Median price of a home in California at $551,300 in January, up 13.8
percent from year ago; sales decrease 24.1 percent
LOS ANGELES (Feb. 28) – The median price of an existing home in California in January
increased 13.8 percent and sales decreased 24.1 percent compared with the same period
a year ago, the California Association of REALTORS® (C.A.R.) reported today.
“We expected January sales to fall below the record that was set in January 2005. The
decrease was intensified by interest rates crossing the key psychological threshold of 6
percent in the last quarter of the year, and by weakness in consumer confidence due to
the residual effects of Hurricane Katrina,” said C.A.R. President Vince Malta. “However,
interest rates remain near their historic lows, and we expect sales activity to accelerate as
we move into the traditional selling season.”
Closed escrow sales of existing, single-family detached homes in California totaled
500,470 in January 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 decreased 24.1 percent from the 659,410 sales pace recorded in
January 2005.
The statewide sales figure represents what the total number of homes sold during 2006
would be if sales maintained the January 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 January
2006 was $551,300, a 13.8 percent increase over the $484,580 median for January 2005,
C.A.R. reported. The January 2006 median price increased 0.5 percent compared with
December’s $548,640 median price.
“The California real estate market is beginning to experience the soft landing that we
expect to be the underlying dynamic driving the housing market this year,” said C.A.R.
Vice President and Chief Economist Leslie Appleton-Young. “The number of homes for
sale has risen to a six-month supply, which will translate into a slower rate of price
appreciation than we experienced in 2005.”
Highlights of C.A.R.’s resale housing figures for January 2006:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January
2006 was 6 months, compared with 3.2 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 6.15 percent during January 2006,
compared with 5.71 percent in January 2005, according to Freddie Mac. Adjustable
mortgage interest rates averaged 5.17 percent in January 2006 compared with 4.12
percent in January 2005.
. The median number of days it took to sell a single-family home was 48 days in January
2006, compared with 44 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 REALTORS® throughout 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, 93.2 percent or 355 of 381 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=MzU5NjU=.
. Statewide, the 10 cities and communities with the highest median home prices in
California during January 2006 were: Los Altos, $1,700,000; Newport Beach, $1,501,000;
Laguna Beach, $1,385,000; Burlingame, $1,200,000; Los Gatos, $1,075,000; Calabasas,
$1,045,000; Santa Barbara, $1,027,500; Danville, $936,000; Dana Point, $875,000;
Encinitas, $862,500.
. Statewide, the 10 cities and communities with the greatest median home price increases
in January 2006 compared with the same period a year ago were: Sonoma, 78.2 percent;
Atwater, 62.3 percent; Barstow, 59.1 percent; Sanger, 54 percent; Ridgecrest, 49.6
percent; Banning, 48.9 percent; Hesperia, 47.2 percent; Walnut, 46.9 percent; Lake
Arrowhead, 45.9 percent; Upland, 45.1 percent.
Leading the Way...® in California real estate for more than 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 185,000 members dedicated to the advancement of
professionalism in real estate. C.A.R. is headquartered in Los Angeles.
January 2006 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted
January-06 Median Price Percent Change in Price from Prior Month Percent
Change in Price from Prior Year Percent Change in Sales from Prior Month
Percent Change in Sales from Prior Year
Jan-06 Dec-05 Jan-05 Dec-05 Jan-05
Statewide
Calif. (sf) $551,300 0.5% 13.8% -5.9% -24.1%
Calif. (condo) $430,610 -0.1% 14.6% -25.8% -20.6%
C.A.R. REGION
Central Valley $347,070 -2.5% 13.0% -31.9% -23.9%
High Desert $321,500 0.3% 27.4% -24.1% 4.7%
Los Angeles $560,740 1.4% 17.9% -19.3% -23.5%
Monterey Region $714,580 0.3% 4.5% -28.7% -35.9%
Monterey County $685,000 -2.0% 10.5% -28.6% -39.3%
Santa Cruz County $729,500 -1.7% 2.0% -28.9% -31.2%
Northern California $415,850 -5.8% 11.5% -22.0% -22.0%
N. Wine Country $645,080 4.3% 18.2% -26.8% -20.8%
Orange County $699,060 -0.5% 10.2% -18.0% -24.2%
Plm Spgs/Lwr Dsrt $385,070 4.3% 1.2% -16.8% -10.9%
Riverside/San Bern. $391,250 -0.9% 15.5% -35.5% -19.1%
Sacramento $373,370 -1.5% 7.8% -31.2% -32.4%
San Diego $605,600 0.3% 4.4% -26.1% -20.2%
San Francisco Bay $707,390 -0.8% 6.1% -32.9% -10.5%
San Luis Obispo $592,590 10.8% 19.7% -27.9% -7.0%
Santa Barbara Cnty $796,880 5.7% 17.2% -25.5% -23.0%
S. Barbara S. Cst $1,120,000 -6.7% -4.3% -23.5% -19.5%
No. S. Barbara Cty $469,350 0.1% 5.8% -32.9% -31.3%
Santa Clara $740,000 0.7% 11.4% -31.9% -21.2%
Ventura $682,250 1.0% 6.9% -27.0% -16.3%
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
Jan-06 Dec-05 Jan-05
Statewide
Calif. (sf) $551,300 $548,640 r $484,580 r
Calif. (condo) $430,610 $430,910 $375,800 r
C.A.R. REGION
Central Valley $347,070 $355,820 r $307,060 r
High Desert $321,500 $320,490 $252,440
Los Angeles $560,740 $552,760 $475,800
Monterey Region $714,580 $712,500 $683,700
Monterey County $685,000 $699,000 $620,000
Santa Cruz County $729,500 $742,000 $715,000
N. California $415,850 $441,540 $372,880
N. Wine Country $645,080 $618,420 $545,730
Orange County $699,060 $702,290 $634,280
Plm Spgs/Lwr Dsrt $385,070 $369,330 $380,600
Riverside/San Bern.$391,250 $394,790 $338,780
Sacramento $373,370 $379,010 $346,230
San Diego $605,600 $603,680 $580,220
San Francisco Bay $707,390 $712,940 $666,740
San Luis Obispo $592,590 $534,930 $495,000
Sta Barbara Cnty $796,880 $753,790 $680,000
S. Barbara S. Cst $1,120,000 $1,200,000 $1,170,000 r
No. S.Barbara Cnty $469,350 $468,890 $443,750
Santa Clara $740,000 $734,950 $664,000
Ventura $682,250 $675,680 $638,130
na - not available
r - revised
Source: California Association of REALTORS®
