Interest Rates Blamed for Home Sales Decline

Higher interest rates are among the factors blamed for a decline in home sales in October by members of the Conejo Valley Assn. of Realtors and the Simi Valley-Moorpark Assn. of Realtors.

The Conejo Valley group, whose members work in Thousand Oaks, Newbury Park and nearby areas, said October sales of single-family houses totaled 213, compared with 235 in September and 184 a year ago.

Condominium sales totaled 54 in October versus 61 the previous month and 51 in October, 1993, the group reported.

The median sales price for houses in October was $267,000, up from $262,000 a year ago.

Median prices in October were $170,000 for two-bedroom houses, $230,000 for three bedrooms and $298,000 for four or more bedrooms.

Total sales for all transactions by Conejo Valley members in October was $79.7 million, compared with $67.6 million a year earlier.

New listings in October totaled 322, compared with 345 in September and 328 in October, 1993.

Members of the Simi Valley-Moorpark association said 119 houses closed escrow in October, down from 182 in September and 133 a year ago.

The average sales price paid for houses was $242,000 in October--an increase over $222,000 in September and $220,000 in October, 1993.

Simi-Moorpark agents sold 13 condominiums in October, compared with 20 the previous month and 23 a year earlier. The average condo price in October was $122,000 versus $117,000 in September and $130,000 in October, 1993.

The reports from both groups contrast with a yearlong upward sales trend. Shanon Wolf, president of the Simi-Moorpark group, noted that resale activity normally declines in the fourth quarter, but that this year’s 35% month-to-month decline in house sales was 10% steeper than a year ago.

“Except for the effect of higher interest rates on home loans, I think the drop-off would have been identical to what we saw last year,” she said.