C.A.R. reports median home price increased 17.3 percent in September

Median price of a home in California at $543,980 in Sept., up 17.3 percent from year ago; sales increase 3.9 percent
California Association of REALTORS®
The median price of an existing home in California increased 17.3 percent in September and sales increased 3.9 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.

Closed escrow sales of existing, single-family detached homes in California totaled 650,780 in September 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 3.9 percent from the 626,210 sales pace recorded in September 2004.

The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the September 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 September 2005 was $543,980, a 17.3 percent increase over the revised $463,630 median for September 2004, C.A.R. reported. The September 2005 median price decreased 4.4 percent compared with August’s revised $568,730 median price.

“The September median home price compared with August has fallen every year since 1993, and in 20 of the last 26 years,” said C.A.R. President Jim Hamilton. “This year is no exception and is part of the seasonal shift to an off-peak period in the real estate market as we approach year’s end.

“Despite the seasonal slow down for the market as a whole, the median price in the High Desert, Riverside/San Bernardino, Santa Barbara South Coast and San Luis Obispo regions hit record highs last month,” he said.

“Year-to-date sales are on track with our expectation that the market in 2005 will set new records for both statewide sales and median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Entry level and mid-range homes are showing more strength in year-over-year price gains compared with the high end of the market. But all tiers of the market are appreciating more slowly than they did a year ago.”

Highlights of C.A.R.’s resale housing figures for September 2005:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in September 2005 was 3.3 months, compared with 3 months (revised) 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 5.77 percent during September 2005, compared with 5.75 percent in September 2004, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.51 percent in September 2005 compared with 3.99 percent in September 2004.

. The median number of days it took to sell a single-family home was 32 days in September 2005, compared with 29 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 are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORSâ throughout the state. MLS median price and sales data for condominiums are 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, 95.2 percent or 394 of 414 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. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

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 http://www.car.org/index.php?id=MzU2MTI=.

. Statewide, the 10 cities and communities with the highest median home prices in California during September 2005 were: Palos Verdes Estate, $1,600,000; Manhattan Beach, $1,578,000; Burlingame, $1,419,000; Los Altos, $1,410,500; Newport Beach, $1,399,000; Coronado, $1,350,000; Saratoga, $1,314,000; Calabasas, $1,218,000; Carmel, $1,200,000; Hermosa Beach, $1,200,000.

. Statewide, the 10 cities and communities with the greatest median home price increases in September 2005 compared with the same period a year ago were: Reedley, 89 percent; Twentynine Palms, 81 percent; Sanger, 79 percent; Laguna Hills, 60 percent; Barstow, 57 percent; Upland, 53 percent; Adelanto, 52 percent; Ripon, 52 percent; Merced, 50 percent; Taft, 48 percent.

Leading the Way...® in California real estate for 100 years, the California Association of REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 180,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.