IN THIS ISSUE
Introduction
When Will We Hit Bottom?
Balboa Island Price Index (BIPI)™, Q1 & Q2 2009 Results (1)
Balboa Island Bay Fronts, Canal Properties and New Home Construction
Balboa Island Active Listings
First Republic Prestige Home Index and S&P/Case-Shiller Luxury Home Study
Featured Neighborhood
Real Estate, Mortgage Financing and Economic Update
Final Thoughts

BALBOA ISLAND PRICE INDEX (BIPI)™ Q1 & Q2 2009 RESULTS (1)
(1/1/2000 through 6/30/2009)
According to the Balboa Island Price Index (BIPI)™, Balboa Island interior lot values in the second quarter of 2009 are now $1.55 mm, down 21.4% when compared to the second quarter of 2008. Compared to the first quarter of 2009, values were virtually unchanged. Current interior lot values compare to an average value of $1.96 mm in Q1 2008 and $1.95 mm in Q4 2007. The highest interior lot value reached was $2.1 mm in Q3 2006.

From 2000 through 2006, interior lot values grew at an average of 12.5% annually. In 2007 the annual growth rate slowed and has decreased every quarter since Q2 2008. When compared to Q3/Q4 2006 when average lot values peaked at $2.1 mm, the current average value of a lot of $1.55 mm has decreased by 26.2%.

IN THIS ISSUE

• Balboa Island Price Index (BIPI)™ Q4 2008 Results
• Balboa Island Bay Fronts, Canal Properties and New Home Construction
• Balboa Island Active Listings
• First Republic Prestige Home Index and S&P/Case-Shiller Luxury Home Study
• Mortgage Financing and Economic Update
• Final Thoughts

BALBOA ISLAND PRICE INDEX (BIPI)™ Q4 2008 RESULTS
(1/1/2000 through 12/31/2008)
Balboa Island interior lot values in the fourth quarter of 2008 were again slightly lower compared to the previous quarter and decreased 14.1% from the same quarter a year ago according to the Balboa Island Price Index (BIPI)™ developed by Girling Real Estate Investment Group (www.girlingREIG.com). Interior lots are now valued at an average of approximately $1.675 mm compared to an average value of $1.72 mm in Q3 2008 and $1.95mm in Q4 2007. The highest interior lot value reached was $2.1 mm in Q3 2006.

You can read the full newsletter here: Girling REIG Newsletter, February 2009

We have just released our Q3 Newsletter. The content features:
BALBOA ISLAND PRICE INDEX (BIPI)™ Q3 2008 RESULTS
(2000 through 9/30/2008)
Balboa Island interior lot values were lower in the third quarter of 2008 compared to a year ago according to the Balboa Island Price Index (BIPI)™ developed by Girling Real Estate Investment Group (www.girlingREIG.com). Interior lots are now valued at an average of approximately $1.7 mm compared to an average value of $2 mm in Q3 2007. Peak values reached $2.1 mm in late 2006 lasting through early 2008. Interior lot values grew at an average of 12.5% annually from 2000 through 2006. In 2007 the annual growth rate slowed to 3.7% and has decreased through the first three quarters of 2008. When compared to the second quarter of 2008, the average value of a lot decreased by almost 15%.

You can read the full newsletter here: Girling REIG Newsletter, November 2008