Southland Home Sales Strong in January

February 19, 2003

La Jolla,CA--Home sales in Southern California got off to a strong start in January, fueled by low mortgage interest rates and continued demand, especially in entry-level markets.

A total of 22,767 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 22.8 percent from 29,485 for the month before, and up 3.4 percent from 22,011 for January last year, according to DataQuick Information Systems.

A significant decline from December to January is normal for the season. Last month's sales count was the strongest for any January since 1989 when 23,379 homes were sold.

"We expect sales to stay strong, although probably not record breaking. We don't see anything in our statistics that would indicate that the market is due for any change in the immediate future," said Marshall Prentice, DataQuick president.

The median price that Southland buyers paid for a home was $283,000 last month. That was down 2.1 percent from $289,000 for December, and up 19.9 percent from $236,000 for January last year. The median always declines from December to January because strong year-end sales of expensive newly-built homes tugs the median up.

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 Southland buyers committed themselves to paying was $1,307 in January. A year ago it was $1,195. The all-time peak was April 1989 at $1,360 when interest rates were higher, DataQuick reported.

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

All Homes	No Sold Jan-02	No Sold Jan-03	Pct. Chg	Median Jan-02	Median Jan-03	Pct. Chg
Los Angeles	8,087	8,240	1.9%	$235K	$278K	18.3%
Orange County	3,134	3,488	11.3%	$308K	$369K	19.8%
San Diego	3,329	3,468	4.2%	$273K	$336K	23.1%
Riverside	3,388	3,674	8.4%	$189K	$222K	17.5%
San Bernardino	2,958	2,716	-8.2%	$149K	$174K	16.8%
Ventura	1,115	1,181	5.9%	$284K	$339K	19.4%
So. California	22,011	22,767	3.4%	$236K	$283K	19.9%

Source: DQNews.com

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