Market Continues to Gain Steam
Orange County home prices continued to move up last month on strong sales, an indication that the market is continuing to improve, a real estate research firm reported Monday.
Home values climbed to $197,000, up $5,000 from the median price in April. Real estate agents also logged one of the best sales months in the last six years, according to Acxiom/DataQuick. But prices and sales trailed comparable figures in the same month last year, when the local market was just starting to bounce back from a lengthy slump.
“We are on a nice stable growth curve,” said John Karevoll, Acxiom/DataQuick analyst. “Sales activity is strong but not overheated.”
A total of 3,578 homes were sold last month, a 7.4% dip from the same time last year, but more than the 3,460 sold in April.
Resale homes are selling faster and for higher prices this year, analysts said, because so few of them are on the market. In May 1996, there was an 11.2-month inventory of homes on the market, according to Fullerton-based Dynamic Marketing Resources Inc., meaning that it would take that long to sell all of the available homes in Orange County. Last month, that supply had dwindled to 4.4 months.
“It’s more of a sellers’ climate than it has been in the last six or seven years,” said Jacqueline Rowan, an agent with First Team Real Estate in Dana Point. “Sellers are holding off [listing their homes] unless they have to.” The median resale home price edged up 1.2% last month to $212,500 from $210,000 last year, and $206,000 last month.
The houses most in demand, real estate agents said, are affordable detached homes.
“If we get a home in our office priced right and below $200,000, we can sell those within a week,” said Allan Gantt, co-owner of Century 21 Accent Realty in Fullerton.
Low mortgage rates have lured many first-time buyers to the market already. But a recent drop in mortgage rates may nudge a few more buyers off the fence, said Earl Peattie of Santa Ana-based Mortgage News. The average rate on a 30-year fixed-rate mortgage dropped from 7.78% on May 29 to 7.53% on June 12 on news of weak retail sales and low inflation.
The number of resales last month lagged the same period last year, dropping 3.6% to 2,400 from 2,490 the same time last year. New home sales also dropped off 32.2% in May to 478 from 706 the same period last year. Builders blame that drop on fewer projects opening this year and fewer projects open overall.
But if new home sales are declining, prices are not. The median selling price for a new house increased 0.9% to $225,000 from $223,000 last year. And prices are expected to push higher in coming months. Already, incentives are disappearing at some developments and builders are raising prices as each new phase of homes is sold.
“Prices have got to go up because building costs are going up and land prices are going up,” said Larry Webb, president of John Laing Homes in Irvine.
Condo resales were the only category to post a sales increase this year, rising 4.6% to 700 last month from 669 last May as buyers snapped up the remaining foreclosure bargains. These properties held prices down to $125,000 lower than the $126,000 median last May, but higher than the $121,000 median sale last month.
Analysts said that demand will increase in coming months due to job growth and the increased affordability in the housing market. Once buyers start working through the available supply of homes, prices will begin to rise.
“We believe that for the year, home prices will increase an average of 2%,” said Esmael Adibi, an economist with Chapman University in Orange.
The number of homes going into foreclosure also dropped last month to 778, the lowest since July 1994.
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Orange County Home Sales
May sales reached 3,578--one of the best monthly totals in six years. The median price jumped 2.6% in April, from $192,000 to $197,000. But the sales and price figures were below those recorded in May 1996, when the market began to rebound.
