Home Sales Drop 20% in August From Year Ago

By MIKE FLAGG

Sept. 15, 1989 12 AM PT

Home sales in Orange County dropped 20% in August from a year ago, according to TRW Real Estate Market Information.

But last year was an unusually hot year for home sales, so this year’s dip in sales was anticipated and represents a more normal market, experts said.

TRW estimated that 4,431 homes were sold in the county in August, compared to 5,613 last year.

The average price of a home was $251,959, which includes both condominiums and houses. That rose 12% from a year ago, when the price was $224,225.

TRW includes sales of both new and used homes in its calculations.

There was some good news for the real estate industry in August’s figures: The numbers represented a 28% increase in sales from July, probably because lower mortgage rates lured more buyers into the market.

Only 3,461 homes were sold in Orange County in July, TRW said. The average price was actually a little bit higher in July, at $252,987.