Housing Prices in County Flirt With $200,000 Mark

The median price of a home in Orange County--not including new home sales--flirted with the $200,000 mark in April as prices rose an estimated 2.4% to $198,031.

A strong demand for homes coupled with a short supply is pushing up prices, according to the California Assn. of Realtors.

Home prices have risen 18.1% compared to a year ago, when the median price was $167,663, the trade group said.

Sales Increase

Home sales in the county increased 2.4% in April compared to a month earlier. Sales were up 3.4% from a year ago.

Concern over rising interest rates is pushing many buyers into the housing market, real estate officials said. “I think there’s beginning to be an awareness that interest rates are going to rise and people want to lock in now,” said Alfred Gobar, president of Alfred Gobar Associates Inc. of Brea.

Another factor affecting home sales and prices in the county, industry officials said, is the slow-growth initiative set for a vote in June. The building industry has said passage of the initiative will slow construction of new homes.

Slow-Growth Initiative

“People are afraid that if they don’t get housing now, they’ll never be able to afford to live in Orange County,” said Michael L. Meyer, managing partner at the Newport Beach office of Kenneth Leventhal & Co., an accounting firm specializing in real estate consulting.

“There’s a little harum-scarum going on here about the slow-growth issue,” said Robert S. Licata, a Grubb & Ellis Co. vice president and district manager in Irvine. “A lot of people are overreacting or acting on that, and it’s probably causing a chase (for housing).”

Statewide, the median price of $157,033 was an increase of 13.9% over a year ago, when the median price was $137,925. The April price rose 3.5% from March’s price of $151,033.

The number of sales statewide in April dipped 0.5% from a year ago, to an annual rate of 539,921 units. The figure represents the number of homes that would be sold this year if April sales rates continued through December.

HOME PRICES AND SALES ACTIVITY IN AREAS OF STATE

MEDIAN SALE PRICE APRIL SAL % Change Region April 1988 April 1987 % Increase From March Orange County $198,031 $167,663 18.1 +2.4 Los Angeles $170,457 $144,030 18.3 +6.2 San Francisco $188,976 $166,032 13.8 +20.8 San Diego $137,560 $126,688 8.6 +3.1 Sacramento $90,357 $87,377 3.4 +5.7 Riverside/San Bernardino $101,270 $93,371 8.5 -6.3 Ventura $188,494 $155,745 21.0 +23.8 California $157,033 $137,925 13.9 +3.7

ES ACTIVITY % Change Region From Yr Ago Orange County +3.4 Los Angeles +1.9 San Francisco -6.3 San Diego +11.2 Sacramento +5.1 Riverside/San Bernardino +12.8 Ventura -7.7 California -0.5

Source: California Assn. of Realtors