LOCAL : Home Sale Prices Fall 9.1%

Reflecting the growing real estate slump, the average sales price of a home in Orange County fell 9.1% in October compared to the same month a year ago, TRW Real Estate Information Services reported today.

The average sales price of a new home last month was $236,421, down from $260,180 a year earlier. The drop was even larger in the resale market. The county’s average October resale price of $229,221 was down 11.3% from $258,389 in October, 1989.

While prices fell, home sales activity kept up with the year-earlier level and surged ahead of September’s lackadaisical pace. The 3,582 sales of new and used homes and condominiums compared to 3,593 sales in October, 1989, and was up 6.2% from 3,373 sales in September,

A surge in resales accounted for most of the month’s activity, with 3,066 resale homes closing escrow, up 7.8% from 2,843 in September. Resale properties began moving, real estate sources said, because sellers are admitting that the days of 20% annual price inflation are over.