Home Sales in County Up 16.4% in April, but Prices Decline 4%

Home sales in Orange County last month registered the highest gain among surrounding counties, but the good news came with a catch: Prices here took the steepest drop in the five-county region, according to a survey released Tuesday.

Orange County home sales in April totaled 4,569 units, up 16.4% from April, 1990, according to TRW Marketing Services in Orange. Los Angeles County had the second-highest sales gain, although sales were up only 2.4%. San Bernardino, Riverside and San Diego counties all suffered declining sales.

The average price of an Orange County home in April was $239,993, a 4% drop from the same time last year. San Bernardino County posted the biggest price gain--3.6%. Prices in Los Angeles fell nearly 1% to $235,131.

The TRW survey is based on the sale of new and used homes and condominiums. April’s figures are based on those homes that closed escrow last month.

Orange County’s sales and price figures both stood out from the survey’s average for the five-county region.

Nearly 23,000 homes were sold in the five-county area last month, down 1.6% from a year ago. The average price--$211,227--was up about 1%.

The sales jump in Orange County was attributed in part to lower interest rates, which have prompted previously reluctant homeowners to get into the market.

“A lot of the people who are first-time buyers because the interest rates are so low are out there purchasing homes,” said Eileen Brophy, marketing support assistant for TRW. “It’s a buyer’s market.”

Brophy said prices declined more in Orange County because homes here are still more expensive than in other parts of the Southland.

“New homes are still overpriced in Orange County,” she said.

The average price of a new home in Orange County fell 5.3% to $257,724 from $272,095 in April, 1990.

Sales of resale homes increased 18%, although the average price fell 3.7% to $235,390 last month from a year earlier.

The TRW report shows that only condominiums increased in price in April, with a 0.8% gain from a year earlier. The average price of an Orange County condominium was $174,224.

Housing Market in Orange County Average Home Price Average sale price for new and resale houses and condominiums 1989: $255,989 1991: $239,993 Monthly Home Sales Total sales of new and resale houses and condominiums 1989: 3,910 1991: 4,569 Source: TRW Marketing Services