Home Prices Soar in West’s ‘Hot Market’

Home prices soared on the West Coast in the April-June period, propelled by that region’s booming economy, while prices lagged in depressed oil areas, a real estate trade group said today.

The National Assn. of Realtors said the median price of existing single-family homes jumped to $204,000 in the Anaheim-Santa Ana area of Southern California, a 20.1% increase when compared with the second quarter of 1987.

Los Angeles, with an appreciation rate of 19.1% to $175,600, ranked second in the nation and San Francisco, with an increase of 15.5% to $196,300, was third.

“Housing is mirroring the economy virtually all over the country,” said John A. Tuccillo, the trade group’s chief economist. “Where the economy is very, very good, we find that housing is very, very good--that is the hot markets of the West Coast, the Washington-Baltimore area and some areas of New England.”

However, although prices rose in 44 of 62 metropolitan areas checked, they fell in 14 areas and were unchanged from a year ago in two areas. The historical information to calculate appreciation rates was not available for two cities.

Oil Areas in the Doldrums

“In energy-producing areas of the country,” Tuccillo said, housing is as much in the doldrums “as is the economy in general.”

The steepest declines from a year ago were in Oklahoma City, where the median resale price fell 12.7% to $56,900. San Antonio was second with a decline of 10.2% to $65,200, followed by Baton Rouge, La., which dropped 6% to $64,000.

Nationally, prices rose 3.4% to a median of $88,900, meaning half of the houses sold for more and half for less.

The increase in the Anaheim-Santa Ana area made it the most expensive area to buy a home, supplanting Honolulu, which was the costliest in the first quarter. The median price in Honolulu was $198,700 in the second quarter. It was followed by San Francisco. The metropolitan New York region was fourth with a median price of $191,900, followed by Boston at $182,900.

Louisville, Ky., kept its status as the least costly housing area with a median price of $54,600 in the April-June quarter. It was followed by Oklahoma City and Lansing, Mich., at $57,800; Grand Rapids, Mich., $58,300, and Omaha, Neb., $58,700.