Economic report for San Bernardino County June 2010

1. San Bernardino County Economic Profile June 2010 The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this report by any means, including facsimile or computerized formats. Copyright © 2010, CALIFORNIA ASSOCIATION OF REALTORS®

2. San Bernardino County Profile

3. Sales of Existing Detached Homes and Pacific West Consumer Confidence San Bernardino County, May 2010: 545 Units, Down 22.0% YTD, Down 20.7% YTY UNITS 1000 900 INDEX 160 140 Sales Consumer Confidence 800 120 700 100 80 60 600 500 400 300 40 200 20 0 100 0 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®; The Conference Board Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

4. Sales of Existing Detached Homes San Bernardino County, 2009: 7,937 Units, Up 34.5% YTY MONTHLY ANNUAL UNITS 9,000 8,000 7,000 800 700 600 6,000 500 5,000 400 300 200 4,000 3,000 2,000 2006 2007 2008 2009 2010 1,000 0 100 0 1989 1992 1995 1998 2001 2004 2007 Jul Apr Oct Jun Jan Aug Feb Mar Dec Nov May Sept SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

5. Median Price of Existing Detached Homes San Bernardino County, May 2010: $153,770, Up 13.8% YTY $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

6. Median Price Annual Comparison San Bernardino County, 2009: $149,578, Down 31.9% YTY MONTHLY ANNUAL $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® 2006 2007 2008 2009 2010 $100,000 $50,000 $- 1989 1992 1995 1998 2001 2004 2007 Jul Oct Apr Jan Jun Feb Mar Aug Dec Nov May Sept

7. Median Home Sales Price San Bernardino County Yearly % Change May-10 May-09 San Bernardino County Adelanto Apple Valley Barstow Big Bear City Big Bear Lake Bloomington Chino Chino Hills Colton Crestline Fontana Hesperia Highland Joshua Tree $160,000 $90,000 $123,500 $54,000 $140,500 $231,000 $160,000 $299,000 $437,750 $121,000 $102,500 $221,000 $115,500 $171,750 $76,500 $137,750 $75,000 $100,000 $65,000 $217,500 $301,750 $100,000 $260,000 $405,000 $100,000 $138,500 $182,000 $122,000 $183,500 $98,000 16.2% 20.0% 23.5% -16.9% -35.4% -23.4% 60.0% 15.0% 8.1% 21.0% -26.0% 21.4% -5.3% -6.4% -21.9% SOURCE: C.A.R.; DataQuick Information Systems. The price statistics are derived from all types of home sales -- new and existing, condos and single-family.

8. Median Home Sales Price San Bernardino County Yearly % Change May-10 May-09 Lake Arrowhead Loma Linda Montclair Ontario Rancho Cucamonga Redlands Rialto San Bernardino Twentynine Palms Upland Victorville Yucaipa Yucca Valley $402,500 $244,000 $259,500 $210,000 $307,500 $215,000 $165,000 $105,000 $79,250 $344,000 $127,000 $205,000 $102,000 $321,500 $284,000 $221,500 $193,500 $287,500 $222,500 $130,000 $70,000 $70,750 $320,000 $109,500 $208,000 $109,250 25.2% -14.1% 17.2% 8.5% 7.0% -3.4% 26.9% 50.0% 12.0% 7.5% 16.0% -1.4% -6.6% SOURCE: C.A.R.; DataQuick Information Systems. The price statistics are derived from all types of home sales -- new and existing, condos and single-family.

9. Unsold Inventory Index Riverside and San Bernardino Counties, May 2010: 4.1 Months MONTHS 30 Inland Empire 25 20 15 10 5 0 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® Riverside & San Bernardino Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

10. Median Time on the Market Single-Family Homes – Riverside/San Bernardino, May 2010: 31.3 Days 160 140 120 100 80 60 40 20 0 1/1/1989 1/1/1990 1/1/1991 1/1/1992 1/1/1993 1/1/1994 1/1/1995 1/1/1996 1/1/1997 1/1/1998 1/1/1999 1/1/2000 1/1/2001 1/1/2002 1/1/2003 1/1/2004 1/1/2005 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

11. Foreclosures San Bernardino County 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Q1/89 Q3/89 Q1/90 Q3/90 Q1/91 Q3/91 Q1/92 Q3/92 Q1/93 Q3/93 Q1/94 Q3/94 Q1/95 Q3/95 Q1/96 Q3/96 Q1/97 Q3/97 Q1/98 Q3/98 Q1/99 Q3/99 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Q3/06 Q1/07 Q3/07 Q1/08 Q3/08 Q1/09 Q3/09 SOURCE: Real Estate Research Council

12. Ratio of Foreclosures to Home Sales San Bernardino County 140% 120% 100% 80% 60% 40% 20% 0% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 SOURCE: Real Estate Research Council

