March Surge for Bay Area Home Sales

April 19, 2004

La Jolla, CA.----Last month's home sales in the Bay Area made for the strongest March in fifteen years as sales surged and prices moved up to a new peak, the result of strong demand and low mortgage interest rates, a real estate information service reported.

A total of 11,015 new and resale houses and condos were sold in the nine-county region in March. That was up 48.6 percent from 7,412 the month before and up 24.9 percent from 8,818 for March last year, according to DataQuick Information Systems.

An increase from February to March is normal for the season. Last month's sales count was the highest for any March since 11,442 homes were sold in March 1989.

"More people want to buy than there are homes for sale. That pushes prices up. We're moving into the summer season and with interest rates edging up, the market will probably be even more pressured," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $474,000 last month, a new peak. Last month's median was up 3.7 percent from $457,000 in February and up 13.1 percent from $419,000 for March last year. At current appreciation rates, the median will break the $500,000 mark in June or July.

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 $2,052 in March. A year ago it was $1,870. 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 Mar-03	No Sold Mar-04	Pct. Chg	Median Mar-03	Median Mar-04	Pct. Chg
Alameda	1,879	2,254	20.0%	$398K	$438K	10.1%
Contra Costa	1,808	2,213	22.4%	$367K	$413K	12.5%
Marin	366	425	16.1%	$590K	$672K	13.9%
Napa	156	226	44.9%	$403K	$483K	19.9%
San Francisco	572	676	18.2%	$530K	$595K	12.3%
San Mateo	678	789	16.4%	$537K	$587K	9.3%
Santa Clara	1,956	2,813	43.8%	$448K	$520K	16.1%
Solano	715	867	21.3%	$295K	$327K	10.8%
Sonoma	688	752	9.3%	$358K	$416K	16.2%
Bay Area	8,818	11,015	24.9%	$419K	$474K	13.1%

Source: DataQuick Information Systems, www.DQNews.com

Media Inquiries: John Karevoll (909)867-9534

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