HOUSING PRICES - CALIFORNIA

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SAN FRANCISCO MSA

HPI Price Walk - All Tiers:

2000 to Peak: Home prices more than doubled - up 118%, or 12.4% annualized.

Peak to Trough: Decline nearly equal to prior price gains - down 46%, or (21.6)% annualized.

Trough to Current: Home prices surging again - recovering all price losses and more; up 130%, or 10.4% annualized.

Current from Peak: Home prices 24% above peak.

HPI Price Walk - Low Tier:

2000 to Peak: Home prices nearly tripled - up 176%, or 15.5% annualized.

Peak to Trough: Decline nearly equal to prior price gains - down 62%, or (34.7)% annualized.

Trough to Current: Home prices surging again - recovering all price losses and more; up 180%, or 10.2% annualized..

Current from Peak: Home prices 6% above peak.

Home Affordability: Home affordability is significantly more costly than U.S. averages.

Home "P/E" ratio = 9.1X. Median home purchase is +9X median family income compared to 3.8X for U.S.; takes +11 years of a San Francisco area family's income to earn the sale price of the median priced home compared to 3.7 years on average across the U.S.

HOI = 10.4%. Only ~10% of families can afford median priced home (NAHB HOI).


LOS ANGELES MSA

HPI Price Walk - All Tiers:

2000 to Peak: Home prices up 2.75X, or 174%, or 15.2% annualized.

Peak to Trough: Decline of 42%, or (20.2)% annualized.

Trough to Current: Home prices surging again - nearly recovering price losses and up 80%, or 7.8% annualized.

Current from Peak: Home prices 5% above peak.

HPI Price Walk - Low Tier:

2000 to Peak: Home prices up 3.4X, or 240%, or 18.0% annualized.

Peak to Trough: Decline of 56%, or (31.8)% annualized.

Trough to Current: Home prices surging again - recovering price losses and up 130%, or 8.4% annualized.

Current from Peak: Home prices 1% above peak.

Home Affordability: Home affordability is significantly more costly than U.S. averages.

Home "P/E" ratio = 7.8X. Median home purchase is ~8X median family income compared to 3.7X for U.S.

HOI = 12.1%. Only +12% of families can afford median priced home (NAHB HOI).


SAN DIEGO MSA

HPI Price Walk - All Tiers:

2000 to Peak: Home prices up 2.5X, or 150%, or 15.8% annualized.

Peak to Trough: Decline of 42%, or (16.0)% annualized.

Trough to Current: Home prices surging again - nearly recovering price losses and up 81%, or 7.7% annualized.

Current from Peak: Home prices have surpassed peak by 5%.

HPI Price Walk - Low Tier:

2000 to Peak: Home prices up 3X, or 197%, or 17.1% annualized.

Peak to Trough: Decline of 53%, or (25.3)% annualized.

Trough to Current: Home prices surging again - recovering price losses and up 125%, or 8.1% annualized.

Current from Peak: Home prices have surpassed peak by 7%.

Home Affordability: Home affordability is significantly more costly than U.S. averages.

Home "P/E" ratio = 6.5X. Median home purchase is 6.5X median family income compared to 3.7X for U.S.

HOI = 17.2%. Only ~17% of families can afford median priced home (NAHB HOI).