DQNews Archived Article

Continued Rise for Southland Home Sales

by Real Estate Analyst John Karevoll
January, 2000

La Jolla, CA.— Southland home sales rounded out 1999 in much the same way it rounded out 1998, 1997 and 1996: Sales were up, and prices were up. With the region's growing economy, indications are that the region is in for more of the same this year, a real estate information service reported.

A total of 25,715 new and resale houses and condos were sold in Los Angeles, Ventura, Orange, San Diego, San Bernardino and Riverside counties last month. That was up 14.5 percent from 22,462 in November, and up 0.3 percent from 25,629 for December last year, according to DataQuick.

On a year-over-year basis, sales counts have gone up 51 of the last 53 calendar months. Last month's number was the strongest for any December since 26,859 homes were sold in December 1989.

"There really aren't any flashing red lights in the statistics right now. The usage of adjustable-rate mortgages isn't rising, sellers aren't carrying back financing, loan-to-value rates are stable and absent-owner rates aren't going up. And price and sales increases are sustainable in today's economy," said Mike Ela, president of DataQuick.

The median price paid for a Southland home was $195,000 last month. That was the same as November, and up 4.3 percent from $187,000 for December last year. Because of shifts in market mix, that year-over-year increase understates the current rise in home values, which is between seven and nine percent.

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