"The residential real estate market continued to post impressive gains in median home prices in nearly every region of the state last month," said California Association of Realtors President Robert Bailey. "While prices have increased by double digits statewide in 10 of the past 12 months, we anticipate the pace of home price increases to taper off somewhat as the market enters what is typically a slower season in the next few months."

Closed escrow sales of existing, single-family detached homes in California totaled 562,780 in August at a seasonally adjusted annualized rate, according to information collected by the association from more than 90 local Realtor associations statewide. Statewide home resale activity decreased 1.5 percent from the 571,070 sales pace recorded in August 2001.

"The mixed economic signals of recent weeks have kept interest rates near historic lows and are continuing to impact the residential real estate market in terms of both sales and refinance activity," said California Association of Realtors Vice President and Chief Economist Leslie Appleton-Young.

The statewide sales figure represents what the total number of homes sold during 2002 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 2002 was $334,100, an 18.3 percent increase over the $282,420 median for August 2001, the association reported. The August 2002 median price increased 3.6 percent compared to July 2002.

Silicon Valley median home prices are considerably higher than the state average. Saratoga's median home price was $1,007,000, while Los Gatos logged in at $767,500 and Cupertino at $780,000 for August. Although these prices are down from the highs of the dot-com boom, they are well above the national median home price of $163,000.

"The rate of home-price increases has been trending slowly downward, and we expect to return to a generally balanced market with normal price appreciation in 2003," said David Learah, chief economist for the National Association of Realtors.

Thirty-year fixed mortgage interest rates averaged 6.29 percent during August 2002, down from 6.95 percent in August 2001, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 4.38 percent in August 2002, compared to 5.71 percent in August 2001.

Statewide, the 10 cities and communities with the highest median home prices in California during August 2002 were: Palos Verdes Estates, $1,020,000; Beverly Hills, $997,500; Malibu, $940,000; Pacific Palisades, $861,000; Burlingame, $837,500; Manhattan Beach, $832,500; Corte Madera/Greenbriar/Kentfield/Larkspur, $794,500; Newport Beach, $772,000; Palos Verdes Peninsula, $760,000; and Millbrae, $750,000.

Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.