Library: Piedmont Real Estate Update, Q3 '04

Welcome to the first issue of the Piedmont Real Estate Update!

Each quarter, I'll offer key sales information on homes sold in your neighborhood, together with analysis—across the state, and within Piedmont. Let's get started!

Statewide: The California Association of Realtors (CAR) 2005 forecast expects that the median home price in California will increase 15 percent to $522,930 in 2005 compared with a projected median of $454,720 this year, while sales for 2005 are projected to reach 603,700 units, falling 2.5 percent compared with 2004 (which in turn was up nearly 3 percent over 2003). The double-digit gain in the median price of a home, which California has experienced for most of the past four years, will again be fueled by the continuing shortage of housing across much of the state, according to C.A.R. economists. California typically gains nearly 250,000 new households, yet only will build about 200,000 new housing units this year, creating a shortfall of about 50,000 units.

CAR found that the median price of an existing home in California in August, 2004 increased 16.8 percent to $474,370, while sales declined 8.5 percent compared to the same period a year ago. The Association said that higher mortgage rates explained much of the sales decline. The August 2004 median price increased 2.6 percent compared with a revised $462,140 median price in July. The median number of days on the market for a single-family home was 26 days in August, unchanged from August 2003.

Piedmont: Over the July 1st-September 30th, 2004 quarter, the sales price of a Piedmont home averaged $1.315 million, 101.1 percent of the average asking price of $1.3 million. The average over the year ending September 30th was $1.441 million, a slight decrease over the $1.453 million average for the year ending June 30th, 2004. The typical home moved quickly, staying on the market for only 24.4 days this quarter, compared to about 38 days for the previous year. This quarter's average price per square foot, $507, matched the average for the year ending September 30th ($507) and the year ending June 30th ($503).

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