Bay Area home prices continue to rise despite sales
Bay City News Service
March 20, 2006
According to real estate monitor DataQuick, home prices have
continued to slow in the Bay Area and the rate of home sales in
February was the lowest for February sales in five years.
While the number of homes sold dropped, home prices continued
to rise, according to DataQuick.
"It's probable" that home price appreciation "will
dip into the single digits again this spring," according
This February there were 16.8 percent fewer sales in the Bay
Area than in 2005, with some 6,206 new and resale houses and condos
over 7,463 last year.
Sales typically drop from January to February, according to DataQuick.
"Right now we don't see anything ominous in the numbers,
just a real estate cycle that is past the frenzy phase,"
Marshall Prentice, president of DataQuick, said in a prepared
"We'll know more about what's going on once next month's
numbers come in. March sales have a more typical purchase pattern
than February's or January's," Prentice said.
DataQuick found that "indicators of market distress are
still largely absent." While foreclosure rates are up from
last year's figures, they are still below normal levels, and down
payment sizes are stable.
The "falling of sales is a measure of cooling, not distress,"
UCLA economics professor Christopher Thornberg said.
DataQuick is a subsidiary of Vancouver-based MacDonald Dettwiler
and Associates and monitors real estate activity across the Unite
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