DQNews Archived Article

Bay Area Home Prices Peak

by Real Estate Analyst John Karevoll
June, 1999

La Jolla, CA.— The median price paid for a resale Bay Area house edged past $300,000 for the first time ever as the growing local economy kept sales counts at their highest level of the decade, a real estate information service reported.

A total of 7,331 resale houses were sold in the nine-county Bay Area in May. That was down 6.6 percent from 7,849 for April and up 5.3 percent from 6,961 for May a year ago, according to DataQuick Products Division.

On a year-over-year basis, sales counts have gone up 44 of the last 46 months. The 2000 numbers are expected to start exceeding 1989 numbers later this summer.

"Sales are strong in all areas, although the biggest increases in sales are now in Solano and Napa counties because of affordability. We expect sales counts to stay at current levels the rest of the summer and on into the fall," said Mike Ela, leader of DataQuick Products Division.

The median price paid for a resale house in May was $301,000, an all-time high. That was up 3.1 percent from $292,000 for April, and up 7.5 percent from $280,000 for May last yearMay's median for Marin County was $450,000, the highest ever for any California county.

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

Because of the increased sales activity in affordable areas, the year-over-year increase in median price understates the true rise in home values. The current appreciation rate is actually 9.5 percent.

Resale Houses