Ann Wishart, Valley Press Business Editor

June 12, 2005

House market $izzle$ as building, equity leap

PALMDALE - Stubbornly low mortgage rates are helping to fan the flames under the antelope Valley's sizzling housing market. Building permits issued for the Antelope Valley in April were up nearly 90% over a year ago, as were the values of homes in the region. Palmdale is leading the pack with a 110% increase, followed closely by the unincorporated area at 98.2%. Lancaster cashed in with a healthy 73.1% increase for the first four months of 2005, compared to January through April 2004.

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Overall, 1,644 permits have been issued in the first four months for single-family homes, almost double the 867 issued by April 2004. The combined value of those permits was $3.34 million so far this year, compared to $1.76 million last year. The new home market continues to cook because of still affordable prices and Southern California's growing population - but the depressed interest rate, while welcome, is something of a mystery, authorities said. "Interest rates aren't going anywhere," said Gretchen Gutierrez, director of the Antelope Valley Chapter of the Building Industry Association, the BIA. That condition has made sales of homes on west Palmdale's master-planned community Anaverde red-hot.

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AV home-building permits: Number of permits issued Location Jan.-April '05 Jan.-April '04 % Change Palmdale 652 310 110.3% Lancaster 772 446 73.1 Uninc.AV 220 111 98.2 TOTAL AV 1,644 867 89.6% Source: Construction Industry Research Board 2004 Value* of permits issued (*Dollar amount is in $1,000s) Location Jan.-April '05 Jan.-April '04 % Change Palmdale $149,084 $62,304 139.3% Lancaster 143,732 84,946 69.2 Uninc.AV 41,550 29,708 39.9 TOTAL AV 334,366 176,958 89

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