Housing Recovery Continues

Orange County’s fledgling housing recovery showed no signs of slowing last month, as home prices continued to climb and sales reached their highest point in nearly eight years, a real estate data firm said Tuesday.

The median Orange County home sold for $203,000 in August, the highest price in nearly three years, according to DataQuick Information Services.

“The real estate market has lagged behind the general economic recovery. Now it’s finally beginning to catch up,” said John Karevoll, DataQuick analyst. “And there’s every indication that this level of activity is sustainable.”

Realtors say a booming economy had already given buyers more confidence, but rising prices and low interest rates are pushing them off the fence.

Still, this is far from the frenzied market of the late 1980s, when agents received multiple offers on houses and buyers bid up prices significantly.

“Business is good, but we are a long way from where we were before,” said Richard Yates, a real estate agent with Coldwell Banker in Mission Viejo.

A total of 3,989 homes sold in Orange County in August, the largest volume for any month since October 1989. Sales were 17.7% higher than in the same month last year. The $203,000 median sales price last month was 3.6% higher than a year ago, and was up from the $199,000 in July.

Resale homes showed the biggest gains in price, jumping nearly 8.9% to $220,000 from $202,000 in August 1996. The number of resale transactions also shot up 19.2% in August to 2,658 from 2,229 the same period last year.

“There’s a lot of built-up demand,” said Pat Neal, a Huntington Beach real estate broker. “Homes that used to be on the market 120 to 150 days last year are now on the market for 40.”

Many first-time home buyers are entering the market, analysts say. Low interest rates and lending programs with smaller down payments are helping them take the plunge.

Through the end of August and early September 30-year fixed-rate mortgages averaged 7.35% with fees totaling 2 percentage points, according to Mortgage News Co. in Morro Bay. In April, these mortgages averaged 7.96%.

Karevoll, the DataQuick analyst, said that many homeowners who have little equity will begin to make moves they had previously put on hold. For instance, residents might move from central Orange County to south Orange County to be closer to a job, or families might trade up to a bigger house.

“Before, they would have to bring money to the table to sell their home,” he said.

The condominium market showed signs of emerging from a prolonged slump.

Condo resales increased 36.1% to 799 from 587 in August 1996. Prices also began to turn around, increasing 1.6% to $129,000 from $127,000 last year.

The only declines for the month occurred in new home prices and sales.

New home prices dipped 7.8% to a median of $226,000 from $245,000 a year ago, while 532 homes sold, down 7.3% from 574 sales.

Builders said sales are up substantially at individual communities, but that there are fewer communities open now.

“There’s been a reduction in the number of actively selling projects,” said Dennis Cullumber, Orange County division president of Greystone Homes.

“The newer projects out there are high density and lower priced,” Cullumber added. “That’s having a big impact on the overall price.”

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Orange County Home Sales

August home sales in Orange County totaled 3,989, a 17.7% increase from a year ago and the highest monthly sales total since October 1989. The median price jumped 3.6% to $203,000, the highest since December 1994. Sales and median prices for new and resale homes and condominiums, by ZIP Code:

