Housing Bubble

Middle market housing still rising in Los Angeles and Orange Counties

February 25, 2003

ANAHEIM, Calif., Feb. 25 /PRNewswire-FirstCall/ -- First American Real Estate Solutions (RES(R)), the nation's largest provider of property and ownership information, analytics and services, today announced its 12-month prediction for real estate trends in Los Angeles and Orange Counties. RES research found that home prices in the Los Angeles and Orange County real estate markets are still rising as homebuyers continue to take advantage of low interest rates. RES expects this trend to continue throughout the next year.

"The Los Angeles and Orange County real estate markets are expected to maintain their strong and positive character for at least the next 12 months," said Christopher Cagan, Ph.D., director of research and analytics for First American RES. "After rising in 2002 by 15 to 20 percent from 2001 levels, housing prices in the middle market ($250,000 to $500,000) continued to rise up through the end of the year 2002. Short of a major external shock, such as a terrorist event or massive layoffs, there is no reason to expect that home prices in this sector will not continue rising throughout 2003."

The following table shows market trends in some middle market areas in Los Angeles and Orange Counties. In all of these areas, home prices rose steadily during the second half of 2002.

      Median Market-Level Sale Prices for Single-Family Residences (SFR)

                                      Median SFR Prices      Change from
                                       October-December   October-December
                                             2002                2001

   Valencia/Santa Clarita                  $354,000            up 11.7%
   Canoga Park/Woodland Hills              $350,000            up 21.5%
   Northridge/Chatsworth                   $404,500            up 15.2%
   North Hollywood                         $208,000            up 17.6%
   Glendale                                $460,000            up 18.9%
   Burbank                                 $382,000            up 21.3%
   Gardena/Hawthorne                       $262,500            up 17.7%
   Long Beach                              $285,000            up 16.7%
   West Covina                             $280,000            up 21.7%
   West San Gabriel Valley
    (Alhambra/Rosemead/Temple City/
     San Gabriel/Monterey Park)            $308,000            up 23.0%
   Brea/Yorba Linda                        $454,000            up 21.6%
   Buena Park/La Palma                     $310,000            up 16.5%
   Costa Mesa/Fountain Valley              $420,000            up 16.8%
   Tustin                                  $434,000            up 17.0%

Source The First American Corporation