MARKET ACTION REPORT

August 2014

City: Pebble BeachNicole TruszkowskiSales Associate(831) 238-7449(831) 624-2457Nicole.Truszkowski@sothebyshomes.com

Price Range: $0 to $999,999,000 | Properties: Single Family Home, Townhome, Condo

Sotheby's International Realty® is a registered trademark licensed to Sotheby's International Realty Affiliates LLC. Operated by Sotheby's International Realty, Inc.

Based on information from MLSListings, Inc for the period 9/1/2011 through 8/31/2014. Due to MLS reporting methods and allowable reporting policy, this data is onlyinformational and may not be completely accurate. Therefore, Sotheby's Residential Brokerage does not guarantee the data accuracy. Data maintained by the MLS'smay not reflect all real estate activity in the market.

Trending Versus*: Trending Versus*:Market Profile & Trends Overview Month LM L3M PYM LY YTD PriorYTD PriorYear

Median List Price of all Current Listings $2,495,000 Average List Price of all Current Listings $4,387,192 August Median Sales Price $1,625,000 $1,523,000August Average Sales Price $1,769,071 $2,151,877Total Properties Currently for Sale (Inventory) 73 August Number of Properties Sold 7 81August Average Days on Market (Solds) 82 119Asking Price per Square Foot (based on New Listings) $587 $684August Sold Price per Square Foot $599 $615August Month's Supply of Inventory 10.4 7.8August Sale Price vs List Price Ratio 95.2% 92.0%

* LM=Last Month / L3M=Last 3 Months / PYM=Same Month Prior Year / LY=Last Year / YTD = Year-to-date

Property Sales August Property sales were 7, down -30.0% from 10 in August of 2013 and -36.4% lower than the 11 sales last month. August 2014 sales were at their lowestlevel compared to August of 2013 and 2012. August YTD sales of 81 are running -2.4% behind last year's year-to-date sales of 83.

Prices The Median Sales Price in August was $1,625,000, up 72.0% from $945,000 in August of 2013 and down -1.5% from $1,650,000 last month. The AverageSales Price in August was $1,769,071, down -25.1% from $2,361,000 in August of 2013 and down -5.1% from $1,864,023 last month. August 2014 ASP wasat the lowest level compared to August of 2013 and 2012.

MARKET ACTION REPORT

August 2014

City: Pebble BeachNicole TruszkowskiSales Associate(831) 238-7449(831) 624-2457Nicole.Truszkowski@sothebyshomes.com

Price Range: $0 to $999,999,000 | Properties: Single Family Home, Townhome, Condo

Sotheby's International Realty® is a registered trademark licensed to Sotheby's International Realty Affiliates LLC. Operated by Sotheby's International Realty, Inc.

Based on information from MLSListings, Inc for the period 9/1/2011 through 8/31/2014. Due to MLS reporting methods and allowable reporting policy, this data is onlyinformational and may not be completely accurate. Therefore, Sotheby's Residential Brokerage does not guarantee the data accuracy. Data maintained by the MLS'smay not reflect all real estate activity in the market.

Inventory & MSI The Total Inventory of Properties available for sale as of August was 73, down -12.0% from 83 last month and down -18.0% from 89 in August of last year. August 2014 Inventory was at the lowest level compared to August of 2013 and 2012. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The August 2014 MSI of 10.4 months was at a mid rangecompared with August of 2013 and 2012.

Market Time The average Days On Market(DOM) shows how many days the average Property is on the Market before it sells. An upward trend in DOM tends to indicate amove towards more of a Buyer's market, a downward trend a move towards more of a Seller's market. The DOM for August was 82, up 1.2% from 81 dayslast month and down -27.4% from 113 days in August of last year. The August 2014 DOM was at a mid range compared with August of 2013 and 2012.

Selling Price per Square Foot The Selling Price per Square Foot is a great indicator for the direction of Property values. Since Median Sales Price and Average Sales price can be impactedby the 'mix' of high or low end Properties in the market, the selling price per square foot is a more normalized indicator on the direction of Property values. The August 2014 Selling Price per Square Foot of $599 was down -3.9% from $623 last month and up 2.6% from $584 in August of last year.

MARKET ACTION REPORT

August 2014

City: Pebble BeachNicole TruszkowskiSales Associate(831) 238-7449(831) 624-2457Nicole.Truszkowski@sothebyshomes.com

Price Range: $0 to $999,999,000 | Properties: Single Family Home, Townhome, Condo

Sotheby's International Realty® is a registered trademark licensed to Sotheby's International Realty Affiliates LLC. Operated by Sotheby's International Realty, Inc.

Based on information from MLSListings, Inc for the period 9/1/2011 through 8/31/2014. Due to MLS reporting methods and allowable reporting policy, this data is onlyinformational and may not be completely accurate. Therefore, Sotheby's Residential Brokerage does not guarantee the data accuracy. Data maintained by the MLS'smay not reflect all real estate activity in the market.

Selling Price vs Listing Price The Selling Price vs Listing Price reveals the average amount that Sellers are agreeing to come down from their list price. The lower the ratio is below 100%the more of a Buyer's market exists, a ratio at or above 100% indicates more of a Seller's market. The August 2014 Selling Price vs List Price of 95.2% was upfrom 94.6% last month and down from 96.6% in August of last year.

