PRIVATE BROKERAGEHOULIHAN LAWRENCE

LUXURY MARKET REPORT 3RD QUARTER 2014

Presented By

ANTHONY CUTUGNOSenior Vice President

Director of Private Brokerage

Direct: 914.234.0308acutugno@houlihanlawrence.com

HoulihanLawrence.com

Welcome to our Third Quarter 2014 Luxury Market Report detailing sales activity for homes priced at $3 Million or more in Greenwich, $2 Million or more in Westchester County, and $1 Million+ in Putnam and Dutchess counties.

Overall, interest in luxury properties in our northern suburbs remained strong throughout the quarter with increases reported in both number of homes sold and dollar volume. A limited number of markets continue to enjoy great popularity among luxury buyers who are seeking convenience to New York City. In Westchester, the Rye, Scarsdale, Bronxville and Larchmont/Mamaroneck markets saw most of the activity. Greenwich and Old Greenwich topped the list for Connecticut locales.

It was reassuring to see the return of the $10 M+ buyer to the region resulting in a particularly dynamic high-end marketplace. As of 9/30, there were 13 transactions in Greenwich for $10 Million or more, and 3 sales in Westchester. Houlihan Lawrence recently closed on two Bedford properties that sold in excess of $10 Million, while our Greenwich office has another pending sale for a $10 Million+ property. Clearly, deep-pocketed buyers are re-discovering the value in some of our region’s greatest estates.

We’ve also seen renewed interest in many of the period homes we are offering for sale. A mainstay of luxury sales in years past, antique homes have not been in vogue recently possibly due to the trend toward new construction. However, today’s period homes have generally been renovated to the highest luxury standards and we are happy to see they are once again attracting buyers.

September was particularly active for properties in our Private Brokerage program and we expect to end the year with our strongest performance in years. This activity reflects the overall luxury market where the substantial increases in pending luxury sales points to an unusually strong 4th Quarter. While the markets we serve do not generally make headlines for their over-the-top prices, we are encouraged by the improvements and expect this steady growth in the luxury market will be sustainable into the coming year.

THIRD QUARTER 2014

EXECUTIVE SUMMARY

Sincerely,

Anthony CutugnoSenior Vice PresidentDirector of Private Brokerage

THE POWER OF LEADERSHIPMeans never standing still. Our team of real estate experts are the top ranked, operating from a regional network of 26 offices, making us the number one selling real estate brokerage in New York City’s northern suburbs.

Building an esteemed network does not happen overnight. We have been developing our powerfulconnections for 125 years. We understand world-wide markets. We have the largest global network with international connections across 6 continents, with partners in 56 countries. Andby integrating smarter data and the newest digital platforms, we continue to stay one step ahead.

Proven and Proving it.

THE FUTURE OF REAL ESTATE SINCE 1888

LUXURY MARKET REPORT3rd QUARTER 2014

Westchester County continues to lead the region registering a 10.9% improvement in Homes Sold and a 17% increase inDollar Volume for the quarterThe Greenwich market also reported healthy quarterly increases and overall registered the most dramatic gains in year-to-date sales vs. 2013Putnam and Dutchess counties continue to experience low demand for luxury properties

