Houlihan LawrenceLuxury Market Report

4th Quarter 2012

HoulihanLawrence.com

Presented by

Anthony CutugnoSenior Vice President

Director of Luxury Country Properties

Direct: 914.234.0308ACutugno@houlihanlawrence.com

Q-4 2012 Executive Summary January 2013

We are pleased to present this latest update on the luxury real estate market reporting

activity through the end of Q-4 for properties priced at $2 Million or more in Westchester

County and $1 Million or more in Putnam and Dutchess Counties.

2012 was a very positive year for luxury real estate in our region and as the year came to

a close; a surge of high-value transactions drove sales to record heights. First among

these sales was Devonshire, a spectacular 100-acre estate in Bedford Corners, which

closed for more than $21 Million at the end of December. Devonshire represented one of

the highest sales ever for Westchester County and the highest sale in our 125-year

company history.

Our Luxury Country Properties Division represented both the listing and selling sides of

this landmark transaction. The international buyer for this property was introduced to us

through Christie’s International Real Estate, one of several global powerhouses we

partner with to showcase our luxury listings worldwide. Unlike Manhattan, where sales

of trophy properties are commonplace and foreign buyers are abundant, a sale like

Devonshire is truly rare for our region. Yet it does signify the strength of our local

marketplace and this sale in conjunction with several other important $4 Million+ sales in

2012 secure Houlihan Lawrence’s dominance in the luxury marketplace. As of 12/31/12,

Houlihan Lawrence enjoys a 54% luxury market share throughout our 3-county territory.

In the past few months, I have been traveling to meet with my real estate colleagues

worldwide and it is clear we are seeing the resurgence of high-end luxury buyers

globally, particularly for unique properties in top markets. We at Luxury Country

Properties intend to capitalize on this trend and continue our efforts to attract an

international clientele to our beautiful region. As the long-time leader in luxury sales and

a dominant force in luxury marketing nationally, Houlihan Lawrence is uniquely

qualified to lead the charge.

For 2013, we are optimistic that the stability that has returned to the market will continue

and that our wide inventory of luxury properties will continue to attract buyers from

within the region and around the world. For more information on the latest trends or for

help with any of your luxury real estate needs, please contact me at 914.234.0308 or via

email at lcp@houlihanlawrence.com

Anthony Cutugno

Senior Vice President

Houlihan Lawrence Luxury Division

A strong Q-4 in Westchester County fueled the substantial year-end increase of 16% in Total HomesSold and 20% in Total Dollar Volume for 2012.

Westchester County accounted for 85% of all luxury sales regionally.

Both Putnam and Dutchess counties enjoyed significant improvements in Q-4 vs. Q-4 2011.

Westchester County Luxury Home Sales - $2 Million & Higher

Q4-2012 Q4-2011 % Change Full Year 2012 Full Year 2011 % Change

Homes Sold 57 31 83.9% 249 214 16.4%

Total Dollar Volume $215,171,100 $98,737,500 117.9% $782,894,348 $650,141,300 20.4%

