4 of 6 Southland Counties Show Gains in Home Sales

As a whole, new home sales and inventory levels in Southern California improved slightly this quarter, according to a report just released by the Meyers Group, an independent market research and consulting firm.

A total of 12,319 new homes and condominiums were sold the second quarter of 1991 compared to 12,230 units sold last quarter. Although Southland sales increased a scant .73% compared to the first quarter, they are up 5.8% from a year ago.

“This quarter started out fairly strong but weakened toward the second half,” said Jeffrey Meyers, president of the Meyers Group. “We expect to see sales decrease slightly as we move into the third and fourth quarters, however we see little chance of a fourth quarter drop-off such as the one we experienced last year.

“Overall, sales this year should be flat compared to last year. At this point, new home sales in Southern California are ahead of 1990 levels by 680 units.”

The markets showing increases from the same quarter last year were Orange County (28.6%), Riverside County (3.9%), San Diego County (38.5%), and Ventura County (33.4%). Those showing decreases were Los Angeles County (-1.7%) and San Bernardino County (-36.8%).

A total of 18,914 new housing units remain in inventory at the end of this quarter. Overall, inventory levels have decreased 3.6% compared to the previous quarter and 17.8% from a year ago. Based on the current absorption rate, Southern California has a four- to five-month supply of housing.

“Most markets in the Southland experienced decreases in inventory levels for the quarter as well as the year. Although we may see inventory drop a little further, I think it’s begun to stabilize,” Meyers said.

According to the Meyers Group, new home prices have appeared to stabilize although median prices may fall as smaller homes continue to come on the market.

The Meyers Group is an independent market research and consulting firm that serves the real estate industry in the western United States.