Los Angeles Housing Report - thebubblebuster.com

SUMMARY HISTORY PEAKS & TROUGHS FORECASTS

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The Los Angeles housing market has seen the remarkable price increases of years past finally begin to stall. The continued sharp declines in sales activity has increased the number of homes on the market and is forcing sellers to lower their expectations. Further sales and the beginning of nominal pricing declines should be expected, particularly if mortgage rates move higher due to extremely poor affordability.

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Nominal Price Activity		Los Angeles	National	Comment
.	Quarterly Appreciation (Q4:2006 – Q1:2007)	0.6%	-1.8%	Weak
	Rolling Year Appreciation (Q1:2006 – Q1:2007)	5.4%	1.7%	Fair
	Last Year Appreciation (2006)	9.2%	5.9%	Good
	Rolling 5 Year App. (Q1:2002 – Q1:2007)	125.8%	50.1%	Strong
	Historical Average Annual Appreciation	9.1%	6.0%	Strong
Real Price Activity		Los Angeles	National	Comment
.	Quarterly Appreciation (Q4:2006 – Q1:2007)	-0.2%	-2.5%	Weak
	Rolling Year Appreciation (Q1:2006 – Q1:2007)	2.4%	-1.3%	Fair
	Last Year Appreciation (2006)	6.1%	2.8%	Good
	Rolling 5 Year App. (Q1:2002 – Q1:2007)	99.2%	32.1%	Strong
	Historical Average Annual Appreciation	4.8%	1.8%	Strong
Affordability Activity		Los Angeles	National	Comment
	Mortgage-Debt-to-Income Ratio* (Q1:2007)	46.7%	21.1%	Extremely Unfavorable
	Historical Mortgage-Debt-to-Income Ratio*	29.9%	19.8%	High
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*	This ratio compares the monthly mortgage payment (principal & interest only, which does not include hazard insurance, property taxes or any needed private mortgage insurance) for a median priced home financed at the prevailing 30 year mortgage rate to the local median 4-person family income.
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	Los Angeles historical data is for the time period of Q2:1975 – Q1:2007
	National historical data is for the time period of Q1:1975 – Q1:2007

LOS ANGELES, CALIFORNIA - Q1:2007