Median price of a home in California breaks $400,000 barrier for first time,
Sales set new record in August, C.A.R. reports

LOS ANGELES (Sept. 25) – The median price of an existing home in California in August increased 21.1 percent and sales increased 14.7 percent compared to the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.

"Consumers' concerns about the recent up-tick in mortgage interest rates pushed sales into record territory last month as buyers jumped into the housing market," said C.A.R. President Toby Bradley. "The median price of a home broke the $400,000 mark for the first time in history, increasing to a record $404,870 in August."

             Closed escrow sales of existing, single-family detached homes in California totaled a record 645,720 in August 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 14.7 percent from the 562,780 sales pace recorded in August 2002.

The statewide sales figure represents what the total number of homes sold during 2003 would be if sales maintained the August 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 August 2003 was a record $404,870, a 21.1 percent increase over the $334,270 median for August 2002, C.A.R. reported. The August 2003 median price increased 5.6 percent compared to a $383,390 median price in July.

"All regions of the state recorded a marked increase in sales activity last month," said Leslie Appleton-Young, C.A.R.'s vice president and chief economist. "Year-to-date sales are comparable to last year's pace at this point in time."

Highlights of C.A.R.’s resale housing figures for August 2003:

·        C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in August 2003 was 2.1 months, compared to 2.6 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 6.30 percent during August 2003, up from 6.29 percent in August 2002, according to Freddie Mac. Adjustable mortgage interest rates averaged 3.82 percent in August 2003 compared to 4.38 percent in August 2002.

·        The median number of days it took to sell a single-family home was 26 days in August 2003, compared to a revised 23 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 REALTORSâ 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, 95 percent or 345 of 362 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 at http://www.car.org/index.php?id=MzI1MjU=.

·        Statewide, the 10 cities and communities with the highest median home prices in California during August 2003 were: Malibu, $1,265,000; Laguna Beach, $1,227,500; Palos Verdes Estates, $1,075,000; Manhattan Beach, $1,050,000; Beverly Hills, $1,027,500; Newport Beach, $939,000; Coronado, $925,000; La Canada-Flintridge, $837,500; Mill Valley, $835,000; Rancho Palos Verdes, $799,000.

·        Statewide, the 10 cities and communities with the greatest median home price increases in August 2003 compared to the same period a year ago were: Malibu, 61 percent; Arcadia, 49.5 percent; Laguna Hills, 43.7 percent; La Canada-Flintridge, 42.7 percent; Montclair, 40.6 percent; Laguna Beach, 38.3 percent; San Fernando, 34.1 percent; Chino, 34 percent; Redlands, 33.7 percent; Glendale, 33.3 percent.

The California Association of REALTORS® () is one of the largest state trade organizations in the United States, with more than 130,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

August 2003 REGIONAL SALES AND PRICE ACTIVITY*
Regional and Condo Sales Data Not Seasonally Adjusted

na – not available

*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

 na - not available

r - revised

Source:  California Association of REALTORS®