DQNews Archived Article

Bay Area Home Prices Peak

by Real Estate Analyst John Karevoll
June, 1998

La Jolla, CA.— The current sales pace for Bay Area homes is nearing the record sales pace set back in 1989, while prices in May reached another high, a real estate information service reported.

A total of 6,961 resale houses were sold in the nine-county Bay Area in May. That was up 3.2 percent from April's 6,745 and it was up 13.3 percent from 6,145 for May last year, according to DataQuick's Products Division.

Sales have been going up steadily for two-and-a-half years and May's sales count was the highest since 7,128 resale houses were sold in August 1989. An all-time sales peak was reached in March 1989 when 7,389 resale houses were sold.

"There's still room for further sales increases regionwide, especially in East and North Bay counties where prices only recently have edged back up to their prior peaks. While price increases may seem to be edging some potential buyers out of the market, affordability was a much bigger problem in the late 1980s," said Mike Ela, DataQuick president.

The median paid for a resale house was $280,000 in May, an all-time high. It was up 2.9 percent from $272,000 for April and up 8.5 percent from $258,000 for May a year ago. Year-over-year price increases were in the double digits from September through February.

DataQuick Products Division monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Today's typical Bay Area mortgage payment, assuming twenty percent down and a 30-year fixed mortgage, is $1,460 per month. In April 1989 it was $1,680.

Resale houses

	No Sold	No Sold	Pct.	Median	Median	Pct.
	May-97	May-98	Chng.	May-97	May-98	Chng.
Alameda	1,214	1,300	7.10%	$221K	$240K	8.60%
Contra Costa	1,094	1,377	25.90%	$225K	$225K	0.00%
Marin	356	385	8.10%	$357K	$375K	5.00%
Napa	90	129	43.30%	$195K	$180K	-7.70%
San Francisco	388	392	1.00%	$289K	$343K	18.70%
San Mateo	708	726	2.50%	$325K	$367K	12.90%
Santa Clara	1,393	1,556	11.70%	$301K	$352K	16.90%
Solano	369	437	18.40%	$149K	$156K	4.70%
Sonoma	533	659	23.60%	$210K	$215K	2.40%
Bay Area	6,145	6,961	13.30%	$258K	$280K	8.50%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1998 DataQuick Information Systems.
All rights reserved.

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