C.A.R. News
Median price up 17.3 percent in January, Sales post 0.1 percent increase

LOS ANGELES (February 25) - The median price of existing homes in California in January increased 17.3 percent and sales rose 0.1 percent compared to the same period a year ago, the California Association of REALTORS® reported today.

"The robust momentum we witnessed in the California housing market throughout 2002 continued in January," said C.A.R. President Toby Bradley. "The median price of a home has increased by double digits for the last 14 months and shows no signs of abatement as we approach the traditional spring selling season."

Closed escrow sales of existing, single-family detached homes in California totaled 584,600 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 increased 0.1 percent from the 584,250 sales pace recorded in January 2002.

"With the sales pace and median price of a home continuing to hover at or near record levels, affordability remains a serious concern for potential homebuyers throughout most regions of the state," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Historically low interest rates have been a boon for the housing market, but the supply of homes falls far short of the number needed to keep pace with demand."

The statewide sales figure represents what the total number of homes sold during 2003 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 2003 was $336,740, a 17.3 percent increase over the $287,080 median for January 2002, C.A.R. reported. The January 2003 median price decreased 0.8 percent compared to December 2002.

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

• C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January 2003 was 3.4 months, compared to 2.9 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 5.92 percent during January 2003, down from 7.00 percent in January 2002, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 3.99 percent in January 2003 compared to 5.16 percent in January 2002.

• The median number of days it took to sell a single-family home was 33 days in January 2003, compared to 39 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 REALTORS 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.

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.

JANUARY 2003 REGIONAL SALES AND PRICE ACTIVITY*

Regional Sales Data and Condo Sales Data Not Seasonally Adjusted

* 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.

** Due to the small sample size in these areas, prices and activity changes may be overemphasized.

sf = single‑family, detached home

Median Prices By Region - Current Month vs. Year Ago

r - revised

Source: California Association of REALTORS®