Median Price of a Home in California Increases 22 Percent in March (HO-LEE!)

PRNewswire ^ | 4/27/2004 | PRNewswire

[Rutles4Ever]

LOS ANGELES, April 27 /PRNewswire/ -- The median price of an existing home in California in March increased 22 percent and sales increased 4 percent compared to the same period a year ago, the California Association of REALTORS(R) (C.A.R.) reported today.

"The median price of a home continued its run of double-digit price increases last month as buyers scrambled to purchase homes amid concerns of rising mortgage interest rates," said C.A.R. President Ann Pettijohn. "This unprecedented demand helped push the median price of a home in many regions in the state to record highs in March. And at $428,280, the median price for the state also hit a record high in March compared to $351,130 just one year ago."

The median price of a home in the Central Valley, High Desert, Monterey, Monterey County, Northern California, Northern Wine, Orange County, Riverside/San Bernardino, Sacramento, San Diego, Santa Clara, Santa Cruz, North Santa Barbara County and Santa Barbara South Coast regions posted record highs in March, according to C.A.R.

Closed escrow sales of existing, single-family detached homes in California totaled 590,220 in March 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 increased 4 percent from the 567,610 sales pace recorded in March 2003.

The statewide sales figure represents what the total number of homes sold during 2004 would be if sales maintained the March 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 March 2004 was $428,280, a 22 percent increase over the revised $351,130 median for March 2003, C.A.R. reported. The March 2004 median price increased 8.4 percent compared to a revised $395,060 median price in February.

"Year-to-date sales are up 4.4 percent compared to the same period last year," said Leslie Appleton-Young, C.A.R.'s vice president and chief economist. "Along with the median price of a home, the inventory of homes for sale reached an all-time historic low of 1.6 months in March, while time on the market stood at a record low of 26 days."

[2banana]

Can anyone say bubble?

[CyberAnt]

The real reason: the enviro whackos have protected all the areas where housing needs to be built. There is a lack of housing and that drives up the price.

[Mears]

The median home price in the city where I live in Massachusetts is $650,000.00.

I thought the bubble would burst in 2001,but it never did.

Unvelievable,isn't it?

[Dems_R_Losers]

Same thing is happening in the Washington, DC area. I need a bigger house but can't afford one in my neighborhood. They are going for $800,000 and up. The house across the street from me just sold for $820k and the guy is having work done on the place!

These are not bubbles. Job growth is strong in the DC area and in many areas of California. In Cali, you have all the legal and illegal immigrants also pushing the limited housing supply. There is a housing shortage in these areas. Listings are few and buyers are many.

[Always Right]

Can anyone say bubble?

I can say bubble, but I wouldn't count on a housing bubble. Housing is a neccessity. Unless the California economy tanks or people start moving out for whatever reason, I would not expect a major fallback in prices.

[LexBaird]

Government regulations, fees, taxes, licenses, EPA impact studies, etc. on average add over $50,000 to the price of a new home construction before the ground is broken.

[KC_for_Freedom]

I can say bubble, but I wouldn't count on a housing bubble. Housing is a neccessity. Unless the California economy tanks or people start moving out for whatever reason, I would not expect a major fallback in prices.

Yes, jobs is the thing that California seems to have. And the fear of interest rate hikes down the road are driving buying now.

[KellyAdmirer]

Bubbles can last a long time. A friend of mine in the real estate business liked to say that housing cycles tend to last seven years, "like in the Bible." ;)

[Sub-Driver]

Headline: Bush to blame for high housing costs, women and children hurt

[Rutles4Ever]

When does this start driving inflation? It would seem to me that in order to sustain this massive jump in the cost of living employers will have to start forking over more and more dough. Meanwhile, everyone making money hand over fist is simply moving up. Either the economy, or the real estate market is going to implode.

[angcat]

I was looking at houses in Cape Cod (keep dreaming) a one bedroom cottage is 250,000.

[cmsgop]

My friend in Costa Mesa bought a starter home for $250,000 five years ago, 1600sqf, no big deal. It is now on the market for $540,000 and he will get it.

[Mears]

Did you ever think you'd see the day when a house for $1,000,000.00 would seem almost routine?

[Mears]

The $250,000.00 house probably was very damp and poorly insulated too.

[onyx]

It's a seller's market now.
After the election,
watch out.

[CyberAnt]

Yes, that's true. But there are thousands of acres which could be developed which has been denied housing because of some teeny tiny butterfly. This is ridiculous. Why don't they capture a bunch of the butterflies and take them over to the San Diego Zoo ..?? There .. the butterflies could be viewed and enjoyed by the public .. without stopping the development of housing.

[mewzilla]

Caveat emptor.

[Choose Ye This Day]

Why would anyone want to spend nearly half a million to buy a home in California?

[Eric in the Ozarks]

The value of our home in a Twin Cities suburb increased 15-20 percent a year every year. It was a no-brainer.