California Homeowners 'Make' $2,384 Monthly

March 9, 2001

La Jolla, CA.--California's 'median' homeowner is now 'making' $2,384 a month just by owning a home in the Golden State, a real estate information service reported.

The value of California's housing stock is $2.09 trillion and rising at an annual rate of 15.5 percent, the fastest since early 1990, according to DataQuick Information Systems.

The 7.2 million homes in the state passed the $2.0 trillion mark for the first time last July. In April 1999 the value of the state's housing stock regained its pre-recession value of $1.61 trillion.

"With the interest rates where they are now, the buyer of a median-priced California home is committing to making a mortgage payment of $1,000 to $1,200. The math is pretty straightforward unless you think home values will decline," said Mike Ela, DataQuick president.

The current $2,384 rate of appreciation is the highest ever. A year ago it was $1,505, ten years ago it was $341 and five years ago homeowners were losing $364 monthly.

Current value increases are the strongest in Bay Area counties where Marin County homeowners are 'making' $10,710 a month and San Mateo County owners $10,063. At the other end of the scale, many homeowners in Central Valley and other rural counties are seeing monthly appreciation rates of less than $1,000.

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

The valuation numbers above are arrived at by running an electronic appraisal of every home in the state. Included are all properties that county tax assessors have designated as houses or condos. Ranch and other multi-use properties are not included. Newly-built homes are not included if they haven't been sold yet.

Many homeowners are accessing the money their homes are making for them. Last year 555,378 lines of credit were established, and 264,426 homes were refinanced, many with 'cash out', DataQuick reported.

For more information call John Karevoll (909)867-9534

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