Bay Area Home Sales Still in Record Territory

September 16, 2004

La Jolla, CA.----Last month was the strongest August for Bay Area home sales in more than sixteen years as prices edged up to a new record, the result of strong demand, increased inventory and continued low mortgage interest rates, a real estate information service reported.

A total of 12,674 new and resale houses and condos were sold in the nine-county region in August. That was down 1.5 percent from 12,862 in July, and up 1.5 percent from 12,488 for August last year, according to DataQuick Information Systems.

In addition to being the strongest August in DataQuick's records, which go back to 1988, last month's sales were the third highest of any month, behind July, and behind June of this year when 14,104 homes were sold.

"While current sales are a bit off the June peak, it can't really be said that the market is turning when we've just had the third- highest sales count in at least sixteen years as well as a new price peak. With today's demand, we may well see sales and appreciation stay strong through the rest of the year," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $520,000 last month, a new record. That was up 1.2 percent from July's $514,000 and up 16.3 percent from $447,000 for August 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 Bay Area buyers committed themselves to paying was $2,341 in August. In July it was $2,361 and a year ago it was $2,092.

Indicators of market distress are still largely absent. Foreclosure rates are low, down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported. A slight increase in flipping rates earlier this year has leveled off, DataQuick reported.

All Homes	No Sold Aug-03	No Sold Aug-04	Pct. Chg	Median Aug-03	Median Aug-04	Pct. Chg
Alameda	2,682	2,742	2.2%	$420K	$497K	18.3%
Contra Costa	2,532	2,560	1.1%	$399K	$468K	17.3%
Marin	462	478	3.5%	$627K	$717K	14.4%
Napa	187	226	20.9%	$437K	$511K	16.9%
San Francisco	631	735	16.5%	$556K	$668K	20.1%
San Mateo	1,074	986	-8.2%	$566K	$649K	14.7%
Santa Clara	3,044	3,017	-0.9%	$476K	$539K	13.2%
Solano	916	1,015	10.8%	$315K	$377K	19.7%
Sonoma	960	915	-4.7%	$388K	$462K	19.1%
Bay Area	12,488	12,674	1.5%	$447K	$520K	16.3%

Source: DataQuick Information Systems, www.DQNews.com

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