Housing Bubble
California median home price increases 15.9 percent in June
July 25, 2003
LOS ANGELES (July 25) - The median price of an existing home in California in June increased 15.9 percent and sales increased 7.2 percent compared to the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.
"The median price of a home in Southern California, especially in the Riverside/San Bernardino and Central Valley regions, continued to post impressive gains," said C.A.R. President Toby Bradley. "Prices in the San Francisco Bay Area region, by comparison, are appreciating at a slower rate than other regions in the state."
The median price of an existing, single-family detached home in California during June 2003 was $376,260, a 15.9 percent increase over the revised $324,640 median for June 2002, C.A.R. reported. The June 2003 median price increased 1.8 percent compared to a revised May 2003 $369,450 median price.
Closed escrow sales of existing, single-family detached homes in California totaled 572,130 in June at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 7.2 percent from the 533,840 sales pace recorded in June 2002.
The statewide sales figure represents what the total number of homes sold during 2003 would be if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
"The wild cards in the equation are mortgage interest rates," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "If the national economy recovers at a faster pace than expected, long-term rates will likely increase more quickly than we've anticipated. This could have a negative effect on affordability and the ability of Californians to purchase a home."
Highlights of C.A.R.'s resale housing figures for June 2003:
- C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in June 2003 was 2.3 months, compared to 2.4 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
- Thirty-year fixed mortgage interest rates averaged 5.23 percent during June 2003, down from 6.65 percent in June 2002, according to Freddie Mac. Adjustable mortgage interest rates averaged 3.52 percent in June 2003 compared to 4.65 percent in June 2002.
- The median number of days it took to sell a single-family home was 28 days in June 2003, compared to a revised 23 days for the same period a year ago.
- Statewide, the 10 cities and communities with the highest median home prices in California during June 2003 were: Burlingame, $1,282,500; Beverly Hills, $980,000; Malibu, $950,500; Calabasas, $905,000; Laguna Beach, $879,000; San Marino, $870,000; Newport Beach, $862,500; Manhattan Beach, $850,000; Palos Verdes Estates, $823,250; Del Mar, $819,500.
- Statewide, the 10 cities and communities with the greatest median home price increases in June 2003 compared to the same period a year ago were: Yucca Valley, 47.1 percent; Santee 37.1 percent; Arcadia, 36.6 percent; Desert Hot Springs, 36.4 percent; Perris, 36.2 percent; La Quinta, 35.8 percent; Ontario, 35.3 percent; Laguna Hills, 34.3 percent; Patterson, 32.9 percent; Chula Vista, 32.5 percent.
June 2003 Regional sales and price activity
Regional and Condo Sales Data Not Seasonally Adjusted
|
|
Median Price |
Percent Change in Price from Prior Month |
|
Percent Change in Price from Prior Year |
|
Percent Change in Sales from Prior Month |
Percent Change in Sales from Prior Year |
|
|
Jun-03 |
May-03 |
|
Jun-02 |
|
May-03 |
