Housing Demand in County Soars to an 18-Month High

Demand for homes in Orange County jumped in June as the number of homes sold hit its highest mark in 18 months.

During the month 6,344 homes and condominiums were sold in the county, according to TRW Real Estate Market Information, which surveys by computer all real estate transactions in the county.

The average price of those homes was $198,980, the Colton research firm said.

A year ago 5,605 homes were sold at an average price of $171,715, or nearly 16% less than June’s average price. In May of this year, sales numbered 5,610 and the average price was $191,691.

Sales in other Southern California markets rose dramatically too, TRW said, with Riverside County showing especially strong gains.

Riverside has benefited from more plentiful and cheaper land and from large numbers of buyers turned off by Orange County’s expensive home prices, which are among the highest in the nation.

Orange County’s market is also very tight, with far fewer homes for sale than buyers.

The best sales month on record in Orange County and Southern California was December, 1986, TRW said, when the impending federal Tax Reform Act spurred many to buy and sell homes.

About 7,500 homes were sold in Orange County that month.

The TRW figures differ from other surveys because the other surveys usually measure either only new or used homes. TRW surveys both types of housing in computing its figures.