DQNews Archived Article

Southland Home Prices Surge

by Real Estate Analyst John Karevoll
April, 2000

La Jolla, CA.— The median price paid for a Southland home surged past $200,000 for the first time ever last month, as sales counts stayed at their highest level since 1989, a real estate information service reported. The median price paid for a home in Los Angeles, Ventura, Orange, Riverside, San Bernardino and San Diego counties was $204,000 in March. That was up 3.6 percent from $197,000 in February, and up 9.1 percent from $187,000 for March last year, according to DataQuick.

The previous price peak of $198,000 was reached last June. Prices rose fastest in San Diego County, while the slowest increase was in San Bernardino County (see chart). When adjusted for shifts in market mix, price increases were relatively uniform in all areas and categories.

"The economy is growing, jobs are being created and household income is on the rise. This is what counts when it comes to real estate. It doesn't appear that the recent uptick in mortgage interest rates had much effect on the market. And it's too early to determine what the current stock market turbulence will mean for home sales. We expect the market to stay strong through the summer and on into the fall," said Mike Ela, president of DataQuick.

A total of 28,609 homes were sold in the six-county region last month. That was up 43.2 percent from 19,977 for February, and up 7.6 percent from 26,581 for March last year.

An increase from February to March is normal for the season. Last month's sales count was the strongest for any March since 1989 when 32,917 homes were sold.

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

The median square-foot price paid for a resale house in Southern California was $136, up 10 percent from $124 a year ago. Last month's $136 median was a record, passing the prior peak of $133 set in May 1991, DataQuick reported.