DQNews Archived Article

Price Jump for Southern California Homes

by Real Estate Analyst John Karevoll
April, 1998

La Jolla, CA.— Home prices in parts of Southern California are re-approaching their peaks of 1989-1991 as sales volume continues to rise despite inclement weather, a real estate information service reported.

A total of 22,889 new and resale houses and condos were sold in Los Angeles, Ventura, Orange, San Diego, Riverside and San Bernardino counties in March. That was up 35.9 percent from 16,843 the month before and up 26.0 percent from 18,167 for March a year ago according to DataQuick's Products Division.

The increase from February to March is normal for the season. Sales have been going up on a year-over-year basis since the fall of 1995. A total of 4,196 resale condos were sold last month, the highest number since August 1990 when 5,024 were sold.

"Sales counts are high across the board, including the entry-level markets which were lagging last year. The price increases we had last month were stronger than we anticipated," said Mike Ela, DataQuick leader.

The median price paid for a home in Southern California was $179,000 last month, up 2.3 percent from $175,000 for February and up 9.1 percent from $164,000 for March a year ago. The year-over-year increase was the highest of the decade. The highest median of all time was reached in June 1991 at $189,000. Prices hit bottom in January 1996 at $157,000.

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

The median price paid for a resale house in San Diego County was $190,000 in March, a new high. The previous peak was reached in August 1991 at $187,500. The median price paid for a newly built home in Orange County was $301,500, also a new peak.

Both new 'peaks' reflect rising values as well as increased buying activity in high-priced markets. When shifts in market mix are statistically adjusted for, it appears that real estate in the two counties, as well as in Ventura County, may regain all the value lost during the recession sometime this summer. That point won't be reached in Los Angeles, San Bernardino and Riverside counties until next year, DataQuick reported.

All Homes	No Sold	No Sold	Pct	Median	Median	Pct
	Mar-97	Mar-98	Chng	Mar-97	Mar-98	Chng
Los Angeles	7,209	8,384	16.30%	$166K	$180K	8.40%
Orange County	3,065	4,061	32.50%	$193K	$221K	14.50%
San Diego	2,897	4,016	38.60%	$171K	$187K	9.40%
Riverside	2,200	2,941	33.70%	$129K	$137K	6.20%
San Bernardino	1,913	2,404	25.70%	$121K	$127K	5.00%
Ventura	883	1,083	22.70%	$197K	$211K	7.10%
So. California	18,167	22,889	26.00%	$164K	$179K	9.10%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1998 DataQuick Information Systems.
All rights reserved.

---