Here is an article from another industry expert ...

Real estate prices won't decline substantially

Friday, June 23, 2006

By Glenn Roberts Jr.
Inman News

SAN FRANCISCO -- Unless there are substantial job losses, the real estate market appears on track for a soft landing, said economists for University of Southern California's Lusk Center for Real Estate.

"We don't believe the housing market is going to fall off a cliff. We don't really subscribe to the hard-landing story," said Stuart Gabriel, Lusk Center director, during a presentation this week at the annual PCBC event, a conference for home builders held at San Francisco's Moscone Center.

This is, however, a time of "stagflation," or economic stagnation coupled with inflation, Gabriel said, and the real estate market is losing steam -- with a general slowing in price-appreciation and sales.

Higher interest rates and energy costs, and reduced refinancing activity are also taking a toll on consumer spending, which has sunk from about 3.9 percent in 2004 to a current level of about 3 percent.

Despite this, Gabriel said it's unlikely that there will be a major shrinkage in house prices, given the strength of employment numbers. Interest rates, though marching up, are not high by historic standards, he said.

The situation was a lot different in the early 1990s, when job losses contributed to a major downturn in the real estate market. Gabriel said that the impact of job losses in the aerospace sector hit Southern California's real estate market hard during that period.

"Barring that sort of event we don't expect significant falloff in house prices," he said.

Likewise, job losses in the construction and real estate-related industries during this slowing period should not cripple the housing industry, said Raphael Bostic, director of the Master of Real Estate Development program at USC and a Lusk Center expert.

Gabriel's forecast calls for the economy to slow to a 3 percent to 3.5 percent rate of real gross domestic product growth for the remainder of the year after a rate of about 5 percent in the first quarter.

Delores Conway, director of USC's Casden Real Estate Economics Forecast who also participated in the presentation, said that in California, rising home prices appear to be driving more housing activity to central areas.

"The population is shifting in California more toward the center of the state, where we tend to have more affordable housing," she said.

Some major markets in the state, such as Los Angeles, are still seeing high levels of price appreciation, though sales activity is down from a peak. "The number of sales has declined very significantly in all the cities," she said.

The apartment market, meanwhile, has rebounded in some areas as shrinking housing affordability has diminished the pool of potential home buyers.

"People are in some sense being priced out of the market," she said, while there are year-to-year rental increases of 7 percent to 10 percent in some Southern California markets.

USC economists noted that condo markets -- particularly in formerly frenzied areas such as San Diego and Las Vegas -- might be the most vulnerable to changing market conditions.

Conway said that some proposed condo projects will actually be built out as apartments because unit sales fell short of expectations. "This is particularly true in San Diego, which has been a bit of a bellwether and a bit of a leading indicator for the rest of the cities," she said.

There is no evidence of price declines in any California markets at this point, though, "If we do see price declines, where we would probably look for them first is in the condo markets," Conway said.

Bostic said, "I've been concerned about downtown San Diego for a long time, particularly in the condo market." He also said the luxury real estate market may feel the weight of the housing slowdown more than the general market.

But he said he is generally bullish on the housing sector, and he noted that the Lusk Center is not predicting a recession.

"I don't think price declines are likely at all, absent significant job loss," he said.

As available land dwindles and housing affordability worsens in California, Gabriel said he expects that buyers will increasingly gravitate toward multi-family dwellings.

Regulators have turned their attention to the popularity of unconventional home loan products and the risk that such products could pose, though the Lusk Center experts said they expect the use of such products will not have a substantial negative effect on the housing market.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's an article about the dangers of pricing your home too high ...

How to tell if you're asking too much

Monday, June 19, 2006

By Dian Hymer
Inman News

In March, a home seller in Oakland put his home on the market and listed it for $925,000, which was above the price his agent recommended. The house, a charming Mediterranean, was newly painted inside and out. It was decorator perfect.

The listing was well received at the agent and public open houses. But, at the end of the first week on the market, the listing agent hadn't received a single inquiry.

The listing was located in a desirable neighborhood. It showed well. And it had a lovely setting. Furthermore, well-priced listings in the area were still selling quickly.

