August Home Sales Continue Downswing : Real estate: Number of deals closing escrow declines 7.6% compared to last year. Average price also slips amid concerns over the economy.
The number of homes sold in Ventura County continued to decline in August, and at least one economist expects the trend to continue through the rest of the year.
“People aren’t really looking at home ownership in a favorable way,” said Nima Nattagh, an economist with TRW-REDI Property Data.
TRW’s monthly report showed that a total of 907 homes sold countywide in August, down 7.6% from the 982 sold in August, 1994.
Nattagh said that most people are reluctant to buy because home prices continue to decline in 1995. The average price of a home sold last month was $236,008. In August, 1994, the average home sold for $236,388.
Though that decline was not significant, home prices are still down more than 10% for the entire year, Nattagh said.
He also said the slowing of the economy has kept people from buying a home. “There are still concerns about employment and the economy,” Nattagh said.
But UC Santa Barbara economist Mark Schniepp said he sees a silver lining in the August numbers, especially when compared to sales in July.
“I think finally we are starting to see something we have been hoping for all year,” he said.
In July, only 608 homes closed escrow, down more than 31% from the previous year. The fact that 299 additional homes were sold in August than in July represents a glimmer of good news, Schniepp said.
“It’s about time we see something remotely positive,” he said.
As late as April, year-to-year home sales were off by nearly 40%, while June and July experienced drops of 30% or more.
Schniepp said rising interest rates combined with sagging confidence in the economy contributed greatly to the slump. But interest rates have stabilized over the last two or three months. And Schniepp said indications are that mortgage rates will stay flat or even dip, so home sales should slowly rebound during the last three months of the year.
“I sure hope that’s true,” said Mary Hall, president of the Conejo Valley Assn. of Realtors.
“The interest rates stayed steady and that helped greatly,” she said of August sales. “I think things will be better--so long as interest rates don’t rise.”
The affluent neighborhood of Oak Park in unincorporated Ventura County near Thousand Oaks saw the biggest decline in home sales. Only 34 homes closed escrow in August, down nearly 50% from the previous August.
But in the city of Ventura, home sales actually increased. Twenty-four additional houses--for a total of 169--were sold this August compared with August, 1994.
Nattagh said inexpensive homes in the county are selling faster than tonier homes because buyers are fearful of investing heavily in real estate.
“As long as values continue to drop, you’ll find the top end of the market selling slower,” he said.
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Ventura County House Sales
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August, 1994 August, 1995 Number Average Number Average City/ZIP code of sales price of sales price CAMARILLO 93010 52 $229,206 64 $220,746 93012 36 $319,786 32 $271,428 93066 0 $0 4 $378,333 FILLMORE 93015 13 $168,077 13 $173,538 MOORPARK 93021 63 $213,734 42 $237,679 OAK PARK 91301 65 $305,408 34 $307,426 91304 0 $0 0 $0 OAK VIEW 93022 7 $174,500 5 $141,500 OJAI 93023 21 $226,250 21 $236,310 OXNARD 93030 62 $180,000 46 $197,467 93033 33 $148,621 33 $148,094 93035 28 $248,846 35 $236,714 PIRU 93040 0 $0 0 $0 PORT HUENEME 93041 29 $149,207 23 $141,848 SANTA PAULA 93060 21 $164,950 24 $157,833 SIMI VALLEY 91307 4 $566,955 3 $357,500 91311 0 $0 0 $0 93063 69 $192,607 62 $193,952 93065 86 $207,209 71 $207,008 THOUSAND OAKS 91320 49 $245,739 56 $254,536 91360 75 $226,450 82 $214,431 91361 33 $312,967 20 $331,450 91362 88 $349,535 66 $425,902 VENTURA 93001 34 $268,355 33 $250,484 93003 49 $191,153 50 $195,910 93004 62 $220,468 86 $219,564 COUNTY LINE / CANYON AREA 90265 2 $281,500 1 $635,000 COUNTYWIDE 982* $236,388 907* $236,008
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* The ZIP code for one house bought in Ventura County was unavailable.
Source: TRW-REDI Property Data
