California Economy Continues Upswing; Home Prices Up; Joblessness Down

Home sales prices in Southern California continued to grow, recording the biggest increase in over five years, according to the California Association of Realtors and Transamerica Intellitech. The median price of a home in Southern California rose to $185,360 from the $179,100 median price in May of 1996. The most significant increase of 10.3 percent was recorded in the Palm Springs/Lower Desert area, with Los Angeles and Ventura recording the lowest increases at 1.4 percent each. In addition, the number of homes sold grew at a 2.9 percent rate, from 544,690 home sales this May compared to 529,540 sales in May of last year.

Unemployment in California also continued its downward trend, with the state's unemployment rate down to 6 percent (seasonally adjusted) compared with 6.5 percent in April and 7.3 percent in May of 1996. The recent rate is the lowest California's unemployment rate has been since its 6.1 percent level in September 1990. About 415,000 jobs have been added to the state since last May, for a total employment in California currently of 14,843,000.

Volume 4, Bulletin 23, July 1, 1997