Lake Tahoe Real Estate - Truckee

HOUSING COSTS LEAD MANY CALIFORNIANS TO CONSIDER MOVING Californians value their quality of life in the Golden State, but many say that the cost of housing is forcing them to seriously consider moving to another part of the state or away from California altogether, according to a recent survey by the Public Policy Institute of California (PPIC). Although 86 percent of renters in California hold onto the hope of being homeowners someday, only 18 percent believe it is very likely they will find a home they can afford. Additionally, three in four adults are concerned that increasing housing costs will prevent the younger generations in their families from one day buying a home in California. The PPIC study also found that homeownership represents a profound dividing line between the "haves" and "have nots" in California. Approximately six in 10 California adults say they own their own home, and the likelihood of homeownership increases sharply with age, income, and education. A majority of whites (71%) and Asians (59%) own their homes, while a majority of Latinos (55%) and blacks (51%) are renters. Homeownership rates have serious implications for elections and politics in the state, as 75 percent of likely voters in the state's elections are homeowners. As a result, voters' preferences largely reflect the opinions of homeowners

U.S. HOME SALES CONTINUE TO EXCEED EXPECTATIONS Sales of existing single-family homes decreased 0.1 percent in October to a seasonally adjusted annual rate of 6.75 million units from 6.76 million units in September, NAR reported on Tuesday. Despite the slight decline, this pace was the fourth highest on record and 5.6 percent above the 6.39 million-unit pace in October 2003. Home resale activity in the West declined 3.6 percent from September to an annual rate of 1.86 million units in October, but was 9.4 percent above October 2003. Existing-home sales also fell in the Northeast and Midwest, with sales declining 1.3 percent in the Northeast and 2.8 percent in the Midwest. The South was the only region to experience an increase in existing-home sales, which increased 3.7 percent in October to an annual rate of 2.77 million units.

LEADING INDEX CONTINUES TO DECLINE The Conference Board announced that the U.S. leading index, a barometer of economic conditions, experienced its fifth consecutive decline in October, falling 0.3 percent to 115.1 (1996 = 100). During the six-month span through October, the leading index decreased 0.7 percent. The major contributors to October's decline were the real money supply, the interest rate spread, and consumer expectations. The coincident and lagging indices both increased in October. Following a 0.1 percent increase in September, the coincident index increased 0.3 percent to 118.3 with all four indicators advancing, including employees on non-agriculture payrolls and industrial production. The lagging index increased 0.2 percent to 98.5 in October with all four components advancing. The Conference Board said the recent declines in the leading index is not yet signaling a downturn in the economy, though the growth rate of the leading index has slowed below its long-term trend growth rate.

Fast Facts 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 11/19: 30-yr. fixed: 5.72%; Fees/points: 0.6% 1-yr. adjustable: 4.27%; Fees/points: 0.7% 15-yr. fixed: 5.15%; 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 135,000 REALTORS® statewide