O.C. Home Sales Up 31% While Prices Level Out
Orange County home sales surged 31% during February--the biggest monthly sales increase in nearly two years--while prices stabilized for the first time since last fall.
“The worst is definitely behind us,” said John Karevoll, an analyst with Dataquick Information Services in La Jolla. “Now that sales are increasing, a boost in Orange County home values isn’t far behind.”
While median home prices fell only 1.1% from February last year, they were up slightly from the month before. That, coupled with the improvement in sales, was hailed by analysts as a continuation of a real estate recovery begun in January.
Low interest rates, the county’s bankruptcy recovery plan and recent positive job growth have all helped spark home sales.
A total of 2,359 new and existing homes were sold countywide in February, a 12% increase from the 2,093 homes sold in January. Median home prices increased $3,000 to $189,000 from the month before.
Many analysts said that current trends such as low interest rates, increasing sales and a better economy could prompt home values to improve later this year.
“Housing prices are stabilizing. It’s amazing,” said Maureen Bauer, owner and general manager of Century 21 Professionals in Irvine. “We’re even getting multiple offers. We haven’t seen that in a while.”
Buyers are “eager,” Bauer said. Those who had been willing to wait to bid on bank-owned properties involved in so-called short sales are now showing interest in other homes.
“In this market, with interest rates low, buyers don’t want to wait,” said Bauer.
One couple who couldn’t wait were Diane and John Anderson. They will close escrow this month on a $180,000, four-bedroom Santa Ana home.
“Now is the best time to buy,” Diane Anderson said. “You’re able to shop around and get the best price. Things are only going to go up this year.”
Southern California’s real estate recession began about five years ago and has caused home values and sales to drop dramatically.
While housing activity improved in 1994, poor weather and lingering effects from the Orange County bankruptcy in 1995 caused home sales and values to decline all year. Dramatic sales declines of nearly 30% were seen in the first few months of 1995, but housing sales and values started to stabilize in the fall.
In January, the market began to revive.
“The first eight weeks of this year have been incredible. Home building is almost a business again,” said Roland Osgood, president of the coastal division of Kaufman & Broad Home Corp., California’s largest home builder.
Home sales in Kaufman & Broad’s 11 Orange County developments were up 150% from the same time last year, when the company had the same number of communities up for sale.
* TRACKING THE TRENDS: Sales of O.C. homes by ZIP code and median prices. D1
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Orange County Home Sales
February home sales increased 31% from a year ago, while the median price dropped 1%. See main story, A1. Sales of new and existing homes by ZIP code, median price and number entering foreclosure:
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Sales, Price Trends
February’s sales were the highest for that month since 1994, while the median price fell only slightly since the February before.
*--*
Median Sales price Feb. 1995 1,800 $191,000 March 2,531 $196,000 April 2,143 $195,000 May 2,528 $193,000 June 3,100 $199,000 July 2,540 $198,000 Aug. 3,162 $190,000 Sept. 2,803 $193,000 Oct. 2,762 $189,000 Nov. 2,669 $195,000 Dec. 3,003 $190,000 Jan. 1996 2,093 $186,000 Feb. 2,359 $189,000 Feb. 1992 1,474 $210,000 Feb. 1993 1,742 $197,000 Feb. 1994 2,381 $195,000 Feb. 1995 1,800 $191,000 Feb. 1996 2,359 $189,000
*--*
