It's all in the affordable sectors. We don't see any major gains taking place in that area because the barriers to entry are so great throughout the state.

California cannot continue to sustain skyrocketing housing prices that have ballooned over the last few years. The industry has been moving at a torrid pace to keep up with demand, but we expect prices will finally level off to a manageable level.

The slowdown in November will give builders an opportunity to clear out their standing inventory. We anticipate that 2005 will conclude with figures matching 2004, which was a very good year for the industry.

The annual demand for new homes in California continues to be in the 240,000 range, but the home building industry is able to provide only 80 percent of the total need.

It remains hot. It's somewhat amazing.

One out of four new homes built in Riverside (County) goes to someone working in San Diego County.