Southland Home Price Rise Strongest Since 1989

September 18, 2003

La Jolla,CA--Southland home prices rose at their fastest rate in fourteen years last month, the result of strong demand, tight supply and reasonable mortgage interest rates. Sales were at their highest level in fifteen years.

The median price paid for a home in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties was $338,000 in August. That was up 3.0 percent from $328,000 for the month before and up 21.6 percent from $278,000 for August last year, according to DataQuick Information Systems.

The year-over-year increase was the strongest since May 1989 when the $176,000 median was up 22.2 percent from $144,000 a year before.

"Obviously the fence-sitters started jumping in after interest rates bottomed out in May. This appreciation rate of over twenty percent may last a couple of months, but should be back down into the teens by the end of the year," said Marshall Prentice, DataQuick president.

A total of 34,437 Southern California homes were sold in August, up 2.6 percent from 33,561 for the month before and up 12.1 percent from 30,732 for August a year ago. Last month's sales count was the highest since 34,653 homes were sold in September 1988. So far this year 234,597 homes have been sold, up 2.3 percent from 229,234 for the same period last year.

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 $1,582 in August, up from $1,442 for the previous month and up from $1,311 for August a year ago, DataQuick reported. Last month's typical payment passed the previous all-time peak of May 1989 which was $1,453.

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 Aug-02	No Sold Aug-03	Pct. Chg	Median Aug-02	Median Aug-03	Pct. Chg
Los Angeles	10,808	11,874	9.9%	$267K	$338K	26.6%
Orange County	4,678	5,511	17.8%	$370K	$435K	17.6%
San Diego	5,125	5,919	15.5%	$339K	$389K	14.7%
Riverside	4,801	5,332	11.1%	$215K	$260K	20.9%
San Bernardino	3,622	4,066	12.3%	$160K	$207K	29.4%
Ventura	1,698	1,735	2.2%	$334K	$404K	21.0%
So. California	30,732	34,437	12.1%	$278K	$338K	21.6%

Source: DQNews.com

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