1. Lack of Conformity: Because we are including all of the sold properties in a large geographic area, the resulting data is very non conforming in nature; in other words, the properties make up the whole spectrum of the market i.e., 100 year old colonials, new construction, 40 year old split level homes, as well as 6,000 square foot colonials, etc. A significant change in sales volume in any one of these sub-markets, has the potential to reduce the credibility and accuracy of the resulting trend.

2. Changes in buyer preferences: this is related to lack of conformity but is an important point to consider. When demand for a particular market segment changes, the credibility of the resulting trend can be adversely affected. For example, if there is a lack of demand for moderate and higher end homes (while the low end reflects increasing absorption), the market trend may automatically reflect a decline in values. Though a decline may be indicated, the rate of decline may be exacerbated by the change in demand.

In order to "paint" a more accurate and credible representation of local Real Estate Market Trends, our ongoing objective is to analyze areas that are reasonably conforming in nature. Submarkets will be selected from our geographic coverage area which includes:

• In Pennsylvania: Philadelphia, Chester county, Delaware county , Montgomery county and Bucks County
• In New Jersey: Camden county, Burlington county, Gloucester county, Salem county and Mercer county
• In Delaware: New Castle county

Our analysis will include the following four median trends:

• Sales price
• Price per square foot
• Days on market
• Sales to list price ratio