Lake Tahoe Real Estate - Dollar Point

ENERGY-EFFICIENT HOMES WEAKEN STRAIN OF RISING FUEL COSTS Due to improved home energy efficiency, rising fuel prices put less financial strain on American households in 2004 than originally anticipated, Freddie Mac recently reported. According to data analyzed by Freddie Mac economists, homes built in recent years are nearly twice as energy-efficient compared with the typical house built in the 1960s. Fuel costs amounted to approximately 0.8 percent of home value between 2000 and 2003, versus 1.8 percent before 1960 and an average of 1.3 percent during the energy crisis of the 1970s. "Crude oil prices have pulled back from a peak of $55.23 per barrel this past October, but as the nation enters its coldest season, oil prices are still considerably higher than the $30 a barrel of West Texas crude cost a year ago," said Frank Nothaft, Freddie Mac's chief economist. "And while we are certainly feeling the increase in oil prices at the gas pump and maybe even in our heating bills, the cost to families would be much greater if not for improvements in home energy efficiency."

LOAN APPLICATIONS DECREASE 10.6 PERCENT The Market Composite Index of mortgage loan applications, a measure of mortgage loan applications, stood at 605.7 for the week ending Dec. 31, a decrease of 10.6 percent on a seasonally adjusted basis from 677.4 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index decreased 9.4 percent for the week ending Dec. 31 compared with the previous week but was up 0.2 percent compared with the same week one year earlier. The refinance share of mortgage activity increased to 48.0 percent of total applications for the week ending Dec. 31 from 46.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 32.6 percent from 33.8 percent the previous week.

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 12/29: 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)

BUILDER CONFIDENCE REMAINS STRONG IN DECEMBER Home builders have maintained a high level of confidence in the housing market for three months straight, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). In December, the seasonally adjusted HMI increased one point to 71, while the HMI component gauging current single-family sales remained unchanged at 77. The components measuring expected sales in the next six months and the traffic of prospective buyers both rose one point, reaching 79 and 52, respectively. A new regional breakout of the HMI data also reveals that western builders are the most optimistic of all their colleagues. The western HMI score was well above the national average, at 80.1.

U.S. CONSUMER CONFIDENCE IMPROVES After declining for four months straight, the Consumer Confidence Index increased in December, The Conference Board reported on Tuesday. The Index now stands at 102.3 (1985=100), up nearly 10 points from 92.6 in November. The Expectations and Present Situation Indices also rose in December, reaching 99.9 and 105.9, respectively. According to The Conference Board, consumers' optimistic outlook suggests further economic expansion in the first half of 2005. The percentage of consumers expecting business conditions to improve increased to 22.0 percent from 20.3 percent in November, while the percentage of consumers who perceive jobs are "plentiful" increased to 19.4 percent from 17.1 percent

Information provided by - C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.