Southland Home Prices Reach New Peak

October 14, 2004

La Jolla,CA----Southern California home prices edged up to a new peak as sales remained at near record levels. Homes in affordable markets are selling briskly, while sales of costly homes have leveled off, a real estate information service reported.

A total of 29,942 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in September. That was down 3.8 percent from August's 31,131 and down 8.7 percent from 32,813 for September last year, according to DataQuick Information Systems.

A decline in sales from August to September is normal for the season. Last month was the third strongest September DataQuick has in its records, which go back to 1988. The year-over-year sales decline was strongest in Orange County, while sales were up in the Inland Empire.

"The real estate cycle is playing itself out in predictable fashion. The home categories which first picked up steam six or seven years ago are now leveling off. Mid and entry-level markets, which kicked into gear a year or two, are still doing well," said Marshall Prentice, DataQuick president.

The median price paid for a Southern California home was $409,000 last month, another record. That was up 0.5 percent from $407,000 in August, and up 22.1 percent from $335,000 for September 2003.

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 $1,809 in September, down from $1,832 for the previous month and up from $1,516 for September a year ago. The typical payment is still about 13 percent below the prior peak of $2,093 (inflation-adjusted) for April 1989.

Indicators of market distress are still largely absent. Foreclosure rates are low, down payment sizes are stable and shifts in market mix are minor, DataQuick reported. Slight recent increases in flipping rates and non-owner occupied buying activity have leveled off, DataQuick reported.

All Homes	No Sold Sep-03	No Sold Sep-04	Pct. Chg	Median Sep-03	Median Sep-04	Pct. Chg
Los Angeles	11,395	10,501	-7.8%	$336K	$407K	21.1%
Orange County	4,956	3,585	-27.7%	$431K	$533K	23.7%
San Diego	5,705	5,177	-9.3%	$390K	$480K	23.1%
Riverside	5,225	5,375	2.9%	$261K	$338K	29.5%
San Bernardino	4,010	4,064	1.3%	$199K	$265K	33.2%
Ventura	1,522	1,240	-18.5%	$415K	$540K	30.1%
So. California	32,813	29,942	-8.7%	$335K	$409K	22.1%

Source: DQNews.com

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