ZIPR Ziprealty (MM)

ZipRealty, Inc., www.ziprealty.com, (NASDAQ: ZIPR) today announced the results of its Third Quarter 2008 Housing Market Report, which includes an analysis of actual, not estimated, levels of home inventory and price reductions in nearly 30 U.S. markets as well as a look at "hot and cold" neighborhoods in six major U.S. markets.

Highlights from the ZipRealty Quarterly Market Report, which can be found in full at http://www.ziprealty.com/pdf/2008_3Q_HousingReport.pdf, include:

--  A decrease in inventory, nationally:  At the end of Q3 2008, in the 28
    major metropolitan areas monitored by ZipRealty, the total number of
    single family homes, condominiums and townhouses for sale decreased 9.6
    percent over the same time last year, and 4.4 percent over Q2.
    --  Salt Lake City and Seattle saw the largest year-over-year increases
        in housing inventory  (13.2 percent and 8.8 percent respectively)
    --  Orange County and Las Vegas saw the largest year-over-year
        decreases in inventory (28.9 percent and 23.7 percent respectively)

--  Price reductions continued to increase, but at a slower pace than
    previous quarters;
    --  In the markets monitored by ZipRealty, the number of homes with at
        least one price reduction continued to rise in the third quarter,
        but the growth rate has flattened.
        --  In the markets which ZipRealty monitors, 45.2 percent of homes
            on the market were price reductions, compared with 43.2 percent
            in the second quarter 2008 and 41.4 percent in the first
            quarter 2008.
        --  Markets which had the highest percentage of price reductions
            included Tucson (49.1 percent), Orange County (49.0 percent)
            and Las Vegas, Boston and Orlando (48.9 percent).
        --  Miami saw the largest year-over-year increase in the
            percentage of homes that were price reductions with 48.4
            percent in 2008, up from 38.1 percent in 2007, a 27.1 percent
            change from the previous year.

--  "Hot and Cold" neighborhoods in Boston, Chicago, Los Angeles, San
    Francisco, Seattle and Washington, D.C.
    --  Out of six markets reviewed (Los Angeles, San Francisco Bay Area,
        Chicago, Boston, Washington, D.C. and Seattle), several zip codes
        have homes selling on average for over list price:
        --  Near South Side (60605) in Chicago
        --  Berkeley (94703 and 94702), Inner Mission (94110) and Albany
            (94706) in San Francisco
        --  Long Beach (90805) in the Los Angeles area.
    --  Within the same markets, the following zip codes have the highest
        proportion of homes selling below asking price:
        --  Harvard (60617), New City (60609), and South Chicago (60617)
            in Chicago
        --  Belfair (98528) in Seattle

"Unlike other reports, ZipRealty's Quarterly Housing Report looks at actual levels of inventory and price reductions in nearly 30 U.S. markets, as well as hot and cold neighborhoods in six of the largest markets," explains ZipRealty vice president Leslie Tyler. "The results of the report show a wide variance in inventory and price reductions by market. Some markets have had minimal increases in inventory and price reductions, while others have had double-digit increases in both, perhaps signifying that some markets are leveling out while others are just beginning to crash. What's interesting is that we're finding hot and cold neighborhoods in all cities regardless of what it looks like on a macro level."

ZipRealty also surveyed its buyers and sellers regarding their expectations of their local housing markets. Perceptions of the market varied by region and by the respondent's position in the market (i.e. buyer or seller).

--  Buyers think home prices will continue to decline, sellers are more
    optimistic
    --  61 percent of buyers and 40 percent of sellers anticipate declines
        in home prices over the next six months

--  Sellers have become increasingly pessimistic since Q1 2008
    --  30 percent of sellers think the decline will last a year or less,
        compared to 42 percent in Q1
    --  16 percent of sellers think the decline will last 3 or more years,
        compared to 9 percent in Q1

--  Buyers' perceptions of the market have remained relatively flat since
    Q1 2008
    --  43 percent of buyers think the decline will last a year or less,
        compared to 42 percent in Q1
    --  14 percent of buyers think the decline will last 3 or more years,
        compared to 12 percent in Q1

--  Buyers and sellers in Southern California, parts of Florida, Boston and
    Long Island expect further declines in home prices while buyers and
    sellers in Texas, Baltimore, Richmond and Charlotte were more
    optimistic
    --  More than 80 percent of the respondents in Los Angeles and San
        Fernando Valley and 78 percent of the respondents in San Gabriel
        Valley and Inland Empire expect further declines in home prices
    --  37 percent of the respondents in Houston and 41 percent of the
        respondents in Dallas expect further declines in home prices

"The results of our Market Perception Survey revealed that people actively engaged in buying or selling a home remained relatively pessimistic about the housing market," said Tyler. "Whether they're living inland or along the coast or whether buying or selling a home, Americans generally think that the market isn't going to repair itself soon or quickly."

About the Report http://www.ziprealty.com/pdf/2008_3Q_HousingReport.pdf

Each quarter, ZipRealty pulls real estate data from the Multiple Listing Services offered in 29 of the 35 major U.S. metropolitan areas in which the real estate brokerage operates. The data pulled and cited within this report is for the third quarter of 2008, beginning July 1 and through Sept. 30. The metropolitan areas ZipRealty cites as part of its monthly report are defined by the brokerage, and may differ from standard DMAs.

The Market Perception survey was conducted online by ZipRealty between September 17, 2008 and October 13, 2008. The sample size was 3,348 buyer and 568 seller respondents, all of whom are registered and active clients on ZipRealty.com. Survey results have an approximately 2 percent margin of error at a 99 percent confidence level. 67 percent of respondents indicated they were likely or very likely to purchase a home within the next 12 months.

About ZipRealty, Inc.

ZipRealty is a full-service residential real estate brokerage firm. The Company utilizes its user-friendly Web site and employee real estate agents to provide home buyers and sellers with high-quality service and value. ZipRealty's Web site provides users with access to comprehensive local Multiple Listing Services' home listings data, as well as other relevant market and neighborhood information. The Company's proprietary business management system and technology platform help to reduce costs, allowing the Company to pass on significant savings to consumers. Founded in 1999, the company operates in 35 major markets in 20 states and the District of Columbia. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP.

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