Regarding "2006 housing decline paints uneven picture" (A1, Jan. 16):

The San Diego Tribune ran an article once again painting an inacurrate picture of what is really happening in today's real estate market. Had this story been written by a Realtor or a professional in the field such as a mortgage lender, a title rep or escrow officer, I would lend it more credence.

The story reports that "housing prices turned negative last year for the first time since 1995." But read a little further, and you learn that the magnitude of the drop was 0.8 percent, or less than 1 percent. The article goes on to report that resale prices of single-family homes, which are 50 percent of the market, actually rose an equally tiny 0.9 of 1 percent.

If it is the newspaper's job to examine facts and put them in context for readers, this article is disappointing to say the least. To put these numbers in perspective, according to data from the California Association of Realtors, the last time the median price of a California home declined was 1996, and that was a minuscule 0.5 of 1 percent. In the ensuing 10 years, the price of the median home has more than tripled, from $177,270 in 1996 to $540,000 at the end of 2006, an appreciation of 305 percent. More than 200 percent of the gain has come in the last five years, with double-digit increases in home values almost every year. This has been a phenomenal, decade-long appreciation in home values in California, the backdrop against which to understand the median price dropping in 2006 by less than 1 percent.

None of us are denying that there are changes going on in the market. It has been well reported that in addition to overall prices being flat, the number of sales has decreased and the average time a home is on the market has increased. I would also like to point out that the statistics reported represent an average of our state as a whole and are not indicative of the Conejo Valley or Ventura County.

Overbuilding of condominium conversions and some categories of new homes in 2006 have put downward pressure on some sectors of the market. Market forces are now re-balancing, and the adjustments need to work through the system. This is a process that will take months and not years. Headlines that trumpet a decrease in prices and imply a declining market do not reflect the reality of a market in the process of turning around.

Buried at the end of the story is the fact that local active Realtors (myself as your trusted agent included) reported a pickup in buying activity in December and January. I have been experiencing multiple offer situations on every signel offer I have written since November, numbering well above 40! We are now entering the all-important spring buying season. Some national economists believe the data show that the home sales market bottomed in the fourth quarter of '06 while mortgage rates remain historically low.

I urge you to read these articles with caution and keep in mind who writes them and why.