Southland Median Price to Hit $100,000

Median price for a new house in Southern California will reach $100,000 this year, according to a study by the Newport Economics Group Inc. of Newport Beach.

The study also projected 40,000 single- and multi-family housing sales in Los Angeles, Orange, Riverside, San Bernardino and San Diego counties. This figure is down slightly from the 45,000 closed sales in 1984. The drop was attributed to a slower rate of economic growth and higher interest rates forecast for later this year.

The $100,000 median is the maximum possible with prevailing income levels, the study indicated, and only half of all Southern California households can afford a $100,000 house.

The study concluded that only 20% of the households can afford a $150,000 home, except in Orange County--where the figure is 40%, and 10% or less can afford housing priced at more than $200,000.

Nearly 20% of the units that will be available in the five-county area will be priced up to $75,000, according to the survey, and 30% will be priced from $75,000 to $100,000. These units are expected to be single-family homes in Riverside, San Bernardino and San Diego and condominiums in parts of Los Angeles and Orange counties.

Units priced from $100,000 to $125,000 will account for 20% of the total, the study predicted, and units priced at more than $150,000 will represent 30% of the total.