Lake Tahoe Real Estate - Homewood/Sunnyside

U.S. LEADING INDEX REVERSES FIVE MONTH DECLINE The U.S. leading index, a key barometer of economic conditions, increased 0.2 percent to 115.2 (1996=100) in November after falling for five consecutive months, The Conference Board recently reported. During the six-month span through November, the leading index decreased 1.1 percent, with five out of 10 components advancing. The top three contributors to November's increase were stock prices, real money supply and the average weekly initial claims for unemployment insurance. The coincident index, an index of current economic activity, remained strong in November, increasing 0.1 percent to 118.5. All four components of the coincident index advanced. The lagging index decreased 0.1 percent to 98.3 in November, with four of the index's seven components advancing. Negative contributors to the lagging index were outstanding commercial and industrial loans, the average duration of unemployment and the change in labor cost per unit of output. The Conference Board stated in a written release that the growth rate of the leading index has slowed below its long-term trend, but not to a rate historically associated with a recession.

CALIFORNIA REMAINED THE MOST POPULOUS STATE IN 2004 According to a report released today by the U.S. Census Bureau, the population of the U.S. grew by 2.9 million people between July 1, 2003, and July 1, 2004. Nearly 294 million people reside in the nation, and the 10 most populous states, led by California with 35.9 million residents, account for 54 percent of the country's population. Five of the 10 fastest-growing states between 2003 and 2004 are in the West. With a growth rate of 4.1 percent, Nevada ranked first among states for the 18th consecutive year. Other western states in the top 10 include Arizona (second), Idaho (fourth), Utah (seventh), and New Mexico (10th). Overall, the West recorded the fastest rate of growth at 1.5 percent.

HOUSING STARTS FELL IN NOVEMBER The seasonally adjusted annual rate for privately owned housing starts dropped sharply in November, falling 13.1 percent to 1.77 million units, according to a joint report recently released by the U.S. Census Bureau and the U.S. Dept. of Housing and Urban Development. Single-family housing starts in November declined 11.7 percent to a rate of 1.45 million, while starts for buildings with five or more units reached 288,000. Regionally, the Midwest posted the biggest decrease in housing starts at 19.4 percent, followed by a 14.2 percent decrease in the Northeast. The West and the South also experienced declines in housing starts, falling 13.2 percent and 10.4 percent, respectively. The number of building permits issued, which can be an indicator of future building activity, declined 1.5 percent to a seasonally adjusted annual rate of 1.99 million units.

C.A.R. HOUSING AFFORDABILITY FUND RAISES MORE THAN $1 MILLION IN 2004 The C.A.R. Housing Affordability Fund (C.A.R.H.A.F.) raised $1,012,830 in 2004, bringing total donations to the fund to more than $2.3 million since its inception in January 2003, C.A.R. announced this week. The fund has disbursed $461,060 to 20 projects, ranging from Habitat for Humanity to employer-assisted housing programs, since delivering its first grant to the Monterey County Housing Alliance Housing Opportunity Center in 2003. "California's REALTORS® and our corporate citizens understand the need to increase housing opportunities for families in the Golden State," said C.A.R. President Jim Hamilton. "California's long-standing affordability crisis poses a challenge to all, and REALTORS® and others in the industry are meeting that challenge through their generous donations to the C.A.R. Housing Affordability Fund."

Fast Facts Calif. median home price - Nov. 04: $473,260 (Source: C.A.R.) Calif. affordability index - Oct. 04: 19 percent (Source: C.A.R.) Calif. highest median home price by C.A.R. region - Nov. 04: St. Barbara So. Coast $1,175,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region Nov. 04: High Desert $248,320 (Source: C.A.R.) Mortgage rates - week ending 12/23: 30-yr. fixed: 5.75%; Fees/points: 0.6% 15-yr. fixed: 5.18%; Fees/points: 0.6% 1-yr. adjustable: 4.17%; 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.