California Home prices keep rising

California real estate homebuyers continued to face soaring home prices in September, fed by an imbalance between housing supply and demand, real estate experts said Monday.

The median price of an existing, single-family detached home in the state was set at $380,040, up 17.9 percent from a revised $322,450 one year prior, according to a report by the California Association of Realtors .

Raphael Bostic, director of the Casden Real Estate Economics Forecast at the USC Lusk Center , said that overall, the numbers show that "the market is still strong and that the concerns about the relatively poor-performing economy still haven't shown up in the housing market.'

In Los Angeles County's median home price topped out at $369,740 in September. At 53.6 percent, Montebello experienced one of the largest year- over-year jumps in median home price in the state, according to CAR's figures.

California's median home price in September was down 5 percent from the August 2003 figure of $400,020.

Real estate industry experts downplayed any possible indications of the numbers reflecting a downward trend in home prices.

CAR Chief Economist Leslie Appleton-Young said the dip showed a typical seasonal trend. Other real estate insiders said the drop likely reflected a slowdown at the higher end of the market.

"You just have more buyers who can afford (to buy in the) lower price range,' said Marty Rodriguez, owner of Century 21 Marty Rodriguez in Glendora. "Buyers can only afford to pay so much.'

The entry-level housing segment is "still a really tight market,' Bostic said, adding that he sees little relief in sight.

California home resale activity also increased 28 percent in September compared with a year earlier, CAR figures reveal.

Appleton-Young said an uptick in interest rates in June "changed expectations about the future rate environment' and "pushed a lot of people off the fence and into the market'

CAR expects home prices to appreciate at a rate of 16 percent this year and 13 percent next year, she said.

In the San Gabriel Valley, factors including the area's proximity to Los Angeles are also putting an upward pressure on prices, she said.

Aida Dimejian, owner and general manager of Century 21 Golden Realty in Pasadena, said that in order to secure a home, buyers typically end up paying an average of $20,000 to $30,000 more than its asking price.

Properties are typically sold within a week of being put on the market, and some sell within two days, she said.

Rodriguez said one factor contributing to the San Gabriel Valley's strong housing market is its offering of properties under $400,000.

"I think if (people are) going to sell, sell now and if (they are) going to be the buyer, get in before prices continue to go up,' she said.

By JAMIE McCLINTOCK - STAFF WRITER