Southland home sales still near peak

October 17, 2005

La Jolla,CA----Fueled by strong demand and readily available financing, the Southern California real estate market moved into the fall season with strong sales and continued price increases, a real estate information service reported.

A total of 31,740 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 7.4 percent from 34,292 in August, and up 6.0 percent from 29,942 for September last year, according to DataQuick Information Systems.

A decline from August to September is normal for the season. Last month's sales count made for the third-strongest September in DataQuick's statistics, which go back to 1988. Sales totaled 32,813 two years ago, and in September 1988 sales totaled 34,653. The low for that month was in 1992 with 12,838 sales.

"There seems to be a bit of a gap between perception and reality right now. What's happening is that appreciation in more affordable markets is stronger than in the high-profile move-up and prestige markets. This is a natural part of a normal real estate cycle because trends in lower-cost markets tend to lag trends in more expensive markets," said Marshall Prentice, DataQuick president.

The median price paid for a Southern California home was $475,000 last month. That was down 0.2 percent from $476,000 in August, and up 16.1 percent from $409,000 for September 2004.

Year-over-year changes in the median price ranged from 3.8 percent in San Diego County to 32.8 percent in San Bernardino County. The median in both counties hit a new peak.

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 $2,098 last month, down from $2,123 for the previous month, and up from $1,809 for September a year ago. Adjusted for inflation, current payments are slightly below their peak in the spring of 1989.

Indicators of market distress are still largely absent. Foreclosure activity has bottomed out, but is still low. Down payment sizes are stable, as are flipping rates and non-owner occupied buying activity , DataQuick reported.

All Homes	No Sold Sep-04	No Sold Sep-05	Pct. Chg	Median Sep-04	Median Sep-05	Pct. Chg
Los Angeles	10,501	10,988	4.6%	$407K	$494K	21.4%
Orange County	3,585	4,072	13.6%	$533K	$610K	14.4%
San Diego	5,177	4,935	-4.7%	$480K	$498K	3.8%
Riverside	5,375	6,001	11.6%	$338K	$391K	15.7%
San Bernardino	4,064	4,364	7.4%	$265K	$352K	32.8%
Ventura	1,240	1,380	11.3%	$540K	$604K	11.9%
So. California	29,942	31,740	6.0%	$409K	$475K	16.1%

Source: DQNews.com

Media Inquiries: John Karevoll (909) 867-9534

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