Housing Bubble
California home sales fall 7.1 percent, prices rise
March 25, 2003
LOS ANGELES, March 25 The median price of an existing home in California in February increased 11.1 percent and sales decreased 7.1 percent compared to the same period a year ago, the California Association of REALTORS® reported today.
"The median price of a home in California continued to post impressive gains in most regions of the state last month. Statewide, sales declined 7.1 percent compared to February 2001, when sales hit a new record for the month," said C.A.R. President Toby Bradley. "Overall, the housing market continues to be a bright spot in the economy, especially in light of mixed economic indicators elsewhere and concerns about the conflict with Iraq."
Closed escrow sales of existing, single-family detached homes in California totaled 566,890 in February 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 decreased 7.1 percent from the 610,380 sales pace recorded in February 2002.
"Mortgage interest rates continue to play a key role in the housing market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "While year-to-date sales are down compared to last years record pace, interest rates continue to make housing more affordable to a broader segment of the market."
The statewide sales figure represents what the total number of homes sold during 2003 would be if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during February 2003 was $327,600, an 11.1 percent increase over the revised $294,860 median for February 2002, C.A.R. reported. The February 2003 median price decreased 2.7 percent compared to January 2003.
Highlights of C.A.R.'s resale housing figures for February 2003:
- C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in February 2003 was 3.5 months, compared to 3.0 months (revised) 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 5.84 percent during February 2003, down from 6.84 percent in February 2002, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 3.86 percent in February 2003 compared to 4.98 percent in February 2002
- The median number of days it took to sell a single-family home was 35 days in February 2003, compared to 39 days (revised) 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 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, 92.6 percent or 377 of 408 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.
- Statewide, the 10 cities and communities with the highest median
home prices in California during February 2003 were: Newport Coast
$1,059,000; Manhattan Beach, $1,045,000; Beverly Hills, $925,000;
Burlingame, $900,000; Coronado, $862,000; Saratoga, $860,000; Pacific
Palisades, $811,750; La Jolla, $794,250; Laguna Beach, $755,000;
Millbrae, $750,000.
- Statewide, the 10 cities and communities with the greatest median
home price increases in February 2003 compared to the same period a
year ago were: Desert Hot Springs, 55.8 percent; Fullerton, 52.6
percent; Adelanto, 50.3 percent; Sun City, 43.1 percent; Lake Elsinore,
41.1 percent; Playa del Rey, 41.0 percent; Studio City, 40.8 percent;
La Jolla, 40.6 percent; Woodland, 40.2 percent; Yorba Linda, 39.2
percent.
FEBRUARY 2003 REGIONAL SALES AND PRICE ACTIVITY*
Regional and Condo Sales Data Not Seasonally Adjusted
Percent Percent
Change in Percent Change in Percent
Price from Change in Sales from Change in
Prior Price from Prior Sales from
February-03 Median Month Prior Year Month Prior Year
Feb-03 Jan-03 Feb-02 Jan-03 Feb-02
Statewide
Calif. (sf) $ 327,600 -2.7% 11.1% -3.0% -7.1%
Calif. (condo) $ 263,620 3.7% 17.3% -3.1% -13.4%
C.A.R. REGION
Central Valley $ 203,570 0.7% 19.3% -10.5% -2.6%
High Desert $ 141,690 1.9% 19.5% -5.4% 32.7%
Los Angeles $ 306,990 0.1% 15.0% -10.9% -1.9%
Monterey
Region $ 468,750 2.3% 3.9% -16.3% -25.0%
Monterey
County $ 383,000 -5.4% -5.4% -32.6% -49.0%
Santa Cruz
County $ 525,000 1.9% 9.4% 6.6% -19.3%
Northern
California $ 247,370 0.7% 12.5% -1.6% -0.7%
Northern Wine
Country $ 389,280 -1.1% 9.0% 2.4% -2.7%
Orange County $ 449,540 0.7% 21.6% -11.3% -17.1%
Palm Springs/
Lower Desert $ 245,550 1.4% 23.7% 6.1% 18.3%
Riverside/
San Bernardino$ 195,980 2.8% 18.3% -8.6% 9.9%
Sacramento $ 227,790 1.0% 24.6% -12.7% -13.6%
San Diego $ 385,170 -0.2% 17.9% -1.5% -13.9%
San Francisco
Bay $ 497,410 1.2% 4.3% -11.3% -21.8%
San Luis
Obispo $ 361,610 -2.1% 21.7% 14.6% -0.7%
Santa Barbara
County $ 397,140 5.1% 5.9% 19.1% -2.9%
Santa Barbara
South Coast $ 740,000 -11.0% 18.0% 37.0% -5.1%
North Santa
Barbara
County $ 296,150 1.8% 28.9% 6.8% 4.4%
Santa Clara $ 535,000 4.3% 1.9% -11.3% -33.5%
Ventura $ 397,260 n.a. 17.8% n.a. -14.6%
* 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
Median Prices By Region - Current Month vs. Year Ago
Feb-03 Jan-03 Feb-02
Statewide
Calif. (sf) $ 327,600 $ 336,740 $ 294,860r
Calif. (condo) $ 263,620 $ 254,140r $ 224,840r
C.A.R. REGION
Central Valley $ 203,570 $ 202,060r $ 170,630r
High Desert $ 141,690 $ 138,980 $ 118,540
Los Angeles $ 306,990 $ 306,730 $ 266,940
Monterey Region $ 468,750 $ 458,330 $ 451,140
Monterey County $ 383,000 $ 405,000 $ 405,000
Santa Cruz County $ 525,000 $ 515,000 $ 480,100
Northern California $ 247,370 $ 245,600 $ 219,900
Northern Wine Country $ 389,280 $ 393,590 $ 357,010
Orange County $ 449,540 $ 446,230r $ 369,760
Palm Springs/Lower Desert $ 245,550 $ 242,100 $ 198,500
Riverside/San Bernardino $ 195,980 $ 190,680 $ 165,640
Sacramento $ 227,790 $ 225,620r $ 182,840r
San Diego $ 385,170 $ 385,850 $ 326,730r
San Francisco Bay $ 497,410 $ 491,650 $ 477,130
San Luis Obispo $ 361,610 $ 369,390 $ 297,060
Santa Barbara County $ 397,140 $ 378,000r $ 375,000r
Santa Barbara South Coast $ 740,000 $ 831,000r $ 627,250r
North Santa Barbara County $ 296,150 $ 290,790 $ 229,730r
Santa Clara $ 535,000 $ 513,000 $ 525,000
Ventura $ 397,260 n.a. $ 337,370
r - revised
Source: California Association of REALTORS®
Source: The California Association of REALTORS
