DQNews Archived Article

California Home Dollars Near Peak

by Real Estate Analyst John Karevoll
May, 1998

La Jolla, CA.— The amount of money paid for homes in California exceeded $10 billion in May, the second time ever that threshold has been crossed, a real estate information service reported.

A total of $10.24 billion was spent on 44,657 new and resale houses and condos statewide. Dollar volume was up 5.6 percent from $9.7 billion in April and up 26.2 percent from the $8.12 billion that was spent on homes in May a year ago, according to DataQuick's Products Division.

The only other time more than $10 billion was spent on homes was in August 1989 when $10.41 billion was paid for 50,495 homes. While sales counts reached all-time highs in mid 1989, prices reached their peaks two years later.

"These are good times for people in the real estate industry, many of whom make their living off commissions and fees. When you factor in real estate agents, escrow companies, mortgage lenders, appraisers, title companies and all the other people involved, maybe ten percent of this flow of dollars makes its way from the sales amount to industry participants," said Mike Ela, DataQuick Business Group Leader.

May's dollar volume was an all-time high in seven of the Bay Area's nine counties, as well as in Santa Cruz and Placer counties. San Diego County hit its peak in April.

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

While not quite at record levels, the current increase in dollars spent on homes was strongest in Orange County. If current trends stay in place, Orange and Riverside counties will hit dollar volume peaks in July or August. Los Angeles County, the state's largest by far, is unlikely to hit new highs until next year.

Between 15 and 20 percent of all homes in California have regained all the value lost during the recession. Prices are currently rising in most neighborhoods, and by the end of the year, more than 40 percent of the state's homes will have regained their lost value, DataQuick reported.

Number of dollars spent on new and resale houses and condos

County	May-97	May-98	Pct.
	($Mill.)	($Mill.)	Chng.
Los Angeles	$1,921	$2,348	22.20%
Orange	$829	$1,188	43.30%
San Diego	$744	$1,038	39.50%
Riverside	$378	$479	26.60%
San Bernardino	$268	$314	17.00%
Ventura	$239	$316	32.30%
Southern Calif. Total	$4,393	$5,693	29.60%
San Francisco	$199	$239*	20.10%
Alameda	$477	$578*	21.30%
Contra Costa	$386	$483*	25.10%
Santa Clara	$701	$906*	29.30%
San Mateo	$350	$377*	7.70%
Marin	$162	$188*	16.10%
Solano	$76	$108	42.70%
Sonoma	$149	$212*	42.00%
Napa	$26	$41	55.20%
Bay Area Total	$2,526	$3,132*	24.00%
Santa Cruz	$99	$119*	19.60%
Santa Barbara	$87	$100	15.60%
San Luis Obispo	$69	$86	23.90%
Monterey	$90	$115	28.30%
Coast Counties Total	$345	$420	21.70%
Sacramento	$207	$246	18.80%
San Joaquin	$72	$84	17.80%
Placer	$105	$136*	29.80%
Kern	$61	$76	24.20%
Fresno	$75	$88	17.60%
Madera	$10	$11	10.30%
Merced	$17	$18	4.70%
Tulare	$32	$33	3.10%
Yolo	$28	$32	15.70%
El Dorado	$42	$51	21.20%
Stanislaus	$47	$58	21.90%
Central Valley Total	$728	$863	18.50%
Mountain Counties Total	$47	$59	25.10%
Northern Calif. Total	$80	$77	-3.70%
Statewide Total	$8,120	$10,245	26.20%
*All-time high

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1998 DataQuick Information Systems.
All rights reserved.

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