Median price of a home in California increases 15.7 percent in March, sales up 7.5 percent, C.A.R. reports

LOS ANGELES (April 25) – The median price of an existing home in California in March increased 15.7 percent and sales increased 7.5 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.
“The median price of a home was just shy of a half-million dollars in March, although the annual rate of increase was the smallest we’ve seen since June 2003,” said C.A.R. President Jim Hamilton. “The inventory of homes for sale has increased compared to a year ago, which has lessened the upward pressure on home prices, but consumers’ perceptions that interest rates will increase continues to drive the market.”
Closed escrow sales of existing, single-family detached homes in California totaled 634,700 in March 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 7.5 percent from the 590,220 sales pace recorded in March 2004.
The statewide sales figure represents what the total number of homes sold during 2005 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 2005 was $495,400, a 15.7 percent increase over the revised $428,060 median for March 2004, C.A.R. reported. The March 2005 median price increased 5.2 percent compared with February’s revised $470,920 median price.
“Year-to-date sales are 6 percent ahead of last year’s pace, reflecting the continued strength of the real estate market and the improving economic fundamentals of the California economy,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Demographic growth in the state’s population also is fueling much of this activity -- California has absorbed three million new residents since 2000.”
Highlights of C.A.R.’s resale housing figures for March 2005:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in March 2005 was 2.7 months, compared with 1.3 months (revised) 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 5.93 percent during March 2005, compared with 5.45 percent in March 2004, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.23 percent in March 2005 compared with 3.41 percent in March 2004.
. The median number of days it took to sell a single-family home was 31 days in March 2005, compared with 25 days (revised) 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 are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORSâthroughout the state. MLS median price and sales data for condominiums are 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, 97.5 percent or 396 of 406 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. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
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 http://www.car.org/index.php?id=MzQ4NDY.
. Statewide, the 10 cities and communities with the highest median home prices in California during March 2005 were: Los Altos, $1,605,000; Saratoga, $1,559,000; Manhattan Beach, $1,451,500; Laguna Beach, $1,350,000; Beverly Hills, $1,320,000; Palos Verdes Estates, $1,302,500; Newport Beach, $1,200,000; La Canada-Flintridge, $1,100,000; Palo Alto, $1,059,000; Los Gatos, $1,025,000.
. Statewide, the 10 cities and communities with the greatest median home price increases in March 2005 compared with the same period a year ago were: Laguna Hills, 75.1 percent; Adelanto, 66.1 percent; Atwater, 63.1 percent; Hesperia, 62.3 percent; Twentynine Palms, 60 percent; Selma, 58.9 percent; West Sacramento, 56.6 percent; Desert Hot Springs, 56.1 percent; Arroyo Grande, 52.5 percent; Barstow, 50.3 percent.
Leading the Way...® in California real estate for 100 years, the California Association of REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.