Continued Increase in Median Home Price

Sales continued to climb as of the end of October, 2004, and the most rapid appreciation occurred in the lowest priced regions in the state: the desert areas and San Bernardino/Riverside counties. The median price decreased slightly for October to $460,370, according to the California Association of Realtors. This is a statewide median and figures for individual counties vary. Click here to read more.

Reverse Mortgages A Trend for the Future?

The number of reverse mortgages endorsed by the FHA during 2004 has so far doubled the 2003 production of over 18,000. Reverse mortgages account for over 3% of FHA's single family 2004 production. The Home Equity Conversion Mortgage for homeowners over the age of 62 began in 1987, but since 2000, has grown dramatically from about 6600 in 2000 to over 37,000 in 2004. Not surprisingly, California has the greatest number of reverse mortgages under this plan. Mortgage lenders have become increasingly familiar with this program, and more homeowners are seeing it as a financial planning tool where a homeowner over the age of 62 may borrow against the equity in their home and not repay it until they move out. Here is more on reverse mortgages.

Highest U.S. Homeownership Reached in 2004

According to a report released by the U.S. Census Bureau, the United States now has 73.8 million homeowners -- a historical high. This is approximately 1.6 million more homeowners than recorded one year ago. The Census also reported the rate of homeownership increased 0.6 percent to 69 percent in the third quarter of 2004 compared with the same period one year ago but remained unchanged from second quarter 2004.

During the third quarter of 2004, homeownership rates by region were highest in the Midwest and South, at 73.8 percent and 71.0 percent, respectively. The Northeast recorded a homeownership rate of 64.4 percent, while the West experienced a similar rate of 64.7 percent.

The Census also reported an all-time high of 15.2 million minority homeowners, though the homeownership rate among minorities continues to be lower than that of non-Hispanic whites. In addition to the 73.8 million housing units occupied by homeowners, there were 33.1 million housing units occupied by renters during third quarter 2004.

"These numbers combined with news that sales of previously owned homes jumped 3.1 percent in September, show that housing continues to lead the way in our rapidly recovering economy," said Housing and Urban Development Secretary Alphonso Jackson.--Courtesy of California Association of Realtors.