DQNews Archived Article

SoCal Home Prices Surge

by Real Estate Analyst John Karevoll
October, 1997

La Jolla, CA.— Home prices in Southern California increased at the fastest rate of the decade in September as sales volume also continued at the strongest pace of the 1990s, a real estate information service reported.

The median price paid for a home in Los Angeles, Orange, San Diego, Ventura, San Bernardino and Riverside counties was $172,000 in September. That was up 1.2 percent from $170,000 the month before, and was up 6.8 percent from $161,000 for September last year, according to DataQuick Information Systems.

The 6.8 percent year-over-year price jump was the strongest since December 1989 when the median went up 7.9 percent from $164,000 to $177,000. The current median is at its highest level since July 1993 when it was also $172,000. Los Angeles County showed the strongest price increase in September, going up 7.4 percent from $162,000 a year ago to $174,000.

"These higher prices should bring more homes to the market and we expect sales to stay high for the rest of this year and well into 1998. Sales levels could actually be somewhat higher but paperwork is a bottleneck right now, and especially the mortgage loan process is backed up," said Mike Ela, DataQuick president.

A total of 21,320 new and resale houses and condos were sold in September. That was down 4.4 percent from 22,308 for August and was up 23.1 percent from 17,323 for September last year. A decline from August to September is normal for the season. Sales counts for each of the last three calender months have been the strongest of the 1990s.

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

All Homes	#Sold	#Sold	Pct	Median	Median	Pct
	Sep-96	Sep-97	Chng	Sep-96	Sep-97	Chng
Los Angeles	6,942	8,224	18.5%	$162K	$174K	7.4%
Orange County	2,933	3,953	34.8%	$193K	$207K	7.3%
San Diego	2,658	3,457	30.1%	$170K	$176K	3.5%
Riverside	2,048	2,384	16.4%	$131K	$132K	0.8%
San Bernardino	1,885	2,247	19.2%	$118K	$124K	5.1%
Ventura	857	1,055	23.1%	$190K	$202K	6.3%
So. California	17,323	21,320	23.1%	$161K	$172K	6.8%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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