O.C. Real Estate Market Remains in Doldrums : Housing: June sales figures off 34%. Uncertainty over the county’s fiscal disaster has buyers scared, brokers say.

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

Home sales, which account for 70% of all property sales, have fallen for eight straight months in the county, which filed for the largest municipal bankruptcy in U.S. history on Dec. 6.

Although mortgage rates are near historic lows and home prices here 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 St. 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 during the first two weeks of June, brokers said, then stopped completely just before the Tuesday vote on Measure R, the half-cent sales tax increase rejected by voters.

“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 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 don’t include the last two days of June, they are an early sign that Orange County home sales will remain depressed the rest of the year, said Nima Nattagh, an analyst with TRW REDI Property Data, which provided the real estate 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 added that June figures for Los Angeles and San Diego counties were not available.

For the first five months of the year, Los Angeles County sales were down 12%, compared with Orange County’s decline of 30%, Nattagh said. San Diego County also saw a 30% decline for the first five months. A major defense contractor closed down during the first quarter, TRW reported.

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

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

But James Diaz hasn’t noticed an improvement. Diaz is trying to sell his two-bedroom Irvine home for $180,000, and hasn’t 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.”

Steve Jones put his three-bedroom Laguna Niguel townhome on the market in January. Even with a price tag of $209,000, only about six people have looked at it and he has had no offers.

“My home is not going anywhere. People are just concerned about all the financial problems the county has had and the economy here,” Jones said. “Typically summer is a good time and lots of things sell. But not this summer.”

While some of the lowest mortgage rates in years have pushed buyers in many parts of the nation off the fence and into new homes--home sales nationally were up 4.7% in May--Orange County sales continue to slump.

“There hasn’t been a solution to this bankruptcy and people are getting alarmed. They are especially worried about the schools,” said Cora Bladikoski, manager of Tarbell Realty in Irvine. “All this squabbling among the public officials just makes it worse. Buyers are waiting.”