Strongest Bay Area January since 1989

February 18, 2004

La Jolla, CA.----January sales of Bay Area homes reached their highest level for that month in fifteen years, the result of strong demand and reasonable mortgage interest rates, a real estate information service reported.

A total of 7,102 new and resale houses and condos were sold in the nine-county region last month. That was down 37.3 percent from 11,354 in December and up 2.3 percent from 6,944 for January a year ago, according to DataQuick Information Systems.

A decrease from December to January is normal for the season. Last month's sales count was the highest for any January since 7,646 Bay Area homes were sold in 1989.

"The indications are that sales will stay strong at least through spring and on into summer. There are still more people who want to buy than there are homes for sale," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $443,000 last month. That was down 3.3 percent from December's $458,000 and up 9.7 percent from $404,000 for January a year ago. A decline from December to January is common because of a shift in the mix of homes sold. Year-over-year price increases have been around ten percent since October.

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 $1,940 in January. A year ago it was $1,865. 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 Jan-03	No Sold Jan-04	Pct. Chg	Median Jan-03	Median Jan-04	Pct. Chg
Alameda	1,471	1,449	-1.5%	$392K	$414K	5.6%
Contra Costa	1,392	1,381	-0.8%	$355K	$387K	9.0%
Marin	269	250	-7.1%	$535K	$622K	16.3%
Napa	132	132	0.0%	$405K	$451K	11.4%
San Francisco	367	504	37.3%	$539K	$531K	-1.5%
San Mateo	541	582	7.6%	$507K	$568K	12.0%
Santa Clara	1,510	1,682	11.4%	$447K	$473K	5.8%
Solano	658	574	-12.8%	$276K	$319K	15.6%
Sonoma	604	548	-9.3%	$343K	$399K	16.3%
Bay Area	6,944	7,102	2.3%	$404K	$443K	9.7%

Source: DataQuick Information Systems, www.DQNews.com

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