Although the listing was relatively new on the market, the listing agent recommended that the seller reduce the asking price to $875,000. The seller agreed. Within the next week the showing activity picked up dramatically. Three offers were made and the listing sold for over $900,000.

In this case, it was easy to figure out that the listing was priced too high for the market. When listings like yours are selling and yours isn't, it's usually because of the price.

A home seller in Rocklin, Calif., put her house on the market at the beginning of April. During the first three weeks on the market, only one buyer came to see the house. On the surface, it might appear that the price was too high. But, the seeming lack of interest might have been due to local market conditions.

Unlike the Oakland property that is located in a relatively low-inventory market, Rocklin is a high-inventory market. This means there is more competition from other sellers. Buyers have more listings to choose from, so they can afford to be picky.

HOME SELLER TIP: To determine whether your home is priced right in a high-inventory market requires a bit of investigation. First, make sure that your listing has been properly exposed to the market. Minimally, it should be on the Multiple Listing Service (MLS), on the Internet with a photo tour, and it should be held open for local real estate agents.

Then find out how many homes like yours are on the market in your area. Ask your agent to call the listing agents who are handling your competitor's listings to find out if these homes are being shown and how frequently. Have any of the listing like yours sold since you put your home on the market? In general, how long is it taking to sell homes like yours? Then take a good look at the price of your home in relationship to the competition.

If there haven't been any recent sales and listings are taking months to sell, you may need to adjust your expectations about how long it will take to sell your home. However, if other listings are selling, or are at least being actively shown, and your list price is higher than the others, lower your price.

The time to make a price adjustment is when you discover that it's too high, even if this is soon after the property is listed. Staying on the market too long at a high price is risky. If the market softens further, you could end up having to make a bigger price adjustment later.

A minor price reduction is likely to result in a modest response. In order to make a positive impact, reduce your list price enough so that your list price is at or below the level of your competitors whose listings are being shown and sold.

THE CLOSING: If your home has an incurable defect, like a location on a busy street, you might need to make a bigger price concession. In a low-inventory market, buyers will overlook such defects. In a high-inventory market, they are less forgiving.

Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's an article about the ballooning size of homes ...

Big homes, big lots gaining popularity with new-home buyers

Friday, June 16, 2006

By Glenn Roberts Jr.
Inman News

Large lot sizes and big houses are still gaining in popularity among buyers of new homes, according to the latest U.S. Census Bureau data on housing characteristics.

The "Characteristics of New Housing" report, released this month, found that the average size of a new single-family U.S. home sold last year grew 2 percent since 2004, to 2,414 square feet.

The median square footage grew 3 percent from 2004 to 2005.

The average square footage of new homes sold last year dropped 0.3 percent compared to 2004 in the Northeast region but grew 4.3 percent in the West, 2.1 percent in the Midwest and 1 percent in the South.

There was a 1 percent rise from 2004 to 2005 in the share of new single-family homes sold with lot sizes of 22,000 square feet (about one-half acre) or more, a 1 percent increase in the share of homes sold on lots between 11,000 square feet to 21,999 square feet, and another 1 percent gain in the share of sold homes built on lots of 9,000 square feet to 10,999 square feet.

Prices are rising, too. The average sales price of new single-family homes last year increased 8.2 percent compared to 2004, rising from $274,500 to $297,000. The median price, meanwhile, increased 9 percent, from $221,000 to $240,900.

In the West region, the average sales price increased 14.3 percent, from $340,000 in 2004 to $388,700 in 2005. The average price jumped 8.4 percent in the Northeast ($366,100 to $397,000), 7 percent in the South ($232,800 to $249,200) and 3.7 percent in the Midwest (from $240,800 to $249,800) from 2004 to 2005.

The average price per square foot for a new home sold in 2005 reached $90.63, a 6.5 percent gain since 2004. The highest regional gain, at 11.9 percent (from $102.26 in 2004 to $114.45 in 2005) was in the West. The South followed with a 7.5 percent rise ($72.50 in 2004 to $77.96 in 2005), the Northeast had a 6.9 percent gain ($106.92 in 2004 to $114.28 in 2005), and the Midwest had a 2.1 percent gain ($86.82 in 2004 to $88.64 in 2004).

