DQNews Archived Article

Bay Area home prices jump

by Real Estate Analyst John Karevoll
May, 1997

La Jolla, CA.— Bay Area home prices have now regained virtually all the lost ground of the recession and are back up to their 1989-1991 peaks, a real estate information service reported.

The median price paid for a resale house in the nine-county Bay Area was $260,000 in April. That was up 8.8 percent from $239,000 in March and up 11.6 percent from $233,000 for April last year (see chart), according to DataQuick Information Systems.

Much of the gain in April's median was due to increased sales of expensive homes. The median is the price at which an equal number of homes sold for more, and an equal number of homes sold for less.

When statistical adjustments are made for the shift in market mix, the increases in Bay Area home values are still strong. April's square-foot median was $161, up 4.9 percent from $153 a year ago and near the June 1991 peak of $163.

"Today's Bay Area home market is stronger than it was six years ago. Sales are spread out in all areas and in all home categories. We expect sales levels to stay about the same the rest of this year although price increases may level off somewhat," said Mike Ela, DataQuick president.

A total of 5,891 resale houses were sold in the nine-county Bay Area in April, up 18.3 percent from 4,979 in March and up 8.7 percent from 4,642 for April last year

The Bay Area has seen year-over-year increases in sales volume the last year-and-a-half. If current trends stay in place, 1997 will see the highest number of homes sold since 1989.

DataQuick monitors real estate purchasing and financing nationwide, and provides information to consumers, lending institutions, title companies and industry analysts.

The price and sales increases are also affecting other home categories.

A total of 1,441 Bay Area resale condos were sold in April, up 27.2 percent from 1,133 a year ago. The median was $179,000, up 3.5 percent from $173,000 a year ago.

A total of 1,148 newly-built homes were sold in April, up 29.3 percent from 888 a year ago. The median was $251,000, up 3.7 percent from $242,000 a year ago, DataQuick reported.

 

Resale houses

	No Sold Apr-96	No Sold Apr-97	Pct. Chng.	Med($K) Apr-96	Med($K) Apr-97	Pct. Chng.
Alameda	1,010	1,144	13.3	$207	$223	7.7
Contra Costa	888	1,006	13.3	$199	$231	16.1
Marin	232	340	46.6	$320	$363	13.4
Napa	75	89	18.7	$152	$171	12.5
San Francisco	346	369	6.6	$275	$300	9.1
San Mateo	588	685	16.5	$297	$325	9.4
Santa Clara	1,462	1,426	-2.5	$263	$298	13.3
Solano	388	354	-8.8	$139	$135	-2.9
Sonoma	430	478	11.2	$189	$205	8.5
Bay Area	5,419	5,891	8.7	$233	$260	11.6

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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