MARKET UPDATE | Q1 2013

MONTEREY PENINSULA

SIX YEARS OF AVERAGE SELLING PRICES | Q1 | MONTEREY PENINSULA*

$2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000

A MESSAGE FROM Nicole Truszkowski
I am pleased to report that MLS data from the first quarter continues the positive trends the Monterey Peninsula residential real estate market experienced through 2012*. In the first quarter of 2013, there was a 24.5% increase in units sold over the same quarter in 2012 as sales of single family homes rose from 192 to 239.The average list price to sales price discount for all price ranges improved with sales prices reaching 95% of the asking price in the first quarter of 2013. The most improved market segment was in Carmel Valley, which saw a 106% increase in the units sold, going from 15 properties sold in the first quarter of 2012 to 31 in the first quarter of 2013. Carmel Valley also saw a significant increase of 17% in average sales price, going from $699,733 to $830,158.

$2008 2009 2010 2011 2012 2013 Average Selling Price

MONTEREY PENINSULA*
ABOUT THE AREA
Located on the central California coast, the beautiful Monterey Peninsula offers great living in some of the most desirable areas, including: Big Sur, Carmel, Carmel Highlands, Carmel Valley, Monterey, Pacific Grove, Pebble Beach and Monterey/Salinas Highway. AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $2009 2010 2011 2012 Units Sold 2013 Average Selling Price 300 250 200 150 100 50 0

MONTEREY PENINSULA BROKERAGES

CARMEL RANCHO BROKERAGE 200 Clocktower Place | 831.624.1566 CARMEL BY-THE-SEA BROKERAGE 5NW Ocean Avenue | 831.624.9700 CARMEL VALLEY BROKERAGE 312 W. Carmel Valley Road | 831.659.2267 sothebyshomes.com/monterey NICOLE TRUSZKOWSKI 831.238.7449 | nicole.truszkowski@sothebyshomes.com
* In this Update, data is for single-family homes.The Monterey Peninsula is defined as the eight areas included in this report. All data within this document is pulled from MLSListings, Inc.

SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

2009 90 $1,248,943 $1,405,965 89% $712,500 143

2010 113 $975,850 $1,101,391 89% $725,000 150

2011 149 $1,124,493 $1,229,921 91% $795,000 159

2012 192 $933,190 $1,003,955 93% $614,950 141

2013 239 $936,109 $986,638 95% $735,000 110

BIG SUR
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$2,500,000 $2,000,000 $1,500,000 3.5 3 2.5 2 1.5 1 0.5 0 2009 2010 2011 2012 Units Sold 2013 Average Selling Price

ABOUT THE AREA

South of Carmel lies Big Sur, nearly 100 miles of pristine, rugged coastline, where the Santa Lucia Mountains rise precipitously from the Pacific Ocean, creating some of the most spectacular views and iconic imagery in America. Big Sur is best known for its natural untouched beauty.
SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

$1,000,000 $500,000 $-

2009 1 $354,000 $399,900 89% $354,000 74

2010 0 $$n/a $-

2011 2 $2,115,000 $2,724,500 78% $2,115,000 394

2012 1 $985,000 $1,750,000 56% $985,000 410

2013 3 $897,500 $968,333 93% $842,500 800

CARMEL
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$2,500,000 $2,000,000 $1,500,000 50 40 30 20 10 0 2009 2010 2011 2012 Units Sold 2013 Average Selling Price

ABOUT THE AREA

Carmel was founded as an enclave for artists around the turn of the century and remains true to its bohemian roots today. With its idyllic location, its pristine beaches and a village with first-rate dining, shopping and charming inns, Carmel is a haven for visitors and locals alike.
SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

$1,000,000 $500,000 $-

2009 24 $2,015,598 $2,309,279 87% $1,350,000 150

2010 26 $1,277,673 $1,422,565 90% $987,500 132

2011 40 $1,349,997 $1,458,383 93% $1,085,000 115

2012 39 $1,374,148 $1,485,977 92% $925,000 167

2013 46 $1,575,753 $1,671,433 94% $1,230,000 133

SERVING THE MONTEREY PENINSULA

CARMEL HIGHLANDS
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $2009 2010 2011 2012 Units Sold 2013 Average Selling Price 5 4 3 2 1 0

ABOUT THE AREA

A few short miles south of Carmel, along the winding Pacific Coast Highway, are the Carmel Highlands. Homes in the Highlands sit above the sea, and from their sheltered perch, many have enviable views of the dramatic and ever-changing coastline.

SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

2009 2 $3,900,000 $4,725,000 83% $3,900,000 33

2010 2 $877,500 $947,000 93% $877,500 255

2011 2 $4,850,000 $5,597,500 87% $4,850,000 58

2012 4 $2,650,000 $3,053,750 87% $2,700,000 287

2013 0 $$n/a $-

CARMEL VALLEY
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $2009 2010 2011 2012 Units Sold 2013 Average Selling Price 35 30 25 20 15 10 5 0

ABOUT THE AREA

Just east of Carmel and beyond the fog line is Carmel Valley, a sun-soaked region nestled between lush green mountains. Ranch-style homes, vineyards, ranches, horse properties and country club real estate are enhanced by the numerous golf courses and wineries.

SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

2009 13 $963,231 $1,049,877 92% $750,000 161

2010 23 $716,761 $800,504 90% $500,000 195

2011 22 $876,809 $927,986 94% $752,500 189

2012 15 $699,733 $722,227 97% $575,000 103

2013 31 $820,158 $869,958 94% $777,500 143

sothebyshomes.com/monterey

MONTEREY
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$700,000 $600,000 $500,000 $400,000 40 35 30 25 20 15 10 5 0 2009 2010 2011 2012 Units Sold 2013 Average Selling Price

ABOUT THE AREA

Monterey is the geographical and social center of the Peninsula. Its remarkable waterfront lies along Monterey Bay National Marine Sanctuary. Fishermans Wharf, Cannery Row and the famous Monterey Bay Aquarium stretch along the vibrant waterfront.
SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

$300,000 $200,000 $100,000 $-

2009 9 $571,667 $614,833 93% $520,000 83

2010 10 $653,843 $689,960 95% $697,500 143

2011 22 $500,655 $523,495 96% $417,500 149

2012 34 $514,121 $532,146 97% $495,625 96

2013 38 $511,831 $519,973 98% $502,500 87

MONTEREY/SALINAS HIGHWAY
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$1,000,000 $800,000 $600,000 60 50 40 30 20 10 0 2009 2010 2011 2012 Units Sold 2013 Average Selling Price

ABOUT THE AREA

Salinas lies directly east of the Monterey Peninsula and is the county seat and largest city in Monterey County. Situated in the lush and fertile Salinas Valley, known as the Salad Bowl of America,Salinas has a thriving agricultural economy.
SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

$400,000 $200,000 $-

2009 20 $649,255 $689,467 94% $588,000 157

2010 23 $686,266 $723,161 95% $605,000 162

2011 24 $824,017 $910,694 90% $552,000 221

2012 37 $700,019 $735,522 95% $530,000 137

2013 49 $709,255 $738,257 96% $525,000 81

SERVING THE MONTEREY PENINSULA

PACIFIC GROVE
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$1,000,000 $800,000 $600,000 $400,000 $200,000 $2009 2010 2011 2012 Units Sold 2013 Average Selling Price 50 40 30 20 10 0

ABOUT THE AREA

Popularly known as Americas Last Home Town, Pacific Grove possesses a quaint and quiet charm all its own. Famous for its numerous Victorian-style homes, Pacific Grove has a rich architectural history, apparent in its old-style downtown.

SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

2009 14 $894,752 $939,950 95% $605,000 136

2010 13 $714,462 $762,335 94% $635,000 79

2011 25 $730,960 $751,708 97% $545,000 135

2012 35 $572,283 $600,283 95% $520,000 126

2013 40 $703,635 $717,174 98% $636,250 74

PEBBLE BEACH
AVERAGE SALE PRICE | TOTAL SFH SOLD | Q1
$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $2009 2010 2011 2012 Units Sold 2013 Average Selling Price 35 30 25 20 15 10 5 0

ABOUT THE AREA

Pebble Beach is a prestigious community world renowned for its unparalleled golf. Boasting seven courses within its gates, it is most notable for the Pebble Beach Golf Links, which is considered by many to be the best public course in the world.

SINGLE FAMILY HOMES | Q1 Units Sold Average Selling Price Average Listing Price Discount Ratio Median Average Days on Market

2009 7 $1,813,986 $2,161,964 84% $1,616,653 183

2010 16 $1,700,028 $2,107,638 81% $1,045,225 144

2011 12 $2,605,417 $2,974,750 88% $1,907,500 174

2012 27 $1,484,776 $1,618,174 92% $1,042,500 175

2013 32 $1,274,364 $1,388,320 92% $1,035,500 100

sothebyshomes.com/monterey

ON THE MARKET
FEATURED PROPERTIES
PEBBLE BEACH, CA

LISTINGS AROUND THE WORLD IN THIS PRICE RANGE

IN METROPOLITAN MARKETS

Price: $5,498,000 Agents: Sam Piffero, Aisha Krechuniak 831.236.5389, 831.622.4884 This country garden estate combines gracious indoor living set within exquisitely tended English gardens and magical landscaping.The open floor plan of approx. 6,000 sq.ft. includes 6 bedrooms, 5.5 baths, 4 fireplaces and gourmet kitchen that adjoins a sumptuous family room with garden views all around. WEB: 0473191 CARMEL, CA

LOS ANGELES
5 br, 6 ba | Price Upon Request

NEW YORK
3 br, 2 ba, 1 hf ba | $5,995,000

SAN FRANCISCO
3 br, 3 ba, 1 hf ba | $4,700,000

IN RESORT MARKETS

CARPINTERIA
7 br, 6 ba, 1 hf ba | $5,995,000

SAG HARBOR
3 br, 3 ba | $4,500,000

BIG SUR COAST

1,100+ Acres | $5,995,000

IN FOREIGN MARKETS

Price: $5,495,000 Agent: David Bindel 831.624.1566 Designed by architect Sally Anne Smith AIA, this contemporary Craftsman is sited on a 1.46 acre ocean front parcel, one of the largest lots on beautiful Yankee Point Drive in the Carmel Highlands. Approx. 5,094 sq.ft. with 4 bedrooms and 3.5 baths includes library, wet bar and 180-degree white water views. WEB: 0473025

THAILAND
4 br, 3 ba $4,270,584

ISRAEL
4 br, 3 ba | Price Upon Request

UNITED KINGDOM
6 br, 6 ba | $5,692,168

COMING UP AT AUCTION

JEAN-LON GRME , LE TIGRE ET LE GARDIEN 19th Century European Art May 9, 2013 Estimate: $300,000 - 400,000

BUSTE DHOMME, 1969 BY PABLO PICASSO Impressionist & Modern Art Evening Sale May 7, 2013 Estimate: $5,000,000 - 7,000,000

CLYFFORD STILL, PH-21, 1962 Contemporary Art Evening Auction 14 May 2013