The Salina Journal from Salina, Kansas • Page 27

SAUNA JOURNAL Money SUNDAY, MARCH 12, 2006 D3 The Associated Press A house with a for-sale sign in the front yard sits on Gretna Green Way last month in west Los Angeles. Judging from growing statistical evidence and comments by some of the nation's leading builders, the five-year housing boom's run is coming to an end. Housing cooling off Unsold new homes hits record; used home sales slip By DAVID KOENIG Tlie Associated Press DALLAS Judging from growing statistical evidence and the performance of some of the nation's leading builders, the five-year housing boom is indeed over, and the slowdown already is rippling through the economy Earlier this month, the Commerce Department reported that January sales of new single-family homes fell 5 percent the fourth decline in seven months and the backlog of unsold new homes hit a record. And the National Association of Realtors said used home sales slipped 2.8 percent in January, the fourth straight drop and 5 percent below January 2005. Builders also reported a few hiccups.

Upscale Toll Brothers said signed contracts in the November-January period fell 21 percent from a year ago, and KB Home reported more buyers backing out of contracts. Still, the prospect of a housing slowdown appears less frightening than it did a few months ago, according to those who track the industry There seems to be little concern that a much-touted housing bubble will lead to a collapse in sales and prices. Slowdown, not crash New Federal Reserve Chairman Ben Bernanke said last month that housing would enter a moderate slowdown but not a crash. William Mack, a housing analyst for Standard Sluggish signs in tiie liousing marlcet Home sales have slowed in recent months a cooling trend reflected in the stock prices of some of the nation's leading homebuilders. $90 per share Stock prices of selected residential construction companies ,2005 company revenue in billions of dollars KB Home 1 .44 billion JULY AUG.

SEPT. OCT. NOV. DEC! JAN. FEB.MARCH SOURCES: Telerale; Hoover's; the companies Poor's, predicted "a soft landing.

The overall market is just taking a step back." Explanations for the recent cooling-off vary Many people bought homes during the past five years and are staying put. Some analysts blame a decline in consumer confidence. And interest rates have been rising, especially for adjustable mortgages that allowed people to buy more expensive homes than they could have afforded with a 30-year loan. "We started to see the strain in July and August, and by the fourth quarter the market definitely had slowed," said Layne Marceau, president of the Northern California region for Shea Homes, one of the nation's AP largest private builders. Rising prices and interest rates pushed more buyers out of the market.

When prices finally did cool, sellers couldn't command a high enough price on their old house to buy the new one, said Marceau, who believes the slowdown is temporary. Prices cut across nation Builders don't like to cut prices it angers customers who paid more but last week, Centex Corp. advertised $25,000 off on select homes in the Dallas area after making a successful similar offer in California. Around the country builders are throwing in incentives ranging from financing help to free upgrades like swimming pools and granite countertops. Some equsQ 10 percent of the home's list price.

The median price "of an existing single-family home has declined since peaking at $219,700 in July to $210,500 in January, according to the National Association of Realtors. Few analysts expect a sharp drop in national averages, although they say there could be further declines in some areas that have been among the hottest markets in recent years. David Seiders, chief economist for the National Association of Home Builders, said California, Las Vegas, Florida and the Washington, D.C., area "have the largest potential for a price slowdown." Housing has played a major role in the economic recovery since 2001, so even slower growth in home sales and prices could have major repercussions. Asha Bangalore, an economist for The Northern Trust Co. in Chicago, estimates housing created 43 percent of all new jobs from late 2001 until mid-2005.

That included the obvious, such as jobs in construction and mortgage services but also retail and service jobs that were created because consumers tapped their rising home equity to buy more things. "The housing slowdown that we are seeing is very modest, not alarming, but I think the ripple effects are going to be enormous because of the employment factor," she said. IIOMKOUMEIS (i2 oil OIDIH I I'F'I vol Hmiii wmi pRi ASH! IntrcKluciiiK 'Hn now ul CoMipiiny. A Hcvi-rsf! ronid bi' llic wixy lo the yrtii Y6iir pmciM-cbi HIT liix-fiTi'. llir-n- is no nioiillily puyrncnl, luui yon rdTilimic lo own youv hoiinr.

Coiiliicl oi- C'MIC Crnihmn lottity. it The Mortgage Company 785-H2r7HUH) Ififj N. 7tli. Siiliiui Wirli iiiS(J M. Miii.li.iltiiii locally owned mvw.tntcknnsns.roni I owned and operated for I always the Wc would 1i serving Salina Area! li ke to thank our patrons and cx.Jcnd a warm welcome lo new clientele.

We Provide Personal Service. We take referrals. Janice Armour Deanna Crick Jack C. Baker, Public Accountant 71J Roach, Salina 785-827-2674 fax 785-827-7387 Be Your Own Boss Salina Journal Featured Carrier for March Susan Thornburg has been a Salina Journal newspaper carrier for almost 8 years. She is a homemaker raising 5 children and volunteers at Coronado school.

Susan enjoys the quiet mornings and visiting with her customers. The extra money goes to help with the bills that come with her large family. Susan delivers 7 days a week, rain or shine and very rarely takes time off to enjoy family vacations. Being a Salina Journal Independent Contractor offers an excellent opportunity to earn some extra money, be active in your community as well as keeps you informed of news and events. TO FIND OUT HOW TO BECOME A SALINA JOURNAL INDEPENDENT CONTRACTOR CALL: Miranda Byrd Circulation Operations Manager 1-800-827-6363 ext.

327 or (785) 822-1459 Portfolios have mix PROM PAGE D1 In today's market, Roge would recommend a portfolio with 63 percent in equities, 32 percent in fixed-income and 5 percent in cash for an investor willing to accept moderate risk. Once savers have selected their asset allocations, they need to check on them periodically to make sure they don't get out of alignment. "Generally rebalancing doesn't have to happen more than once a year," Roge said, i Greg McBride, senior finan- tial analyst at Bankrate.com in North Palm Beach, said he worries that some investors take too much risk with their savings while others don't take enough. "The greatest risk short- term is investing too aggressively," he said. "If you're 61, just four years from retirement, vand all your money is tied up in stocks or in your bwn company's stock, it's very risky" On the other hand, he added, "The greatest risk long- term is investing too conservatively If you're 25, you need to have 80 to 90 percent of your pioney in stocks to outpace the of mflation." Bowling Katona has other employers FROM PAGE D1 Aside from working on the machinery at the alley, Katona also does some computer repair, carpentry and plumbing work and some light cleaning.

With his many tasks, he said he never gets bored. If he had his druthers, though, he would spend 40 hours a week with the machines. "The machines are what I love," Katona said. "They are like a big Swiss watch. There are so many different parts and so much involved in the assembly that everything has to be just perfect for the machine to work." Reporter April Middleton can be reached at 822-1409 or by e-mail at saljournal.com.

PLAN FOR YOUR DREAMS THROUGH CUSTOMIZED FINANCIAL ADVICE Individual Investment Strategies I Estate Planning Strategies I Investments I Qualified Plans I Retirement Planning Ameriprise Financial Services, Inc. Formerly American Express Financial Advisors Inc. Dan Saulnier, Senior Financial Advisor 115 N. 7th Salina, KS 67401 785-827-8766 Fax: 785-827-0265 The Personal Advlsori of Ameriprise Financial Financial advisory services available througli Ameriprise Financial Services, Member NASD and SIPC. And we'll give you pizza! When you see news or know of on interesting story, give us a coll.

You'll be eligible for a weekly prize of any mediynTsingle-topping piizo and Pizza Hut's dessert zone! Call the news department at 823-6363 or 800-827-6363 or e-mail the newsroom at Journal We give you Partldpqting Pizza Hut Locations: ilina Hutchinson Goodland Colby Oakley Russell Hoys.