Slower Bay Area home sales, steady price increase

December 15, 2005

La Jolla, CA.----Bay Area home sales continued to slow on a year-over-year basis while prices continued to climb, a real estate information service reported.

A total of 9,717 new and resale houses and condos were sold in the region last month. That was down 7.5 percent from 10,508 for October, and down 10.8 percent from 10,897 for November last year, according to DataQuick Information Systems.

A decline from October to November is normal for the season. The year-over-year decrease was the eighth in a row. Last year's sales count was the strongest for any November in DataQuick's statistics, which go back to 1988. Last month was the third-strongest November.

"Today's Bay Area real estate market has all the characteristics of a relatively normal balanced market. We knew the year-ago numbers were unsustainably strong. Right now it looks like current trends will last well into 2006, with strong, but not record-breaking sales, and continued appreciation," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $625,000 last month, a new record. That was up 1.8 percent from $614,000 in October, and up 17.3 percent from $533,000 for November a year ago. Annual price increases so far this year have ranged from 17.2 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 $2,921 in November. That was up from $2,815 in October and $2,350 for November last year. Adjusted for inflation current payments are 16.5 percent higher than at the peak of the last real estate cycle in the spring of 1990.

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 Nov-04	No Sold Nov-05	Pct. Chg	Median Nov-04	Median Nov-05	Pct. Chg
Alameda	2,251	2,009	-10.8%	$500K	$587K	17.4%
Contra Costa	2,179	1,961	-10.0%	$474K	$589K	24.3%
Marin	413	361	-12.6%	$739K	$809K	9.5%
Napa	221	183	-17.2%	$535K	$605K	13.1%
San Francisco	616	594	-3.6%	$697K	$749K	7.5%
San Mateo	920	756	-17.8%	$664K	$733K	10.4%
Santa Clara	2,624	2,394	-8.8%	$560K	$653K	16.6%
Solano	918	774	-15.7%	$400K	$490K	22.5%
Sonoma	755	685	-9.3%	$472K	$574K	21.6%
Bay Area	10,897	9,717	-10.8%	$533K	$625K	17.3%

Source: DataQuick Information Systems, www.DQNews.com

Media Inquiries: John Karevoll (909)867-9534

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