About 12 percent of new single-family homes sold in 2005 were on lots measuring 22,000 square feet or more, with 21 percent on lots between 11,000 square feet to 21,999 square feet, 16 percent on lots 9,000 square feet to 10,999 square feet, 19 percent on lots 7,000 to 8,999 square feet and 33 percent on lots under 7,000 square feet.

Within metro areas, 34 percent of homes sold in 2005 were built on lots of 7,000 square feet or less and 11 percent were built on lots of 22,000 square feet or more. Outside metro areas, 13 percent of homes sold in 2005 were built on lots of 7,000 square feet or less while one-quarter were built on lots of 22,000 square feet or more.

In the Northeast region, about 37 percent of sold homes in 2005 were built on lots of 22,000 square feet or more – a 4 percent gain from 2004. In the Midwest, meanwhile, the share of homes sold on lots of 22,000 square feet or more dropped from 14 percent in 2004 to 10 percent in 2005.

Also, the report revealed a 1 percent increase from 2004 to 2005 in the share of sold single-family homes measuring 3,000 square feet or more, and a 1 percent gain in the share of sold homes from 2,400 square feet to 2,999 square feet.

About 24 percent of single-family homes sold within metro areas in 2005 had 3,000 square feet or more of space, compared with 22 percent in 2004. Outside of metro areas, there was a downsizing trend in the category of super-sized homes: The number of single-family homes sold with 3,000 square feet or more of space dropped from 8 percent in 2004 to 7 percent in 2005.

In the Northeast region, the share of single-family homes sized 1,200-1,599 square feet increased from 9 percent in 2004 to 13 percent in 2005, while the share of homes measuring 2,000 square feet or more dropped during that period. In the West, meanwhile, the share of homes less than 2,000 square feet fell from 44 percent in 2004 to 38 percent in 2005 while the share of homes measuring 2,000 square feet or more grew from 56 percent in 2004 to 62 percent in 2005.

About 25 percent of all new houses sold in 2005 had three or more bathrooms, compared with 24 percent in 2004. About 36 percent of homes had 2.5 bathrooms, 36 percent had 2 bathrooms, and 3 percent had 1.5 or fewer bathrooms.

The share of new homes sold that had three bedrooms dropped from 49 percent to 48 percent from 2004 to 2005. About 42 percent of new homes sold in 2005 had four bedrooms and 10 percent had two or fewer bedrooms – these categories were unchanged from 2004.

The share of new homes sold that have four or more bedrooms has been gaining since 1981, when about 19 percent of all new homes sold had four or more bedrooms.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's a column about strategies for selling a home ...

Buyer agents need incentive to show listing

Friday, June 09, 2006

By Robert J. Bruss
Inman News

A few days ago I received an e-mail from a very smart reader. I know he is smart because his e-mail address says "post.harvard.edu," which presumably means he graduated from prestigious Harvard University.

He asked if real estate listing agents would reduce their customary sales commission rate for expensive homes. Then he gave an example of a $1 million house sale, which, he says, doesn't include much more work for the listing agent than selling a less expensive home.

My reply noted some successful realty agents would reduce their sales commissions on expensive homes. But the big drawback of reducing the commission rate, I hastened to add, is many local multiple listing service (MLS) buyer agent members will choose to show a home with a low commission rate last to their prospective buyers.

According to the respected "Real Trends" Web site, the national home sales commission rate is now about 5.1 percent. However, this survey was taken during the recent home-sale boom during which virtually any realistically priced home sold easily. Today, with a glut of new home listings in most communities, the situation is rapidly changing.

When higher sales commissions pay off

During a recent Midwest trip, I encountered a longtime, very successful real estate sales agent friend. As I usually do, I asked her, "How's the home sales market?"

She then informed me she currently has too many listings and not enough buyers.

"So I had to increase my sales commission rate," she said, shocking me.

By that, she meant she now encourages her home sellers to offer 7 percent sales commissions rather than the 6 percent rate, which is customary in her community. The result is, she reports, buyer's agents show her listings first because of the higher commission.