Median Sale Price $2,900,000 $2,600,000 11.5% $2,685,000 $2,597,000 3.4%

Average Price Per Square Foot $584 $513 13.8% $560 $542 3.3%

Average Days on Market 250 208 20.2% 219 213 2.8%

% Sale Price to List Price 87.9 86.0 2.2% 92.0 92.2 -0.2%

Putnam County Luxury Home Sales - $1 Million & Higher

Q4-2012 Q4-2011 % Change Full Year 2012 Full Year 2011 % Change

Homes Sold 2 2 0.0% 11 11 0.0%

Total Dollar Volume $2,635,000 $2,270,000 16.1% $17,952,500 $20,695,000 -13.3%

Median Sale Price $1,317,500 $1,135,000 16.1% $1,420,000 $1,450,000 -2.1%

Average Price Per Square Foot $335 $291 15.1% $389 $450 -13.6%

Average Days on Market 165 171 -3.5% 252 241 4.6%

% Sale Price to List Price 86.4 82.4 4.9% 87.8 90.7 -3.2%

Dutchess County Luxury Home Sales - $1 Million & Higher

Q4-2012 Q4-2011 % Change Full Year 2012 Full Year 2011 % Change

Homes Sold 8 4 100.0% 23 21 9.5%

Total Dollar Volume $17,654,000 $5,317,500 232.0% $42,061,500 $66,445,450 -36.7%

Median Sale Price $1,462,500 $1,212,500 20.6% $1,375,000 $1,500,000 -8.3%

Average Price Per Square Foot $491 $275 78.5% $468 $480 -2.5%

Average Days on Market 200 318 -37.1% 295 262 12.6%

% Sale Price to List Price 90.4 82.1 10.1% 88.2 78.1 12.9%

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service.

Q42012 luxury market report

Q4

Westchester County Luxury Home Sales$2 Million & Higher

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Houlihan Lawrence remains the leader in luxury home sales throughout the region.

Houlihan Lawrence 54.89%

16.74%

6.47%

Putnam & Dutchess Counties Luxury Home Sales$1 Million & Higher

Houlihan Lawrence 43.05%

10.27%

8.53%

Q-4 sales in Westchester County rose sharply vs. year ago in all price segments.

66% of luxury homes purchased in Westchester County sold for less than $3 Million in 2012 although Q-4 results indicate a strong surge in the $3-$4.999 Million segment.

Only 2 properties sold for $2 Million or more in Putnam and Dutchess counties.

Westchester County Luxury Home Sales

Price Range Q4-2012 Q4-2011 % Change Full Year 2012 Full Year 2011 % Change

$2,000,000 - $2,999,999 29 19 52% 167 150 11%

$3,000,000 - $4,999,999 20 10 100% 67 56 19%

$5,000,000 - $9,999,999 6 1 500% 15 13 15%

$10,000,000 and up 2 1 100% 2 2 0%

Market Totals 57 31 84% 251 221 14%

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Putnam & Dutchess County Luxury Home Sales

Price Range Q4-2012 Q4-2011 % Change Full Year 2012 Full Year 2011 % Change

$1,000,000 - $1,999,999 8 6 33% 28 24 16%

$2,000,000 and up 2 0 Not Valid 6 9 -33%

Market Totals 10 6 67% 34 33 3%

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Top-ranked Westchester County market, Rye, led in Number of Sales for Q-4.

Bedford rose to second place for the quarter in Total Number of Sales as well as the Highest Sale Price,reflecting the sale of Devonshire.

No individual market emerged as a strong leader in Putnam and Dutchess counties.

Top Luxury Markets

Westchester County Luxury Home Sales$2 Million & Higher

School District # of Sales Median Luxury Sale Price Highest Sale Price

Rye City 13 $3,342,000 $12,700,000

Bedford 10 $3,350,000 $21,500,000

Scarsdale 8 $3,075,000 $4,212,500

Harrison 8 $2,850,000 $7,800,000

Bronxville 6 $2,550,000 $7,150,000

Mamaroneck 5 $2,532,450 $3,850,000

Byram Hills 2 $3,126,875 $3,753,750

Putnam County Luxury Home Sales$1 Million & Higher

Town/City # of Sales Median Luxury Sale Price Highest Sale Price

Carmel 2 $1,317,500 $1,435,000

Dutchess County Luxury Home Sales$1 Million & Higher

Town/City # of Sales Median Luxury Sale Price Highest Sale Price

Milan 2 $1,250,000 $1,375,000

Amenia 2 $3,057,000 $4,389,000

Wappinger 1 $1,300,000 $1,300,000

Clinton 1 $1,190,000 $1,190,000

North East 1 $1,550,000 $1,550,000

Washington 1 $5,000,000 $5,000,000

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

As in 2011, the Southern Westchester County marketplace remained the most robust at the end of2012.The high number of listings combined with fewer buyers continues to be a challenge in the northernmarkets.

