DQNews Archived Article

Bay Area Home Sales Dip

by Real Estate Analyst John Karevoll
November, 1998

La Jolla, CA.— Home sales in the Bay Area dipped in October for the first time in two years, the result of Wall Street turbulence and a one-week spike in mortgage interest rates, a real estate information service reported.

A total of 5,872 resale houses were sold in the nine-county Bay Area in October. That was down 5.8 percent from 6,234 for the month before, and down 7.4 percent from 6,338 for the same month last year, according to DataQuick Products Division.

The year-over-year decline was the first since September 1996 when sales decreased 1.3 percent from 4,561 to 4,503. October's decline was also in part due to exceptional sales a year ago.

"It looks like some of last month's sales were put off temporarily when mortgage interest rates jumped during the first week. Those escrows became active again when interest rates went back down a week later. What this probably means is that some October closings are happening in November instead," said Mike Ela, leader of DataQuick Products Division.

The median price paid for a resale house in the Bay Area was $272,000 in October. That was down 2.5 percent from $279,000 the month before, and up 5.8 percent from $257,000 a year ago.

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

Most of the month-to-month price "decline" was due to a shift in market mix; appreciation rates for all areas and market categories are 7-10 percent anually right now. October's year-to-date median for the Bay Area was $273,000, up 7.9 percent from $253,000 for the same 10-month period last year.

Resale houses

	No Sold	No Sold	Pct	Median	Median	Pct
	Oct-97	Oct-98	Chng	Oct-97	Oct-98	Chng
Alameda	1,256	1,158	-7.80%	$226K	$244K	8.00%
Contra Costa	1,074	1,095	2.00%	$213K	$225K	5.60%
Marin	327	316	-3.40%	$375K	$385K	2.70%
Napa	120	123	2.50%	$170K	$190K	11.80%
San Francisco	429	342	-20.30%	$300K	$333K	11.00%
San Mateo	664	603	-9.20%	$326K	$365K	12.00%
Santa Clara	1,449	1,182	-18.40%	$310K	$335K	8.10%
Solano	430	487	13.30%	$143K	$150K	4.90%
Sonoma	589	566	-3.90%	$199K	$215K	8.00%
Bay Area	6,338	5,872	-7.40%	$257K	$272K	5.80%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1998 DataQuick Information Systems.
All rights reserved.

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