Bay Area Home Sales Highest in over Fifteen Years

September 22, 2003

La Jolla, CA.--Home sales in the Bay Area reached their highest level in more than fifteen years last month as fence-sitters jumped into the market. Prices reached a new peak.

A total of 12,488 new and resale houses and condos were sold in the nine-county region last month. That was up 8.6 percent from 11,501 in July and up 29.6 percent from 9,639 for August a year ago, according to DataQuick Information Systems.

Last month's sales count was the highest for any month in DataQuick's statistics, which go back to 1988. The previous peak was in June 1999 when 12,125 homes were sold.

"A lot of potential buyers who were in wait-and-see mode decided to jump in as it became clear that mortgage interest rates had bottomed out early this summer. Additionally, as refinance activity dropped, lenders and escrow companies were able to catch up on processing paperwork, adding to the number of August closings," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $447,000 last month, a new high. That was up 0.2 percent from $444,000 in July, and was up 7.2 percent from $417,000 for August last year, according to DataQuick Information Systems.

DataQuick, a subsidiary 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 monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,092 in August. A year ago it was $1,966. The peak was in May 2000 at $2,124.

Indicators of market distress are still largely absent. Foreclosure rates are low, flipping rates are low, down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported.

All Homes	No Sold Aug-02	No Sold Aug-03	Pct. Chg	Median Aug-02	Median Aug-03	Pct. Chg
Alameda	2,046	2,682	31.1%	$410K	$420K	2.4%
Contra Costa	1,930	2,532	31.2%	$347K	$399K	15.0%
Marin	387	462	19.4%	$590K	$627K	6.3%
Napa	195	187	-4.1%	$363K	$437K	20.4%
San Francisco	602	631	4.8%	$549K	$556K	1.3%
San Mateo	681	1,074	57.7%	$545K	$566K	3.9%
Santa Clara	2,086	3,044	45.9%	$464K	$476K	2.6%
Solano	839	916	9.2%	$280K	$315K	12.5%
Sonoma	873	960	10.0%	$348K	$388K	11.5%
Bay Area	9,639	12,488	29.6%	$417K	$447K	7.2%

Source: DataQuick Information Systems, www.DQNews.com

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