I.E. region's median home price tops $400,000

The Daily Bulletin ^ | 4/26/2006 | Michael Rappaport

[Smogger]

Going up. For all the predictions that the elevator had reached the top, that housing prices had peaked and would only go sideways, the Inland Empire reached another milestone and posted an all-time high in March. The median price of a single-family home in the Riverside-San Bernardino metropolitan area was $403,000 in March, according to numbers released Tuesday by the California Association of Realtors.

It's the first time the median price has passed the $400,000 mark, and it comes just 21 months after prices topped $300,000 for the first time in June 2004.

"A lot of people who have been talking about the market softening were expecting prices to go down," said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp. "Well, unit sales may be down, but prices are still going up, or at least moving sideways."

Sales were down 16.3 percent from March 2005 locally and were down 15.1 percent statewide in the same comparison. That leaves more homes on the market than a year ago, but the beginning of the traditional sales season shrank inventories from February.

"A lot of people are just kicking the tires right now," Kyser said. "They're trying to figure out what's going on with the market, whether it's still going up or whether they should wait to buy."

It may be that year-over-year gains of 20 to 30 percent or more are a thing of the past, but the local median was still up 15.1 percent over 12 months ago. The state median of $561,350 was 13 percent higher than March 2005.

Those numbers still leave California in a different world than the rest of the country, where analysts were excited about a 7.4 percent increase to a median price of $218,000.

David Lereah, chief economist for the National Association of Realtors, said in a release that the numbers were a hopeful sign that sales will experience only a slight dropoff this year.

"This is additional evidence that we're experiencing a soft landing," he said. "The market clearly is stabilizing."

That stability nationally is at a much lower level than the Inland Empire, let alone the higher-priced parts of California. With prices like $682,500 in Norco, $612,500 in San Dimas, $610,000 in Upland, $570,000 in Chino Hills and $567,500 in Diamond Bar, it's pretty clear that Southern California's "affordable alternative" is no longer as affordable.

"Affordable housing now means the High Desert, places like Victorville and Apple Valley," Kyser said. "In Los Angeles County, it means the High Desert around Lancaster and Palmdale."

Vince Malta, president of CAR, said March is the month in which the market "gears up for peak season activity, and this year is no exception."

Seasonally adjusted sales jumped 4.9 percent statewide in March from February, even though they were still way down from last year.

"But those were record-setting levels," Malta said. "The pace of sales seems to be picking up. Many buyers who had adopted a `wait-and-see' approach with respect to interest rates earlier this year realize that while rates are higher than they were six months or a year ago, they still remain just above historically low levels."

Plenty of homes are on the market. CAR's Unsold Inventory Index stood at 4.8 months in March, a significant drop from 6.6 in February although well above the 2.2 figure of March 2005.

"Unsold inventory climbed significantly in the first two months of this year as listings increased and sales declined," said Leslie Appleton-Young, chief economist for CAR. "Although the supply of homes for sale increased again in March, this was more than offset by a seasonal increase in sales."

Appleton-Young said she expects the supply to decline gradually over the next few months, although she doubts it will approach last year's levels.

Bill Velto, manager of Tarbell Realtors in Upland, said the picture actually was somewhat mixed, with some cities up and some down.

"If you look at the cities that took the biggest jumps, they were some of the lowest last year," he said. "If there's one thing clear in this picture, it's that there is still a demand for housing. There are lots of buyers out there and lots of sellers.

"Houses may not be selling as quickly, but that's because buyers can be choosier. There aren't that many people right now looking at it as if they have to buy this week."

- Michael Rappaport is business editor of the Daily Bulletin. He can be reached at (909) 483-9395 or at m_rappaport@dailybulletin.com.

[Smogger]

Median housing prices in Inland Valley cities in March, along with percentage increase or decrease from March 2005:
City	Median Price	% Change
Bloomington	$375,000	+33.9
Chino	$474,000	+14.2
Chino Hills	$570,000	+ 6.5
Claremont	$510,000	+ 3.1
Colton	$333,000	+21.1
Corona	$560,000	+16.4
Diamond Bar	$567,500	+21.7
Fontana	$435,000	+25.0
La Verne	$540,000	+ 8.2
Mira Loma	$560,000	+19.4
Montclair	$430,000	+18.6
Norco	$682,500	- 2.2
Ontario	$401,500	+19.5
Pomona	$400,000	+17.6
Rancho Cucamonga	$498,000	+17.7
Rialto	$370,000	+21.3
San Dimas	$612,500	+29.6
Upland	$610,000	+35.6
Milestones in housing prices in the Riverside/San Bernardino metropolitan area: - August 1987 - Median price tops $100,000 for first time ($102,615). - April 2003 - Median price tops $200,000 for first time ($207,540). - June 2004 - Median price tops $300,000 for first time ($304,810). - March 2006 - Median price tops $400,000 for first time ($403,000). Source: California Association of Realtors

[martin_fierro]

My living room is a hedge against deflation.

[goodnesswins]

YOU wish.

[Mikey_1962]

In the good news I recently bought a house here in rural Ohio, split-level built in 1977, on a 10 acre pond, sitting on a 2 acre wooded lot, two car garage, heated woodworking shop, heated in ground pool for $160,000. And its 10 miles from where I work.

The only problem I have had is the deer on my property eat anything and everything edible and the Canada geese are noisy in fall.

[Red Badger]

I bet your going baroque...........

[caver]

I'd like to know how you fit a 10 acre pond on a 2 acre lot?

[Mikey_1962]

Its harder than you think ;)

[martin_fierro]

Nonsense.

I'm a Renaissance Man.

[RightWhale]

You might be Persian if your chandelier uses rubies for reflectors.

[Red Badger]

What's the Code, DaVinci?.............

[bannedfromdu]

The bad news is it's in Ohio and who would want to live there.

The good thing about Calif. is that the house I bought in San Diego North County for $325,000. I sold three years later for $650,000.

[RightWhale]

Right. The Canada geese just arrived in Fairbanks yesterday. They are on time, but winter is hanging on a little late.

[Proud_USA_Republican]

you really should take the christmas decorations down. Its almost May.

[Tijeras_Slim]

You need to unpimp your davenport.

[socal_parrot]

And look, there's still affordable housing in the IE.

Here's a 1BR, 1BA under 1,000 sq. ft. vintage charmer on a 4,000 sq ft. lot in Crestline.

Only $139,000!!!

[Petronski]

And all of it purchased with **gasp** fiat money!

[Petronski]

The only problem I have had is the deer on my property eat anything and everything edible and the Canada geese are noisy in fall.

Deer are edible too. ;O)

[socal_parrot]

All that opulance and you go with Pergo™?

[stuartcr]

Looks like people go broke either way...if they can only afford a house way out of town, then they go broke commuting.

[jcs1744]

Who ever knew that a trailer home would be worth $400k?

;-) Sorry to all you I.E. people, I couldn't resist.