O.C. Home Resales, Prices Fall Sharply : Housing: Realtors group attributes slump in county and state figures to fears of recession.
In yet another indication of the slumping housing market, the California Assn. of Realtors reported Wednesday that sales of used single-family homes in Orange County slumped 31.6% in September from the same month a year ago and 17.4% from August.
The association attributed the sharp drop in resales largely to a loss of consumer confidence stemming from fears of a recession brought on by the crisis in the Persian Gulf, which began in early August.
Similar sharp drops in house sales were reported elsewhere in the state. Statewide, the realtors group said sales of existing single-family homes--new homes are not included--fell 27% from September, 1989, and 22.5% from August, 1990. The statewide figures are seasonally adjusted, but county data is not.
In a separate report Wednesday, the National Assn. of Realtors reported that housing resales dropped 8%. Sales were down in all regions including the West, where sales of existing homes plunged 8.8%.
The California report came just two days after another survey found that sales of all housing units in Orange County had fallen 18.5% and prices 5.6% in September from the same months a year ago. TRW Real Estate Information Services reported Tuesday that only 3,373 housing units were sold last month and the average price was $246,022.
Industry officials generally have attributed the sales slump to recession fears that have been exacerbated since Iraq invaded Kuwait on Aug. 2, touching off an international crisis. The continuing stalemate has caused some consumers to stop buying big-ticket items.
“Sales have slowed throughout California, largely because of consumer uncertainty resulting from the Persian Gulf crisis,” said CAR president Jim Antt Jr. “Many potential buyers stayed out of the market in August after the Middle East crisis erupted.”
Another underlying weakness in the market, though, is high home prices, which means relatively few Californians can afford to buy a house. That’s especially the case in Orange County, one of the nation’s most expensive markets for single-family houses.
In the highest price ranges, sales have slowed dramatically, the realtors group said. Compared to a year ago in Orange County, September’s home sales fell 31.6%. For the state, the drop was 26.5%.
The median price of a single-family house in the county was an estimated $240,280 in September, up slightly from August’s $239,649 but down 3.4% from last year’s $248,610.
Home prices statewide are falling, too. The median-priced house in September cost $190,350, down 1.5% from August’s $193,292 and 4.2% from a year ago, when the median price reached nearly $200,000. It was $198,740.
RESALE HOUSING SLIDE Single-family home resales are off substantially from a year ago in all regions but the Palm Springs area. Median prices also fell in a majority of regions, including Orange County. MEDIAN PRICE
Medial Price % Change from Sept. 89 Los Angeles $205,000 -5.7 Orange Co. 240,280 -3.4 Low Desert * 113,460 1.2 Riverside S. Bernardino 129,740 -0.2 San Diego 186,900 2.0 Ventura 241,290 -1.7
SALES
% Change from Aug. 90 % Change from Sept. 89 Los Angeles -19.7 -41.3 Orange Co. -17.4 -31.6 Low Desert* -12.3 7.6 Riverside/ S.Bernardino -16.4 -16.9 San Diego 23.3 -25.3 Ventura -19.5 -31.6
* Due to the small sample size in this area, prices and activity changes may be overemphasized. Source: California Assn . of Realtors
