Housing Bubble
Southland home prices increase in March
April 23, 2003
La Jolla,CA--Southland home prices increased in March for the 76th month in a row, passing the $300,000 threshold for the first time. Sales counts eased back for the first time since August last year.
A total of 27,885 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 23.8 percent from 22,516 for the month before, and down 7.5 percent from 30,146 for March last year, according to DataQuick Information Systems.
A strong increase from February to March is normal for the season. Riverside County bucked the trend, posting a year-over-year sales increase, with the strongest month of March on record. The regional year-over-year decline was the first since August 2002 when sales counts dropped 5.1 percent.
"Does this drop mark a turning point in the market? It's too early to tell, but probably not. A number of factors play in, including buyers distracted by reporting from Iraq, economic uncertainty, lack of homes for sale and sticker shock," said Marshall Prentice, DataQuick president.
The median price that Southland buyers paid for a home was $301,000 last month, a new record. That was up 3.1 percent from $292,000 for February, and up 17.1 percent from $257,000 for March last year.
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 $1,344 in March. A year ago it was $1,310. The all-time peak was April 1989 at $1,360 when interest rates were higher, DataQuick reported.
Indicators of market distress are still largely absent. Foreclosure rates are low, flipping rates are low, adjustable-rate mortgage usage is low, down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported.
| All Homes |
No Sold Mar-02 |
No Sold Mar-03 |
Pct. Chg |
Median Mar-02 |
Median Mar-03 |
Pct. Chg |
| Los Angeles | 10,651 | 9,712 | -8.8% | $251K | $290K | 15.5% |
| Orange County | 4,833 | 4,359 | -9.8% | $332K | $394K | 18.7% |
| San Diego | 5,027 | 4,439 | -11.7% | $304K | $363K | 19.4% |
| Riverside | 4,411 | 4,477 | 1.5% | $202K | $237K | 17.3% |
| San Bernardino | 3,610 | 3,472 | -3.8% | $156K | $183K | 17.3% |
| Ventura | 1,614 | 1,426 | -11.6% | $312K | $359K | 15.1% |
| So. California | 30,146 | 27,885 | -7.5% | $257K | $301K | 17.1% |
Source: DataQuick Information Systems