"When I really get desperate to sell a listing before it expires," she revealed, she includes an incentive trip to Hawaii for two to the buyer's agent who sells the home.

"A trip to the Caribbean or Mexico just doesn't work any more," she added.

Drawbacks of reducing sales commissions

Except in a very "hot market" where there is a shortage of home-sale listings, most home sellers don't understand the big drawbacks of getting their listing agent to reduce the sales commission.

Yes, there are a few successful "discount brokers" who offer reduced sales commissions from the customary local sales commission rate. But the big problem for home sellers listing with discount brokers is these lower sales commissions don't encourage cooperation from buyer's agents who are often reluctant to show low-commission listings unless there is nothing else to show to their buyers.

How home sales commission are split

Most home sellers don't fully understand how home-sale listing commissions are split. But they think real estate agents are grossly overpaid for very little work, especially if the home sells quickly within a few days because it was realistically listed at its market value.

In a typical home sale, four parties split the sales commission. They are the listing broker, the listing sales agent who works for that broker, the selling broker, and the "buyer's agent," who works for that selling broker.

Although each situation is different, depending on the listing terms, each of the four parties will usually receive 25 percent of the gross commission.

For example, suppose a condo sells for $100,000 with a 6 percent sales commission of $6,000. That commission is usually split 50-50 between the listing brokerage and the selling brokerage. However, this split might be 4 percent to the listing agent and 2 percent to the selling agent, or vice versa, depending on local market conditions.

Presuming a 50-50 split, the listing brokerage receives $3,000 and the selling brokerage earns $3,000. Of those amounts, the brokerage then splits its share with the listing or selling agent.

The lowest split is half to the listing or selling agent, but often higher. That means the listing or selling agent earns at least $1,500 in this example.

Most home sellers (and buyers) don't understand their agent might take home as little as 1.5 percent of a typical 6 percent gross sales commission.

The only two times home sellers should negotiate sales commissions

Based on my 39 years as a real estate broker, there are only two times a home seller should consider negotiating a reduced sales commission from the customary local "going rate."

The first circumstance occurs when the home's market value is far above typical home sale prices in the community. To illustrate, if you are selling a $1 million house in a town where the average home sells for $300,000, the successful realty agents you interview about listing your home for sale should offer a reduced sales commission without your even asking.

In other words, the higher the home-sale market value, the more negotiable the sales commission becomes.

The second circumstance occurs after you interview several successful local realty sales agents, and list with the best agent at the asking price suggested by that agent. However, after exposure to the local home sales market at least 30 days, if that agent produces a purchase offer substantially below the recommended asking price, that is the time to discuss a "commission reduction" if you accept the buyer's offer.

CONCLUSION: Real estate sales commissions are negotiable between the home seller and listing agent. But home sellers who negotiate an up-front, reduced sales commission with their listing agent often cut the vital incentive for buyer's agents to show and sell their home. For this reason, home sellers should be extremely cautious about reducing buyer's agent incentives at the time of listing their home for sale.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Southern California real estate foreclosures escalate

Thursday, June 08, 2006

Inman News

The number of foreclosures have jumped 29 percent in Southern California since January 2006, according to Default Research, a real estate research company based in Pennsylvania.

Riverside County had the highest increase of 56.5 percent, followed by San Diego County at 49 percent and Los Angeles at 16.2 percent.

"The real estate bubble continues to deflate in Southern California," Serdar Bankaci, president and CEO of Default Research Inc., said in a statement. "This is not surprising at all because home prices are leveling off."

About 76 percent of the foreclosure activity involved single-family homes, while 12 percent were condominiums and 4 percent were duplexes and triplexes, the company reported.

Job growth in May was the lowest it had been since October 2005, Bankaci also noted.

"Combine that statistic with the rising interest rates, and you see that the average family suffered financially two times, putting a tremendous strain on families already stretched to the max."

Default Research was founded in January 2004. The company offers pre-foreclosure information to clients, including home buyers, real estate investors, agents, lenders and consumer credit counseling services. The company tracks pre-foreclosure documents including notice of default, notice of trustee sale and lis pendens that are recorded at county clerks' offices.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's an article about national real estate forecasts ...