Inventory / New Listings / Sales 'This last view of the market combines monthly inventory of Properties for sale along with New Listings and Sales. The graph shows the basic annualseasonality of the market as well as the relationship between these items. The number of New Listings in August 2014 was 18, down -21.7% from 23 lastmonth and up 28.6% from 14 in August of last year.

MARKET ACTION REPORT

August 2014

City: Pebble BeachNicole TruszkowskiSales Associate(831) 238-7449(831) 624-2457Nicole.Truszkowski@sothebyshomes.com

Price Range: $0 to $999,999,000 | Properties: Single Family Home, Townhome, Condo

Sotheby's International Realty® is a registered trademark licensed to Sotheby's International Realty Affiliates LLC. Operated by Sotheby's International Realty, Inc.

Based on information from MLSListings, Inc for the period 9/1/2011 through 8/31/2014. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Sotheby's Residential Brokerage does not guarantee the data accuracy. Data maintained by the MLS's may not reflect all real estate activity in the market.

S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J A

Homes Sold 12 6 5 14 10 10 16 9 13 8 14 8 10 11 12 7 12 7 18 5 10 7 14 10 12 10 6 7 6 14 10 11 15 7 11 73 Mo. Roll Avg 8 8 10 11 12 12 13 10 12 10 11 10 11 10 10 9 12 10 11 7 10 10 12 11 9 8 6 9 10 12 12 11 11 8

(000's) S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J AMedianSalePrice 978 1,869 700 1,029 1,794 1,317 664 995 1,068 1,398 1,171 1,560 925 925 1,288 840 920 750 1,263 2,500 785 1,450 1,238 945 2,000 1,105 1,028 2,000 1,918 1,354 1,450 1,350 1,495 1,150 1,650 1,625

3 Mo. Roll Avg 1,182 1,199 1,174 1,380 1,258 992 909 1,154 1,212 1,376 1,219 1,137 1,046 1,018 1,016 837 978 1,504 1,516 1,578 1,158 1,211 1,394 1,350 1,378 1,378 1,649 1,757 1,574 1,385 1,432 1,332 1,432 1,475

S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J A

Inventory 126 123 114 96 92 94 91 83 96 91 96 99 91 80 70 61 71 69 66 78 81 90 88 89 86 89 77 68 70 69 64 64 68 76 83 73MSI 11 21 23 7 9 9 6 9 7 11 7 12 9 7 6 9 6 10 4 16 8 13 6 9 7 9 13 10 12 5 6 6 5 11 8 10

S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J ADays On Market 148 211 85 154 239 102 198 183 100 41 142 67 126 159 141 136 132 60 91 65 201 131 35 113 86 91 89 165 126 104 160 148 150 73 81 823 Mo. Roll Avg 148 150 159 165 180 161 160 108 94 83 112 117 142 145 136 109 94 72 119 132 122 93 78 97 89 115 127 132 130 137 153 124 101 79

S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J APrice per Sq Ft 421 621 400 453 515 604 461 477 439 610 486 603 394 417 508 545 467 417 478 601 458 691 525 584 691 562 531 656 695 638 496 576 759 428 623 5993 Mo. Roll Avg 481 491 456 524 527 514 459 509 512 566 494 471 440 490 507 476 454 499 512 583 558 600 600 612 595 583 627 663 610 570 610 588 603 550

S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J ASale to List Price 0.933 0.907 0.926 0.978 0.948 0.943 0.929 0.973 0.946 0.916 0.939 0.931 0.965 0.960 0.936 0.904 0.949 0.940 0.915 0.984 0.974 0.950 0.978 0.966 0.915 0.940 0.966 0.926 0.934 0.939 0.900 0.930 0.949 0.984 0.946 0.952

3 Mo. Roll Avg 0.922 0.937 0.951 0.956 0.940 0.948 0.949 0.945 0.934 0.929 0.945 0.952 0.954 0.933 0.930 0.931 0.935 0.946 0.958 0.969 0.967 0.965 0.953 0.940 0.940 0.944 0.942 0.933 0.924 0.923 0.926 0.954 0.960 0.961

S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J A

New Listings 13 16 9 3 18 24 15 10 25 20 15 17 13 5 9 7 28 19 16 22 21 19 18 14 9 11 10 6 21 12 15 13 17 15 23 18Inventory 126 123 114 96 92 94 91 83 96 91 96 99 91 80 70 61 71 69 66 78 81 90 88 89 86 89 77 68 70 69 64 64 68 76 83 73Sales 12 6 5 14 10 10 16 9 13 8 14 8 10 11 12 7 12 7 18 5 10 7 14 10 12 10 6 7 6 14 10 11 15 7 11 7

(000's) S 11 O N D J 12 F M A M J J A S O N D J 13 F M A M J J A S O N D J 14 F M A M J J AAvg Sale Price 1,114 3,226 827 1,511 2,560 1,912 1,118 1,458 1,117 2,362 1,513 2,814 1,369 1,066 2,078 1,361 1,237 865 1,522 2,780 2,141 1,880 1,552 2,361 2,582 1,353 1,068 2,310 2,420 2,878 1,639 1,591 2,982 1,143 1,864 1,769

3 Mo. Roll Avg 1,722 1,855 1,633 1,994 1,863 1,496 1,231 1,646 1,664 2,230 1,899 1,749 1,504 1,502 1,559 1,154 1,208 1,722 2,148 2,267 1,858 1,931 2,165 2,099 1,667 1,577 1,932 2,536 2,312 2,036 2,070 1,905 1,996 1,592