1Q 2005 REAL ESTATE WRAP UP

Homeowners in the state of California on average saw more than a 20 percent increase from the First Quarter of 2004 to the First Quarter of 2005. For the first quarter, $88,562,888 in single-family homes sold in Santa Monica, compared with $119,560,537 for 2004 and $96,250,200 in 2003. The average sales price for a single-family home was $1,940,000 in March. The condo market is seeing a lower volume of sales, though prices remain high.

"While mortgage interest rates remain low by historical standards, upper-end markets may soften as affordability concerns impact households trying to stretch their purchasing power with adjustable rate loans," noted C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Job growth in California in 2004 was stronger than originally projected, and a strengthening job market this year should have a positive impact on household incomes and housing market activity."

Currently around town, single-family homes are average 45 days on the market, compared with 39 last year. They are selling for an average of 99.8 percent of list price, compared to 103 percent a year ago. The average list price around town has grown to $1,965,166 up from $ 1,615,351 a year ago.

As you would deduce, more million-dollar homes were sold in California last year than in the two previous years combined, according to DataQuick real estate information services.

A total of 33,107 homes in California sold for $1 million or more last year. That was up 73.5 percent from 19,080 in 2003. The total in 2002 was 13,871.

Of the 332 million dollar homes sold in Santa Monica in 2004, 217 were priced more than 1 million. For the 1st quarter of this year locally, of the 58 sold, 40 were priced at more than 1 million. Last year at this time saw 74 properties sold with 54 priced more than 1 million. Statistics are showing that roughly 2/3rds of all single-family homes sold in the City of Santa Monica sell for more than 1 million dollars.

Statewide, million-dollar sales accounted for 5 percent of all California home purchases in 2004. In 2003 it was 3 percent, and in 2002 it was 2.3 percent.

"A million dollars just isn't what it used to be when it comes to California real estate. Because of appreciation across the board, more homes are in the million-dollar category than was the case earlier. We don't expect home prices to go up as much this year as in 2004, so we anticipate that sales counts will level off," said Marshall Prentice, DataQuick president.

Statewide, there were 221 sales for more than $5 million last year – 5 recorded in Santa Monica. 237 sales were in the $4-$5 million range – 6 in Santa Monica, 690 in the $3 million range – 13 in Santa Monica, 2,894 sales in the $2 million range – 49 locally, and in town 144 sold from $1 million and $2 million.
Around 15 percent of million dollar buyers paid cash, up from 12 percent in 2003. Of those who financed their purchase, the median down payment was 25 percent of the purchase price.
The most expensive confirmed purchase was a 10,900 square-foot five-bedroom, four-bathroom San Francisco house, which went for $22.5 million in December. The largest was an eight-bedroom, 10-bathroom 35,735 square-foot house on 2.3 acres in Beverly Hills that sold for $13 million in October.

There were 1,677 condo sales in the million-dollar category, up 90.8 percent from 879 a year ago. Most were sold in West Los Angeles, San Diego and San Francisco.

Statistically, in Santa Monica the condo market has notably slower between 1Q 2004 and 1Q 2005, though prices continue to rise. Locally in March 2005, 48 condos were sold at an average selling price of $723,001 - 99.8 percent of asking price. They’re spending an average of 30 days on the market. For March 2004, 65 condos were sold with an average selling price of $ 622,961 - 103.5 percent of sales price. Properties were spending an average of 16 days on the market.

"The condominium market segment appeals more to a slightly different customer base compared with the detached home market, with single-person households accounting for 44 percent of all condominium buyers, compared with 24 percent of all detached home buyers," said C.A.R. President Jim Hamilton.

First-time homebuyers accounted for 37 percent of all condo buyers in 2004, compared with 26 percent of all detached-home buyers.

Hamilton noted that condos also were more appealing as second homes; with 9 percent of all condos purchased in 2004 were bought as vacation or second homes. That compares with 4 percent of all detached homes sold in the same period being used as second homes.