C.A.R. REPORTS MEDIAN HOME PRICE INCREASED 20.1 PERCENT IN AUGUST

The year over year increase in sales price of a median priced home in San Diego County may be in single digit percentages, but according to the California Association of Realtors, the prices of California homes over all continue to rise at a higher rate and more homes are selling than ever before.

"The median price of an existing, single-family detached home in California during August 2005 was $568,890, a 20.1 percent increase over the revised $473,520 median for August 2004, C.A.R. reported. The August 2005 median price increased 5.2 percent compared with July's $540,900 median price.

"While fixed mortgage interest rates have not increased, adjustable rates have risen in reaction to the Federal Reserve and a more general increase in short-term rates," said C.A.R. President Jim Hamilton. "Since more buyers are relying on adjustable-rate mortgages to finance the purchase of their homes, buyers may be moving more quickly to make the home purchase decision in anticipation of future rate increases. This is adding more pressure to the price of a home.

"Closed escrow sales of existing, single-family detached homes in California totaled 632,240 in August at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 7 percent from the 591,150 sales pace recorded in August 2004."