ZipRealty : Phoenix Leads U.S. in Median Home Price Gains, Outpacing Red-Hot San Francisco Bay Area, Says ZipRealty

 ZipRealty : Phoenix Leads U.S. in Median Home Price Gains, Outpacing Red-Hot
                    San Francisco Bay Area, Says ZipRealty

Prices increased 36 percent on a YOY basis in Phoenix, while the
San Francisco Bay Area and Tampa also posted strong increases.

EMERYVILLE, Calif., Jan. 7, 2013 - ZipRealty, Inc. (
(NASDAQ: ZIPR),the leading online technology-enabled residential real
estatebrokerage company, has released the most accurate and complete MLS data
showing that Phoenix median home prices have increased more than any other
market in the U.S. on a year-over-year basis. Median home prices rose 36
percent in the Phoenix MSA from November 2011 to November 2012. The Silicon
Valley recorded the second-highest price increase during that time at 30
percent, while Tampa prices rose 26 percent. Rounding out the list at No. 4
and No. 5, respectively, were San Francisco's East Bay and the city of San
Francisco, which jumped 24 percent and 23 percent, according to MLS data.

Phoenix median home prices increased from $116,000 to $158,000 from November
2011 to November 2012. "There are likely a few different factors contributing
to this surge, including decreased housing inventory, lower unemployment
numbers, high-tech job growth, steady population gains and increased investor
activity, especially from out-of-area buyers," says Lanny Baker, Chief
Executive Officer and President of ZipRealty, Inc.

"Phoenix saw a strong run-up in housing prices from 2004 through 2006," says
Daniel Leboffe, Director of Agent Development at ZipRealty and a Phoenix area
Realtor since 1997. "Phoenix was one of the leading markets for price
increases during the real estate boom fueled by affordable housing, population
growth, relaxed lending standards, zero-down financing and investor/speculator
interest. Conversely, it was one the hardest hit areas during the Great
Recession, resulting in a strong spike in foreclosures and short sales. Now, a
number of these cities within Greater Phoenix are seeing some of the biggest
rebounds," he adds.

With investors acquiring foreclosures and the mortgage delinquency rate
declining, the inventory of distressed homes in Phoenix has decreased,
according to Mr. Leboffe. "As a result, many buyers -especially first-time
buyers - are being priced out of the existing housing market, and turning to
newly built properties. To meet this new demand, developers have acquired
large tracts of land to build new homes," notes Mr. Leboffe.

Mr. Leboffe observes that, once again, strong interest from out-of-area
investors has impacted housing prices in Phoenix. "Out-of-area investors have
ramped up home buying activity during the past three years or so, which has
placed upward pressure on prices," he says. "Because of the mild local
weather, relatively cheap cost of housing and favorable currency exchange,
Canadians have been a notably active segment of the local market. They
typically pay cash and actively purchased foreclosed homes for both investment
and as second homes, which helped relieve market distress," he shares.

"As the local economy strengthens and as newly built homes come to market
easing relatively low levels of resale homes, more people should have the
ability to purchase a home in Phoenix, in spite of still-tight underwriting
standards being implemented by the lending community," notes Mr. Leboffe.

West Coast cities, Florida dominate
Home prices in the western region of the U.S. and Florida strengthened in
November, according to the most complete and accurate MLS data. Median home
prices in California's Silicon Valley jumped from $420,000 to $545,000 (30
percent) as of November 2012. Tampa prices increased from $100,000 to
$126,000, a 26 percent increase, while home prices in San Francisco's East Bay
rose from $290,000 to $360,000 (24 percent). Properties in San Francisco,
which still boasts the highest actual prices in the U.S., grew from $635,000
to $782,000, or 23 percent.

Home Price Map


About ZipRealty, Inc.
ZipRealty is a leading national real estate brokerage and provider of
proprietary technology and comprehensive online marketing tools for the
residential real estate brokerage industry. For home buyers and sellers who
increasingly want control, choice and a seamless, customized service,
ZipRealty offers Internet-enabled, state-of-the-art technology and complete
access to accurate, timely information via their website and mobile
applications, which real estate professionals can combine with their own local
knowledge and personal expertise to offer an exceptional start-to-finish
client experience. For real estate professionals who seek more productive ways
to conduct business, ZipRealty provides technology and online marketing tools
to enhance their online sales channel, including lead generation, conversion
and service of their clients. ZipRealty's technology and online marketing
products serve its full-service, owned-and-operated residential real estate
brokerage business in 19 markets nationwide, as well as its Powered by Zip
network of leading third-party local brokerages in 13 markets.

Stacey Corso


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: ZipRealty via Thomson Reuters ONE
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