California real estate prices march higher

Sales slow statewide
Inman News
Home sales in Southern California slowed last month as prices hit new highs, rising at their slowest pace in more than three years, according to DataQuick Information Systems, a real estate information service.

A total of 31,431 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in April. That was down 3.8 percent from 32,674 in March, and down 4.5 percent from 32,916 for April last year, DataQuick reported.

Last year's April was the strongest April in DataQuick's statistics, which go back to 1988. Last month was the second-strongest.

Home sales dropped in the San Francisco Bay Area region, too. A total of 11,158 new and resale houses and condos were sold in the nine-county region in April, which was down 1.3 percent from 11,310 for the previous month and down 10.2 percent from 12,421 for April last year.

"There are two factors that can lead to a decline in sales. The first is that potential buyers cannot or will not buy. The second is that there aren't enough homes for sale. Right now we're probably looking at a combination of the two. More homes will probably be put on the market in coming months, as potential sellers try to sell at the peak in their local markets," said Marshall Prentice, DataQuick president.

The median price paid for a Southern California home was $445,000 last month, a new record. That was up 1.4 percent from $439,000 in March, and up 15 percent from $387,000 for April 2004. Last month's year-over-year price increase was the lowest since March 2002 when the $257,000 median was up 12.7 percent from the year before. Last month's year-over-year increase varied from 9.5 percent in Ventura County to 32.8 percent in San Bernardino County.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $2,019 last month, down from $2,037 for the previous month, and up from $1,760 for April a year ago.

Adjusted for inflation, current payments are about 5 percent below what they peaked in the spring 1989.

Indicators of market distress are still largely absent.

Foreclosure activity has bottomed out, but is still low. Down payment sizes are stable, as are flipping rates and non-owner occupied buying activity, DataQuick reported.

Last year's April for the San Francisco Bay Area was the strongest April in DataQuick's statistics, which go back to 1988. Last month was the second-strongest, and last month's year-over-year sales decline was the first of this year.

"We're watching carefully for any turn in the market. Right now we just don't see anything. Appreciation is pretty even across the different categories, there are really no changes in market mix, purchase and financing profiles are stable. Mortgage rates haven't gone up as they were expected to do, and demand appears to be strong," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $586,000, a new record. That was up 3.2 percent from $568,000 in March, and up 19.1 percent from $492,000 for April a year ago.

Prices are going up at their fastest pace in four years, the Bay Area appreciation rate has now passed Southern California's for the first time in four years.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,659 in April, an all-time high. A year ago it was $2,237.

Indicators of market distress are still largely absent for both the Southern California and Bay Area markets, DataQuick reported. DataQuick is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, which monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

SOUTHERN CALIFORNIA

All Homes        #Sold     #Sold     Pct     Median     Median     Pct
                  4-Apr       5-Apr  Chng.      4-Apr      5-Apr   Chng.

Los Angeles       10,749     10,299    -4.20%   $387K      $447K    15.5%
Orange County      4,577      4,547    -0.70%   $523K      $576K    10.1%
San Diego          6,094      5,345   -12.30%   $439K      $484K    10.3%
Riverside          6,116      5,718    -6.50%   $308K      $374K    21.4%
San Bernardino     3,954      4,007     1.30%   $229K      $304K    32.8%
Ventura            1,426      1,515     6.20%   $483K      $529K     9.5%
So. California    32,916     31,431    -4.50%   $387K      $445K     15%

SAN FRANCISCO BAY AREA

All Homes         #Sold   #Sold     Pct.     Median     Median     Pct.
                 4-Apr       5-Apr  Chng.       4-Apr      5-Apr   Chng.

Alameda            2,546     2,244    -11.90%   $467K      $552K    18.20%
Contra Costa       2,419     2,119    -12.40%   $432K      $530K    22.70%
Marin                535       481    -10.10%   $666K      $779K    17.00%
Napa                 185       205     10.80%   $477K      $574K    20.30%
San Francisco        759       681    -10.30%   $625K      $751K    20.20%
San Mateo            861       850     -1.30%   $610K      $731K    19.80%
Santa Clara        3,344     2,830    -15.40%   $526K      $619K    17.70%
Solano               944     1,037      9.90%   $344K      $409K    18.90%
Sonoma               828       711    -14.10%   $415K      $534K    28.70%
Bay Area          12,421    11,158    -10.20%   $492K      $586K    19.10%

Source: DataQuick Information Systems, DQNews.com.