O.C. Housing Market Hits a Plateau

Orange County’s housing market slipped into a holding pattern last month as both home prices and sales fell slightly below levels a year ago.

The median home price slipped 1.6% to $186,000, although it was a bit higher than the rock-bottom $185,000 in January. Housing sales, which have been increasing year to year for the last 13 months, slipped 1.7%, according to a report released Friday by Acxiom/DataQuick, a real estate data firm.

Some real estate agents say the so-called housing recovery is progressing slower than they had hoped.

“I do realize that the economy is getting better, but it’s not getting much better in the housing market,” said Wanda Varner, owner of Century 21 Chuck Stevens in La Habra and Brea. Foreclosure sales, which generally carry lower prices, “are still a big pull on the market,” she said.

But foreclosures are becoming less of a factor. The number of homes going into foreclosure slowed last month to 867, the lowest level in two years. A year ago, a total of 1,425 homes went into default.

Last month, a total of 2,319 homes were sold, compared with 2,359 sales in February 1996. DataQuick analyst John Karevoll attributed the slight decline, in part, to the fact that real estate agents had an extra day to sell homes last February because it was leap year.

Condominium sales remained strong, however, as people moved in to take advantage of some of the lowest prices in almost a decade. Condo sales surged 31.3% to 504 from 384 last year. But sales in all other categories declined. New home sales dropped 16.5% to 380 from 455 last year. Sales of existing homes declined 5.6% to 1,435 from 1,520.

Analysts and real estate agents blamed the stall in sales on a tiny spike in 30-year mortgage rates to 7.587% from 7.4% earlier in the month and a slight decrease in consumer demand.

“You’re seeing a natural leveling off of activity,” Karevoll said, adding that it would have been hard to maintain last year’s strong sales pace. “I expect it to stay at these levels,” he said, noting that sales were still on a par with 1991 transactions.

Prices remained sluggish. The median selling price for an existing home dropped 1.5% to $197,000, and was unchanged from January. The median condo price also dipped 1.7% from last year to $119,000, although it was higher than the $114,000 January price.

Only new homes reported a price increase, jumping 11.5% from February 1996, largely because of the increased number of sales in high-end communities.

Real estate agents say although the beginning of the year has been slower than expected, sales are picking up this month as the industry enters its traditional “selling season” that runs until the summer.

“It has been tremendous,” said Melinda Harris, owner and broker with Fred Sands Realtors in Laguna Hills. Already, she said, the amount of time homes remain on the market has declined, and values seem to be firming up slightly.

Experts had estimated that resale home values would rise just over 2% this year. Despite the slip in February, that is still likely, said Esmael Adibi, director of the A. Gary Anderson Center for Economic Research at Chapman University.

“Mortgage rates still have some room to go down, home prices are not shooting up and job formation is strong in the county,” Adibi said.

Rising incomes combined with these affordable prices should stir up sales activity, leading to a modest price increase by the end of the year, he said.

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Orange County Home Sales

February home sales dropped 1.7% from the same month last year, and the median price fell 1.6% to $186,000, the lowest for February in five years.