13. Mortgage Rates 10% 9% 8% 7% 6% 5% FRM ARM Federal Funds 4% 3% 2% 1% 0% SOURCE: Federal Home Loan Mortgage Corporation Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

14. Housing Affordability Index San Bernardino County, 1st Quarter 2010: 69% % OF HOUSEHOLDS THAT CAN BUY 80% 70% 60% 50% 40% 30% 20% 10% 0% SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® QTRLY Monthly ---- Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 2007.2 2008.4 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05

15. First-time Buyer Housing Affordability Index San Bernardino County, 1st Quarter 2010: 81% % OF HOUSEHOLDS THAT CAN BUY 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Q3/06 Q1/07 Q3/07 Q1/08 Q3/08 Q1/09 Q3/09 Q1/10 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

16. Nonfarm Employment Riverside/San Bernardino Metropolitan Area, May 2010: Down 3.1% YTY Y-T-Y PERCENT CHANGE 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 SOURCE: CA Employment Development Division

17. Unemployment Rate San Bernardino County, May 2010: 13.8% 16% 14% 12% 10% 8% 6% 4% 2% 0% Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 SOURCE: CA Employment Development Division

18. Unemployment Rate San Bernardino County – May 2010 Area Name San Bernardino County Adelanto city Apple Valley town Barstow city Big Bear City CDP Big Bear Lake city Big River CDP Bloomington CDP Bluewater CDP Chino city Chino Hills city Colton city Crestline CDP Labor Force 863,000 7,000 26,300 10,700 3,500 3,100 500 8,300 100 34,700 39,300 25,000 6,300 Rate 13.8% 20.9% 15.0% 17.1% 7.7% 10.2% 15.5% 18.2% 27.3% 12.3% 7.0% 14.8% 12.6% CCD Census County Division CDP Census Designated Place SOURCE: CA Employment Development Department

19. Unemployment Rate San Bernardino County – May 2010 Area Name Fontana city Grand Terrace city Hesperia city Highland city Joshua Tree CDP Lake Arrowhead CDP Lenwood CDP Loma Linda city Mentone CDP Montclair city Morongo Valley CDP Mountain View Acres CDP Muscoy CDP Labor Force 62,500 7,200 30,900 23,200 1,900 5,000 1,700 10,100 4,300 16,200 1,100 1,200 3,200 Rate 14.3% 7.2% 17.6% 17.2% 15.4% 7.0% 24.5% 8.4% 11.9% 13.2% 9.7% 5.0% 24.0% CCD Census County Division CDP Census Designated Place SOURCE: CA Employment Development Department

20. Unemployment Rate San Bernardino County – May 2010 Area Name Nebo Center CDP Needles city Ontario city Rancho Cucamonga cit Redlands city Rialto city Running Springs CDP San Antonio Heights CD San Bernardino city Searles Valley CDP Twentynine Palms Base Twentynine Palms city Labor Force 400 2,200 82,300 76,600 36,700 44,300 3,000 1,800 85,500 900 600 6,200 Rate 28.6% 10.4% 14.6% 9.1% 10.1% 17.5% 5.4% 3.4% 18.3% 11.9% 9.9% 16.5% CCD Census County Division CDP Census Designated Place SOURCE: CA Employment Development Department

21. Unemployment Rate San Bernardino County – May 2010 Area Name Upland city Victorville city Wrightwood CDP Yucaipa city Yucca Valley town Labor Force 39,900 30,200 2,400 21,900 7,400 Rate 9.5% 16.5% 9.7% 11.1% 12.7% CCD Census County Division CDP Census Designated Place SOURCE: CA Employment Development Department

22. Taxable Sales San Bernardino County ANNUAL PERCENT CHANGE 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Q1/89 Q3/89 Q1/90 Q3/90 Q1/91 Q3/91 Q1/92 Q3/92 Q1/93 Q3/93 Q1/94 Q3/94 Q1/95 Q3/95 Q1/96 Q3/96 Q1/97 Q3/97 Q1/98 Q3/98 Q1/99 Q3/99 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Q3/06 Q1/07 Q3/07 Q1/08 Q3/08 Q1/09 SOURCE: CA State Board of Equalization

23. New Housing Permits San Bernardino County, April 2010: 84 Units, Up 6.0% YTD 3000 2500 Single Family Multi-Family 2000 1500 1000 500 0 SOURCE: Construction Industry Research Board Jul-88 Jul-89 Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-88 Jan-89 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

24. Median Price for New Homes San Bernardino County 1Q10 Detached: $305,000, Attached: $234,990 $500,000 $450,000 Detached Attached $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®; Hanley Wood Q1/88 Q1/89 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 Q1/03 Q1/04 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10

25. New Home Sales San Bernardino County (Attached), 2010 Q1 Sales: 62 Units 600 500 400 300 200 100 0 Q1/88 Q1/89 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 Q1/03 Q1/04 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®; Hanley Wood

