Lake Tahoe Real Estate - Northstar

REAL ESTATE CONSTRUCTION SPENDING LEVELS OFF IN OCTOBER Construction spending during October was estimated at a seasonally adjusted annual rate of $1,009.4 billion, nearly the same as the revised September estimate of $1,009 billion, the U.S. Census Bureau announced last week. The October figure represents an increase of 7.1 percent compared with the October 2003 estimate of $942.2 billion and was the third straight month where the projected rate of spending exceeded $1 trillion. The report also estimated spending on private construction, including residential and non-residential conduction, at a seasonally adjusted annual rate of $773.4 billion, 0.3 percent below the revised September estimate of $776 billion. Spending on public construction was estimated at a seasonally adjusted annual rate of $236.4 billion.

CALIFORNIA HOUSEHOLDS FALL SHORT IN INCOME NEEDED TO PURCHASE HOME With a median household income of $52,940, California households are $55,370 short of the $108,310 qualifying income needed to purchase a median-priced home at $462,510 in California, according to the C.A.R. Homebuyer Income Gap Index™ (HIGI) report for the third quarter of 2004. The HIGI™ is a quarterly analysis of the difference between the median household income and the qualifying income needed to purchase a median-priced, single-family home for the state and for select regions within the state. The HIGI™ for California increased 47.9 percent during the third quarter of 2004 compared to the third quarter of 2003, when the gap stood at $37,440, the median household income was $51,630, and qualifying income needed to purchase a median-priced home at $385,720 was $89,070. According to the report, potential homebuyers in the Central Valley had the smallest income gap at $27,030, while potential homebuyers in the San Francisco Bay Area face the highest income gap in the state: $82,910.

CALIFORNIA LUXURY HOME VALUES INCREASE The value of luxury homes in Los Angeles and San Diego posted record highs in the third quarter of 2004, while San Francisco values rose 13 percent compared to one year ago, according to the First Republic Prestige Home Index™. The Index, which tracks homes valued at more than $1 million in key California markets, found that Los Angeles and San Diego values jumped 27.2 percent and 22.4 percent, respectively, from the third quarter of 2003, the largest year-over-year increases recorded by the Index for the two areas. The average luxury home in Los Angeles is now valued at $1.95 million, up $417,000 from a year ago, while San Diego luxury home values averaged $1.86 million, up $340,000 from a year ago. San Francisco Bay Area values declined 0.5 percent from the second quarter of 2004, but were up 13.4 percent compared with a year ago. The average luxury home in the Bay Area is now valued at $2.53 million, slightly below the record set in the second quarter of 2004.

LOAN APPLICATIONS INCREASE 3.4 PERCENT The Market Composite Index of mortgage loan applications, a measure of mortgage loan applications, stood at 696.2 for the week ending Dec. 3, an increase of 3.4 percent on a seasonally adjusted basis from 673.3 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index increased 43.8 percent for the week ending Dec. 3 compared with the previous week and increased 15.4 percent compared with the same week one year earlier. The refinance share of mortgage activity decreased to 45.6 percent of total applications for the week ending Dec. 3 from 46.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 34.5 percent of total applications for the week ending Dec. 3 from 32.3 percent the previous week.

Calif. median home price - Oct. 04: $460,370 (Source: C.A.R.) Calif. affordability index - Sept. 04: 19 percent (Source: C.A.R.) Calif. highest median home price by C.A.R. region - Oct. 04: St. Barbara So. Coast $1,053,750 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region - Oct. 04: High Desert $239,400 (Source: C.A.R.) Mortgage rates - week ending 12/2: 30-yr. fixed: 5.81%; Fees/points: 0.6% 15-yr. fixed: 5.23%; Fees/points: 0.6% 1-yr. adjustable: 4.19%; Fees/points: 0.6% (Source: Freddie Mac)

Information provided by - C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide.