Home Resales in County Drop 4.6% in July but Gain Over a Year Ago

Rising interest rates and a dwindling supply of existing homes offered for sale combined to lower the rate of residential resales in Orange County last month, with 4.6% fewer sales recorded than in June, the California Assn. of Realtors reported Monday.

The overall sales picture for existing homes countywide, however, showed a 17.2% gain in July from the same period a year ago, the association said.

And the median value of a single-family resale home climbed 1.4% in July to $168,656 from the previous month.

In contrast, sales of existing homes in Los Angeles County dropped by 1.6% last month, and were 20.7% higher than those reported in July, 1986, the trade association said. As in Orange County, the value of a median-priced home also rose in Los Angeles County--up 1% to $143,220.

While figures for both counties showed a decline in resales from June, they were still higher than sales data posted statewide, which were down by 6.6%, the association said. Even so, the statewide rate was 8.9% higher than in July, 1986.

The association said the drop in sales statewide was due partly to rising interest rates and an inventory that was at an all-time low. According to the association, 14% fewer homes were available for sale last month than in July, 1986.

Fixed-rate loans reached 10.37% in July, compared to 10% in June. Adjustable rate loans climbed slightly to 8.5% in July from 8.36% in June, the association said.