Sales of New Houses Slowing Down From 1988, but Prices Are Up 33%
New houses are not selling as well in Orange County as they did during last year’s housing boom, but the median price continued to rise during the spring to a new high of $369,000.
Prices have climbed because scarcely any smaller, inexpensive houses are being built. The most, by far, of the new single-family houses built in the county during the second quarter boasted four bedrooms and three baths, said the Meyers Group consulting firm.
The firm released a quarterly survey of new houses and condominiums Monday.
A year ago the median price of a new house in the county was $276,990--today’s price is 33% higher--and the median square footage was 2,120. Now the median-size new house has 2,576 square feet.
According to real estate experts, land prices in the county have risen so fast that small houses are simply uneconomical to build. And small houses are not as popular with buyers, anyway. So builders shoehorn these new larger houses onto ever-smaller lots.
“There just aren’t that many houses left to buy in the smaller categories,” said W. Steven Johnson, a vice president of the consulting firm. “People want bigger houses, not only in Orange County but statewide.”
While it was possible to buy a small new house for as little as $151,500 in the county in the spring, at the other end of the scale prices for houses that are not custom-built topped $1 million for the first time, the firm said.
Prices for new homes have risen 15% this spring since winter’s median price of $320,990.
Condominium prices, on the other hand, had been rising since last year but dropped during the spring. The median price dropped 13%, to $167,900 from $192,900 during the winter. A year ago, a median-price condo cost $145,990.
The Meyers Group said five new condo projects opened during the second quarter, flooding the market and causing prices to drop.
The spring’s home sales did not come anywhere near last year’s frenetic pace. The number of new houses and condominiums sold this spring fell 19% from a year ago, to 2,500 from 3,100.
Last spring a proposed slow-growth initiative made people fear that there would be a moratorium on house construction and pushed them into the housing market. Prices for single-family homes in the county soon ranked among the highest in the nation. The initiative was rejected by voters.
Sales, however, rose 18.6% this year from winter to spring. Sales normally rise in spring and summer. The Meyers Group said it expects a normal summer sales increase this year.
But there are trouble spots besides falling condo prices: Houses priced at more than $350,000 are not selling well, Johnson said.
“The typical buyer for these houses is somebody who’s already owned a couple of homes and who tends to be a little more cautious,” he said.
On the supply side, construction of new homes and condos will be down dramatically in the county this year, the consulting firm said.
About 10,600 housing units were built last year, the firm estimated, but this year the number will probably be just 8,800, as home builders try not to become overextended in the event of a big downturn in sales.
SECOND QUARTER SURVEY OF DETACHED NEW HOMES
Medium Base Median Range Rooms Base Price Price Range Sq. Ft. Sq. Ft. 2 BEDROOMS 2 baths $236,900 $156,900-253,000 1,475 994-1,695 2.5 baths -- 275,000-297,000 -- 1,690-1,751 3 baths 241,000 241,000-313,000 1,523 1,523-1,966 3 BEDROOMS 2 baths 259,990 151,500-359,950 1,700 1,089-2,173 2.5 baths 268,900 199,990-564,500 1,924 1,199-3,021 3 baths 341,900 205,990-665,000 2,285 1,283-3,700 3.5 baths 499,500 499,500-1,075,000 2,692 2,408-4,222 4 BEDROOMS 2 baths 359,990 239,900-389,900 2,308 2,056-2,454 2.5 baths 316,000 188,990-752,100 2,159 1,630-3,722 3 baths 405,000 264,900-995,000 2,783 1,528-4,073 3.5 baths 455,000 299,990-845,000 3,327 2,050-4,726 5 BEDROOMS 3 baths 455,000 312,900-599,990 3,421 2,393-4,140 4 baths 555,000 396,950-1,150,000 3,668 2,751-5,300 OVERALL 369,000 151,500-1,150,000 2,576 994-5,300
Available Units Rooms Inventory Sold 2 BEDROOMS 2 baths 34 63 2.5 baths 0 0 3 baths 8 4 3 BEDROOMS 2 baths 22 51 2.5 baths 145 247 3 baths 27 75 3.5 baths 14 7 4 BEDROOMS 2 baths 11 5 2.5 baths 127 173 3 baths 262 439 3.5 baths 83 118 5 BEDROOMS 3 baths 27 122 4 baths 23 86 OVERALL 783 1,390
Source: The Meyers Group
SECOND QUARTER SURVEY OF ATTACHED NEW HOMES
Medium Base Median Range Available Rooms Base Price Price Range Sq. Ft. Sq. Ft. Inventory 1 BEDROOM 1 baths $115,000 $79,500-$255,000 800 546-1,221 35 1.5 baths 137,900 137,900-137,900 990 990-990 0 2 baths 177,900 124,000-229,900 1,120 1,120-1,221 0 2 BEDROOMS 1 baths 131,000 94,990-141,900 971 650-993 6 1.5 baths 126,000 126,000-136,900 940 940-1,009 6 2 baths 145,000 89,900-395,000 1,039 763-1,832 93 2.5 baths 174,900 140,990-449,000 1,313 1,101-2,437 72 3 baths 251,990 140,000-399,000 1,620 1,302-2,394 6 3 BEDROOMS 2 baths 191,990 151,900-850,000 1,424 1,206-2,400 0 2.5 baths 246,490 149,990-587,500 1,770 1,200-3,126 105 3 baths 229,490 173,900-374,990 1,650 1,367-2,093 1 3.5 baths 679,000 529,000-679,000 3,183 2,379-3,183 1 4 BEDROOMS 3 baths -- 280,400-280,400 -- 1,958-1,958 6 OVERALL 167,900 79,500-850,000 1,135 546-3,183 331
Units Rooms Sold 1 BEDROOM 1 baths 131 1.5 baths 10 2 baths 2 2 BEDROOMS 1 baths 6 1.5 baths 41 2 baths 452 2.5 baths 108 3 baths 38 3 BEDROOMS 2 baths 82 2.5 baths 144 3 baths 73 3.5 baths 6 4 BEDROOMS 3 baths 3 OVERALL 1,096
Source: The Meyers Group
