California Home Loan, California Home Loans, Home Buyers, Refinancing, Equity Loan, Debt Consolidation, Refinance, New Purchase

Jim Steinberg, Business Editor

Civil engineer Henry Stultz bought two houses as investments in San Bernardino six months ago.

Since then they've gained in value by 20 percent. Should he sell?

For Stultz, the answer is no. Like many, he believes the county's sizzling housing market has plenty of oomph left.

The median price of new and existing homes in San Bernardino County increased 31.8 percent in the 12-month period between August 2004 and last August, DataQuick Information Systems reported Tuesday.

August's $344,000 median price marked the seventh month in a row that the median price has set a record, said John Karevoll, DataQuick analyst.

The DataQuick study found that Los Angeles, Orange and Ventura counties also set median price records.

In August 2004, the median price of all homes in San Bernardino County was $261,000.

Despite the price run-up, the 4,522 houses sold in San Bernardino County were the most ever sold during the month of August. And it was the second highest month on record, topped only by June when 4,700 houses sold, Karevoll said.

Despite long-standing predictions of its imminent slowdown, the Southern California housing market remains strong.

Low interest rates have helped fuel the homebuying spree.

Despite several interest-rate hikes by the Federal Reserve, long-term mortgage rates are lower than short-term rates like the prime rate, said Jason Bennecke, president of Highland-based Gold Key Real Estate.

Lower rates can somewhat offset the effects of rising prices.

Although there is no sign of a slowdown, analyst Karevoll would argue caution for someone considering buying a house now.

"If you need a house for a roof over your head, now is a good time to buy. But if you are trying to game the market (be speculative) it's not a sure bet. A year ago we were sure. It was a slam dunk," Karevoll said.

"The price gains we have had so far are here to stay. Prices between now and spring might go up another 10 percent to 15 percent. But some of those gains might be at risk," he said.

Karevoll predicts a slowdown in the rate of price increases in the months ahead.

Bill Velto, broker for Tarbell Realty in Upland, is not so sure the market will slow dramatically.

He said he believes the market has "strong legs" driven by a gap between supply and demand.

Although housing prices have increased, leaving many San Bernardino County residents out of the market, it is still priced well below Los Angeles and Orange counties and its residents are moving in, said John Husing, a Redlands-based economist who studies the area.

That dynamic force is not likely to change soon, he said.

For the Southland as a whole, last month's sales count of 34,292 made it the third strongest August in DataQuick's records, which go back to 1988.

The typical San Bernardino County homebuyer committed to paying a monthly mortgage of $1,545 last month, up from $1,435 for the previous month, and up from $1,175 for August one year ago. Adjusted for inflation, current payments are about 5.2 percent below their peak in spring 1989, Karevoll said.