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Summary of Activity Price Activity 1-year Appreciation 3-year Appreciation	Austin-Round Rock   5.6% 17.5%	U.S. Average   -1.1% 15.4%
Affordability   Current Mortgage Servicing Cost to Income Historical Local Average	14% 14%	22% 22%
Foreclosure Rate State Foreclosure Rate State Prime Loan Foreclosure Rate State Subprime Foreclosure Rate	1.2% 0.5% 4.1%	1.4% 0.6% 5.5%
Local Fundamentals
1-year Job Additions 3-year Job Additions	33,000 81,300	Not Comparable
1-year Job Growth Rate 3-year Job Growth Rate	4.6% 12.2%	1.4% 5.0%

Home Prices in Austin metro region rose 5.6% in 2nd Qtr 2007 - the strongest increase since prices jumped 14.6% in 2000.  A rise in mortgage rates in early 2006 has no doubt held back some buyers.  Surprisingly though, sales and prices will remain robust.

Despite the general downturn in the national housing market, local home prices remain positive.  This is because unlike past local housing downturns, which were accompanied by severe job cuts, the local economy continues to add jobs.

The outlook is positive.  The Austin housing market is doing remarkably well.  Sales and prices will remain robust through 2008.

Source: National Association of Realtors, Market Research 2007

Wishing you all a Happy New Year!

Darcie Shannon

512-944-0485 (direct)

darcie@darcieshannon.com