The Real Deal
Homes in the median price range appreciate
By Jean Newton
According to the most recent data released by the California Association of Realtors and Real Estate Solutions, a real estate information service, sales of existing homes in California in April increased 0.5 percent and the median home price rose 10.7 percent compared to the same period a year ago.
"What we're seeing at the national level, in terms of price appreciation, also holds true for California," said association President Gary Thomas. "The median price of a single family home has increased by double digits in eight out of the last 12 months."
Closed escrow sales of existing, single-family detached homes in California totaled 495,390 in April, at a seasonally adjusted annualized rate, according to information collected by the association from more than 90 multiple listing services statewide. Statewide home-resale activity increased 0.5 percent from the 493,110 sales pace recorded a year ago. Resale activity posted a decrease of 4.4 percent in April, compared to March 2001.
The statewide sales figure represents what the total number of homes sold during 2001, would be, if sales maintained the April 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 April 2001, was $262,420--a 10.7 percent increase over the $237,060 median for April 2000, the association reported. The April 2001 median price increased 0.1 percent, compared to March 2001.
The California Association of Realtors' Unsold Inventory Index for existing, single-family detached homes in April 2001, was 3.9 months, compared to 3.1 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 7.08 percent during April 2001, down from 8.15 percent in April 2000, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 6.11 percent in April 2001, compared to 6.80 percent in April 2000.
"Although sales were flat in April, compared to last year, April 2000 sales also were uncharacteristically low as higher interest rates kicked in," said Leslie Appleton-Young, the association vice president and chief economist. "We still expect sales this year to decline from their near record highs of last year."
In a separate report covering more localized statistics generated by association and Real Estate Solutions, 253 of 318 California cities and communities showed an increase in their respective median-home prices from a year ago.
Using the MetroScan® database, median-home prices are generated from new and existing condominium and single-family closed escrow sales. These localized statistics are based on county records data, rather than MLS information.
Statewide, the 10 cities and communities with the highest median-home prices in California during April 2001, were: Belvedere/Tiburon, $1,595,000; Burlingame, $853,000; Manhattan Beach, $800,000; Mill Valley, $785,000; La Jolla, $752,500; Pacific Palisades, $748,500; Palos Verdes Estates, $739,000; Fairfax/Ross/San Anselmo, $739,000; Sausalito, $735,000; Menlo Park, $727,000.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors. Send questions on any topic to: Real Deal, c/o SILVAR, 345 San Antonio Road, Los Altos, CA 94022; call 650-949-9115; or email to ppompei@siliconvalley-realtors.org.
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Saratoga, California Since 1955
