May Bay Area home sales drop,
prices rise

By Erica Holt, Bay City News Service

June 21, 2006

Home sales have continued to slow in the Bay Area as prices continue to edge up, according to a report released today. DataQuick Information Systems, a real estate information service, reported home sales declined for the 14th month in a row in May, the slowest May since 2001.

After many housing boom years, the Bay Area market is rebalancing and median prices are expected to continue rising gradually, according to John Karevoll, a DataQuick spokesman.

He said he "expects these trends to continue at least through summer, maybe fall.''

The median price paid for a Bay Area home hit a new record of $631,000 in May. That is an increase of .5 percent from April's $628,000 and up 6.1 percent from last May's $595,000, according to DataQuick.

Marin, San Francisco and San Mateo Counties top the list of median home prices for May at $796,000, $767,000 and $752,000 respectively.

A total of 9,064 new and resale Bay Area homes and condos were sold in May, a 19.8 percent decrease from 11,308 for last May. However, sales increased 8.4 percent from 8,358 in April, DataQuick reported.

DataQuick found that indicators of market distress are generally absent from the Bay Area housing market. The use of adjustable-rate mortgages has fallen over the last five months, foreclosure rates are rising but still below normal levels and down payment sizes are stable.

DataQuick monitors real estate activity throughout the United States and provides information to consumers, lending institutions, industry analysts and public agencies.

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