Home Resales Are Up From May but Down From 1988
Sales of single-family houses in Orange County rose slightly from May to June but were down sharply from a year ago, further evidence that soaring prices and rising interest rates a few months earlier have stalled the frenzied market of 1988.
The California Assn. of Realtors reported Monday that the median price of a single-family, resale house in Orange County increased 1.7% in June to $251,674 compared to $247,397 in May. June’s median price was 20.9% higher than a year ago.
Sales Down 29.1%
Sales increased 6.9% from May but were down 29.1% from the previous year.
Statewide, sales fell 9.2% from May and dropped 13.9% from June, 1988.
“It’s definitely an indication of a softening of demand, “ said Chris Taylor, the board’s senior research economist. “Buyers are being more cautious and taking their time. They are holding back to see what is happening with interest rates and home prices.
“What used to be a sellers’ market last year is now more of a balanced market,” Taylor said. “We actually think the housing market will continue to be at a much slower pace than it was last year.”
The median price of a house in California fell for the first time since December, dropping 0.7% from $201,930 in May to $200,445 in June. Last month’s median price was 17.8% higher than in June, 1988.
In Los Angeles, the median price rose 1.2% to $220,253 from $217,708 in May.
Real estate experts attributed at least part of the sales decline to the absence of the first-time home buyer.
The board said it expected sales to be slower again this month.
“It’s likely because what is happening is that the increase in interest rates in March and April are just now reflecting in closed escrow sales,” Taylor said.
Condominium Market
The condominium market took some hits during June, too.
Sales statewide were down 0.9% from May but were up 11.9% from the same period a year ago. The median price of $138,174 was a 0.7% decline from May’s median of $139,117, but was 12.4% higher than the $122,903 median in June, 1988.
The time it would take to sell the number of condominiums for sale grew from 4.6 months in May to 4.8 months in June.
MEDIAN HOME PRICES IN AREAS OF STATE
% Change % from Region June, 1989 June, 1988 Increase May, 1989 Orange County $251,674 $208,094 +20.9 +1.7 Los Angeles $220,253 $180,223 +22.2 +1.2 San Francisco $268,903 $215,434 +24.8 +0.5 San Diego $177,736 $147,605 +20.4 +1.2 Sacramento $107,895 $92,708 +16.4 +3.6 Riverside/San Bernardino $123,643 $108,567 +13.9 +0.5 Ventura $248,728 $195,209 +27.4 +2.2 California $200,445 $170,185 +17.8 -0.7
Source: California Assn. of Realtors