Supply/Demand Snapshot

Southern Westchester County - $2 Million & Higher

As of December 31, 2012 As of December 31, 2011 2012 vs. 2011

Price Range

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

%Change inListings

%Change inPendings

$2,000,000 - $2,999,999 76 23 3 78 16 5 -2.6% 43.8%$3,000,000 - $4,999,999 46 7 7 43 4 11 7.0% 75.0%$5,000,000 - $9,999,999 16 4 4 17 5 3 -5.9% -20.0%$10,000,000 and up 7 0 Not Valid 3 0 Not Valid 133.3% 0.0%

*Supply Demand Ratio Key   1-4: High Demand   5-6: Balanced   7-9: Low Demand   10+: Very Low Demand

Northern Westchester County - $2 Million & Higher

As of December 31, 2012 As of December 31, 2011 2012 vs. 2011

Price Range

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

%Change inListings

%Change inPendings

$2,000,000 - $2,999,999 52 4 13 46 7 7 13.0% -42.9%$3,000,000 - $4,999,999 42 2 21 28 4 7 50.0% -50.0%$5,000,000 - $9,999,999 15 2 8 13 1 13 15.4% 100.0%$10,000,000 and up 11 0 Not Valid 8 0 Not Valid 37.5% 0.0%

*Supply Demand Ratio Key   1-4: High Demand   5-6: Balanced   7-9: Low Demand   10+: Very Low Demand

Putnam County - $1 Million & HigherAs of December 31, 2012 As of December 31, 2011 2012 vs. 2011

Price Range

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

%Change inListings

%Change inPendings

$1,000,000 - $1,999,999 22 2 11 29 3 10 -24.1% -33.3%$2,000,000 and up 13 0 Not Valid 13 0 Not Valid 0.0% 0.0%

*Supply Demand Ratio Key   1-4: High Demand   5-6: Balanced   7-9: Low Demand   10+: Very Low Demand

Dutchess County - $1 Million & HigherAs of December 31, 2012 As of December 31, 2011 2012 vs. 2011

Price Range

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

SUPPLYActiveListings

DEMANDPending

Sales

Supply/DemandRatio*

%Change inListings

%Change inPendings

$1,000,000 - $1,999,999 56 3 19 61 2 31 -8.2% 50.0%$2,000,000 and up 53 2 27 63 0 Not Valid -15.9% 0.0%

*Supply Demand Ratio Key   1-4: High Demand   5-6: Balanced   7-9: Low Demand   10+: Very Low Demand

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service. Southern Westchester (Zones 3-8), Northern Westchester (Zone 1-2).

Ten-Year Market History

Westchester CountyHomes Sold $2 Million & Higher

Putnam CountyHomes Sold $1 Million & Higher

Dutchess CountyHomes Sold $1 Million & Higher

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service.

Q42012 luxury market report

Q4

Highest Recorded Residential Sale in Westchester County

DEVONSHIREBedford Corners

Offered at $26,500,000

Houlihan Lawrence is pleased to have representedboth the seller and buyer of this magnificentGilded Age 100-acre estate, which closed inlate December for over $21 Million. This salerepresents the highest single residential sale ever reported in Westchester County and thehighest sale in Houlihan Lawrence’s 125-history.To find out more about our exceptional marketingprograms for estate properties, call our LuxuryCountry Properties Division at 914.234.0308.

914.234.0308houlihanlawrence.com

HOULIHAN LAWRENCELUXURY COUNTRY PROPERTIES

Over 20 years ago, the Luxury Country Properties Division of Houlihan Lawrence wascreated to serve the special needs of the luxury marketplace. Headquartered inBedford, the Luxury Country Properties team, under the leadership of veteran luxuryreal estate expert, Anthony P. Cutugno, develops customized programs designed todifferentiate estate properties from other listings on the market.

Founded upon a tradition of exceptional client service and marketing expertise, ourprograms for these properties are designed to attract discerning customers throughoutthe region and around the globe. Encompassing a blend of new media as well as traditional time-honored marketing approaches, each program is customized to promotea property’s unique qualities.

This expertise when combined with the powerful Houlihan Lawrence brand recognitionhas made us the leading authority on luxury residential real estate in Westchester,Putnam and Dutchess counties.

For more information on our Luxury Country Properties program or to subscribe to ourmonthly newsletter, please contact us at lcp@houlihanlawrence.com