DQNews Archived Article

Strong home sales in California

by Real Estate Analyst John Karevoll
October, 1996

La Jolla, CA.— Home sales in California continued to outpace year-ago levels last quarter as prices started to inch up in an ever-increasing number of communities, a real estate information service reported. A total of 104,841 new and resale houses and condos were sold statewide during the July-to-September period. That was down 7.0 percent from 112,689 for the second quarter and up 11.5 percent from 94,014 for last year's third quarter (see chart), according to DataQuick Information Systems.

The year-over-year increase for the quarter was the fourth in a row. If current trends hold, next quarter will also see a year-over-year increase and sales for 1996 will total around 408,000, up 19.3 percent from last year‰s 341,958 - and exceeding the 400,000 mark for the first time since 1990 when 446,528 homes were sold. "As expected, the strong numbers from earlier this year have leveled off somewhat. We do expect next year‰s sales to increase, but by less than ten percent. Prices will probably go up two or three percent," said Donald L. Cohn, DataQuick CEO.

The median price paid for a home during the third quarter was $167,000. That was down 0.6 percent from $168,000 for the second quarter and up 1.2 percent from $165,000 for last year‰s third quarter. Last quarter‰s square-foot median for the state was $112.63, up 0.9 percent from $111.66 for the second quarter and up 1.5 percent from $110.94 for last year‰s third quarter. The all-time high was reached in second-quarter 1991 at $134.12, the recent low was reached in the first quarter of this year at $108.51.

Roughly half of California‰s communities saw an uptick in third-quarter year-over-year prices, while the other half experienced flat or declining prices. During the previous quarter, one third of the state‰s communities saw prices go up.

DataQuick monitors all real estate activity in California and most other states and provides information to consumers, lending institutions, title companies and industry analysts.

Prices are going up the fastest in the Silicon Valley area, as well as in the Carmel-Monterey area and in high-end Southern California beach communities like Santa Monica and Newport Beach. Prices are still going down in most Central Valley communities. The most expensive community to buy a home in during the third quarter was Rancho Santa Fe in San Diego County where the median was $1,037,500. The second most expensive community was Ross in Marin County at $834,500, followed by Beverly Hills at $775,000 and Marina Del Rey at $750,000.

County/	Sales	Sales	Pct.	Median	Median	Pct.
Region	3Q95	3Q96	Chng.	3Q95	3Q96	Chng.
Los Angeles	21,151	22,539	6.60%	$162,000	$163,000	0.60%
Orange County	8,505	9,306	9.40%	$193,000	$194,000	0.50%
San Diego	7,830	8,918	13.90%	$167,000	$169,000	1.20%
Riverside	5,606	6,616	18.00%	$123,000	$126,000	2.40%
San Bernardino	5,543	6,195	11.80%	$120,000	$119,000	-0.80%
Ventura	2,580	2,818	9.20%	$189,000	$193,000	2.10%
So.Calif. Total	51,215	56,392	10.10%	$161,000	$162,000	0.60%
Alameda	3,915	4,521	15.50%	$203,000	$209,000	3.00%
Contra Costa	3,851	4,064	5.50%	$203,000	$204,000	0.50%
Marin	671	820	22.20%	$335,000	$327,000	-2.40%
Napa	280	296	5.70%	$177,000	$183,000	3.40%
San Francisco	1,188	1,455	22.50%	$253,000	$258,000	2.00%
San Mateo	1,777	2,232	25.60%	$292,000	$287,000	-1.70%
Santa Clara	4,849	5,977	23.30%	$242,000	$252,000	4.10%
Solano	1,204	1,340	11.30%	$150,000	$146,000	-2.70%
Sonoma	1,564	1,739	11.20%	$185,000	$182,000	-1.60%
Bay Area Total	19,299	22,444	16.30%	$224,000	$229,000	2.20%
Santa Cruz	786	938	19.30%	$224,250	$227,500	1.40%
Santa Barbara	815	909	11.50%	$174,000	$182,000	4.60%
San Luis Obispo	785	798	1.70%	$155,000	$159,000	2.60%
Monterey	766	796	3.90%	$180,000	$190,500	5.80%
Coast Total	3,152	3,441	9.20%	$183,000	$191,000	4.40%
Sacramento	3,651	3,996	9.40%	$123,500	$120,500	-2.40%
San Joaquin	1,492	1,498	0.40%	$125,000	$122,000	-2.40%
Placer	1,294	1,393	7.70%	$168,000	$167,250	-0.40%
Kern	1,936	2,049	5.80%	$85,500	$86,000	0.60%
Fresno	2,193	2,055	-6.30%	$99,500	$99,000	-0.50%
Madera	255	248	-2.70%	$99,000	$90,250	-8.80%
Merced	482	431	-10.60%	$99,250	$99,750	0.50%
Tulare	876	986	12.60%	$88,500	$88,500	0.00%
Yolo	456	504	10.50%	$144,500	$146,000	1.00%
El Dorado	537	616	14.70%	$148,000	$148,000	0.00%
Stanislaus	1,164	1,293	11.10%	$108,500	$105,000	-3.20%
Central Valley	14,336	15,069	5.10%	$116,000	$115,000	-0.90%
Other/Rural	6,012	7,495	24.70%	$115,000	$115,000	0.00%
All California	94,014	104,841	11.50%	$165,000	$167,000	1.20%

Source: DataQuick Information Systems

For more information call John Karevoll (909)867-9534

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