Housing Bubble
California home sales fall as prices hit new record
June 26, 2003
LOS ANGELES, June 25 /PRNewswire/ -- The median price of an existing home in California in May increased 15.6 percent and sales decreased 7.7 percent compared to the same period a year ago, the California Association of REALTORS(R) (C.A.R.) reported today.
"Low mortgage interest rates coupled with continued strong demand for California real estate drove the median price upward in May," said C.A.R. President Toby Bradley. "But with the median price of a single-family home posting double-digit increases in 22 out of the past 24 months, affordability concerns are increasing for many families in California."
The median price of an existing, single-family detached home in California during May 2003 was $369,290, a 15.6 percent increase over the revised $319,590 median for May 2002, C.A.R. reported. The May 2003 median price increased 1.5 percent compared to a revised April 2003 $363,960 median price.
Closed escrow sales of existing, single-family detached homes in California totaled 572,270 in May at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR(R) associations statewide. Statewide home resale activity decreased 7.7 percent from the 620,300 sales pace recorded in May 2002.
The statewide sales figure represents what the total number of homes sold during 2003 would be if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
"Year-to-date sales declined 5.6 percent as of May, in line with our expectations for the year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "While we don't anticipate sales to top last year's record level, 2003 looks to be the second best year for residential real estate on record."
Highlights of C.A.R.'s resale housing figures for May 2003:
- C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in May 2003 was 2.3 months, compared to a revised 2.0 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 5.48 percent during May 2003, down from 6.81 percent in May 2002, according to Freddie Mac. Adjustable mortgage interest rates averaged 3.66 percent in May 2003 compared to 4.79 percent in May 2002.
- The median number of days it took to sell a single-family home was 27 days in May 2003, compared to a revised 24 days for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data is not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes is generated from a survey of more than 90 associations of REALTORS(R) throughout the state. MLS median price and sales data for condominiums is based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 92 percent or 370 of 402 California cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates.
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at localized data collected by C.A.R. and DataQuick.
MAY 2003 REGIONAL SALES AND PRICE ACTIVITY*
Regional and Condo Sales Data Not Seasonally Adjusted
Percent Percent Percent Percent
Change in Change in Change in Change in
Median Price from Price from Sales from Sales from
Price Prior Month Prior Year Prior Month Prior Year
May-03 Apr-03 May-02 Apr-03 May-02
Statewide
Calif. (sf) $369,290 1.5% 15.6% -1.9% -7.7%
Calif. (condo) $273,330 2.1% 13.3% 4.9% -6.8%
C.A.R. REGION
Central Valley $220,440 3.2% 19.4% 5.8% -4.0%
High Desert $146,990 -1.0% 16.9% 17.6% 7.6%
Los Angeles $332,210 3.6% 19.8% -3.3% -3.5%
Monterey
Region $482,380 -1.8% 3.7% 15.1% -10.6%
Monterey
County $415,000 -3.2% 12.9% 21.7% 5.0%
Santa Cruz
County $535,000 -1.1% 0.6% 9.7% -25.6%
Northern
California $272,900 -1.2% 16.1% 11.1% -10.9%
Northern Wine
Country $419,550 2.2% 11.7% 12.6% -7.8%
Orange County $470,690 1.4% 14.2% 0.6% -4.0%
Palm Springs/
Lower Desert $253,850 -4.9% 11.0% 1.7% 6.6%
Riverside/San
Bernardino $205,140 -1.2% 19.4% 5.8% -4.4%
Sacramento $243,100 2.7% 17.7% 1.9% -6.2%
San Diego $408,480 3.4% 10.3% 7.5% -2.0%
San Francisco
Bay $552,130 -0.4% 2.2% 11.3% -8.2%
San Luis Obispo $378,120 -2.6% 19.8% -16.1% -25.7%
Santa Barbara
County $392,390 -20.7% 12.1% -9.1% -24.1%
Santa Barbara
South Coast $900,000 9.1% 6.0% -29.9% -25.7%
North Santa
Barbara County $310,870 6.0% 26.5% 6.5% -19.1%
Santa Clara $545,000 0.5% -5.7% 11.9% -12.9%
Ventura $457,140 -6.6% 25.6% -13.6% -18.3%
n.a n.a n.a n.a
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
Median Prices By Region - Current Month vs. Year Ago
Median Prices By Region - Current Month vs. Year Ago
May-03 Apr-03 May-02
Statewide
Calif. (sf) $369,290 $363,960 r $319,590 r
Calif. (condo) $273,330 $267,740 r $241,190 r
C.A.R. REGION
Central Valley $220,440 $213,550 $184,680 r
High Desert $146,990 $148,470 $125,690
Los Angeles $332,210 $320,720 $277,320 r
Monterey Region $482,380 $491,020 $465,060
Monterey County $415,000 $428,750 $367,500
Santa Cruz County $535,000 $541,000 $532,000
Northern California $272,900 $276,230 $234,970
Northern Wine Country $419,550 $410,430 $375,670
Orange County $470,690 $464,120 $412,000
Palm Springs/Lower Desert $253,850 $267,010 $228,680
Riverside/San Bernardino $205,140 $207,540 $171,820
Sacramento $243,100 $236,670 r $206,490 r
San Diego $408,480 $394,990 $370,310
San Francisco Bay $552,130 $554,560 $540,460
San Luis Obispo $378,120 $388,360 $315,570
Santa Barbara County $392,390 $495,000 $350,000 r
Santa Barbara South Coast $900,000 $825,000 $849,000 r
North Santa Barbara County $310,870 $293,180 $245,670
Santa Clara $545,000 $542,500 $578,000
Ventura $457,140 $489,680 r $364,040
r - revised
Source: California Association of REALTORS(R)
Source: California Association of REALTORS
