C.A.R. REPORTS HOME SALES DECREASED 21.4 PERCENT IN APRIL
The median price of an existing single-family home in California increased 10.2 percent in April and sales decreased 21.4 percent compared with the same period a year ago, C.A.R. recently reported. "Sales fell this year compared with April 2005 when they hit the second-highest monthly pace on record. Concerns about the likelihood of future interest rate increases continue to influence the market," said C.A.R. President Vince Malta. "While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for fixed-rate mortgages, and August 2001 for adjustable-rate mortgages."

According to the report, the median price of an existing, single-family detached home in California during April 2006 was $562,380, a 10.2 percent increase over the revised $510,400 median for April 2005. The April 2006 median price was essentially unchanged compared with March's revised $562,630 median price. Also in April, closed escrow sales of existing, single-family detached homes in California totaled 516,960, down 21.4 percent compared with the sales pace recorded one year earlier and down 4.1 percent from home resale activity in March.

6/05/06

DO YOU KNOW YOU CAN OPEN A PRIVATE ANNUITY TRUST INSTEAD OF PERFORMING 1031 EXCHANGE FOR YOUR INVESTMENT PROPERTY? WHY DON'T YOU CALL ME, I CAN GIVE YOU ALL OF THE INFORMATION REGARDING YOUR ALTERNATIVE TO 1031 EXCHANGE. CALL ME ON MY CELL: (310) 625-0773

This week

11/10/2005 Calif. median home price - Sept. 05: $543,980 (Source: C.A.R.)
Calif. affordability index - Aug. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Sept. 05: Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Sept. 05: High Desert $312,410 (Source: C.A.R.)
Mortgage rates - week ending 11/3: 30-yr. fixed: 6.31%; Fees/points: 0.5% 15-yr. fixed: 5.85%; Fees/points: 0.5% 1-yr. adjustable: 5.09%; Fees/points: 0.5% (Source: Freddie Mac)

C.A.R. MID-YEAR HOUSING MARKET FORECAST: RECORD SALES IN 2005
Existing single-family home sales will reach a record 633,490 units in 2005, a 1.4 percent increase from the previous year's record pace of 624,740 units, according to C.A.R.'s mid-year market forecast. The median price also will hit a record $523,150 this year, increasing 16 percent from 2004's record $450,990. C.A.R. also projected that the state's Housing Affordability Index in 2005 will decline to 16 percent, compared with 20 percent last year.

CONSUMER CONFIDENCE IMPROVES IN AUGUST
Consumer confidence rebounded in August, following a decline the previous month, according to The Conference Board's Consumer Confidence Index. The Index rose two points in August and now stands at 105.6 (1985=100). The Present Situation and Expectations Indices also increased, climbing to 123.6 and 93.7, respectively.

According to The Conference Board's report, the Present Situation Index has reached its highest level in four years, suggesting that consumers are confident in the current state of the economy. In August, the proportion of consumers claiming jobs are plentiful outnumbered those who claim jobs are hard to get. Additionally, the percentage of consumers anticipating their incomes to increase in the months ahead improved to 19.8 percent from 18.6 percent the previous month.

STUDY FINDS CALIFORNIA HOMES ARE NATION'S LEAST AFFORDABLE
California is the least affordable state for housing, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) for the second quarter of 2005. Eight of the 10 least affordable housing markets with populations of 500,000 or more are in California, while nine out of the 10 least affordable areas with populations under 500,000 are in the Golden State. Leading the list of least affordable communities among large metropolitan areas is the Los Angeles-Long Beach-Glendale area, where less than 5 percent of the homes sold were affordable to families earning the median household income of $54,500. Among small metropolitan areas, Santa Barbara-Santa Maria tops the least affordable list, according to the index.

Buffalo-Niagara Falls, N.Y., where 89.5 percent of homes sold during the second quarter were affordable to families earning the area's median income of $57,000, is the nation's most affordable housing market. According to the HOI, the most affordable housing markets by region were: Pueblo, Colo., in the West; Mansfield, Ohio, in the Midwest; Cumberland, Md., in the South; and Buffalo-Niagara Falls in the Northeast.

RATE OF CONSTRUCTION SPENDING CONTINUES TO GROW
The annual pace of construction spending topped $1 trillion for the 12th consecutive month in June 2005, rising 7.9 percent to a seasonally adjusted annual rate of $1.09 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $514.8 billion during the first half of the year, a 9.3 percent increase over the $471.0 billion spent during the same period in 2004.

Spending on residential construction in June 2005 increased 9.0 percent over the previous year to reach a rate of $609.1 billion. The value of nonresidential construction put into place in June rose 6.5 percent to a rate of $483.9 billion, according to the report.