Home Sales in O.C. for July Are Briskest in Nearly 10 Years

First-time buyers snapped up Orange County homes in droves last month, boosting sales in the sizzling housing market to the highest level for one month in almost a decade, a real estate research firm reported Wednesday.

At a time of the year when home sales usually taper off, a total of 5,259 homes were sold in July, making it the busiest month since August 1988.

The turnover at the lower end of the market helped drive the median price down to $229,000 last month from its all-time record of $236,000 in June, according to Acxiom/DataQuick Information Systems.

Analysts predict, however, that prices will resume their upward climb later in the year. Despite the decrease, the median price in July was still the second highest on record. And prices per square foot, another indicator of how housing costs are moving, rose 15.7%, to $147 from $127 a year ago.

First-time buyers are being drawn to the market by low interest rates and incentive programs that feature low down payments, said Thomas Deutsch, vice president of Occidental Mortgage Co. in Newport Beach. Many also are moving to buy a house because they’re concerned that prices may go even higher.

“In this market, if you don’t act now, you’re freezing yourself out,” Deutsch said. “You have to look at things in a hurry.”

First-time homeowner Bob Tomchak, 36, bought a two-bedroom townhouse in Tustin for $149,000 and figures he’s ahead of the game now. Tomchak said his real estate agent told him that comparable units are now selling for $25,000 more.

“That’s a pretty good investment,” he said.

Drawn by higher prices, more homeowners have planted for-sale signs on their property, creating more choices for buyers, real estate agents said.

Led by huge gains in transactions involving existing houses and condos, overall home sales in July soared 36% over sales of 3,871 a year ago, a growth rate that’s “unsustainable,” said John Karevoll, an Acxiom/DataQuick analyst. He said he expects sales growth of 18% to 20% in future months, which still would be strong gains.

The increase in homes being offered for sale is a welcome change in the tight market, agents said.

“The inventory is much greater than it has been,” said agent John Williams of ReMax South County. Williams said he has eight properties listed, up from two or three a month ago.

But homes still are attracting multiple offers and selling for the full asking price. Of the 37 homes he has sold this year, Williams said, only three went for less than the list price.

“Those are all indicators we may still be going up,” Williams said, “but the rate of appreciation isn’t as dramatic as three months ago.”

Karevoll said prices may level off for the next couple of months, but he expects more increases toward the end of the year.

“We’re going to see prices going up 12% to 15%,” he said.

A survey released Wednesday by the National Assn. of Realtors confirmed the county’s frenzied market in the second quarter ended June 30.

The median price of an existing single-family home in the county rose to $261,500 from $228,400 in the same period a year ago, a 14.5% gain. The median price--meaning half of the homes sold for more and half sold for less--was nearly double the national median price of $131,100.

Orange County ranked as the third-most-expensive housing market in the nation during the April-June period. San Francisco had the highest median price, $329,400, followed by Honolulu, at $305,000.

While coastal properties in Orange County were leading the price surge earlier in the year, smaller, inland homes are now seeing their prices rising nearly as fast, Karevoll said.

Condominium prices, for instance, jumped to $154,000 from $123,000, a 25% gain over a year ago, as lower-priced homes continue their strong recovery.

The sizzling market is keeping appraisers busy as well.

At Orange-based CP Appraisers, which determines a home’s value, the phone hasn’t rung this much since the mid-1980s, said owner John Aust, who also is president of the National Assn. of Real Estate Appraisers.

His employees have been putting in 11-hour days, sometimes working on the weekend as well, to meet the demand. Customers include home sellers and numerous homeowners seeking to refinance their properties to reduce mortgage payments.

“We’re backed up seven to 10 days,” said Aust, adding that the backlog typically is three or four days.

“Every indication I have says it’s going to get busier,” he said. “I don’t see anything slowing it down.”

Real estate companies also have added more staff to keep up with the growing demand.

Century 21 Beachside Realty has hired 120 agents, for a total of 600. The value of homes sold in July soared 65%, to $94 million from $57 million a year ago, said Tom Denny, president of the eight-office firm.

“The demand’s still out there,” he noted.

