Existing Home Sales Stumble a Bit in April : Housing: Nationwide turnover slips 0.3% during the month. But sales edge up in California.

Nationwide sales of existing homes lost momentum in April, while consumer confidence rose for the third straight month, painting a mixed picture of the nation’s economic recovery.

Sales of previously owned homes fell 0.3% from March to a seasonally adjusted annual rate of 3.5 million, a National Assn. of Realtors report showed Tuesday. Sales rose only in the West.

However, sales of existing homes in California edged up to 456,690 in April from 454,740 in March, but were still down from the year-earlier level, the California Assn. of Realtors said.

“Housing has fulfilled its usual role (of leading the economy out of recession) and is now waiting for the economy to catch up,” said David Berson, an economist with the Federal National Mortgage Assn.

Nationally, it was the first decline in three months and followed a 14.8% plunge in sales of new homes in March after a 7% drop a month earlier. The Commerce Department will release its April survey of new home sales next Tuesday.

Last week, The Commerce Department reported that housing starts plunged 17% in April, although analysts attributed much of that deterioration to abnormal weather and relatively high interest rates.

Fixed-rate mortgages ranged from 8.84% to 8.96% during April, up from a low of 8.23% in January. Since April, however, rates have begun to edge back down, dropping to 8.53% during the week ending last Friday.

“Basically, the decline in rates has taken the market about as far as it can,” Berson said. “To convince people to buy homes, we need more jobs, which will come later this summer.”

Despite the decline in existing home sales in April, the Realtors noted that sales were 7% above the level of a year ago, when the housing industry was emerging from the recession.

The median price of existing homes also edged down in April, adding to their affordability. It slipped 1.3% to $102,700 nationwide. The median means half of the homes cost more and half less.

Sales in the West, which had fallen 2.3% in March, were back up 8.1% in April to a seasonally adjusted annual rate of 800,000. Sales were unchanged at a 1.27-million rate in the South.

But they dropped 7.3% to 510,000 in the Northeast and 2.1% to 920,000 in the Midwest.

In California, the median price was virtually unchanged from March at $199,160, but was down 2.8% from $204,900 a year earlier.

In the Conference Board report, the business research group said its consumer confidence index rose to 71.6 in May from a revised 65.1 in April.

The survey showed people are more positive on current conditions and more optimistic in their expectations for the next six months, the board said.

Since February, its index has climbed more than 24 points. The index is based on a scale of 100 in 1985.

“This is the third consecutive month in which consumer confidence has registered a smart gain. This consistent improvement in sentiment appears to leave little doubt that the economy is at long last recovering,” said Fabian Linden, executive director of the Conference Board’s Consumer Research Center.

Among the various components of the Conference Board’s index, the expectations component has risen 32 points since February, the board said.

California Home Sales Statewide and regional sales data and price activity for California existing home sales during April, 1992.

Percent Percent Percent Percent change change change change in in in sales in sales price price activity activity Median from from from from price March,’92 April,’91 March,’92 April,’91 California (single family) $199,160 0.1 -2.8 0.4 -2.8 California (condo) $149,190 0.2 -0.6 12.8 -2.6 Central Valley $125,570 3.1 6.0 -6.2 -1.8 High Desert* $114,430 0.5 -0.1 12.6 -5.6 Los Angeles $216,930 -2.5 0.4 8.5 -16.5 Monterey $240,820 1.4 1.0 1.5 27.6 Northern California $137,180 -1.2 0.4 19.6 69.9 Northern Wine Country $193,420 -2.1 7.7 31.3 -10.9 Orange County $235,550 -1.1 -2.0 5.0 -14.3 Palm Springs/ Lower Desert* $130,480 3.2 0.4 20.0 -8.5 Riverside/ San Bernardino $137,770 0.7 3.1 7.2 -9.2 Sacramento** $135,000 1.1 -3.6 -10.5 -2.9 San Diego $183,230 -2.0 -0.3 12.5 14.6 San Francisco Bay Area $252,630 1.7 -3.4 2.2 -7.6 Santa Barbara* $218,570 -2.4 -12.8 26.5 13.3 Santa Clara $260,150 1.5 -2.1 -12.3 -20.2 Ventura $230,990 1.9 -2.1 28.1 4.7

Notes: Regional figures are based on closed escrow sales of single-family, detached homes only (no condos). Reported month-to-month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold. Regional and condo data not seasonally adjusted.

*Due to the small sample size in these areas, prices and activity changes may be overemphasized.

**Source: Sacramento Assn. of Realtors

Source: California Assn. of Realtors

U.S. Existing Home Sales Seasonally adjusted annual rate, millions of units April, ‘92: 3.50 March, ‘92: 3.51 April, ‘91: 3.27 Source: National Assn. of Realtors

Consumer Confidence From a monthly survey of 5,000 U.S. households Index, 1985 = 100 May: 76.4 May: 71.6 Source: Conference Board