New Price Peak for Bay Area Homes

March 16, 2005

La Jolla, CA.----Home prices in the Bay Area moved up to a new peak last month, as sales stayed at near-record levels, a real estate information service reported.

A total of 7,463 new and resale houses and condos were sold in the nine-county region in February. That was down 0.6 percent from 7,509 for the previous month, and up 0.7 percent from 7,412 for February last year, according to DataQuick Information Systems.

Last month was the second-strongest February in DataQuick's statistics, which go back to 1988. Sales in February 2000 totaled 7,507.

"The strength of the market has certainly taken economic forecasters by surprise. Interest rates have been edging up the past month. Generally when that happens, buyers jump to get in before rates increase any further. We can expect a strong March and April, at least," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $549,000, a new record. That was up 2.8 percent from $534,000 in January, and up 20.1 percent from $457,000 for February a year ago.

Prices are going up at their fastest pace in four years.

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 $2,460 in February, an all-time high. A year ago it was $2,008.

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.

All Homes	No Sold Feb-04	No Sold Feb-05	Pct. Chg	Median Feb-04	Median Feb-05	Pct. Chg
Alameda	1,497	1,422	-5.0%	$429K	$512K	19.3%
Contra Costa	1,465	1,456	-0.6%	$403K	$488K	21.1%
Marin	256	251	-2.0%	$641K	$760K	18.6%
Napa	136	173	27.2%	$469K	$559K	19.2%
San Francisco	485	475	-2.1%	$575K	$699K	21.6%
San Mateo	576	576	0.0%	$567K	$686K	21.0%
Santa Clara	1,865	1,882	0.9%	$490K	$579K	18.2%
Solano	575	705	22.6%	$329K	$413K	25.5%
Sonoma	557	523	-6.1%	$390K	$501K	28.5%
Bay Area	7,412	7,463	0.7%	$457K	$549K	20.1%

Source: DataQuick Information Systems, www.DQNews.com

Media Inquiries: John Karevoll (909)867-9534

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