WESTCHESTER COUNTY LUXURY HOME SALES | $2M AND HIGHER

  Q32014

Q32013

%CHANGE

YTD2014

YTD2013

%CHANGE

HOMES SOLD 132 119 10.9% 269 241 11.6%

TOTAL DOLLAR VOLUME $433,918,175 $370,906,728 17.0% $839,509,696 $739,798,655 13.5%

MEDIAN SALE PRICE $2,552,000 $2,495,000 2.3% $2,600,000 $2,485,000 4.6%

AVERAGE PRICE PER SQUARE FOOT $588 $564 4.3% $570 $565 0.9%

AVERAGE DAYS ON MARKET 92 130 -29.2% 107 136 -21.3%

% SALE PRICE TO LIST PRICE 96.1% 95.2% 0.9% 95.7% 94.2% 1.6%

GREENWICH, CT LUXURY HOME SALES | $3M AND HIGHER

  Q32014

Q32013

%CHANGE

YTD2014

YTD2013

%CHANGE

UNITS SOLD 41 39 5.1% 127 92 38.0%

TOTAL DOLLAR VOLUME $229,525,023 $202,206,380 13.5% $775,841,776 $458,183,218 69.3%

MEDIAN SALE PRICE $4,600,000 $4,137,500 11.2% $4,150,000 $4,158,000 -0.2%

AVERAGE PRICE PER SQUARE FOOT $874 $707 23.6% $837 $701 19.4%

AVERAGE DAYS ON MARKET 229 220 4.1% 235 245 -4.1%

% SALE PRICE TO LIST PRICE 93.6% 92.7% 1.0% 92.7% 92.8% -0.1%

PUTNAM AND DUTCHESS COUNTY LUXURY HOME SALES | $1M AND HIGHER

  Q32014

Q32013

%CHANGE

YTD2014

YTD2013

%CHANGE

HOMES SOLD 6 13 -53.8% 24 28 -14.3%

TOTAL DOLLAR VOLUME $7,962,300 $27,625,700 -71.2% $39,280,500 $60,506,950 -35.1%

MEDIAN SALE PRICE $1,200,000 $1,350,000 -11.1% $1,337,500 $1,387,500 -3.6%

AVERAGE PRICE PER SQUARE FOOT $280 $424 -34.0% $386 $474 -18.6%

AVERAGE DAYS ON MARKET 203 232 -12.5% 237 241 -1.7%

% SALE PRICE TO LIST PRICE 87.8% 87.4% 0.5% 89.9% 87.6% 2.6%Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service.

LUXURY MARKET REPORT3rd QUARTER 2014

Test

The $3,000,000 to $4,999,999 segment in Westchester was especially active this quarter reflecting a 22% increase vs. ThirdQuarter 2013Super high-end sales surged in both Westchester and Greenwich with year-to-date increases of 200% or more for $10Million+ propertiesThe majority of luxury sales in Putnam and Dutchess counties closed under $2 Million

WESTCHESTER COUNTY LUXURY HOME SALES

  Q32014

Q32013

%CHANGE

YTD2014

YTD2013

%CHANGE

$2,000,000 - $2,999,999 92 81 13% 190 166 14%

$3,000,000 - $4,999,999 27 22 22% 57 49 16%

$5,000,000 - $9,999,999 10 16 -37% 19 25 -24%

$10,000,000 and up 3 0 Not Valid% 3 1 200%

GREENWICH, CT LUXURY HOME SALES

  Q32014

Q32013

%CHANGE

YTD2014

YTD2013

%CHANGE

$3,000,000 - $3,999,999 16 19 -15% 58 42 38%

$4,000,000 - $4,999,999 7 5 40% 26 17 52%

$5,000,000 - $9,999,999 13 12 8% 30 29 3%

$10,000,000 and up 5 3 66% 13 4 225%

PUTNAM AND DUTCHESS COUNTY LUXURY HOME SALES

  Q32014

Q32013

%CHANGE

YTD2014

YTD2013

%CHANGE

$1,000,000 - $1,999,999 5 9 -44% 17 20 -15%

$2,000,000 and up 1 4 -75% 7 8 -12%

Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service

LUXURY MARKET REPORT3rd QUARTER 2014

TOP LUXURY MARKETS

Rye was the most active luxury market for the quarter followed closely by traditional leaders Scarsdale and Greenwich

A country estate in the Conyers Farm enclave of Armonk closed at $27,500,000 representing the highest sale for the quarter

Greenwich, Old Greenwich and Bedford also reported sales for $10 Million or more during Third Quarter

WESTCHESTER COUNTY LUXURY HOME SALES | $2M AND HIGHER

SCHOOL DISTRICT # OF SALES MEDIAN LUXURY SALE PRICE HIGHEST SALE PRICE

RYE CITY 33 $2,938,000 $5,800,000SCARSDALE 31 $2,529,000 $7,200,000BRONXVILLE 14 $2,537,500 $5,233,000MAMARONECK 13 $2,370,000 $7,628,000HARRISON 9 $2,300,000 $3,880,000

GREENWICH, CT LUXURY HOME SALES | $3M AND HIGHER

TOWN/CITY # OF SALES MEDIAN LUXURY SALE PRICE HIGHEST SALE PRICE

GREENWICH 27 $4,900,000 $13,000,000OLD GREENWICH 12 $4,087,500 $13,050,000RIVERSIDE 2 $4,200,000 $4,700,000COS COB 0 $0 $0

