L.A., QUITE CONTRARY, HOW DOES MARKET GROW?

Byline: GREGORY J. WILCOX

The Los Angeles area is in a contrary state as far as residential real estate is concerned.

The annual rate of appreciation is now in single digits in lots of places. Except the Los Angeles area.

The new home market also offers proof of this contrariness.

As measured by permits pulled by builders, home construction fell 10.5 percent in the first four months of this year versus 2005.

Except in Los Angeles. Permit activity was up an annual 21 percent in that time.

That's according to an analysis by the Burbank-based Construction Industry Research Board for the California Building Industry Association.

Between January and April, builders across the state pulled permits for 59,950 units, the vast majority of them -- 41,026 -- single-family homes.

In the Los Angeles area (L.A., Glendale and Long Beach), 9,356 permits have been pulled.

This, too, is contrary to the state picture.

In Los Angeles 3,711 permits in the past four months are for single-family homes, 1.7 percent fewer than a year ago.

But 5,645 permits are for multi-family homes, up an annual 43 percent.

What the last number doesn't show is how many multi-family units are condominiums.

That sector has been getting a lot of action, though, because single-family homes are so expensive. And condos are not that much of a bargain, either.

Jack Kyser, chief economist at the Los Angeles County Economic Development Corp., credits the Santa Clarita and Antelope Valleys with lots of the action.

``You've still got room for development. And of course, you have the condo markets in both downtown Los Angeles and Long Beach.''

The Sacramento-based CBIA also notes that overall housing starts fell 10 percent from March to April, but it appears that building is starting to level out.

April's activity, the most current numbers available, show that, statewide, builders pulled 11,119 single-family permits, 0.2 percent fewer than in March.

Los Angeles accounted for 1,076 permits, 21 percent more than in April.

On a monthly basis, multi-family activity fell 37.6 percent in the state and 41.2 percent in Los Angeles, the only time the numbers were similar.

The CBIA's chief economist Alan Nevin notes another geographic trend in the numbers.

``Most of the downturn in single-family permits is in more distant areas, which have been accommodating the housing demands from those employed in the more urban areas,'' he noted.

High gas prices may be partly to blame, too, because they've driven up commuting costs, too, he said.

Kyser also notes that demand doesn't seem to be abating in the Los Angeles area either, which continues to drive building activity.

He sees this proof outside his windshield.

``If you're on the freeway at rush hour you notice a lot of out-of-state plates on cars with one driver in them,'' Kyser said.

And that indicates somebody heading home from work.

Notes:

The CBIA also notes that while California produced 10 percent of the nation's housing last year, supply remains well short of demand.

Distribution is by no means even in California, though.

Of the state's more than 500 cities and counties issuing permits, 6 percent accounted for 50 percent of the activity.

The leaders were the city of Los Angeles and Riverside County.

There's help for first-time home buyers.

The Lockheed Federal Credit Union will present a seminar titled ``How to Buy a Home In Today's Market.''

The free event will be held Wednesday at the credit union's Burbank branch, 2340 N. Hollywood Way. It is from 6:30 p.m. to 8 p.m.

Participants will learn the ins and outs of the home-buying process and speakers will discuss credit repair, escrow and title costs.

For reservations, e-mail mcampbell(at)lockheedfcu.org or call [phone].

greg.wilcox(at)dailynews.com

[phone]