654 2,654 Avg DOM 36 36 Avg Sold to 97.9% OLP Ratio 97.9% 1,950 3,053 4,545 29 51 75 93.9% 96.4% 98.9% May 2014 Jun 2013 2,563 1,950 40 29 43 98.3% 98.9% 97.8% Copyright 2014 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated July 06, 2014.

2nd Quarter 2014 DC Metro Sold Summary Financing (Sold) Days on Market (Sold) Q2 2014 Q2 2013 % Change Sold Dollar Volume $7,091,568,071 $7,432,848,085-4.59% Avg Sold Price $518,427 $501,914 3.29% Median Sold Price $425,000 $420,000 1.19% Units Sold 13,679 14,809-7.63% Avg Days on Market 38 38 0.00% Avg List Price for Solds $523,739 $505,733 3.56% Avg SP to OLP Ratio 98.4% 98.7% -0.29% Ratio of Avg SP to Avg OLP 97.8% 98.1% -0.27% Attached Avg Sold Price $414,601 $401,373 3.30% Detached Avg Sold Price $634,035 $606,396 4.56% Attached Units Sold 7,188 7,536-4.62% Detached Units Sold 6,484 7,269-10.80% Assumption 3 Cash 2,275 Conventional 8,328 FHA 1,638 Other 319 Owner 7 VA 1,109 0 569 1 to 10 5,736 11 to 20 2,041 21 to 30 1,159 31 to 60 1,800 61 to 90 734 91 to 120 447 121 to 180 608 181 to 360 518 361 to 720 59 721+ 8 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 5 0 4 0 1 0 60 9 10 44 $50K to $99,999 17 6 27 23 8 3 202 36 14 100 $100K to $149,999 19 30 77 77 50 9 247 67 31 131 $150K to $199,999 24 49 119 128 82 23 391 155 83 255 $200K to $299,999 50 103 262 376 404 56 945 553 295 829 $300K to $399,999 37 121 296 532 506 100 800 673 489 611 $400K to $499,999 24 66 269 446 595 103 454 858 368 232 $500K to $599,999 17 59 171 258 635 65 253 699 228 134 $600K to $799,999 33 70 232 255 1,066 125 253 1,115 261 147 $800K to $999,999 4 17 117 110 565 65 63 640 70 60 $1M to $2,499,999 5 8 40 54 668 98 68 1,304 132 91 $2.5M to $4,999,999 0 0 0 3 46 8 4 235 13 18 $5,000,000+ 0 0 0 0 9 1 1 58 4 2 Total 235 529 1,614 2,262 4,635 656 3,741 6,402 1,998 2,654 Avg Sold Price $371,517 $405,246 $449,132 $444,888 $711,732 $674,428 $352,050 Prev Year - Avg Sold Price $355,345 $368,987 $429,259 $430,744 $682,890 $648,270 $342,088 Avg Sold % Change 4.55% 9.83% 4.63% 3.28% 4.22% 4.04% 2.91% Prev Year - # of Solds 255 592 1,863 2,463 5,151 694 3,787 Copyright 2014 RealEstate Business Intelligence, LLC. All Rights Reserved. Data Source: MRIS. Statistics calculated July 06, 2014.