West Hills REAL ESTATE

For release:
Tuesday, May 20, 2008

C.A.R. reports entry-level housing affordability rises 18 percentage points in first quarter

LOS ANGELES (May 20)—The percentage of households that could afford to buy
an entry-level home in California stood at 44 percent in the first quarter of 2008,
compared with 26 percent for the same period a year ago, according to a report
released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the
percentage of households that can afford to purchase an entry-level home in
California. C.A.R. also reports first-time buyer indexes for regions and select
counties within the state. The Index is the most fundamental measure of housing
well-being for first-time buyers in the state.

The minimum household income needed to purchase an entry-level home at
$356,350 in California in the first quarter of 2008 was $67,830, based on an a
djustable interest rate of 5.65 percent and assuming a 10 percent down payment.
First-time buyers typically purchase a home equal to 85 percent of the prevailing
median price. The monthly payment including taxes and insurance was $2,260
for the first quarter of 2008.

At $67,830, the minimum qualifying income was 30 percent lower than a year
earlier when households needed $96,500 to qualify for a loan on an entry-level
home. Recent decreases in home prices and mortgage rates have brought
affordability into better alignment with income levels of the typical California
household, where the median household income was $50,700.

The First-time Buyer Housing Affordability Index rose 11 percentage points in the
first quarter of this year compared to the fourth quarter of 2007 due to a .56 point
decrease in the mortgage rate and a 14.3 percent decrease in the entry-level
median home price.

At 64 percent, Sacramento County and the High Desert region were the most
affordable areas in the state. Monterey was the least affordable area in the state
at 29 percent, followed by the San Francisco Bay Area at 30 percent.

Leading the way...® in real estate news and information for more than 100 years,
the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the
largest state trade organizations in the United States, with nearly 175,000
members dedicated to the advancement of professionalism in real estate.
C.A.R. is headquartered in Los Angeles.

C.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX *

* -- percentage of California households that can afford to purchase a median-priced home
r – revised
Source:  CALIFORNIA ASSOCIATION OF REALTORS®

Source:  CALIFORNIA ASSOCIATION OF REALTORS®