ZipRealty Quarterly Housing Market Index Highlights Year-Over-Year Inventory Levels, Price Reductions and "Hot and Cold" Zip Codes in 18 Metro Areas

Data Shows Six Percent Increase in Number of Listed Homes and Number of Price-Reduced Homes -- but Some Neighborhoods in Southern California and Chicago Still Selling Over List Price

The number of homes listed for sale in 18 major metropolitan markets across the U.S., as well as the number of homes that include a price reduction, rose six percent from June 2007 to June 2008, according to the national real estate brokerage ZipRealty (www.ziprealty.com) (NASDAQ: ZIPR).

Additionally, the brokerage details a snapshot of "hot and cold zip codes" in six key markets based on the percentage of homes' list price compared to the final sale price, and the results of a market perception survey of buyers and sellers, as part of its Quarterly Housing Market Index, released today.

Highlights from the ZipRealty Quarterly Housing Market Index, based on data from 18 markets including the San Francisco Bay Area; Southern California; Boston; Chicago; Washington, DC; Seattle; Las Vegas; Baltimore; and others included:

--  The biggest inventory hikes year-over-year were in Seattle (up 29.1
    percent), followed by Baltimore (up 12 percent) and Miami (6.7 percent).

--  Miami is suffering a double-whammy of rising inventory and a steep
    increase in reduced price homes (up 11.4 percent).

--  Inventory levels have decreased the most in Sacramento (down 22.4
    percent), followed by Las Vegas (down 18.5 percent) and Orange County (down
    15 percent) -- both areas which experienced the second and third highest
    percentage of price drops in June 2008.

--  Out of six markets reviewed (Los Angeles, San Francisco Bay Area,
    Chicago, Boston, Washington, D.C. and Seattle), several zip codes are still
    selling over list price:  Near South Side (60605), Loop (60604), and Auburn
    Gresham (60620) in Chicago, Palo Alto, CA (94306), and Noe Valley (94114)
    in San Francisco.

--  Within the same markets, the following zip codes are selling well
    below asking price:  Roseland (60628), Humboldt Park (60651), West Pullman
    (60628), South Chicago (60617) and Chicago Lawn (60629) in Chicago.

--  Those residing in Texas, Washington, D.C., and Denver are more
    optimistic about whether home prices are declining, while Southern
    California residents are most pessimistic.

--  Overall, 66 percent of buyers and 72 percent of sellers believe prices
    will decrease five to 10 percent.

    

"It's not surprising to see the rise in inventory and number of homes that include a reduced price, given the current market conditions," said ZipRealty President and CEO Patrick Lashinsky. "However, certain zip codes in our markets are still hot enough to attract multiple offers and see homes selling at or above list price."

Methodology

ZipRealty pulled various real estate data from the Multiple Listing Services offered in 18 of the 35 major metropolitan areas in which the real estate brokerage operates nationally. The data pulled and cited within this report is for the second quarter of 2008, beginning April 1 and through June 30. Additionally, the metropolitan areas ZipRealty cites as part of its monthly report are defined by the brokerage, and may differ slightly than standard DMAs.

For full results of the ZipRealty Q2 Index, please find a presentation at http://www.ziprealty.com/pdf/2008_2Q_HousingReport.pdf. In addition, podcast can be found at http://ziprealty.typepad.com/blog/2008/08/housing-report.html

About ZipRealty, Inc.

ZipRealty is a full-service residential real estate brokerage firm. The Company utilizes its user-friendly Web site and employee real estate agents to provide homebuyers and sellers with high-quality service and value. ZipRealty's Web site provides users with access to comprehensive local Multiple Listing Services' home listings data, as well as other relevant market and neighborhood information. The Company's proprietary business management system and technology platform help to reduce costs, allowing the Company to pass on significant savings to consumers. Founded in 1999, the company operates in 35 major markets in 20 states and the District of Columbia. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP.