O.C. Housing Still Fighting to End Slump
Despite some encouraging signs, Orange County’s real estate market is still struggling to snap out of its prolonged slump, according to a report Thursday on first-quarter housing activity.
Home sales in the first three months surged above sales for the first quarter a year ago, when the county’s bankruptcy and rainy weather pushed the housing market into a tailspin.
But home prices have continued to slide this year, which is keeping some buyers on the fence and discouraging potential sellers from putting more homes on the market, analysts said.
Orange County home sales climbed 24.4% during the first three months of this year, while the median price dropped about 3.1% to $187,000 from $193,000, according to DataQuick Information Services, a real estate data firm in La Jolla.
Still, the 7,512 home sales during the first quarter were comparable to 1994 and 1990 levels, a signal that the market could improve later this year, analysts said.
“There are some clear indications of a turnaround, but it’s not going to become a 1988 or a 1989, when things were booming,” said John Karevoll, analyst with DataQuick.
“It’s not a great quarter, but it’s not that bad. We’re clearly in an upward trend as far as sales, but prices are still soft,” he said.
During March, sales increased 20.9% while home values declined 4.6% to $187,000 from the same month a year ago. March home prices were down 1.1% from the median price of $189,000 in February.
Karevoll attributed most of the slump in March prices to a boost in condominium sales, which accounted for 22% of all homes sold last month. Home values should stabilize, then begin to increase by year’s end as the local economy improves, he said.
Local real estate agents reported increased buyer traffic, multiple offers on some housing properties and a decrease in available housing inventory, but cautioned that the housing market was still recovering.
“The problem is nobody’s buying. It’s been slow for a while but at least now there are a lot of people looking,” said Gus Modaffari, owner of Century 21 Beach Properties.
Modaffari said housing inventory is down. His Garden Grove brokerage office had 80 to 100 housing listings at the beginning of each month during the early 1990s, but now listings hover at 35.
In Newport Beach, Pat Foerster, a real estate broker with Waterfront Homes Inc., said that while the market is improving, “It’s not a bell ringer. It’s still a wait-and-see for this year.”
The demand for new homes was stronger than the overall market, a separate survey found.
Sales of new homes were up and home prices in some areas are increasing, said Jeffrey Meyers, president of the Meyers Group in Irvine. “Consumer confidence is back, and that’s a huge difference between this year and last year,” he said. “People are talking about buying houses again.” New-home sales in the county totaled 2,086 during the quarter, up 53.3% from the same time last year and 18.1% from the first quarter in 1994, the Meyers Group found. It was the first time since 1990 that sales of new homes surpassed 2,000 in the first quarter.
Still, median prices on new detached, single-family homes decreased 2.9% to $234,990 from $241,900 a year ago, the Meyers Group found.
The two best-selling new housing projects in Orange County during the first quarter were Ash Street Cottages in Brea by Baywood Development Group and Monaco, a 400-unit condominium project in Anaheim Hills constructed by Presley Cos., a builder in Newport Beach.
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Quarterly Comparison
While 1996 first-quarter home sales are 24.4% higher than the comparable period last year, median price is 3.1% lower. First-quarter sales and median price:
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1995 Sales Median price January 1,707 $194,000 February 1,800 191,000 March 2,531 196,000 Total 6,038 $193,000
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1996 Sales Median price January 2,093 $186,000 February 2,359 189,000 March 3,060 187,000 Total 7,512 $187,000
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Source: DataQuick Information Services; Researched by JANICE L. JONES
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Orange County Home Sales
March home sales increased 20.9% from the same month last year, but the median price fell 4.6% to $187,000. Sales of new and existing homes by ZIP code, with median price and number entering foreclosure:
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March Pct. March Pct. High Community Zip Sales Chng. Median Chng. Price Aliso Viejo 92656 105 1.9% $174,000 -1.1% $232,000 Anaheim 92801 33 -10.8% $134,000 -15.7% $427,500 Anaheim 92802 13 -45.8% $151,000 3.4% $239,000 Anaheim 92804 62 29.2% $157,000 8.3% $222,500 Anaheim 92805 35 25.0% $156,000 13.0% $217,500 Anaheim 92806 25 150.0% $167,000 7.1% $210,000 Anaheim 92807 52 23.8% $204,000 -20.3% $670,000 Anaheim 92808 60 -10.4% $189,000 -16.0% $532,500 Brea 92621 37 37.0% $179,000 -2.7% $350,000 Buena Park 90620 28 3.7% $155,000 -3.1% $198,000 Buena Park 90621 14 0.0% $139,000 6.9% $315,000 Corona del Mar 92625 13 -7.1% $613,000 11.7% $1,250,000 Costa Mesa 92626 38 40.7% $194,000 -1.0% $360,000 Costa Mesa 92627 33 17.9% $178,000 -12.3% $350,000 Cypress 90630 49 -14.0% $206,000 -14.5% $435,000 Dana Point 92624 n/a n/a n/a n/a n/a Dana Point 92629 58 100.0% $209,000 2.0% $675,000 Fountain Valley 92708 52 48.6% $219,000 -0.5% $375,000 Fullerton 92631 28 75.0% $177,000 14.2% $420,000 Fullerton 92632 21 31.3% $148,000 0.0% $235,000 Fullerton 92633 38 -9.5% $143,000 -6.5% $308,000 Fullerton 92635 28 0.0% $195,000 -24.1% $635,000 Garden Grove 92640 47 95.8% $146,000 -3.3% $221,000 Garden Grove 92641 26 52.9% $151,000 -9.0% $246,000 Garden Grove 92643 32 113.3% $143,000 9.2% $172,000 Garden Grove 92644 19 18.8% $114,000 -18.0% $195,000 Garden Grove 92645 18 63.6% $170,000 -6.1% $230,000 Huntington Beach 92646 39 -26.4% $196,000 -12.5% $335,000 Huntington Beach 92647 43 19.4% $175,000 -14.2% $285,000 Huntington Beach 92648 64 56.1% $247,000 -7.1% $565,000 Huntington Beach 92649 36 9.1% $196,000 -3.4% $472,500 Irvine 92714 106 23.3% $189,000 -16.0% $327,500 Irvine 92715 25 0.0% $326,000 50.9% $720,000 Irvine 92720 27 17.4% $207,000 -1.9% $329,000 La Habra 90631 59 0.0% $155,000 -26.2% $255,000 La Palma 90623 10 42.9% $224,000 -14.8% $242,000 Laguna Beach 92651 41 156.3% $385,000 36.5% $1,255,000 Laguna Hills 92653 73 14.1% $156,000 -29.7% $675,000 Laguna Niguel 92677 150 40.2% $224,000 -14.8% $925,000 Lake Forest 92630 79 14.5% $184,000 -7.1% $349,000 Los Alamitos 90720 18 38.5% $276,000 -5.2% $620,000 Midway City 92655 6 n/a $135,000 n/a $165,000 Mission Viejo 92691 58 5.5% $178,000 -1.1% $285,000 Mission Viejo 92692 94 27.0% $209,000 1.5% $800,000 Newport Beach 92660 23 -28.1% $324,000 -27.0% $699,000 Newport Beach 92661 6 0.0% $337,000 19.1% $1,905,000 Newport Beach 92663 22 37.5% $245,000 -25.1% $1,070,000 Orange 92665 13 18.2% $182,000 9.0% $220,000 Orange 92666 7 0.0% $134,000 -24.7% $229,000 Orange* 92667 69 122.6% $199,000 -12.3% $775,500 Orange 92668 10 0.0% $135,000 -13.5% $160,000 Orange 92669 87 10.1% $203,000 -0.5% $425,000 Placentia 92670 60 22.4% $191,000 -5.4% $375,000 R. Santa Margarita 92688 111 79.0% $168,000 0.6% $317,000 S. Juan Capistrano 92675 33 -13.2% $176,000 10.7% $1,450,000 San Clemente 92672 48 -14.3% $201,000 -6.5% $720,500 San Clemente 92673 41 -16.3% $259,000 8.8% $375,000 Santa Ana 92701 34 13.3% $88,000 -25.4% $167,500 Santa Ana 92703 29 38.1% $119,000 -6.3% $276,500 Santa Ana 92704 69 38.0% $131,000 -7.1% $253,500 Santa Ana** 92705 39 25.8% $308,000 17.1% $855,000 Santa Ana 92706 31 29.2% $159,000 -3.6% $405,000 Santa Ana 92707 51 27.5% $131,000 1.6% $195,000 Seal Beach 90740 16 -27.3% $239,000 -11.2% $380,000 Stanton 90680 15 -6.3% $111,000 -9.8% $165,000 Trabuco/Coto 92679 92 109.1% $258,000 -9.5% $1,200,000 Tustin 92680 74 -18.7% $171,000 4.3% $360,000 Westminster 92683 71 16.4% $163,000 -5.8% $263,000 Yorba Linda 92686 59 34.1% $244,000 0.0% $675,000 Yorba Linda 92687 42 61.5% $268,000 0.0% $689,000 Others Q 16 Q Q Q Q Countywide 3,060 20.9% $187,000 -4.6% $1,905,000
Homes Entering Community Foreclosure Aliso Viejo 53 Anaheim 32 Anaheim 20 Anaheim 37 Anaheim 25 Anaheim 13 Anaheim 37 Anaheim 16 Brea 15 Buena Park 36 Buena Park 8 Corona del Mar 6 Costa Mesa 18 Costa Mesa 22 Cypress 35 Dana Point 0 Dana Point 30 Fountain Valley 21 Fullerton 8 Fullerton 8 Fullerton 23 Fullerton 7 Garden Grove 30 Garden Grove 17 Garden Grove 20 Garden Grove 20 Garden Grove 13 Huntington Beach 45 Huntington Beach 21 Huntington Beach 18 Huntington Beach 18 Irvine 32 Irvine 20 Irvine 25 La Habra 22 La Palma 7 Laguna Beach 8 Laguna Hills 21 Laguna Niguel 75 Lake Forest 65 Los Alamitos 0 Midway City 7 Mission Viejo 30 Mission Viejo 33 Newport Beach 13 Newport Beach 1 Newport Beach 3 Orange 6 Orange 10 Orange* 16 Orange 3 Orange 31 Placentia 23 R. Santa Margarita 50 S. Juan Capistrano 31 San Clemente 18 San Clemente 8 Santa Ana 37 Santa Ana 43 Santa Ana 58 Santa Ana** 25 Santa Ana 28 Santa Ana 32 Seal Beach 3 Stanton 18 Trabuco/Coto 21 Tustin 41 Westminster 30 Yorba Linda 15 Yorba Linda 7 Others 32 Countywide 1,620
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* Includes Villa Park
**Includes Lemon/Cowan Heights
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Countywide Trends
March home sales were the highest in seven months, but the median price was just slightly higher than January’s eight-year low.
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Median Sales price March 1995 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 March 3,060 $187,000
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March trends
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Median Sales price 1992 2,269 $212,000 1993 2,178 $202,000 1994 3,324 $201,000 1995 2,531 $196,000 1996 3,060 $187,000
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