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Entered Pct. Median Pct. Highest Fore- Community Zip Sales Chng. Price Chng. Price closure Aliso Viejo 92656 90 -6.3% $165,500 1.2% $359,000 15 Anaheim 92801 31 -3.1% $133,000 4.3% $175,000 11 Anaheim 92802 18 -35.7% $162,000 3.5% $210,000 11 Anaheim 92804 53 17.8% $160,000 6.7% $217,000 27 Anaheim 92805 34 -32.0% $140,000 0.0% $275,000 22 Anaheim 92806 22 10.0% $174,000 1.5% $224,000 13 Anaheim 92807 69 32.7% $205,000 -6.0% $750,000 6 Anaheim 92808 69 86.5% $239,750 11.0% $530,000 6 Brea 92821 41 -2.4% $219,000 12.9% $635,500 11 Buena Park 90620 49 0.0% $159,500 0.3% $330,000 14 Buena Park 90621 32 68.4% $152,500 21.0% $450,000 5 Corona del Mar 92625 28 12.0% $552,500 -6.2% $1,725,000 0 Costa Mesa 92626 38 -5.0% $211,500 5.5% $392,000 6 Costa Mesa 92627 46 17.9% $184,250 4.4% $364,000 11 Cypress 90630 60 -18.9% $182,000 -9.2% $416,500 6 Dana Point 92624 16 77.8% $243,000 10.5% $775,000 2 Dana Point 92629 61 8.9% $270,000 8.9% $1,300,000 13 Foothill Ranch 92610 34 -19.0% $202,500 -2.6% $300,500 2 Fountain Valley 92708 78 41.8% $235,000 6.8% $380,000 3 Fullerton 92831 29 11.5% $195,000 21.1% $572,500 9 Fullerton 92832 13 -23.5% $170,000 19.7% $225,000 5 Fullerton 92833 47 -4.1% $169,000 -3.4% $1,375,000 13 Fullerton 92835 26 -27.8% $204,750 -5.2% $950,000 6 Garden Grove 92840 52 13.0% $159,000 4.8% $235,000 13 Garden Grove 92841 39 30.0% $160,500 0.3% $234,000 3 Garden Grove 92843 34 -15.0% $126,659 -11.4% $187,000 14 Garden Grove 92844 16 -36.0% $152,000 11.4% $226,000 7 Garden Grove 92845 36 56.5% $190,500 0.3% $290,909 2 Huntington Beach 92646 72 -5.3% $217,500 5.8% $400,000 6 Huntington Beach 92647 68 54.5% $230,000 15.9% $380,000 9 Huntington Beach 92648 60 11.1% $285,000 14.7% $810,000 5 Huntington Beach 92649 50 4.2% $274,250 28.5% $1,138,500 16 Irvine 92604 45 28.6% $187,000 -1.6% $440,000 5 Irvine 92606 20 150.0% $215,750 -16.4% $783,000 1 Irvine 92612 61 96.8% $232,000 -18.0% $875,000 2 Irvine 92614 45 114.3% $206,000 5.6% $740,000 2 Irvine 92620 73 49.0% $250,000 15.7% $554,500 5 La Habra 90631 47 -14.5% $158,000 3.9% $277,000 20 La Palma 90623 19 -20.8% $230,000 2.4% $290,000 0 Laguna Beach 92651 41 28.1% $380,000 -0.3% $2,036,500 2 Laguna Hills 92653 94 -8.7% $155,000 -1.7% $870,000 15 Laguna Niguel 92677 199 22.8% $256,500 -3.2% $1,200,000 18 Lake Forest 92630 101 11.0% $205,000 2.5% $382,000 23 Los Alamitos 90720 29 61.1% $280,000 5.2% $615,000 2 Mission Viejo 92691 96 26.3% $195,000 -2.5% $394,500 22 Mission Viejo 92692 129 15.2% $215,000 -9.1% $537,000 11 Newport Beach 92657 8 -66.7% $452,500 26.6% $1,100,000 1 Newport Beach 92660 63 16.7% $380,000 -0.4% $2,600,000 7 Newport Beach 92661 4 -60.0% $762,500 56.4% $2,400,000 0 Newport Beach 92663 37 19.4% $376,000 7.4% $935,000 3 Orange 92865 22 57.1% $192,000 7.9% $378,000 5 Orange 92866 35 400.0% $204,000 8.8% $315,000 0 Orange 92867 33 -17.5% $252,500 17.4% $640,000 5 Orange 92868 10 -28.6% $146,500 -6.1% $232,000 5 Orange 92869 73 73.8% $206,500 8.0% $1,502,500 6 Placentia 92870 68 36.0% $215,000 14.4% $1,546,000 5 R. Santa Margarita 92688 135 53.4% $188,500 23.4% $1,179,090 22 S. Juan Capistrano 92675 81 50.0% $294,000 84.9% $1,495,000 9 San Clemente 92672 66 6.5% $234,250 7.7% $840,000 7 San Clemente 92673 30 -28.6% $233,000 -12.1% $625,000 5 Santa Ana 92701 36 20.0% $58,000 -19.4% $177,000 20 Santa Ana 92703 43 26.5% $119,000 4.8% $170,000 18 Santa Ana 92704 58 -21.6% $135,750 -5.1% $498,500 28 Santa Ana* 92705 55 -9.8% $289,750 15.0% $950,000 10 Santa Ana 92706 34 36.0% $159,750 -3.2% $520,000 6 Santa Ana 92707 41 -24.1% $128,000 -3.5% $257,500 14 Seal Beach 90740 15 -37.5% $220,000 -26.7% $650,000 6 Stanton 90680 25 13.6% $108,000 2.9% $860,545 7 Trabuco/Coto 92679 160 53.8% $256,000 -7.7% $724,000 7 Tustin 92780 70 62.8% $191,500 0.8% $327,000 16 Tustin 92782 31 19.2% $241,500 4.3% $500,000 7 Villa Park 92861 14 180.0% $430,500 1.3% $995,000 1 Westminster 92683 57 -28.8% $163,750 -0.8% $270,000 15 Yorba Linda 92887 40 -11.1% $322,750 15.3% $700,000 6 Others -- 170 -- -- -- -- 11 Countywide 3,989 17.7% $203,000 3.6% $2,600,000 686

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* Includes Lemon / Cowan Heights

Source: Acxion/DataQuick Information Systems

Researched by JANICE L. JONES / Los Angeles Times

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Sales, Price Trends

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Sales Median Price 1996 Aug. 3,390 $196,000 Sept. 2,933 $193,000 Oct. 2,849 $191,000 Nov. 2,819 $190,000 Dec. 3,209 $195,000 1997 Jan. 2,292 $185,000 Feb. 2,319 $186,000 March 3,065 $193,000 April 3,460 $192,000 May 3,578 $197,000 June 3,726 $201,000 July 3,871 $199,000 Aug. 3,989 $203,000

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August August Sales Median Prices 1992 1,886 $220,000 1993 2,748 $200,000 1994 3,270 $208,000 1995 3,162 $190,000 1996 3,390 $196,000 1997 3,989 $203,000

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