O.C. Sales of Real Estate Are Off 34% in June : Indicators: Preliminary industry figures reflect uncertainty over economy and bankruptcy, analysts say.

In a clear sign that Orange County’s housing market continues to deteriorate amid its financial woes, sales of real estate in the county dropped about 34% in June, according to early figures provided by a real estate data company.

Home sales, which account for 70% of the overall real estate transactions, have now fallen for eight consecutive months in the county, which filed Dec. 6 for the largest municipal bankruptcy in U.S. history.

Although mortgage rates are near historic lows and home prices have stabilized, increasing uncertainty about the economy and the county’s ability and willingness to resolve its fiscal disaster have buyers sitting on the fence, brokers said.

“Nothing kills a housing market like uncertainty,” said Richard Steinhoff, a broker with ERA Main Street Realty in Irvine. “If the sales tax had passed, I think our problems would be behind us, but it didn’t, so people are just waiting.”

Home sales picked up slightly in the first two weeks of June, then stopped completely just before the vote Tuesday on Measure R, the half-cent sales tax increase rejected by voters, brokers said.

“Buyers have reason to be concerned--right now the prospect is pretty dark for any fiscal solutions for the county,” said Anil Puri, chair of the economics department at Cal State Fullerton, who predicted that home sales will remain stagnant through the rest of the year.

Because sales were down so dramatically in June, which is typically a strong month for home sales, the news is especially bad, Puri said.

Although the real estate numbers do not include the last two days of June, they are an early sign that home sales will remain depressed the rest of the year in Orange County, said Nima Nattagh, an analyst with TRW REDI Property Data, which provided the sales figures.

“If this current trend continues, home sales will be down about 22% overall from last year, which means the brief recovery we had in 1994 isn’t sustainable,” said Nattagh, who said June figures for Los Angeles and San Diego counties are not yet available.

For the first five months of the year, Los Angeles County sales were down 12%, compared to Orange County’s decline of 30%, Nattagh said. San Diego County also saw a 30% decline for the first five months.

Still, Bob Le Fever, president for the Southern California region for Coldwell Banker Corp., said Orange County home sales by brokers at his firm were up nearly 10% in June.

“From what we’re seeing, it’s been very good,” Le Fever said. “The last 10 days have been especially strong.”

But things have not been improving for James Diaz, who is trying to sell his two-bedroom Irvine home for $180,000 and has not had an offer.

“It’s kind of scary right now,” said Diaz, whose home has been on the market for about two months. “Selling is a problem. Many people are worried about the economy and that property taxes will go up and schools will decline because of the bankruptcy.”