O.C. Leads State to 24.3% Surge in Home Sales : Housing: Second-quarter gain led by O.C. resales, realtors group reports. Median price falls slightly.
Pushed by a strong showing in Orange County home resales, completed sales of detached homes in California for the second quarter jumped 24.3% from the same period a year earlier, the state realtors association reported Wednesday.
In Orange County, second-quarter resales of detached homes were up 32.3% for the period. The median selling price of $214,000 was off just 0.7% from $215,590 for the second quarter of 1993.
As market conditions have improved, the realtor group said, the decline in home prices has slowed considerably. Though falling prices have hurt many recent home buyers, who have seen their equity erased, they have helped boost sales activity by improving the relative affordability of housing.
In Orange County, for example, 40% of all households had sufficient annual income to afford the median-priced home in the second quarter. That contrasted with just 15% when median prices exceeded $280,000 in the late 1980s.
“California experienced its strongest second-quarter housing market in five years, despite a slight decline in sales from the first quarter’s especially robust pace,” said Garden Grove realtor Pat Neal, president of the state trade group. “Sales also increased during the first half of this year, compared to both the second half and the first half of 1993.”
Nationally, sales of previously owned homes rose 13.6% for the second quarter, according to the National Assn. of Realtors. That demand helped push up the median price of a home by 3.3% to $110,600. That contrasts sharply with the California statewide median of $184,660--a 2.1% decrease from the second quarter of 1993.
Home Prices Drop, Sales Increase
Median Orange County home prices during the second quarter dropped slightly from the same period of 1993 but remained the highest in Southern California. Sales here outpaced those in most of the rest of the region. Second-quarter (April-June) sales activity and prices for detached, single-family new and resale homes:
Median Price Sales County price change change Los Angeles $188,100 -2.8% 29.1% Orange 214,030 -0.7 32.3 Riverside- 129,420 -4.1 41.0 San Bernardino San Diego 178,180 -0.5 21.7 Ventura 207,990 -3.8 27.1 California 184,660 -2.1 24.3
Source: California Assn. of Realtors;
Researched by JANICE L. JONES / Los Angeles Times
Housing Affordability
In June, the percentage of households able to qualify for a home loan dropped more in Orange County than in any of the surrounding counties or statewide. Though the median price fell slightly, the monthly payment increased because of higher interest rates.
Households Monthly qualifying Median price payment* County 1993 1994 1993 1994 1993 1994 Los Angeles 37% 36% $192,180 $189,630 $1,270 $1,280 Orange 43 40 222,160 220,820 1,470 1,490 Riverside- 52 52 134,740 128,260 890 870 San Bernardino San Diego 41 41 177,380 172,120 1,170 1,170 Ventura 43 41 223,450 216,070 1,470 1,460 California 39 38 187,200 185,450 1,240 1,260
* Assumes 20% down payment and 30% of income going to house payment; includes property taxes and insurance
Source: California Assn. of Realtors; Researched by JANICE L. JONES / Los Angeles Times
