Home Sales in County Climb by 3% : Real estate: The market bucks the downward trend of neighboring areas. But analysts say don’t be too optimistic.
Bucking a regional trend, Ventura County’s housing market remained remarkably buoyant during the first four months of this year, even as demand for homes elsewhere in Southern California slumped dramatically.
Depressed prices, low interest rates and attractive financing tempted hundreds of renters to step into their own homes, and prompted some longtime Ventura County residents to move into bigger houses, analysts said.
Ventura County sales edged up 3% for the first third of this year compared with 1992, according to a report by TRW REDI Property Data.
The other five Southern California counties all recorded major drops in housing demand. Sales plunged almost 17% in San Bernardino, 15% in Riverside and 7% in Los Angeles counties.
“At least Ventura County is holding its own, and that’s a good sign,” said Cathy Mims, president of the Oxnard Harbor Assn. of Realtors. “But nothing’s really booming--we’re just treading water.”
Although Ventura County’s housing market far outpaced surrounding regions for the first four months of this year--as it has since early 1991--some analysts warned against becoming too optimistic.
“My view is this is just a statistical quirk,” said Nima Nattagh, a market analyst with TRW REDI Property Data. “Because Ventura is the smallest county in Southern California, there’s a much lower housing base, and a few extra sales translate into a big percentage increase.”
Total sales in Ventura County increased by only 73 units, to 2,449, during the first four months of this year, Nattagh said. The market remained robust in April, growing at a 20% clip, according to a report released this week by the California Assn. of Realtors.
Statistical anomalies may explain part of Ventura County’s impressive performance. But local realtors insist that the renewed interest in home buying is real.
In part, people are rushing to close escrow because the average cost of a Ventura County home has dropped from almost $246,000 in August, 1991, to just over $234,000 last month.
“People can now afford a bigger home in a nicer neighborhood than they ever would have thought possible a few years ago,” said Chris Taylor, an analyst with the California Assn. of Realtors.
Of course, prices across Southern California have dropped along with those in Ventura County, and some counties now offer bargain-basement prices. Homes in San Bernardino County cost an average $138,000.
Even though they could find cheaper homes elsewhere, to get the most for their money, buyers are turning to Ventura County. Many first-time buyers are emptying their wallets to purchase homes in a rural county with relatively low crime, clean air and proximity to both Los Angeles and the Pacific Ocean.
“Many people closing escrow now are first-time home buyers who live in the area, love it, and don’t want to leave it,” Mims said. “The homes are such good buys, they’re willing to stretch their budgets to stay here.”
An estimated one-third to one-half of Ventura County’s housing sales come from residents moving within the county, said Pat Fredericks, president of the Conejo Valley Assn. of Realtors. Renters eager to take advantage of competitive financing and readily available loans have been especially avid to buy.
Walter Watte, for one, found a deal he simply couldn’t pass up.
By scraping together just $163 more for monthly payments, Watte will be able to move his family from a rental house in Oxnard to a spacious three-bedroom home in the same city. The total price tag: $165,000--almost $6,000 less than the appraised value, he said.
“I’ve been looking in this area for two to three years, but I just couldn’t afford anything,” said Watte, a chief flight engineer at Point Mugu. “Finally, it just all came together. I qualified for more house and a better neighborhood than I expected to get into. I figured, prices were as low as they were going to get, and this was an opportune time to buy.”
Home Sales by County
‘92 ’93 Pct. County Jan.-April Jan.-April Change VENTURA 2,376 2,449 3.1 Los Angeles 22,380 20,775 -7.2 San Diego 8,418 7,420 -11.8 Orange 9,273 8,126 -12.4 San Bernardino 7,123 5,919 -16.9 Riverside 6,619 5,613 -15.2 TOTAL 56,189 50,302 -10.5
Source: TRW REDI Property Data
