County Home Sales Up Again to Highest Total Since 1988

Bolstered by lower interest rates and a surprisingly high level of consumer confidence in a recession-stalled economy, Orange County home sales posted their second consecutive gain in May.

The 5,138 sales of new and previously owned homes represented the highest monthly total in the county since 5,328 homes changed hands in September, 1988.

The sales spurt, concentrated in the resale market, represented a 20.6% gain from 4,261 sales in May, 1990, and a 12.5% increase from April’s 4,569 sales, TRW Marketing Services reported Friday.

The average price of a home sold in the county during May hit $245,074, the report said--down 4.1% from $256,043 a year earlier but 2.1% higher than the $239,993 average for April.

Nearly 90% of the homes sold last month were resales, with new homes accounting for 645 sales, or just 12.5% of the total.

The resale activity, up 25.7% from 3,573 units sold in May, 1990, accounted for the entire year-to-year increase in county home sales. New-home sales were down 6.3% from the May, 1990, total of 688 sales.

The TRW survey is based on completed sales of new and used homes, including condominiums. Most of the escrows that closed in May were opened in March and April.

In the five-county Southern California region tracked by TRW, 25,432 homes were sold in May, up 4.6% from 24,316 in May, 1990, and an 11% increase from 22,902 in April.

Monthly Home Sales

The total Sales of new and resale houses and condominums. The May, 1991, figure is the highest monthly total in the county since September, 1988.

Jan., 1989: 4,173

May, 1991: 5,138 Source: TRW Marketing Services