A “Watershed” event! “The impact of fees” $205,319 $240,090 $234,620.

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE 2005/2006 "Average" &"Median" New Home Base Price Comparisons

(12 month perspective - Single Family Homes)

Average

Median

A “Watershed” event!

“The impact of fees”

$205,319$205,319

$240,090$234,620

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE 2005/2006 "Average" &"Median" New Home Base Price Comparisons

(12 month perspective - Single Family Homes)

Average

Median

$205,319$205,319

$165,740$165,740

$240,090

$200,990$200,990

$234,620

“Average” & “Median” percentage increase for Albuquerque (1-year comparison)

* NEW HOME BROCHURE BASE ASKING PRICE (Single Family Homes)

June 2005 average = $205,319

May 2006 average = $234,620

June 2005 median = $171,950

May 2006 median = $200,990

14.3% increase

16.9% increase

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

$280,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE / RIO RANCHO 2005/2006 "Average" New Home Base Price Comparisons

(12 month perspective - Single Family Homes)

ABQ

RR$205,319$205,319

$199,256$199,256

$271,719$271,719

$234,620

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

ALBUQUERQUE / RIO RANCHO 2005/2006 "Median" New Home Base Price Comparisons

(12 month perspective)

ABQ

RR$182,500$182,500

$242,484$242,484

$165,740$165,740

$200,990

Current “Average” & “Median” percentage differences between

Albuquerque and Rio Rancho (as of May 2006)

* NEW HOME BROCHURE BASE ASKING PRICE (Single Family Homes)

Current ABQ average = $234,620

Current RR average = $271,719

Current ABQ median = $200,990

Current RR median = $242,484

+15.8% difference

+20.6% difference

METAMORPHOSISDUKE CITY’S

GROWTH WILL BE ACCELERATED BY

FOUR KEY TRENDS.

FOUR KEY TRENDS1. CALIFORNIA BUYERS2. DEMOGRAPHICS –

FOUR BYTES3. E* VILLAGE --DEMOGRAPHICS

4. THE MAGIC MILLION MARK.

ENTERTAINMENT• Retail is entertainment.

• Technology is entertainment.

• Dining is entertainment.

• Urban Villages need to be built around entertainment venues.

ENTERTAINMENT• It used to be the home entertainment center that

was important.

• Now the home must be in the center of entertainment.

DEMOGRAPHICS

•Every 7 seconds Every 7 seconds another Baby another Baby

Boomer turns 50.Boomer turns 50.

DEMOGRAPHICS• OVER 50 …OVER 50 …

• DUAL INCOMESDUAL INCOMES• RISING HOME PRICESRISING HOME PRICES• RECORD LEVELS OF RECORD LEVELS OF

INHERITANCE.INHERITANCE.

EQUALLY IMPORTANT

• TIME IS THE MOST PRECIOUS TIME IS THE MOST PRECIOUS COMMODITY FOR THESE PEOPLE.COMMODITY FOR THESE PEOPLE.

• LOCK ‘N LEAVELOCK ‘N LEAVE

• SECOND HOMESECOND HOME

• DO IT FOR ME andDO IT FOR ME and

• WALK TO ENTERTAINMENTWALK TO ENTERTAINMENT

THE MAGIC MILLION MARK

• WHEN THE AFFORDABILITY

CRUNCH REALLY HITS, THAT’S THE FIRST STEP

TO CONDO-CONVERSIONS.