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LOS ANGELES AREA HOUSING MARKET EXPECTED TO STABILIZE -- REPORT BY DUFF & PHELPS

 NEW YORK, Jan. 26 /PRNewswire/ -- A Los Angeles area housing report, by Duff & Phelps Credit Rating Co., concludes that the worst may be over for Los Angeles area housing prices, especially if employment in the region does not deteriorate much more. Housing prices in the Los Angeles area have fallen about 10 percent since late 1989 as measured by repeat sales price data, the most advanced price series currently available for housing prices. Although housing prices could deteriorate further, the Duff & Phelps study concluded that Los Angeles should escape the larger declines reported in the Boston area during the past few years.
 "As a result of these findings, we believe that the Los Angeles housing market should generally fare better than the housing market in Boston. Housing prices should also begin to stabilize in L.A. this year," said Henry W. Hayssen, assistant vice president and author of the report.
 This study, the first detailed rating agency analysis of housing price movements in Southern California, was performed by Duff & Phelps Residential Mortgage-Backed Securities Group. Housing prices are important to MBS investors because houses form the collateral behind the mortgage-backed securities.
 The comprehensive study also concluded that Los Angeles and Boston have striking differences. Housing prices in the Boston market skyrocketed 175 percent from 1982 to 1988, while housing prices in the Los Angeles area increased only 100 percent. Thus, the Los Angeles housing price boom did not reach the proportion of the Boston area bubble. Figures for both areas also indicate that housing inflation in Boston was due more to rising income, whereas population growth was a relatively more important factor for the Los Angeles area.
 While the report shows that employment declines and housing price declines are often linked, both Los Angeles housing prices and employment have declined less than similar statistics for Boston taken at comparable points in the areas' economic cycles since their peaks in the late 1980s.
 "Our study also found that once significant employment declines have triggered a substantial deterioration in housing prices, additional declines do not necessarily translate into further price slippage. In the Los Angeles area, the index of housing prices has been flat since the first quarter of 1992, even though the employment rate has fallen slightly," Mr. Hayssen concluded.
 -0- 1/26/93
 /CONTACT: Henry W. Hayssen, 212-908-0209, or Kieran McShane, for a copy of the Los Angeles Area Housing Prices Report, 212-908-0218, for Duff & Phelps/


CO: ST: California IN: SU:

KD -- NY082 -- 9147 01/26/93 14:21 EST
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Date:Jan 26, 1993
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