26. New Home Sales San Bernardino County (Detached), 2010 Q1 Sales: 272 Units 4000 3500 3000 2500 2000 1500 1000 500 0 Q1/88 Q1/89 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 Q1/03 Q1/04 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®; Hanley Wood

27. Asking Rents for Class A&B Apartments Inland Empire, 2010 Q1: $1,054 Down 5.2% YTY $1,200 $1,000 $800 $600 $400 $200 $0 Q3/97 Q2/98 Q1/99 Q4/99 Q3/00 Q2/01 Q1/02 Q4/02 Q3/03 Q2/04 Q1/05 Q4/05 Q3/06 Q2/07 Q1/08 Q4/08 Q3/09 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®; REALFACTS

28. Vacancy Rates for Class A&B Apartments Inland Empire, 2010 Q1: 7.2% VACANCY RATE 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1990 1993 Q4/95 Q2/97 Q1/98 Q4/98 Q3/99 Q2/00 Q1/01 Q4/01 Q3/02 Q2/03 Q1/04 Q4/04 Q3/05 Q2/06 Q1/07 Q4/07 Q3/08 Q2/09 Q1/10 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®; REALFACTS

29. Population Percent Changes San Bernardino County (1971-2008) 8.0% San Bern County 7.0% CA Nation 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% SOURCE:U.S. Census Bureau; California Department of Finance; CALIFORNIA ASSOCIATION OF REALTORS® 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

30. Sources of Population Growth San Bernardino County (1981-2008) THOUSANDS 100 90 80 70 60 50 40 30 20 10 0 -10 -20 07 01 81 85 83 87 03 99 97 95 05 93 89 91 20 19 19 20 19 20 20 19 19 19 19 19 19 19 SOURCE: CA Department of Finance

31. Net Immigration Vs. Domestic Migration San Bernardino County THOUSANDS 40 Net Immigration Domestic Migration 35 30 25 20 15 10 5 0 -5 -10 -15 -20 1991 1993 1995 1997 1999 2001 2003 2005 2007 SOURCE: CA Department of Finance

32. Household Relocations San Bernardino County County Los Angeles County, CA Riverside County, CA Orange County County, CA San Diego County, CA Clark County, NV Maricopa County, AZ Mohave County, AZ Kern County, CA Harris County, TX Ventura County, CA Total-Top 10 All Migration Outflow 10,853 9,914 3,067 1,693 1,255 928 427 374 286 279 29,076 45,084 Inflow 15,428 7,330 3,108 1,285 787 476 235 302 129 248 29,328 40,543 Net Outflow (4,575) 2,584 (41) 408 468 452 192 72 157 31 (252) 4,541 596,852 0.0% 0.8% Total Number of Households Top 10 as % of All Households All Net Mig as % of All Households Source: NAR Relocation Report 2008 – IRS Data; Item 187-06071, US Census Bureau

33. Where are new San Bernardino County households coming from? • • • • • • • Los Angeles (15,428) Riverside (7,330) Orange County (3,108) San Diego (1,285) Clark (787) Total incoming for 2008: 40,543 Total outgoing for 2008: 45,084 Source: NAR Relocation Report 2008 – IRS Data; Item 187-06071

34. Net Immigration by Ethnic Group San Bernardino County (1990 Census to 2000 Census) White, Non-Hispanic Hispanic Asian/Pacific Islander Black or Afr. Amer., Non-Hisp. Amer. Indian & Alaska Native, Non-Hisp. -200 -150 -100 -50 0 50 100 150 200 Thousands SOURCE: CA Dept. of Finance

35. Number of Households by Ethnicity San Bernardino County (1990 Census vs. 2000 Census) White Hispanic Asian/Pacific Islander 1990 2000 Black 0 SOURCE: U.S. Census Bureau 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

36. Top 10 Home Buyer Surnames San Bernardino County GARCIA HERNANDEZ M ART INEZ LOPEZ RODRIGUEZ GONZALEZ SANCHEZ RAM IREZ PEREZ SM IT H 0 50 100 150 200 250 Number of Buyers Note: Data is based on 2007 data. SOURCE: DataQuick Information Systems

37. Population by Age Group San Bernardino County (2000-2010) Thousands 2000 500 2010 450 400 350 300 250 200 150 100 50 0 0-14 15-24 25-34 35-44 45-54 55-64 65-74 75+ SOURCE: California Department of Finance; CALIFORNIA ASSOCIATION OF REALTORS®

38. Homeownership Rates Riverside-San Bernardino Metropolitan Area, 2009: 65.9% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 198 198 198 198 199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200 200 200 SOURCE: U.S. Census Bureau

39. Homeownership Rates by Age San Bernardino County (2000 Census) 100% 80% 60% 40% 20% 0% 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ SOURCE: California Department of Finance; CALIFORNIA ASSOCIATION OF REALTORS®