California Market Unconscious in '05

Modest Homes Fetch Luxury Prices in California(January 25, 2006) --

Thanks to soaring home prices, the number of million-dollar homes sold in California rose 47 percent last year to almost 49,000, according to DataQuick Information Systems.

The median million-dollar property had just four bedrooms and three bathrooms, encompassing 2,480 square feet.

Almost all of the homes sold in Rancho Santa Fe were priced at $1 million or more, and properties in many non-resort communities also hit that benchmark.

DataQuick adds that 2,902 condominiums sold for $1 million-plus last year, marking a gain of 73 percent from 2004. The priciest condos were located in West Los Angeles, San Diego, and San Francisco.

Los Angeles Times, Annette Haddad (01/25/06)

Ed.'s Disbelief: This bit of news is truly incredible, and this my friends, is why there's such a hubub over the so-called real estate bubble. Sustaining this kind of growth is a bit ambitious, and undoubtedly a slower absorbtion rate is already upon red hot markets such as those outlined above. More moderate markets, however, will see less of an adjustment.