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February Pct. February Pct. High Community Zip Sales Chng. Median Chng. Price Aliso Viejo 92656 67 -10.7% $178,000 11.3% $585,000 Anaheim 92801 23 64.3% $140,000 -3.1% $177,000 Anaheim 92802 15 50.0% $158,000 21.1% $238,000 Anaheim 92804 49 8.9% $160,000 8.8% $227,000 Anaheim 92805 27 -43.8% $150,000 3.1% $210,000 Anaheim 92806 11 -21.4% $158,500 -8.9% $730,000 Anaheim 92807 29 -32.6% $177,500 -6.8% $515,000 Anaheim 92808 37 -7.5% $218,500 12.3% $426,000 Brea 92821 25 25.0% $200,000 0.8% $285,000 Buena Park 90620 28 27.3% $158,000 -2.2% $208,000 Buena Park 90621 12 -20.0% $129,500 -16.0% $385,000 Corona del Mar 92625 10 -44.4% $495,000 3.1% $1,595,000 Costa Mesa 92626 24 -11.1% $197,250 -7.1% $368,000 Costa Mesa 92627 22 10.0% $162,000 -9.0% $350,000 Cypress 90630 38 -25.5% $198,000 2.3% $414,500 Dana Point 92624 3 -66.7% $226,000 -11.0% $242,500 Dana Point 92629 39 -2.5% $216,500 -24.8% $1,690,000 Foothill Ranch 92610 29 -19.4% $213,500 17.1% $283,000 Fountain Valley 92708 41 -2.4% $208,500 -5.2% $308,500 Fullerton 92831 24 60.0% $192,000 23.9% $356,000 Fullerton 92832 15 -6.3% $140,500 -13.3% $267,000 Fullerton 92833 27 -15.6% $155,500 -5.8% $305,000 Fullerton 92835 10 -23.1% $215,000 -5.7% $450,000 Garden Grove 92840 26 0.0% $147,500 -1.7% $243,000 Garden Grove 92841 6 -72.7% $181,750 12.9% $275,000 Garden Grove 92843 14 -41.7% $151,500 -2.3% $180,000 Garden Grove 92844 10 -41.2% $139,000 11.2% $169,500 Garden Grove 92845 12 -14.3% $190,500 1.9% $268,000 Huntington Beach 92646 42 10.5% $220,000 10.0% $667,500 Huntington Beach 92647 31 47.6% $196,909 -2.3% $345,000 Huntington Beach 92648 45 -6.3% $232,500 -19.0% $1,081,590 Huntington Beach 92649 29 -27.5% $186,000 -24.9% $1,025,000 Irvine 92604 19 -17.4% $204,000 7.4% $273,000 Irvine 92606 21 133.3% $257,000 33.5% $383,000 Irvine 92612 29 163.6% $288,000 21.8% $900,000 Irvine 92614 22 46.7% $234,000 -0.4% $325,000 Irvine 92620 23 -11.5% $300,000 27.3% $745,000 La Habra 90631 36 16.1% $151,000 11.0% $325,000 La Palma 90623 8 -11.1% $207,000 -9.4% $400,000 Laguna Beach 92651 21 -19.2% $355,500 6.3% $2,300,000 Laguna Hills 92653 57 -10.9% $162,500 2.8% $987,500 Laguna Niguel 92677 114 26.7% $235,000 4.0% $858,000 Lake Forest 92630 45 -19.6% $181,000 -6.9% $330,000 Los Alamitos 90720 11 22.2% $265,000 6.0% $340,000 Mission Viejo 92691 40 -21.6% $204,000 5.3% $317,500 Mission Viejo 92692 83 -21.0% $218,000 6.6% $900,000 Newport Beach 92657 5 -54.5% $378,000 -0.5% $820,000 Newport Beach 92660 38 0.0% $442,000 20.3% $1,475,000 Newport Beach 92661 3 -25.0% $452,500 -2.2% $530,000 Newport Beach 92663 17 -22.7% $289,000 12.9% $1,175,000 Orange 92865 8 -11.1% $169,000 -0.6% $219,500 Orange 92866 13 62.5% $204,000 21.8% $214,500 Orange 92867 25 13.6% $185,000 1.6% $467,500 Orange 92868 5 -58.3% $178,000 31.9% $189,000 Orange 92869 26 -46.9% $202,000 -9.0% $360,000 Placentia 92870 49 81.5% $211,750 3.5% $550,000 R. Sta Margarita 92688 100 31.6% $177,000 9.3% $404,000 S. Jn Capistrano 92675 36 20.0% $209,000 -9.2% $1,180,000 San Clemente 92672 53 35.9% $231,500 -1.1% $669,500 San Clemente 92673 16 0.0% $235,000 -2.1% $415,000 Santa Ana 92701 20 -39.4% $126,000 58.5% $168,000 Santa Ana 92703 29 20.8% $95,500 -25.7% $169,000 Santa Ana 92704 45 2.3% $138,500 -8.0% $206,000 Santa Ana* 92705 21 -19.2% $302,000 -0.5% $762,000 Countywide 2,319 -1.7% $186,000 -1.6% $2,300,000

Homes Entering Community Foreclosure Aliso Viejo 26 Anaheim 27 Anaheim 1 Anaheim 16 Anaheim 16 Anaheim 5 Anaheim 11 Anaheim 10 Brea 6 Buena Park 16 Buena Park 1 Corona del Mar 5 Costa Mesa 12 Costa Mesa 8 Cypress 16 Dana Point 2 Dana Point 6 Foothill Ranch 2 Fountain Valley 18 Fullerton 3 Fullerton 8 Fullerton 17 Fullerton 8 Garden Grove 12 Garden Grove 5 Garden Grove 21 Garden Grove 1 Garden Grove 3 Huntington Beach 17 Huntington Beach 7 Huntington Beach 7 Huntington Beach 13 Irvine 7 Irvine 1 Irvine 5 Irvine 7 Irvine 11 La Habra 16 La Palma 5 Laguna Beach 1 Laguna Hills 16 Laguna Niguel 31 Lake Forest 23 Los Alamitos 2 Mission Viejo 21 Mission Viejo 18 Newport Beach 0 Newport Beach 7 Newport Beach 0 Newport Beach 5 Orange 6 Orange 2 Orange 3 Orange 7 Orange 16 Placentia 12 R. Sta Margarita 31 S. Jn Capistrano 11 San Clemente 13 San Clemente 3 Santa Ana 18 Santa Ana 22 Santa Ana 38 Santa Ana* 7 Countywide 865

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* Includes Lemon / Cowan Heights

Source: Acxiom/DataQuick Information Systems

Researched by JANICE L. JONES / Los Angeles Times

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Sales, Price Trends

Sales

February 1997: 2,319

Median price

February 1997: $186,000

February Sales

1997: 2,319

February Median Price

1997: $186,000