Bay Area real estate: Sales slow slightly, flat appreciation

October 18, 2005

La Jolla, CA.----Sales in the nine-county Bay Area eased back a notch for the sixth month in a row as prices continued to rise at the same pace they have since the beginning of the year, a real estate information service reported.

A total of 11,205 new and resale houses and condos were sold in the region last month. That was down 7.8 percent from 12,154 for August, and down 7.2 percent from 12,075 for September last year, according to DataQuick Information Systems.

So far this year 96,591 homes have been sold, down 5.0 percent from 101,693 for the same nine-month period last year. Last year's YTD sales were the highest in DataQuick's statistics, which go back to 1988. Sales this year have been the second highest.

"The Bay Area real estate market seems to have settled into a steady state, with few indicators pointing to any upcoming change. Supply and demand seem stable. We are keeping an eye on rising mortgage interest rates which could slow things down somewhat before the end of the year," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $616,000 last month. That was down 0.5 percent from $619,000 in August, and up 19.4 percent from $516,000 for September a year ago. A slight decline from August to September is normal for the season. Annual price increases so far this year have ranged from 17.6 percent to 20.5 percent.

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 $2,713 in September. That was down from $2,761 in August. A year ago it was $2,283.

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 Sep-04	No Sold Sep-05	Pct. Chg	Median Sep-04	Median Sep-05	Pct. Chg
Alameda	2,530	2,300	-9.1%	$480K	$579K	20.6%
Contra Costa	2,339	2,312	-1.2%	$463K	$577K	24.6%
Marin	456	448	-1.8%	$687K	$802K	16.7%
Napa	224	189	-15.6%	$522K	$627K	20.1%
San Francisco	689	600	-12.9%	$669K	$721K	7.8%
San Mateo	997	819	-17.9%	$637K	$752K	18.1%
Santa Clara	2,865	2,689	-6.1%	$543K	$646K	19.0%
Solano	1,049	1,030	-1.8%	$394K	$481K	22.1%
Sonoma	926	818	-11.7%	$466K	$582K	24.9%
Bay Area	12,075	11,205	-7.2%	$516K	$616K	19.4%

Source: DataQuick Information Systems, www.DQNews.com

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