PUTNAM AND DUTCHESS COUNTY LUXURY HOME SALES | $1M AND HIGHER

SCHOOL DISTRICT/CITY/TOWN # OF SALES MEDIAN LUXURY SALE PRICE HIGHEST SALE PRICE

RED HOOK 2 $1,143,650 $1,200,000GARRISON 1 $1,125,000 $1,125,000WAPPINGER 1 $1,300,000 $1,300,000RHINEBECK 1 $1,200,000 $1,200,000WASHINGTON 1 $2,050,000 $2,050,000

Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service

LUXURY MARKET REPORT3rd QUARTER 2014

SUPPLY/DEMAND SNAPSHOT

SOUTHERN WESTCHESTER COUNTY LUXURY HOME SALES | $2M AND HIGHER

AS OF SEPTEMBER 30, 2014 AS OF SEPTEMBER 30, 2013 2014 vs. 2013

PRICE RANGESUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

SUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

%CHANGE INLISTINGS

%CHANGE INPENDINGS

$2,000,000 - $2,999,999 120 38 3 112 29 4 7.1% 31.0%

$3,000,000 - $4,999,999 87 15 6 59 12 5 47.5% 25.0%

$5,000,000 - $9,999,999 39 7 6 30 4 8 30.0% 75.0%

$10,000,000 and up 10 1 10 9 0 Not Valid 11.1% 0.0%

NORTHERN WESTCHESTER COUNTY LUXURY HOME SALES | $2M AND HIGHER

AS OF SEPTEMBER 30, 2014 AS OF SEPTEMBER 30, 2013 2014 vs. 2013

PRICE RANGESUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

SUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

%CHANGE INLISTINGS

%CHANGE INPENDINGS

$2,000,000 - $2,999,999 84 11 8 85 11 8 -1.2% 0.0%

$3,000,000 - $4,999,999 54 5 11 41 2 21 31.7% 150.0%

$5,000,000 - $9,999,999 27 1 27 24 3 8 12.5% -66.7%

$10,000,000 and up 10 1 10 12 2 6 -16.7% -50.0%

GREENWICH, CT LUXURY HOME SALES | $3M AND HIGHER

AS OF SEPTEMBER 30, 2014 AS OF SEPTEMBER 30, 2013 2014 vs. 2013

PRICE RANGESUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

SUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

%CHANGE INLISTINGS

%CHANGE INPENDINGS

$3,000,000 - $3,999,999 100 11 9 110 9 12 -9.1% 22.2%

$4,000,000 - $4,999,999 61 7 9 60 4 15 1.7% 75.0%

$5,000,000 - $9,999,999 124 10 12 98 6 16 26.5% 66.7%

$10,000,000 and up       57 1 57 45 7 6 26.7% -85.7%

PUTNAM COUNTY LUXURY HOME SALES | $1M AND HIGHER

AS OF SEPTEMBER 30, 2014 AS OF SEPTEMBER 30, 2013 2014 vs. 2013

PRICE RANGESUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

SUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

%CHANGE INLISTINGS

%CHANGE INPENDINGS

$1,000,000 - $1,999,999 20 2 10 18 1 18 11.1% 100.0%

$2,000,000 and up 16 2 8 13 0 Not Valid 23.1% 0.0%

DUTCHESS COUNTY LUXURY HOME SALES | $1 AND HIGHER

AS OF SEPTEMBER 30, 2014 AS OF SEPTEMBER 30, 2013 2014 vs. 2013

PRICE RANGESUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

SUPPLY:ACTIVELISTINGS

DEMAND:PENDINGSALES

SUPPLY/DEMANDRATIO*

%CHANGE INLISTINGS

%CHANGE INPENDINGS

$1,000,000 - $1,999,999 17 2 9 14 1 14 21.4% 100.0%

$2,000,000 and up 11 1 11 15 1 15 -26.7% 0.0%*Supply Demand Ratio Key   1-4: High Demand   5-6: Balanced   7-9: Low Demand   10+: Very Low Demand

Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service.

LUXURY MARKET REPORT3rd QUARTER 2014

TEN-YEAR MARKET HISTORY

WESTCHESTER COUNTY LUXURY HOME SALES | $2M AND HIGHER

GREENWICH, CT LUXURY HOME SALES | $3M AND HIGHER

Source: Hudson Gateway, Mid-Hudson and Greenwich Multiple Listing Service. *2014 homes sold are annualized based on actual sales year-to-date.

