Dilbeck’s Southern California Economic Update

Jack Kyser, Senior V.P. Chief Economist Los Angeles County “Is the bubble going to burst in 2006?” That was the big question that Leslie Appleton Young, vice president of research and economics with the California Association of Realtorsand Jack Kyser, senior vice president chief economisLos Angeles County Economic Development Corp. tried to answer at Dilbeck Realtors GMAC Real Estate’s recent Economic Update.

With over 350 Dilbeck agents in attendance, both Appleton Young and Kyser were in agreement: the bubble won’t burst, but instead it will “land softly.”

“The news is good for 2006,” said Kaiser. “The job market getting stronger in South

ern California. It is

moving slowly but teadily . . . interest rates are till low and the inflation is in check.”

“Why are home prices rising?” said Appleton Young. “Well, the demand is strong and the mortgage rates are low.”

“The housing bubble is just floating along fine,” she continued. “Will it burst? No. Instead, it is coming into a soft landing. 2006 California Economic Forecast will be seeing job growth up 1.5 percent, unemployment rate down to 5.3 percent, population growth up 1.5 percent and personal income up around 3.6 percent.”

All in all, both Kyser and Appleton Young agree that there will be no doom and gloom in 2006, but the year will reflect California’s expanding population and economy. Yes, the Southern California real estate market will continue to be good.