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May Pct. May Pct. High Community Zip Sales Chng. Median Chng. Price Aliso Viejo 92656 109 7.9% $183,500 21.7% $335,000 Anaheim 92801 29 -19.4% $146,500 4.6% $215,000 Anaheim 92802 20 -23.1% $143,000 -8.2% $242,000 Anaheim 92804 55 5.8% $152,000 -5.0% $235,000 Anaheim 92805 32 -42.9% $149,000 -6.9% $180,000 Anaheim 92806 18 -48.6% $175,250 0.1% $320,500 Anaheim 92807 46 -22.0% $213,250 -0.8% $925,000 Anaheim 92808 69 25.5% $211,250 -12.8% $525,000 Brea 92821 35 -7.9% $199,000 -16.9% $455,000 Buena Park 90620 40 -14.9% $159,500 -1.5% $215,000 Buena Park 90621 20 -20.0% $150,500 5.2% $280,000 Corona del Mar 92625 23 -23.3% $667,500 36.4% $3,000,000 Costa Mesa 92626 36 -12.2% $196,000 -3.0% $600,000 Costa Mesa 92627 43 -20.4% $169,000 -2.0% $500,000 Cypress 90630 51 -28.2% $207,250 2.3% $406,000 Dana Point 92624 8 -27.3% $217,500 -5.2% $330,000 Dana Point 92629 72 24.1% $235,500 -7.1% $715,000 Foothill Ranch 92610 31 -56.3% $210,000 1.2% $305,000 Fountain Valley 92708 55 -39.6% $227,000 8.4% $363,000 Fullerton 92831 30 50.0% $169,000 -6.1% $310,000 Fullerton 92832 18 -18.2% $136,000 -14.5% $223,000 Fullerton 92833 55 0.0% $162,000 -0.6% $417,500 Fullerton 92835 28 -9.7% $235,000 -2.3% $478,000 Garden Grv 92840 33 -32.7% $151,750 -2.1% $200,000 Garden Grv 92841 22 -21.4% $160,000 10.3% $182,000 Garden Grv 92843 35 -22.2% $142,500 2.2% $190,000 Garden Grv 92844 22 46.7% $136,750 -10.0% $170,000 Garden Grv 92845 27 80.0% $185,000 -10.6% $276,000 Hunt.Bch 92646 65 6.6% $213,864 1.4% $325,000 Hunt.Bch 92647 50 -5.7% $207,000 0.0% $420,000 Hunt.Bch 92648 56 -5.1% $235,000 -15.8% $580,000 Hunt.Bch 92649 48 -23.8% $215,000 4.9% $675,000 Irvine 92604 48 29.7% $202,500 1.8% $685,000 Irvine 92606 39 116.7% $310,000 56.6% $418,000 Irvine 92612 48 45.5% $242,500 10.2% $842,000 Irvine 92614 27 3.8% $175,000 -32.4% $695,000 Irvine 92620 50 8.7% $255,000 2.8% $561,000 La Habra 90631 50 -18.0% $152,500 -6.2% $320,000 La Palma 90623 12 -52.0% $200,000 -3.6% $900,000 Lag.Bch 92651 49 -18.3% $490,000 34.2% $3,525,000 Lag.Hills 92653 90 1.1% $162,000 -19.5% $1,695,000 Lag.Niguel 92677 180 2.9% $236,000 2.1% $2,220,000 Lk. Forest 92630 111 27.6% $188,000 4.4% $382,000 Los Alam 90720 18 -30.8% $285,000 2.2% $500,000 Mission Vjo 92691 86 10.3% $195,750 7.6% $360,000 Mission Vjo 92692 125 1.6% $225,000 9.5% $1,010,000 Newport Bch 92657 17 -32.0% $421,500 9.7% $815,000 Newport Bch 92660 65 16.1% $461,250 -0.2% $3,500,000 Newport Bch 92661 4 -60.0% $186,500 -60.5% $370,000 Newport Bch 92663 34 25.9% $376,000 -19.0% $2,150,000 Orange 92865 23 35.3% $185,000 0.0% $240,000 Orange 92866 15 66.7% $180,000 8.8% $330,000 Orange 92867 38 -25.5% $223,750 6.5% $600,000 Orange 92868 18 100.0% $163,000 1.9% $238,000 Orange 92869 63 5.0% $215,000 -1.4% $950,000 Placentia 92870 63 37.0% $199,000 -1.8% $370,000 R.S. Mrgrta 92688 108 16.1% $185,000 21.7% $421,000 S.J. Cpstrno 92675 50 -16.7% $215,000 16.8% $885,000 San Clem 92672 64 8.5% $197,000 -27.0% $700,000 San Clem 92673 42 27.3% $269,000 -5.9% $589,500 Sta Ana 92701 36 -14.3% $71,500 -5.9% $180,000 Sta Ana 92703 33 10.0% $110,000 -8.3% $164,000 Sta Ana 92704 63 6.8% $145,000 1.4% $346,000 Sta Ana* 92705 50 -16.7% $325,000 16.1% $789,000 Sta Ana 92706 26 18.2% $159,500 10.8% $285,000 Sta Ana 92707 37 -7.5% $132,750 3.3% $249,000 Seal Bch 90740 13 -31.6% $293,000 -0.9% $359,500 Stanton 90680 25 -3.8% $96,000 -6.8% $195,000 Trbco/Coto 92679 118 38.8% $247,250 -14.1% $1,112,000 Tustin 92780 56 -9.7% $182,000 -1.1% $335,000 Tustin 92782 19 -66.7% $209,000 1.5% $415,000 Villa Prk 92861 12 50.0% $387,500 13.1% $749,000 Wstmnstr 92683 53 -32.1% $159,500 -5.1% $268,000 Yb Linda 92886 51 8.5% $231,500 -3.5% $455,000 Yb Linda 92887 31 -34.0% $291,500 -5.4% $530,000 Others -- 137 -- -- -- -- County Q 3,578 -7.4% $197,000 -0.5% $3,525,000
Entering Community Foreclosure Aliso Viejo 28 Anaheim 9 Anaheim 7 Anaheim 24 Anaheim 13 Anaheim 10 Anaheim 16 Anaheim 3 Brea 6 Buena Park 9 Buena Park 7 Corona del Mar 3 Costa Mesa 6 Costa Mesa 3 Cypress 6 Dana Point 1 Dana Point 5 Foothill Ranch 1 Fountain Valley 11 Fullerton 3 Fullerton 6 Fullerton 15 Fullerton 5 Garden Grv 23 Garden Grv 11 Garden Grv 13 Garden Grv 3 Garden Grv 1 Hunt.Bch 24 Hunt.Bch 7 Hunt.Bch 9 Hunt.Bch 5 Irvine 5 Irvine 1 Irvine 3 Irvine 9 Irvine 9 La Habra 26 La Palma 2 Lag.Bch 1 Lag.Hills 13 Lag.Niguel 20 Lk. Forest 35 Los Alam 3 Mission Vjo 26 Mission Vjo 19 Newport Bch 1 Newport Bch 6 Newport Bch 0 Newport Bch 6 Orange 3 Orange 1 Orange 6 Orange 9 Orange 7 Placentia 15 R.S. Mrgrta 28 S.J. Cpstrno 11 San Clem 16 San Clem 7 Sta Ana 20 Sta Ana 23 Sta Ana 36 Sta Ana* 11 Sta Ana 14 Sta Ana 20 Seal Bch 1 Stanton 5 Trbco/Coto 9 Tustin 10 Tustin 5 Villa Prk 2 Wstmnstr 15 Yb Linda 13 Yb Linda 5 Others 8 County 778
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*Includes Lemon/Cowan Heights
Sales, Price Trends
Sales
May 1997: 3,578
Median Price: $197,000
May Sales
1997: 3,578
May Median Price: $197,000
