DQNews Archived Article

New High for Bay Area Home Prices

by Real Estate Analyst John Karevoll
April, 1999

La Jolla, CA.— The median price paid for a Bay Area home surged to a new peak in March as sales continued at their fastest pace in ten years, a real estate information service reported.

A total of 6,754 resale houses were sold in the nine-county Bay Area in March. That was up 50.6 percent from 4,365 for February, and up 22.6 percent from 5,362 for March a year ago, according to DataQuick Products Division.

An increase from February to March is normal for the season, although March’s jump was stronger than usual. March’s sales count was the strongest for any March since 7,389 were sold in 1989.

The median price paid for a resale house in March reached a new peak at $287,000. That was up 2.1 percent from February’s $281,000 and up 10 percent from $261,000 for March last year. The prior peak of $281,000 was reached in June last year.

"A 10 percent year–over-year price increase is not out of line in a region with the economic growth that the Bay Area has had. And we still see few indications of buyers overreaching their finances," said Mike Ela, leader of DataQuick Products Division.

A typical mortgage payment for a median-priced Bay Area resale house would be $1,458 in today’s market with today’s mortgage interest rates. Because of higher interest rates, that typical payment peaked out at $1,828 in March 1990.

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

Resale houses

	No Sold	No Sold	Pct.	Median	Median	Pct.
	Mar-98	Mar-99	Chng.	Mar-98	Mar-99	Chng.
Alameda	1,116	1,305	16.90%	$230K	$247K	7.40%
Contra Costa	813	1,122	38.00%	$207K	$231K	11.60%
Marin	244	301	23.40%	$375K	$390K	4.00%
Napa	108	131	21.30%	$187K	$197K	5.30%
San Francisco	312	359	15.10%	$318K	$345K	8.50%
San Mateo	539	661	22.60%	$335K	$390K	16.40%
Santa Clara	1,304	1,623	24.50%	$320K	$354K	10.60%
Solano	407	499	22.60%	$146K	$152K	4.10%
Sonoma	519	573	10.40%	$203K	$228K	12.30%
Bay Area	5,362	6,574	22.60%	$261K	$287K	10.00%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1999 DataQuick Information Systems.
All rights reserved.

---