New Home Sales Surge 77% in Southern Calif.
New home sales have risen and inventory levels have fallen in every market of Southern California this year, according to the Meyers Group, a Southern California-based market research and consulting firm. Overall, sales surged 77% and inventory decreased 15% in the first quarter of 1991.
“The first quarter of 1991 registered the highest sales and lowest inventory levels since the third and fourth quarter of 1989, which was one of this area’s best years,” said Jeff Meyers, president of the Meyers Group.
A total of 12,230 new single-family homes and condominiums sold during the first quarter of 1991 compared to 6,895 in the fourth quarter of 1990. Single-family homes accounted for the majority of the first-quarter sales with 9,147 units selling while condominium sales totaled 3,083.
The largest quarterly sales gains in Southern California were recorded in San Bernardino (143%) and Riverside counties (108%).
Market Area 4th quarter 1st quarter Pct increase sales sales in sales Los Angeles County 1,919 3,112 +62 Orange County 1,066 1,982 +86 Riverside County 1,375 2,864 +108 San Bernardino County 951 2,315 +143 San Diego County 1,284 1,644 +28 Ventura County 300 313 +4 Southern California 6,895 12,230 +77 1st quarter 1st quarter Percent change 1990 1991 in sales Southern California 12,160 12,230 +0.5
“Favorable interest rates combined with increased consumer confidence have spurred sales while financing constraints have limited new construction, keeping inventory levels low,” Meyers said. “Consequently, we have seen prices bottom out in recent months.”
At the end of the first quarter 1991 a total of 19,627 new homes and condominiums remained in inventory in Southern California compared to 23,118 units in inventory in the fourth quarter of 1990. Single-family homes accounted for 12,639 of the first-quarter units while condominiums accounted for 6,988. The most significant quarterly decreases in inventory were recorded in Orange County (21%) and Riverside County (19.2%).
Market Area 4th quarter 1st quarter Percent fall inventory inventory in inventory Los Angeles County 6,424 5,671 -12 Orange County 3,340 2,646 -21 Riverside County 5,528 4,462 -19 San Bernardino County 2,846 2,355 -18 San Diego County 4,104 3,772 -8 Ventura County 876 721 -17 Southern California 23,118 19,627 -15 1st quarter 1st quarter Percent change 1990 1991 in inventory Southern California 20,678 19,627 +5.0
