Sales Down From 1992
The number of homes sold in the six-county Southern California region fell by 11% in the first five months of this year compared to the same period last year, according to TRW REDI Property Data’s monthly housing report.
A total of 65,000 houses were sold in the Southland between January and May of 1993, about half the number recorded at the peak of the market in 1988.
TRW REDI reported that demand for existing homes fell at a much higher rate than new homes. In fact, sales of new housing units seem to have stabilized in Orange County and showed a healthy increase in Ventura County.
Between January and May of this year, builders sold more than 10,000 new homes in Southern California, compared to 11,000 a year ago. Average prices, unadjusted for the mix of properties sold, fell by just under 4% in the first five months of 1993 compared to last year.
The TRW REDI report, however, notes that the drop in overall average prices is partly a reflection of a shift of market activity in favor of cheaper homes. Homes priced at less than $175,000 currently account for more than 51% of all purchases compared to 48% a year ago. The average sales price of a new home in Southern California was $196,000 in the first five months of this year, a drop of 5% from last year.
“The drop in new home prices is also reflective of a new trend among the Southern California home builders that emphasizes construction of more affordable homes to boost demand,” said Nima Nattagh, TRW REDI’s market analyst.
Home Sales in January-May, 1993
Charts compare sales and prices of existing and new homes in January-May, 1992, and January-May, 1993.
County No. Existing No. Existing Percent Homes Sold Homes Sold Change Jan.-May, ’92 Jan.-May, ’93 Los Angeles 29,704 26,737 -10.0% Orange 12,253 10,742 -12.3% Riverside 8,596 7,445 -13.4% San Bernardino 9,257 7,577 -18.1% Ventura 3,187 3,195 0.3% San Diego 10,906 9,713 -10.9% Southern California 73,903 65,409 -11.5%
County No. of New No. of New Percent Homes Sold Homes Sold Change Jan.-May, ’92 Jan.-May, ’93 Los Angeles 2,478 2,308 -6.9% Orange 1,996 2,008 0.6% Riverside 2,398 2,177 -9.2% San Bernardino 1,994 1,596 -20.0% Ventura 397 451 13.6% San Diego 1,758 1,638 -6.8% Southern California 11,021 10,178 -7.6%
County Average Price Average Price Percent All Homes Sold All Homes Sold Change Jan.-May, ’92 Jan.-May, ’93 Los Angeles $246,770 $235,566 -4.5% Orange $251,324 $241,494 -3.9% Riverside $157,363 $145,581 -7.5% San Bernardino $139,006 $135,467 -2.5% Ventura $234,885 $231,345 -1.5% San Diego $209,193 $202,199 -3.3% Southern California $217,662 $209,679 -3.7%
County Ave. Price New Ave. Price New Percent Homes Sold Homes Sold Change Jan.-May, ’92 Jan.-May, ’93 Los Angeles $210,844 $199,538 -5.4% Orange $259,891 $241,257 -7.2% Riverside $163,077 $153,099 -6.1% San Bernardino $165,051 $151,620 -8.1% Ventura $247,971 $258,153 4.1% San Diego $230,250 $218,022 -5.3% Southern California $205,481 $195,894 -4.7%
Price Percent of Homes Percent of Homes Range Sold by Sold by Price Range Price Range Jan.-May, ’92 Jan.-May, ’93 Less than $100,000 8.3% 9.1% $100,001-$175,000 39.5% 42.3% $175,001-$250,000 27.75 26.9% $250,001-$325,000 11.8% 10.5% $325,001-$400,000 3.3% 4.9% $400,001-$600,000 4.6% 4.1% $600,001-$1 million 1.9% 1.7% More than $1 million 0.5% 0.4%
SOURCE: TRW REDI Property Data