Jun-02 |
|
Statewide |
|
|
|
|
|
|
|
|
Calif. (sf) |
$ 376,260 |
1.8% |
|
15.9% |
|
0.0% |
7.2% |
|
Calif. (condo) |
$ 282,000 |
1.7% |
|
16.4% |
|
-2.9% |
5.1% |
|
|
|
|
|
|
|
|
|
|
C.A.R. Region |
|
|
|
|
|
|
|
|
Central Valley |
$ 226,280 |
2.7% |
|
18.6% |
|
-2.8% |
3.9% |
|
High Desert |
$ 153,840 |
4.7% |
|
20.4% |
|
-5.7% |
5.6% |
|
Los Angeles |
$ 339,100 |
2.1% |
|
20.8% |
|
-9.7% |
2.3% |
|
Monterey Region |
$ 495,830 |
2.8% |
|
6.8% |
|
6.1% |
8.3% |
|
Monterey County |
$ 421,000 |
1.4% |
|
2.1% |
|
3.3% |
0.4% |
|
Santa Cruz County |
$ 550,000 |
2.8% |
|
5.3% |
|
8.4% |
19.6% |
|
Northern California |
$ 286,930 |
5.1% |
|
15.5% |
|
6.7% |
-3.8% |
|
Northern Wine Country |
$ 433,980 |
3.4% |
|
12.0% |
|
-0.7% |
6.7% |
|
Orange County |
$ 479,410 |
1.9% |
|
12.0% |
|
10.9% |
-0.7% |
|
Palm Springs/Lower Desert |
$ 265,000 |
4.4% |
|
16.9% |
|
-1.8% |
14.4% |
|
Riverside/San Bernardino |
$ 222,340 |
7.2% |
|
24.6% |
|
6.4% |
3.9% |
|
Sacramento |
$ 254,450 |
5.3% |
|
22.0% |
|
-5.3% |
1.2% |
|
San Diego |
$ 419,320 |
2.7% |
|
13.7% |
|
-3.3% |
4.8% |
|
San Francisco Bay |
$ 572,870 |
3.8% |
|
3.9% |
|
1.9% |
4.6% |
|
San Luis Obispo |
$ 377,540 |
-0.2% |
|
13.8% |
|
9.3% |
1.0% |
|
Santa Barbara County |
$ 389,530 |
-0.7% |
|
10.7% |
|
14.8% |
-13.5% |
|
Santa Barbara South Coast |
$ 822,500 |
-7.1% |
|
7.5% |
|
20.8% |
-7.0% |
|
North Santa Barbara County |
$ 293,530 |
-5.6% |
|
15.2% |
|
9.6% |
-17.2% |
|
Santa Clara |
$ 565,000 |
3.7% |
|
-1.7% |
|
6.9% |
11.3% |
|
Ventura |
$ 455,420 |
-0.4% |
|
25.9% |
|
-2.7% |
-13.3% |
*Based on closed escrow sales of single‑family, detached homes only (no condos). Reported month‑to‑month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
sf = single‑family, detached home
Source: California Association of REALTORS®
Median Prices By Region - Current Month vs. Year Ago
|
|
Jun-03 |
May-03 |
|
Jun-02 |
|
|
Statewide |
|
|
|
|
|
|
Calif. (sf) |
$ 376,260 |
$ 369,450 |
r |
$ 324,640 |
r |
|
Calif. (condo) |
$ 282,000 |
$ 277,390 |
r |
$ 242,170 |
r |
|
|
|
|
|
|
|
|
Region |
|
|
|
|
|
|
Central Valley |
$ 226,280 |
$ 220,370 |
r |
$ 190,860 |
r |
|
High Desert |
$ 153,840 |
$ 146,990 |
|
$ 127,760 |
|
|
Los Angeles |
$ 339,100 |
$ 332,210 |
|
$ 280,720 |
|
|
Monterey Region |
$ 495,830 |
$ 482,380 |
|
$ 464,360 |
|
|
Monterey County |
$ 421,000 |
$ 415,000 |
|
$ 412,500 |
|
|
Santa Cruz County |
$ 550,000 |
$ 535,000 |
|
$ 522,500 |
|
|
Northern California |
$ 286,930 |
$ 272,900 |
|
$ 248,460 |
|
|
Northern Wine Country |
$ 433,980 |
$ 419,550 |
|
$ 387,550 |
|
|
Orange County |
$ 479,410 |
$ 470,690 |
|
$ 428,130 |
|
|
Palm Springs/Lower Desert |
$ 265,000 |
$ 253,850 |
|
$ 226,620 |
|
|
Riverside/San Bernardino |
$ 222,340 |
$ 207,450 |
r |
$ 178,440 |
|
|
Sacramento |
$ 254,450 |
$ 241,710 |
r |
$ 208,500 |
r |
|
San Diego |
$ 419,320 |
$ 408,480 |
|
$ 368,650 |
|
|
San Francisco Bay |
$ 572,870 |
$ 552,130 |
|
$ 551,380 |
|
|
San Luis Obispo |
$ 377,540 |
$ 378,120 |
|
$ 331,900 |
|
|
Santa Barbara County |
$ 389,530 |
$ 392,390 |
|
$ 352,000 |
r |
|
Santa Barbara South Coast |
$ 822,500 |
$ 885,000 |
r |
$ 765,000 |
r |
|
North Santa Barbara County |
$ 293,530 |
$ 310,870 |
|
$ 254,880 |
|
|
Santa Clara |
$ 565,000 |
$ 545,000 |
|
$ 575,000 |
|
|
Ventura |
$ 455,420 |
$ 457,140 |
|
$ 361,700 |
|
r - revised
Source: California Association of REALTORS®
