More News and information about California Real Estate from C.A.R.

Tuesday, April 27, 2004

Median price of a home in California increases 22 percent in March, sales up 4 percent, C.A.R. reports

LOS ANGELES (April 27) - The median price of an existing home in California in March increased 22 percent and sales increased 4 percent compared to the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.

"The median price of a home continued its run of double-digit price increases last month as buyers scrambled to purchase homes amid concerns of rising mortgage interest rates," said C.A.R. President Ann Pettijohn. "This unprecedented demand helped push the median price of a home in many regions in the state to record highs in March. And at $428,280, the median price for the state also hit a record high in March compared to $351,130 just one year ago."

The median price of a home in the Central Valley, High Desert, Monterey, Monterey County, Northern California, Northern Wine, Orange County, Riverside/San Bernardino, Sacramento, San Diego, Santa Clara, Santa Cruz, North Santa Barbara County and Santa Barbara South Coast regions posted record highs in March, according to C.A.R.

Closed escrow sales of existing, single-family detached homes in California totaled 590,220 in March at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 4 percent from the 567,610 sales pace recorded in March 2003.

The statewide sales figure represents what the total number of homes sold during 2004 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during March 2004 was $428.280, a 22 percent increase over the revised $351,130 median for March 2003, C.A.R. reported. The March 2004 median price increased 8.4 percent compared to a revised $395,060 median price in February.

"Year-to-date sales are up 4.4 percent compared to the same period last year," said Leslie Appleton-Young, C.A.R.'s vice president and chief economist. "Along with the median price of a home, the inventory of homes for sale reached an all-time historic low of 1.6 months in March, while time on the market is at a record low of 26 days."

Highlights of C.A.R.’s resale housing figures for March 2004:

• C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in March 2004 was 1.6 months, compared to 2.7 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
   

• Thirty-year fixed mortgage interest rates averaged 5.45 percent during March 2004, down from 5.75 percent in March 2003, according to Freddie Mac. Adjustable mortgage interest rates averaged 3.41 percent in March 2003 compared to 3.76 percent in March 2003.
   

• The median number of days it took to sell a single-family home was 26 days in March 2004, compared to 30 days (revised) for the same period a year ago.

Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data is not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes is generated from a survey of more than 90 associations of REALTORSâ throughout the state. MLS median price and sales data for condominiums is based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 92.5 percent or 356 of 385 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates.

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at localized data collected by C.A.R. and DataQuick at http://www.car.org/index.php?id=MzM1MTM. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

• Statewide, the 10 cities and communities with the highest median home prices in California during March 2004 were: Beverly Hills, $1,500,000; Manhattan Beach, $1,404,250; Los Altos, $1,300,000; Calabasas, $1,120,000; Palos Verdes Estates, $1,100,000; Laguna Beach, $1,087,500; Saratoga, $1,038,000; Malibu, $1,005,250; Los Gatos, $1,003,000; Newport Beach, $975,000.
   

• Statewide, the 10 cities and communities with the greatest median home price increases in March 2004 compared to the same period a year ago were: Beverly Hills, 74.9 percent; Culver City, 62.8 percent; Calabasas, 60.2 percent; Los Gatos, 56.2 percent; Perris, 55.3 percent; Beaumont, 52.5 percent; Palm Springs, 51.0 percent; Claremont, 50.1 percent; Manhattan Beach, 49.8 percent; Lake Forest, 49.6 percent.

The California Association of REALTORS® (http://www.car.org) is one of the largest state trade organizations in the United States, with more than 135,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.