Home Prices and Sales Tumbled in October

According to the October 2008 RPX™ Monthly Housing Market Report released today by Radar Logic Incorporated, home prices and sales volumes decreased more in October 2008 than in any other October since the beginning of Radar Logic's data, January 2000. Five MSAs saw their largest month-over-month declines and 13 MSAs saw their largest year-over-year declines. Home sales across the 25 MSAs declined by 14.9% during October but sales in Sun Belt cities remained elevated relative to October 2007 due to rapid growth in motivated sales during the intervening year. The large concentrations of motivated sales relative to total transactions weighed heavily on prices. As a result, eight of the ten MSAs with the largest year-over-year increases in sales were also among the ten MSAs that experienced the greatest year-over-year price declines.

"Motivated sales continue to be a major factor in most markets tracked by the RPX," said Michael Feder, CEO of Radar Logic. "Until action, if any, out of Washington becomes clear, it is difficult to know if this is a long-term phenomenon or if it will work its way through and, as a result, prices will begin to recover."

Key Observations:

--  For the fourth month in a row, Milwaukee, WI was at the top of the 25-
    MSA ranking in October. Home prices in Milwaukee were 5.3% higher than they
    were a year before, making Milwaukee the only MSA tracked by Radar Logic to
    experience year-over-year price appreciation in October.
--  San Francisco was at the bottom of the rankings with 34.4% year-over-
    year price decline.
--  Detroit, Las Vegas, Phoenix, San Diego and Seattle saw their largest
    month-over-month price declines since January 2000.
--  Though motivated sales across the 25 MSAs grew 193% between January 1
    and October 31, the rate of growth slowed over the first three quarters and
    turned negative in October, when 18 of 25 MSAs saw motivated sales
    decrease.
    

The complete October 2008 RPX Monthly Housing Market Report is available on Radar Logic's website at: www.radarlogic.com/research/RPXMonthlyHousingMarketReportforOctober2008.pdf

Report Methodology

The RPX Monthly Housing Market Report is produced by Radar Logic Incorporated, a New York-based real estate data and analytics company. These reports are published 63 days after the last transaction date of every month, providing insight and detailed analysis of Radar Logic's 25 Metropolitan Statistical Areas (MSAs) and the Manhattan Condo market. This study is based on the premise that there is not a national housing market; rather, each of the MSAs, while having economic influences in common like credit and mortgage rates, is influenced primarily by local conditions.

Data in the RPX Monthly Housing Market Report reflect the 28-day aggregated value of Radar Logic Daily(TM) Prices. The price per square foot metric used is a powerful tool for analyzing housing markets because it significantly reduces the influence of property sizes on overall housing price trends, which can skew results. The Daily Prices for each MSA are not adjusted for seasonal variations. In some cases, Daily Prices may vary based on reporting characteristics within individual MSAs.

The November 2008 RPX Monthly Housing Market Report will be released on January 30, 2009, at midnight EST.

About Radar Logic

Radar Logic Incorporated, a real estate data and analytics company, calculates and publishes the Radar Logic Daily(TM) Prices. The prices track housing values for major U.S. metropolitan areas and are the basis of the Residential Property Index(TM) (RPX(TM)), a market that enables real estate to be traded as a liquid asset, via property derivatives marketed by major financial institutions. RPX allows real estate and financial professionals to manage opportunity and risk, invest in real estate values without owning physical assets and effectively analyze markets using a consistent metric: price per square foot.

For more information on Radar Logic and the RPX, including licensed dealers, please visit www.radarlogic.com.