Price of Existing Homes in State Jumps 2.9% in July; Sales Climb

The median price of an existing house in California rose to $172,347 during July, an increase of 2.9% from the previous month, the California Assn. of Realtors said Wednesday.

The July figure was up $4,919 from June, when the statewide median sales price of existing, single-family detached houses was $167,428. Last month’s median price was 21.2% and $30,123 higher than in July, 1987, when it was $142,224.

Despite sharply higher prices and a constrained supply of houses on the market, sales of existing, single-family homes also rose in July, the association said.

Responsibility for the continued upward spiral in prices was placed on California’s strong economy and fears that interest rates will continue to rise, said Dale Colby, president of the California Assn. of Realtors.

In the state’s major regions, detached home prices continued to increase at a rapid pace, particularly in the urban coastal areas.

Orange County had the state’s highest median sales price at $219,542, up 4% from $211,038 in June and 28.1% higher than the July, 1987, median price of $171,397. Detached home sales, however, were down 17.6% from June on a non-seasonally adjusted basis, but the level of transactions was up 10% from last July.

According to a study earlier this month by the National Assn. of Realtors, Orange County led the nation as the most expensive housing market in the second quarter of the year with a median home price of $204,000. That study reported the median price home in Los Angeles as $175,600, and $142,500 for San Diego.

According to the California Assn. of Realtors, the July median home price in the Los Angeles region was $188,210, up 3.2% from $182,364 in June and 23.7% from a year ago, when the price was $152,100. The median sales price in the San Diego region was $150,000 in July, up 1.6% from $147,605 in June and 16.7% from last July, when the median price was $128,554, the group said.

Statewide, 580,759 detached houses closed escrow on a seasonally adjusted, annual basis, up 2.7% from an annual rate of 565,649 units sold in June.

The real estate sales group said the inventory of unsold homes in California rose in July. It would take an estimated four months to deplete the inventory of houses for sale in July, considering a flat rate of sales, compared to 3.9 months in June. In July, 1987, the index stood at 4.5 months.

CHANGE IN CALIFORNIA HOME PRICES

Comparison of median prices by region in California for July, 1988, and July, 1987.

Region July ’88 July ’87 % Change Santa Barbara $218,548 $134,999 61.9 Barstow/High Desert 84,375 65,000 29.8 Orange County 219,542 171,397 28.1 Ventura 205,494 161,655 27.1 Los Angeles 188,210 152,100 23.7 San Francisco 208,110 175,029 18.9 San Diego 150,000 128,554 16.7 Sacramento 99,365 87,616 13.4 Riverside/San Bernardino 108,392 97,208 11.5 Monterey 181,429 164,286 10.4 Central Valley 89,634 84,155 6.5 Humboldt/Butte 74,761 70,652 5.8 Mendocino/Sonoma 130,963 124,386 5.3 Palm Springs/Lower Desert 93,684 94,166 -0.5

Source: California Assn. of Realtors