DQNews Archived Article

Southland Home Prices, Sales Up in November

by Real Estate Analyst John Karevoll
December, 2000

La Jolla, CA.— Southern California homes sold at their fastest pace in more than a decade last month, as prices rose to a new high, a real estate information service reported.

A total of 24,486 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up slightly from 24,480 for October, and up 9.0 percent from 22,462 last year, according to DataQuick Information Systems.

Sales usually decline from October to November. Last month's sales count was the highest for any November since 1989 when 26,588 homes were sold. Last month's unexpected uptick virtually assures a year-end 2000 total or more than last year's 299,624.

"The strength of the market shouldn't surprise us. The fundamentals are still there, job growth, a growth in household income, reasonable mortgage interest rates. There's been a lack of inventory, but it now appears that more homes are coming on to the market," said Mike Ela, DataQuick president.

The median price paid for a home in the region was $218,000 last month, a new record. That was up 1.9 percent from $214,000 for October, and up 11.2 percent from $196,000 for November last year.

DataQuick, a business unit of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical mortgage payment that Southland buyers committed themselves to paying was $1,194 in November, the highest since $1,196 in August 1991 when interest rates were higher. The all-time peak was April 1989 at $1,360, DataQuick reported.