California Median Home Price Up 20.1% to $568,890;
Sales Increase 7%, C.A.R. reports

LOS ANGELES (Sep 26) – The median price of an existing home in California in August increased 20.1 percent and sales increased 7 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.

California hit a new record median of $568,890 in August,” said C.A.R. President Jim Hamilton. “This was the second strongest August sales figure on record dating back to 1979, surpassed only by August 2003.

“While fixed mortgage interest rates have not increased, adjustable rates have risen in reaction to the Federal Reserve and a more general increase in short-term rates,” he said. “Since more buyers are relying on adjustable-rate mortgages to finance the purchase of their homes, buyers may be moving more quickly to make the home purchase decision in anticipation of future rate increases. This is adding more pressure to the price of a home.”

Closed escrow sales of existing, single-family detached homes in California totaled 632,240 in August 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 7 percent from the 591,150 sales pace recorded in August 2004.

The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the August 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 August 2005 was $568,890, a 20.1 percent increase over the revised $473,520 median for August 2004, C.A.R. reported. The August 2005 median price increased 5.2 percent compared with July’s $540,900 median price.

“Los Angeles County is on track to break the previous sales record set in 2003, while the median surged to $564,340,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “For the first time since March, Orange County saw a double-digit year-to-year increase in the median price of a home, and is on track to break 2003 sales records as well.

“Sales in the San Francisco Bay Area continued to fall below last year’s pace, but remain at elevated levels that approximate the market in 2003,” she said. “The median price continued its trend of year-to-year percentage increases in the low teens.”

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

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 REALTORS® 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, 96.8 percent or 417 of 431 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.

Statewide, the 10 cities and communities with the highest median home prices in California during August 2005 were:

Laguna Beach $1,550,000
Los Altos $1,515,250
Manhattan Beach $1,464,500
Burlingame $1,450,000
Palos Verdes Estates $1,415,000
Calabasas $1,351,500
Saratoga $1,307,500
Newport Beach $1,296,250
Mill Valley $1,257,500
Rancho Palos Verdes $1,201,500

Statewide, the 10 cities and communities with the greatest median home price increases in August 2005 compared to the same period a year ago were:

Sanger 76%
West Sacramento 67%
Twentynine Palms 63%
San Bruno 60%
Culver City 49%
San Bernardino 49%
California City 48%
Merced 47%
Visalia 46%
Montebello 45%

AUGUST 2005 REGIONAL SALES AND PRICE ACTIVITY*

Regional Sales Data and Condo Sales Data Not Seasonally Adjusted

 

Median Price Percent Change in Price from Prior Month Percent Change in Price from Prior Year Percent Change in Sales from Prior Month Percent Change in Sales from Prior Year
  Aug-05 Jul-05 Aug-05 Jul-05 Aug-05
Calif. (sf) $568,890 5.2% 20.1% -2.4% 7.0%
Calif. (condo) $433,040 1.6% 16.8% 6.7% 10.3%
C.A.R. REGION        
Central Valley $363,720 2.1% 25.7% 5.7% 5.0%
High Desert $305,700 2.3% 29.0% 7.5% 23.7%
Los Angeles $564,340 3.8% 23.9% 13.8% 11.7%
Monterey Region $727,500 -0.2% 18.7% 0.9% -6.5%
Monterey County $690,000 -1.1% 24.3% -8.9% -2.7%
Santa Cruz County $783,000 3.2% 22.5% 18.8% -11.3%
Northern California $440,420 5.2% 20.3% 6.0% -6.3%
Northern Wine Country $640,700 0.2% 26.7% -0.7% -0.7%
Orange County $716,300 1.3% 10.3% 4.0% 42.4%
Palm Sprgs/Lwr Desert $371,020 -0.1% 13.6% 3.9% 20.6%
Riverside/S. Bernardino NA NA NA NA NA
Sacramento $394,450 1.7% 20.1% 4.1% -4.5%
San Diego $616,870 0.1% 6.5% 5.4% 3.1%
San Francisco Bay $730,360 0.8% 13.2% 5.2% -3.7%
San Luis Obispo $566,510 1.2% 24.6% 21.7% 41.7%
Santa Barbara County $819,850 25.3% 51.4% 12.0% 7.5%
Santa Barbara S. Coast $1,301,000 -2.9% 30.5% 28.7% 36.8%
N. Santa Barbara County $462,880 0.0% 12.4% -13.1% -13.7%
Santa Clara $760,000 1.3% 21.6% -0.9% -9.2%
Ventura $685,680 -1.3% 9.4% 9.0% 14.3%

Median Prices By Region - Current Month vs. Year Ago

  Aug-05 Jul-05   Aug-05
Calif. (sf) $568,890 $540,900   $473,520 r
Calif. (condo) $433,040 $426,320   $370,700 r
C.A.R. REGION        
Central Valley $363,720 $356,260   $289,360
High Desert $305,700 $298,950   $236,890
Los Angeles $564,340 $543,890   $455,590
Monterey Region $727,500 $729,250   $613,120
Monterey County $690,000 $698,000   $555,000
Santa Cruz County $783,000 $759,000   $639,000
Northern California $440,420 $418,630   $366,050
Northern Wine Country $640,700 $639,670   $505,790
Orange County $716,300 $706,820   $649,590
Palm Springs/Lwr Desert $371,020 $371,390   $326,740
Riverside/San Bernardino NA $384,910   $310,120
Sacramento $394,450 $387,810   $328,410
San Diego $616,870 $616,050   $579,040
San Francisco Bay $730,360 $724,890   $644,920
San Luis Obispo $566,510 $559,900   $454,720
Santa Barbara County $819,850 $654,170   $541,670 r
Santa Barbara S. Coast $1,301,000 $1,340,000 r $997,300 r
N. Santa Barbara County $462,880 $462,690   $411,700
Santa Clara $760,000 $750,000   $625,000
Ventura $685,680 $694,690   $626,730

sf = single‑family, detached home
r - revised
na - not available

Source: California Association of REALTORS®

This information is brought to you by The Real Estate Report. http://rereport.com/