Supply of Unsold New Houses at High Level

The current supply of new unsold housing units in the six-county Southern California region totaled 26,423 at midyear, the highest level since mid-1982, according to David R. Smith, president of the Real Estate Research Council of Southern California.

The data was released at the council’s second quarter meeting and covers both single-family detached and attached units, completed and under construction in Los Angeles, Orange, Ventura, Riverside, San Bernardino and San Diego counties.

All of the increase occurred in Los Angeles County, where the unsold inventory increased 22.6% over year-end 1984. Overall, the region recorded a 3.1% increase over the 25,623 unsold units at year-end 1984, Smith said.

Increases were recorded in the inventory of both attached and detached houses, with the supply of attached dwellings increasing by slightly more units, he said.

New single-family units under construction increased by 1.4% from 5,806 at year-end 1984 to 5,943 at midyear 1985.

The total unsold inventory--completed and under construction--increased 3.3% from 10,942 at year-end 1984 to 11,171 at midyear 1985. The 11,171 total is nearly 25% above the 8,927 unsold single-family houses reported for midyear 1984, according to Smith.

Attached units completed and under construction totaled 15,252, up almost 3,000 from the 12,260 units recorded for the midyear 1984 period.

The surveys were conducted by COMARC Systems, San Francisco, on a quarterly basis, with the dates staggered for the different counties, according to David L. Parry, executive director of the nonprofit research group. The firm counts tracts of 10 units or more.

Los Angeles County had the most unsold inventory at midyear, with 3,013 single-family and 6,044 attached units, for a total of 9,057 units. It was followed by San Diego County with 2,429 single-family and 2,749 attached units, for a total of 5,178.

Riverside County was third, with 2,357 unsold single-family and 2,547 unsold attached units for a total of 4,904. Orange County was next, with 1,409 single-family and 1,988 attached units unsold, for a total of 3,397.

Bringing up the rear, with the least unsold inventory, were San Bernardino County, with 1,236 single-family and 872 attached units, for 2,108; and Ventura County, with 647 single-family and 1,052 attached units, for an unsold inventory of 1,699.

As usual, price trends were mixed, both falling and increasing in different areas and housing types, Parry said.

The most expensive median prices of single-family houses sold were in West Los Angeles and the West San Gabriel Valley, while the most expensive attached units sold were in West Los Angeles, the Low Desert areas of Riverside County and southern Orange County, he said.