1,029 homes were sold in Solano County in March

Article Last Updated: 4/23/2005 07:29 AM

Sales still strong - March numbers show real estate still rules in Solano

By Barbara Smith/Business WriterTheReporter.Com

The real estate sales race is still going strong, considering that 1,029 homes were sold in Solano County in March.

That's 324 more homes sold than the 705 sold in February, according to a recent information service report. While the median sales price in March - $409,000 - dropped $4,000 from February, the March median price is still a roughly 25 percent appreciation compared to last year, according to DataQuick Information Systems.

Linda Green, broker/owner of Century 21 Distinctive Properties, said in January and February, real property was taking somewhat longer to sell, but not in March. And, the inventory is shrinking so multiple offers are what Realtors are dealing with.

"I feel it's still going to be a strong market this year," Green said. "But we need more inventory. We always need more inventory." She added that demand remains stronger than supply.
Green attributes the slight decline in prices to a vast range of properties that sold - from condominiums to newly constructed homes.

Data Quick reported sales for March in the entire Bay Area were at their highest level in 16 years.

A total of 11,310 new and resale houses and condos were sold in the nine-county region in March. That was up 51.5 percent from 7,463 for the previous month, and up 2.7 percent from 11,015 for March of last year. Last month's sales count was the highest for any March since 11,442 homes were sold in March 1989.

"People seem to be increasingly willing to let the homes they live in represent a higher portion of their net worth. I suppose parking wealth in real estate is more attractive than investing in the stock market," Marshall Prentice, DataQuick president, said in a report.

The median price paid for a Bay Area home in March was $568,000, a new record. That was up 3.5 percent from $549,000 in February, and up 19.8 percent from $474,000 for March a year ago.

Also, prices are going up at their fastest pace in four years.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,566 in March, an all-time high. A year ago it was $2,052.

Indicators of market distress are still largely absent. Foreclosure rates are low, down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported.

Barbara Smith can be reached at business@thereporter.com.