| By the fourth quarter of 2012, 9 to 50 percent of the | | | | bank owned house listings, had 30 percent REO sale in |
| house sales will be comprised by the bank owned | | | | the second quarter of last year. |
| properties in the six biggest markets in the country. | | | | In San Francisco, with their 10 percent REO share in |
| This has been speculated the JPMorgan Chase | | | | the fourth quarter of the last year and 14 percent |
| analysts. In Phoenix, it is expected that the percentage | | | | REO share in the second quarter of last year, it is |
| will go up to 39 to 50 percent of all its house sales in | | | | expected to remain same between 9 to 12 percent of |
| the last quarter of this year, which is higher than the 37 | | | | its total home sales in 2012. It is speculated that |
| percent of last quarter of 2009. REOs would comprise | | | | Oakland is going to post 18 to 23 percent of REO |
| the 24 to 31 percent of the total home sale in 2012 in | | | | share, which is far less than the second quarter of |
| San Diego where as in 2009 the 25 percent of all the | | | | 2009, but almost the same as the REO share of the |
| home sales were owned by banks. | | | | last quarter of last year. |
| In the next couple of years, it is expected that the | | | | It is expected that as opposed to this condition, the |
| New York City will be observing an increase in the | | | | non-distressed sales situation in 2012 in cities such as |
| distressed property listings. In 2012, more than 12 to 16 | | | | Los Angeles, Long Island, Chicago and San Jose will |
| percent of the total home sales would be foreclosure | | | | improve. Nondistressed sales in Los Angeles will be |
| sales. It will be of the same level or higher than the 12 | | | | expected to improve in REO share postings that will |
| percent of REO share in 2009. | | | | be about 22- to 28-percent in 2012. The improvement |
| The housing markets of the California cities such as | | | | is quite significant from the 53 percent REO share in |
| Oakland, San Francisco and Santa Ana is expected to | | | | the third quarter and 39 percent in the last quarter of |
| remain in the same level as their current REO sale | | | | the last year. REO sales are expected to dominate |
| percentages. Santa Ana, which is expected to have | | | | the home sales in most housing markets. |
| 18 to 23 percent of their total home sales are from | | | | |