Real estate sales, price increases to fall in '06

Tuesday, June 06, 2006

Inman News

Existing-home sales are projected to drop 6.8 percent this year to 6.6 million, down from a record 7.08 million in 2005, according to the latest National Association of Realtors forecast.

That is down slightly from the group's previous forecast for the year, which called for a 6.4 percent drop in existing-home sales this year.

The association has also lowered its expectations for new-home sales, which are forecast to fall 13.4 percent this year to 1.11 million from a record 1.28 million in 2005. In May, the association had projected that annual new-home sales would drop 11.6 percent for the year.

Housing starts are likely to decline 6.2 percent to 1.94 million in 2006 compared with 2.07 million last year.

The 30-year fixed-rate mortgage should average 6.9 percent during the second half of the year, and the unemployment rate is expected to average 4.8 percent in 2006.

The national median existing-home price for all housing types is forecast to rise 5.3 percent this year to $231,300. With more construction in 2006 taking place in lower cost housing markets, the median new-home price is projected to increase 0.8 percent to $242,900.

In its previous forecast for 2006, the association projected that the median existing-home price would rise 5.7 percent this year while the new-home price would rise 2.2 percent.

Inflation, as measured by the Consumer Price Index, is seen at 3.1 percent in 2006, compared with 3.4 percent last year. Growth in the U.S. gross domestic product is likely to be 3.4 percent this year. Inflation-adjusted disposable personal income should grow 3.1 percent this year.

David Lereah, NAR's chief economist, said in a statement, "Now the housing market has cooled, but 2006 is still expected to be the third strongest on record. In this case, experiencing a slowing from a hot market is a good thing … slower appreciation will help to preserve long-term affordability."

Historically, home prices rise 1.5 to 2 percentage points faster than the rate of inflation, Lereah said.

He called upon the Federal Reserve Board to halt further hikes in the federal funds rate to protect some markets. "This is a time for the Fed to pause on rate hikes because we have some interest-sensitive housing markets that have become vulnerable."

Thomas M. Stevens, NAR president and senior vice president of NRT Inc., said in a statement, "Broadly speaking, rising inventories have taken the pressure off of unsustainable home-price growth. For most of the nation, this means future home-price gains will be much closer to the normal returns we expect from housing."

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's an article about the perils of selling For Sale By Owner ...

Critics say massive price reduction is inevitable

Monday, June 05, 2006

By Dian Hymer
Inman News

Most homeowners who attempt to sell without using a real estate agent do so in order to save the commission. In other words, the impetus to sell without an agent is to net more money from the sale. The irony is that the median price of for-sale-by-owner (FSBO) homes in 2004 was 15.4 percent less than the median price for home sales where an agent was involved.

One risk of selling without an agent is that you sell too low. FSBOs tend to attract buyers who are looking for a bargain. Like FSBO sellers, FSBO buyers want to save money by paying less. The FSBO seller hopes to save the cost of the commission; so does the buyer. Unless the asking price is clearly below market value, a FSBO buyer is likely to think he can negotiate an even lower price because there are no agents that need to be paid.

Another factor contributing to the lower sale price of FSBO properties is that many sell before they even hit the market. The National Association of Realtors (NAR) reported that approximately 17 percent of FSBO sellers sold to a relative, friend or neighbor. Nine percent sold to a buyer who contacted the seller directly.

Maximum exposure is the way to ensure that you sell for the best possible price. Multiple offers and higher sale prices are the result of exposing the property to multiple buyers, not simply to a friend or neighbor.

A big problem for FSBO sellers is determining what price to ask. If you don't know how much to ask, it's understandable that you might inadvertently leave money on the table by selling too low to the first buyer who expresses serious interest.

HOME SELLER TIP: You may be able to find out what price you should ask by interviewing potential listing agents. However, if you don't expose the property, you'll never know if you could have sold for more on the open market.

