San Francisco – August 14, 2006—Single-family homes in the San Francisco Bay Area appreciated at an annualized rate of 7.2% during the second quarter of 2006 – slightly off from the pace of the past year, and half the pace of the past five years, according to the findings of Zillow.com’s first quarterly home values report. The values of both single-family homes and condominiums in the San Francisco Bay Area (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano and Sonoma Counties) continued to grow in the quarter that ended in June, but single-family homes appreciated at about half of the annualized rate for the past five years as measured by Zillow.com’s Zindex™ home value indicator. The Zindex is a measure of the median value of all homes in the area (not just those that sold). The annualized rate of condo appreciation also showed a softening as measured by the Zindex for the quarter. The annualized appreciation for condos from April through June was about a quarter of the annualized appreciation rates of the past five years. The Zindex for all single-family homes in the San Francisco Bay Area was $726,607 in June 2006, while the condo Zindex stood at $528,783 (note these figures are for the multi-county area). “Bay Area residential real estate is definitely showing signs of catching its breath in this past quarter, although home value growth is still healthy, particularly when compared to U.S. averages,