The last few months of 2005 marked the first time since mid-2004 that the fixed-rate mortgage was above 6 percent on a sustained basis and the adjustable-rate mortgage was above 5 percent for three months in a row.

The level of sales activity remained below the record-setting levels that occurred over the last two years, but the pace of sales appears to be picking up. Many buyers who had adopted a wait-and-see approach with respect to interest rates earlier this year realize that while rates are higher than they were six months or a year ago, they still remain just above historically low levels.

Sales fell last month compared with December 2004's record-setting pace, prompted by consumers' concerns about rising interest rates.

The California housing market continues to experience year-over-year double-digit price appreciation, which is consistent with our expectation that the statewide median for 2005 will increase by 16 percent over last year.

The grass isn't always greener on the other side.

I've been there a few times, ... I shot a Western there years ago ... and we would have some time to stop and I would go to Tucson. My dad lives out in Phoenix, so I go down to Tucson every now and then. The landscape in Tucson is just beautiful.