There are certainly reasons why you might choose not to openly market a property, even though it means accepting less money at closing. One couple sold to a neighbor in a direct sale that netted them approximately $200,000 less that they could have received on the open market. But, health and timing considerations made this an acceptable deal.

Most sellers, however, won't want to give up a significant profit just to avoid having to pay an agent. In fact, according to the NAR, the number of sellers choosing to sell without an agent has decreased in recent years from 18 percent in 1997 to 14 percent in 2004.

FSBO sellers take on other risks. The cost of a commission could be minimal compared to the risk a seller might take for failing to fulfill disclosure and compliance obligations. Disclosure requirements vary from state to state. If you do decide to sell without using an agent, be sure to hire a knowledgeable real estate attorney to help you abide by mandatory disclosure requirements.

Another risk of selling without an agent is that many direct sale transactions never close. Some deals fall apart because the buyers aren't properly qualified for financing before they enter into a purchase contract. A good real estate agent will make sure that you don't accept an offer from a buyer who isn't qualified. Prequalification and preapproval can be accomplished quickly if you know who to call for assistance and when it's appropriate to do so.

Another reason why many FSBO deals collapse is that there's no one with experience working to move the transaction along and resolve problems when they arise. This often involves negotiations.

THE CLOSING: It can be difficult for sellers to negotiate face-to-face with a buyer.

Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's an article about the current local real estate market ...

C.A.R. reports median price of a home in California at $562,380 in April, up 10.2 percent from year ago; sales decrease 21.4 percent

California Association of Realtors

LOS ANGELES – The median price of an existing home in California increased 10.2 percent in April and sales decreased 21.4 percent compared with the same period a year ago, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 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.”

Closed escrow sales of existing, single-family detached homes in California totaled 516,960 in April at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 21.4 percent from the 658,060 sales pace recorded in April 2005.

The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

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, C.A.R. reported. The April 2006 median price was essentially unchanged compared with March’s revised $562,630 median price.

“At 10.2 percent in April, we’re seeing price appreciation trend toward a more sustainable rate for the California housing market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Increased inventory levels are moderating the rate of price appreciation, but are still below what we experience in a more traditional market when the long-term supply of unsold inventory is about 7 months.”

In Riverside County, prices in April increased to $405,000 from $370,000 the previous year, a 9.5 percent hike. In the city of Riverside, the median price increase to $419,000 from $360,000 (up 16.4 percent); Corona prices hit $530,000, up from $490,000 (8.2 percent); and in Moreno Valley, prices reached $370,000 from $322,000, a 14.9 percent increase.

In the Orangecrest neighborhood of Riverside, median prices increased to $540,000, an 18.7 percent increase from the previous year.

Highlights of C.A.R.’s resale housing figures for April 2006:

-- C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in April 2006 was 5.6 months, compared with 2.4 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

-- Thirty-year fixed mortgage interest rates averaged 6.51 percent during April 2006, compared with 5.86 percent in April 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.62 percent in April 2006 compared with 4.25 percent in April 2005.

-- The median number of days it took to sell a single-family home was 42 days in April 2006, compared with 28 days (revised) for the same period a year ago.

Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 84.5 percent, or 339 out of 401 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/index.php?id=MzYyOTc.

-- Statewide, the 10 cities and communities with the highest median home prices in California during April 2006 were: Manhattan Beach, $1,685,000; Burlingame, $1,600,000; Los Altos, $1,557,500; Newport Beach, $1,445,000; Saratoga, $1,407,500; Santa Barbara, $1,250,000; Lafayette, $1,112,500; Mill Valley, $1,068,750; Santa Monica, $1,020,000; Danville, $1,019,500.

-- Statewide, the 10 cities and communities with the greatest median home price increases in April 2006 compared with the same period a year ago were: Barstow, 60.9 percent; Delano, 56.3 percent; Taft, 53.8 percent; Lake Forest, 44.7 percent; Merced, 38.5 percent; Ridgecrest, 37.1 percent; Inglewood, 33.5 percent; California City, 32.7 percent; Indio, 30.4 percent; Banning, 30.4 percent; Burlingame, 30.1 percent.

The California Association of Realtors (www.car.org) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula