California's median home price breaks $500,000

Some areas see 60% annual price appreciation
Inman News
The median price of an existing home in California in April set a record, and sales increased over the same period a year ago, the California Association of Realtors reported today.

In April, an existing, single-family detached home in California had a median price of $509,230, a 12.5 percent increase over the revised $452,680 median for April 2004, C.A.R. reported. The April 2005 median price increased 2.6 percent compared with March’s revised $496,550 median price.

“The median price of a home in California topped a half-million dollars for the first time in April, reflecting the continuing demand for housing and the ongoing supply shortage,” said C.A.R. President Jim Hamilton. “Home prices increased by double digits in nearly every region of the state, rising 37.9 percent in the more affordable High Desert region, which includes the Antelope Valley, Barstow, and Victor Valley areas.”

The median home price along Santa Barbara County's 45-mile-long South Coast gained 12 percent from a year ago to $1,285,000.

Statewide, the 10 cities and communities with the highest median home prices in California during April 2005 were: Los Altos, $1,762,500; Saratoga, $1,525,000; Laguna Beach, $1,485,000; Manhattan Beach, $1,405,000; Newport Beach, $1,297,500; Carmel, $1,294,000; La Canada-Flintridge, $1,290,000; Burlingame, $1,250,000; Calabasas, $1,225,000; Woodside, $1,100,000; and Rancho Palos Verdes, $1,100,000.

Statewide, the 10 cities and communities with the greatest median-home-price increases in April 2005 compared with the same period a year ago were: Reedley, 68.8 percent; Colton, 64.7 percent; Twentynine Palms, 63 percent; Atwater, 58.7 percent; Rohnert Park, 57.5 percent; Laguna Hills, 53.3 percent; Norco, 51.6 percent; La Canada-Flintridge, 50.9 percent; Adelanto, 49.1 percent; and Victorville, 45.8 percent.

Closed escrow sales of existing, single-family detached homes in California totaled 658,060 in April at a seasonally adjusted annualized rate, according to information collected by C.A.R. Statewide home resale activity increased 2.7 percent from the 640,710 sales pace recorded in April 2004.

The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“Year-to-date sales are up 5.1 percent compared to a year ago,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Although interest rates remain near their historical lows, consumers are clearly concerned about the impact rising rates will have on their ability to purchase a home.”

C.A.R. reported that the median number of days it took to sell a single-family home was 28 days in April 2005, compared with 23 days (revised) for the same period a year ago.