LUXURY MARKET REPORT3rd QUARTER 2014

TEN-YEAR MARKET HISTORY

PUTNAM COUNTY LUXURY HOME SALES | $1M AND HIGHER

DUTCHESS COUNTY LUXURY HOME SALES | $1 AND HIGHER

Source: Hudson Gateway, Mid-Hudson and Greenwich Multiple Listing Service. *2014 homes sold are annualized based on actual sales year-to-date.

WATERFRONT PROPERTIES

Milton Harbor, RyeWEB# MR1087670 $10,900,000

Rye Brokerage 914.967.7680

On Larchmont Harbor, LarchmontWEB# MR903973 $6,999,000

Larchmont Brokerage 914.833.0420

Elegant Waterfront, Riverside CTWEB# MR877804 $14,000,000

Greenwich Brokerage 203.869.0700

GREATEST ESTATES

Skyview, ChappaquaWEB# MR816265 $7,900,000

Chappaqua Brokerage 914.238.4766

Stratton Manor, New RochelleWEB# MR866771 $2,650,000 New Rochelle Brokerage 914.636.6700

Georgian Manor, Greenwich CTWEB# MR1083841 $17,250,000

Greenwich Brokerage 203.869.0700

MODERN ELEGANCE

Wampus Lake, ArmonkWEB# MR1090740 $3,500,000

Armonk Brokerage 914.273.9505

High Meadows, Mount Kisco WEB# MR1080718 $2,895,000

Briarcliff Manor Brokerage 914.762.7200

Orienta Point, MamaroneckWEB# MR1110647 $2,880,000

Larchmont Brokerage 914.833.0420

A SELECTION OF OUR RECENT LUXURY OFFERINGS

LUXURY MARKET REPORT3rd QUARTER 2014

EQUESTRIAN PROPERTIES

Stepwise Farm, Saratoga SpringsWEB# MR782950 Offered at $4,750,000

Millbrook Brokerage 845.677.6161

Pachelbel Farm, Old ChathamWEB# MR1087921 Offered at $3,500,000

Millbrook Brokerage 845.677.6161

Gentleman's Farm, Bedford HillsWEB# MR1079332 Offered at $2,495,000 Bedford/Pound Ridge Brokerage 914.234.9099

COUNTRY RETREATS

Hilltop Paradise, BedfordWEB# MR1091936 Offered at $7,950,000 Bedford/Pound Ridge Brokerage 914.234.9099

Orchard Hill, ChappaquaWEB# MR1108261 Offered at $2,500,000

Chappaqua Brokerage 914.238.4766

Adirondack Lodge, Clinton CornersWEB# MR1104330 Offered at $2,149,000

Millbrook Brokerage 845.677.6161

HISTORIC TREASURES

Killearn Farm, MillbrookWEB# MR857390 Offered at $11,500,000

Millbrook Brokerage 845.677.6161

Brigg's Hollow Farm, Red Hook WEB# MR1105140 Offered at $2,795,000

Millbrook Brokerage 845.677.6161

Willow Pond Farm, PawlingWEB# MR888923 Offered at $1,900,000

Katonah Brokerage 914.232.5007

A SELECTION OF OUR RECENT LUXURY OFFERINGS

LUXURY MARKET REPORT3rd QUARTER 2014

914.234.0308HOULIHANLAWRENCE.COM

HOULI HAN LAWRENCEPRI VATE BROKERAGE

Designed expressly for our region’s most exceptional properties,Houlihan Lawrence Private Brokerage offers discreet advisoryand brokerage services to our valued luxury clients. Since itsinception in 1990, our exclusive luxury program directed bySenior Vice President, Anthony P. Cutugno has earned areputation for personalized boutique-style service andnuanced marketing that best serves the interests of our clientele.Known for our prudence and reliability, Houlihan Lawrencehas worked with many of the area’s most prominent families,charitable trusts, banks and estate trustees in facilitating thesale of the region’s most prestigious properties.

Based on the private banking model, Tony is personally involvedin every transaction offering invaluable insight and advice honedby decades of experience in international trade and luxuryreal estate.

What sets Private Brokerage apart is our ability to leverageHoulihan Lawrence’s vast resources and impressive global partnersto successfully position a property within the internationalmarketplace. With a reach that extends to 6 continents, HoulihanLawrence Private Brokerage understands the world of luxuryand has cultivated relationships with international partnersand high net-worth clients across the globe. These world-classconnections supported by the personal oversight of Tony andhis Private Brokerage team create a powerful combinationthat drives results year-after-year.