Home Sales in California Up for First Time Since ’89 : Economy: The average price fell again, but slower. Prices in Orange County are off 4%, projections show.

California home sales will show an increase this year for the first time since 1989, and though the average price will be down again, it fell at a slower pace, according to projections to be released today.

Across the state, total sales of new and existing homes will be up 10.9% from 1993, while sales of new homes will show a gain of 16.5%, according to a survey by TRW Redi Property Data, a market research firm based in Riverside.

“If you’re a lender, appraiser or broker, obviously the turnover in the market affects your sector of the industry, so this is good news,” said Nima Nattagh, a research analyst at the company that wrote the report.

“If you’re a homeowner, you’re primarily interested in price trends, so this isn’t great,” he said, “But it’s not bad. It depends where you live.”

In Orange County, home prices will show a decline of 4%, less than in any other Southland county except San Diego. The decrease will be despite an estimated rise of 16.6% in the number of homes sold in Orange County this year.

The report, which ranks the cost of homes in dollars per square foot, is based on samples of property values gathered from county assessors’ and recorders’ offices. Projections for the entire year were made according to data from the first 11 months.

Nattagh said the report also will show that the state’s home builders have focused on more affordable houses. Statewide, 57% of new homes sold for less than $175,000 this year, compared to 47% in 1991.

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Home Prices Decline Again

Prices for new and existing homes in Orange County are expected to drop 4% this year, continuing a trend in place since 1991. Percentage change in price per square foot:

County 1989 1990 1991 1992 1993 1994* Los Angeles 18 2 -2 -3 -7 -7 Orange 20 2 -4 -3 -7 -4 Riverside 11 11 -1 -3 -5 -11 San Bernardino 11 9 1 -2 -5 -7 San Diego 16 6 -2 -2 -5 -2

* Projected

Source: TRW REDI Property Data