Southland Inventory of Unsold New Homes Lowest in Decade

In the largest six-month decrease in a decade, the midyear 1988 inventory of new unsold housing units in six Southland counties dropped 30.4% to 8,858 units, from 12,720 at year-end 1987, according to the Real Estate Research Council of Southern California.

This marks the first time in this decade that the total unsold inventory has dropped below 10,000 units, according to Michael Carney, executive director of the Pomona-based research organization.

Inventories fell in all counties, with Orange County leading the way with a 75.5% decline, from 1,322 unsold units at year-end 1987 to 324 at mid-year 1988. Los Angeles County declined 36.5%, from 2,287 to 1,453 units; San Diego County declined 30.3%, from 2,687 to 1,872 units; Riverside County declined 19.1%, from 3,745 to 3,029 units; San Bernardino County also declined 19.1%, from 2,320 to 1,878, and Ventura County dropped 15.9%, from 359 to 302.

Carney said inventories dropped in all categories: Detached, down 32%; attached, down 27%; units under construction, down 32%, and completed units, down 27%.

He added that although the inventory declined sharply, the composition of the unsold inventory, by type was largely unchanged from six months ago. Detached units accounted for 68% of the total inventory, and units under construction made up 73% of the total--about the same as year-end 1987.

From year-end 1987, declining inventories were accompanied by rapidly increasing sales in Riverside and San Bernardino counties, northern San Diego County, Ventura County and the Santa Clarita and Antelope valleys of Los Angeles County, Carney said. Moderate sales increases were recorded in the San Fernando and east San Gabriel valleys and a sales slowdown--caused by a lack of supply--was recorded in Orange County, he said.