It is now Sunday and it has been almost one week since the LA Times' four layers of editors and filters gave their stamp of approval to Mike Davis saying that the real estate market in San Francsico has... 'burst'. And the LA Times still refuses to admit that Mike Davis simply... made that claim up... without there being any reality or basis for that ... preverication. Now today - the LAT Sunday real estate section links to a DataQuick story which shows that the entire Bay area real estate market - and not just the City - is not only still climbing, but that it shows no signs of any weakness of any kind!
Bay Area Home Sales: Record Prices, Near-Record Sales
La Jolla, CA.----Home prices in the Bay Area rose to new highs in March as sales for that month were at their highest level in sixteen years, a real estate information service reported.
A total of 11,310 new and resale houses and condos were sold in the nine-county region in March. That was up 51.5 percent from 7,463 for the previous month, and up 2.7 percent from 11,015 for March last year, according to DataQuick Information Systems.
Sales always increase from February to March. Last month's sales count was the highest for any March since 11,442 homes were sold in March 1989.
"Demand still appears to be stronger than supply, which puts upward pressure on prices. People seem to be increasingly willing to let the homes they live in represent a higher portion of their net worth. I suppose parking wealth in real estate is more attractive than investing in the stock market," said Marshall Prentice, DataQuick president.
The median price paid for a Bay Area home was $568,000, a new record. That was up 3.5 percent from $549,000 in February, and up 19.8 percent from $474,000 for March a year ago.
Prices are going up at their fastest pace in four years.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,566 in March, an all-time high. A year ago it was $2,052.
Indicators of market distress are still largely absent. Foreclosure rates are low, down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported.