Posted on 01/26/2005 9:27:16 AM PST by Smogger
By MICHAEL RAPPAPORT, STAFF WRITER
Apparently California home buyers follow the national news. With the Federal Reserve raising interest rates again and again, would-be buyers bought homes all across the state in December, driving prices closer to a $500,000 median and keeping sales high.
In fact, the median price of an existing single-family home in the state climbed to a record high of $474,480 in December in numbers released Tuesday by the California Association of Realtors.
That's an 18.1 percent increase from a year ago.
"Home buyers concerned about future mortgage-rate increases flooded the market in December," said Jim Hamilton, CAR president. "The median price increased by double digits in every region of the state."
The increase was, as has been common in recent months, much higher locally. The Riverside-San Bernardino metropolitan area was up 34.5 percent to a median price of $327,210, while the High Desert was up 42.2 percent to $244,410.
Adelanto and Hesperia had the highest percentage increases of California cities, while San Bernardino and Victorville ranked eighth and ninth in the state.
Locally, two Inland Valley cities topped the half-million mark. The median price in Chino Hills hit $524,000, a year-over-year increase of 23.3 percent, and Norco was right behind at $517,500, a 37.3 percent jump.
Throughout the area, most cities increased at percentages faster than the statewide rate, once again displaying that the Inland Empire's days as an affordable alternative to coastal cities may be nearing an end.
Indeed, the price boom itself might possibly be slowing.
"After peaking in the middle of 2004, the number of homes for sale dropped again last month to a 2.8-month supply compared to 3.5 months in November," said Leslie Appleton-Young, vice president and chief economist of the association. "Despite having fewer homes to choose from, buyers are becoming more selective and are taking more time before making an offer on a home."
That showed up in the median number of days it took to sell a single-family home, 43 in December compared with 27 a year ago.
"It does appear that the upper end of the market may be starting to soften a little," said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp. "I think prices in Orange County could actually come down this year, while Los Angeles and Riverside-San Bernardino could move sideways."
-------------------------------------------------------------------------------- City-by-city look at median prices in December 2004 for existing single-family homes in the Inland Valley, with percentage change from December 2003: Claremont $466,750 up 15.5
Chino $400,000 up 33.3
Chino Hills $524,000 up 23.3
Corona $480,000 up 31.8
Diamond Bar $453,000 up 14.7
Fontana $359,000 up 43.4
La Verne $470,000 up 17.5
Montclair $357,000 up 45.7
Norco $517,500 up 37.3
Ontario $320,000 up 33.6
Pomona $315,000 up 29.8
Rancho Cucamonga $400,000 up 13.9
Rialto $295,000 up 39.8
San Dimas $369,000 down 2.6
Upland $401,000 up 14.6
— Source: California Association of Realtors
-------------------------------------------------------------------------------- Michael Rappaport can be reached by e-mail atm_rappaport@dailybulletin.com or by phone at (909) 483-9395.
244K is the median price to live in the desert now. That's pretty amazing.
However, when the price of gasoline goes beyond $2/gallon, we're being gouged by...gasp!...Halliburton, Bush/Cheney. Inflation apparently only applies to certain things.
Once again good news is bad news.
What would they write if the value of housing had gone down more than 18%?
Hmmm, so the prices are getting closer to Northern Virginia. I don't feel sorry for them at all.
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