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**2Real4me!** · 05-05-2005, 05:42 PM

CALIFORNIA HOUSEHOLDS FALL SHORT IN INCOME NEEDED TO PURCHASE HOME
With a median household income of $53,540, California households are $60,380 short of the $113,920 qualifying income needed to purchase a median-priced, single-family home at $488,600 in California, according to the C.A.R. Homebuyer Income Gap Indexâ¢ (HIGI) report for the first quarter of 2005. The HIGIâ¢ for California increased 44.9 percent during the first quarter of 2005 compared to the first quarter of 2004.

"These numbers are particularly troubling for would-be first-time homebuyers, who often are locked out of homeownership because of the lack of affordable homes for sale," said C.A.R. President Jim Hamilton. "While home sales statewide continue to surge, the California real estate market is being dominated by repeat homebuyers, who account for three out of four home purchases in the state."

According to the report, the HIGIâ¢ can fall as low as $23,320 for the state's repeat homebuyers, whose household incomes tend to be higher than the median. Additionally, repeat homebuyers can take advantage of equity gains in their current homes, enabling them to make a downpayment that is frequently greater than 20 percent.

**2Real4me!** · 05-05-2005, 05:43 PM

PENDING HOME SALES INDEX HOLDS STEADY
The pace of home sales will remain strong in the months ahead, according to NAR's Pending Home Sales Index (PHSI), a leading indicator for the housing market. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In March, the PHSI stood at 122.8, a 10.4 percent increase over the PHSI one year earlier. An index of 100 or more generally indicates a high level of home sales activity.

On a regional basis, the West led the nation with the highest PHSI at 129.1, followed closely by a PHSI of 128.9 in the South. In the Northeast and Midwest, the PHSI stood at 114.7 and 113.7, respectively.

**2Real4me!** · 05-05-2005, 05:44 PM

CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending topped $1 trillion for the ninth consecutive month in March 2005, rising 8.0 percent to a seasonally adjusted annual rate of $1,051.8 billion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $222.4 billion during the first quarter of the year, a 9.3 percent increase over construction spending during the first three months of 2004.

Spending on residential construction in March 2005 increased 12.1 percent over the previous year to reach a rate of $592.8 billion. The value of nonresidential construction put into place in March rose 3.2 percent to a rate of $459 billion, according to the report.

**2Real4me!** · 05-05-2005, 05:47 PM

FED RAISES TARGET FOR FEDERAL FUNDS RATE TO THREE PERCENT
The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 3 percent on Tuesday, marking the eighth straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.

"Recent data suggest that the solid pace of spending growth has slowed somewhat, partly in response to the earlier increases in energy prices," the Fed said in a prepared statement. "Labor market conditions, however, apparently continue to improve gradually. Pressures on inflation have picked up in recent months and pricing power is more evident."

~~stevepiv~~ · 05-05-2005, 05:48 PM

I bought my house in March 2001 for $243,000

In May 2005 I can sell it for around $500,000

Crazy, Crazy, Crazy....

2Real thanks for the information.

**2Real4me!** · 05-05-2005, 05:49 PM

CALIFORNIA HOUSING STARTS CLIMB IN MARCH
After a slow February, housing starts rebounded in the Golden State during March 2005, rising 33.3 percent from February to 19,157 units, according to a recent report by the California Building Industry Association (CBIA). Single-family units accounted for 73.8 percent of housing starts recorded during March, while the remaining 26.2 percent were multi-family establishments.

There were 47,215 housing starts in California during the first quarter of 2005, a 4.1 percent decline compared with the first three months of 2004. The CBIA expects California's housing production to exceed 200,000 units for the second consecutive year in 2005.

**2Real4me!** · 05-05-2005, 05:51 PM

stevepiv Wrote:I bought my house in March 2001 for $243,000

In May 2005 I can sell it for around $500,000

Crazy, Crazy, Crazy....

2Real thanks for the information.

Your Welcome! Smile

For any Homeowners don't worry prices are not going down yet but it will dip soon. That's good news for New Home owners but again interest rates are unpredictable. :shock:

~~stevepiv~~ · 05-05-2005, 05:55 PM

I locked my rate in @ 5.5% 2 years ago.My payments with taxes $1,353 per month. I think that is cheaper than some apartment's.

I dealt with Manya Susoeff in your same office you work in. She was a great realtor.

**2Real4me!** · 05-05-2005, 05:58 PM

stevepiv Wrote:I bought my house in March 2001 for $243,000

In May 2005 I can sell it for around $500,000

Crazy, Crazy, Crazy....

2Real thanks for the information.

You know steve with all posting on MU, I must missed are you ready to sell and trade up. I believe you have a little one too! Smile

No need to look any further; you have a realtor that here on the MU ready to serve you, your wife, and the little tike. Big Grin

~~stevepiv~~ · 05-05-2005, 06:00 PM

When I'm ready I'll let you know. I might even try keeping this house and trading up anyways. Debt, who cares. You never see a U-Haul behind a hearst.