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Orange County Home Sales

July’s home sales tally of 5,259 was the highest for any month since August 1988, when 6,096 homes were sold. The median price increased 15.1% from last July, to $229,000, but was down 3% from last month’s median of $236,000. Sales of new and resale homes and condominiums, median price and median price per square foot, by ZIP Code:

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Community Pct. Median Pct. ’97 Med. /Zip Sales Chng. price Chng. Sq.Ft.(1) Aliso Viejo 92656 134 24.1% $188,000 6.2% $121 Anaheim 92801 56 64.7% $154,500 11.4% $112 Anaheim 92802 31 19.2% $170,000 9.7% $102 Anaheim 92804 77 28.3% $165,000 6.3% $113 Anaheim 92805 52 23.8% $150,000 8.7% $113 Anaheim 92806 30 36.4% $193,000 5.9% $99 Anaheim 92807 86 36.5% $256,000 20.8% $121 Anaheim 92808 74 51.0% $265,000 18.2% $134 Brea 92821 54 22.7% $229,500 15.9% $117 Buena Park 90620 54 -5.3% $175,500 10.4% $130 Buena Park 90621 33 13.8% $153,000 -4.4% $103 Corona del Mar 92625 40 17.6% $652,500 8.3% $346 Costa Mesa 92626 68 83.8% $230,000 5.4% $125 Costa Mesa 92627 61 69.4% $217,000 24.4% $146 Cypress 90630 80 25.0% $193,500 -12.8% $126 Dana Point 92624 14 7.7% $357,250 73.4% $188 Dana Point 92629 100 72.4% $324,500 29.3% $161 Foothill Ranch 92610 31 -8.8% $255,000 21.7% $122 Fountain Valley 92708 116 52.6% $250,750 11.2% $126 Fullerton 92831 50 163.2% $162,500 13.6% $123 Fullerton 92832 24 100.0% $165,000 14.0% $125 Fullerton 92833 66 34.7% $178,250 14.6% $116 Fullerton 92835 41 10.8% $273,500 10.3% $124 Garden Grove 92840 58 3.6% $165,250 6.3% $114 Garden Grove 92841 36 12.5% $165,000 -4.9% $111 Garden Grove 92843 39 -13.3% $143,000 5.5% $126 Garden Grove 92844 21 -4.5% $170,000 43.8% $103 Garden Grove 92845 38 52.0% $215,000 20.8% $131 Huntington Beach 92646 108 52.1% $250,000 14.7% $135 Huntington Beach 92647 73 35.2% $237,000 4.9% $150 Huntington Beach 92648 96 50.0% $290,000 15.5% $152 Huntington Beach 92649 96 134.1% $241,500 4.3% $167 Irvine 92604 84 82.6% $255,000 15.3% $142 Irvine 92606 29 26.1% $242,000 5.0% $122 Irvine 92612 74 42.3% $265,000 -4.3% $143 Irvine 92614 64 64.1% $224,000 -4.1% $142 Irvine 92620 79 33.9% $255,000 5.8% $136 La Habra 90631 66 57.1% $167,000 14.8% $123 La Palma 90623 26 52.9% $253,250 11.1% $119 Laguna Beach 92651 60 30.4% $435,000 -3.3% $294 Laguna Hills 92653 129 25.2% $195,000 -4.6% $132 Laguna Niguel 92677 244 49.7% $295,000 23.0% $138 Lake Forest 92630 175 59.1% $217,000 11.3% $119 Los Alamitos 90720 29 16.0% $329,750 10.3% $177 Mission Viejo 92691 138 35.3% $234,500 21.5% $126 Mission Viejo 92692 158 31.7% $245,000 6.5% $123 Newport Beach 92657 14 75.0% $492,500 40.7% $157 Newport Beach 92660 70 9.4% $462,500 10.1% $204 Newport Beach 92661 6 100.0% $1,030,000 41.1% $432 Newport Beach 92663 48 37.1% $300,000 5.3% $275 Orange 92865 20 -9.1% $197,500 15.0% $120 Orange 92866 18 -18.2% $210,000 6.3% $151 Orange 92867 59 34.1% $217,000 3.3% $125 Orange 92868 12 -7.7% $134,250 1.5% $105 Orange 92869 88 41.9% $236,250 26.3% $124 Placentia 92870 82 17.1% $230,000 14.3% $109 R. Santa Margarita 92688 153 10.1% $192,000 7.3% $116 S. Juan Capistrano 92675 95 66.7% $299,000 49.5% $121 San Clemente 92672 75 0.0% $245,250 1.1% $146 San Clemente 92673 44 10.0% $275,500 8.6% $134 Santa Ana 92701 32 -22.0% $88,500 -28.0% $116 Santa Ana 92703 35 -22.2% $142,000 23.5% $109 Santa Ana 92704 76 20.6% $140,000 -4.3% $117 Santa Ana* 92705 72 28.6% $330,000 33.7% $124 Santa Ana 92706 35 2.9% $178,500 6.1% $127 Santa Ana 92707 58 18.4% $137,250 0.2% $122 Seal Beach 90740 24 4.3% $335,000 6.9% $192 Stanton 90680 30 25.0% $120,523 19.3% $97 Trabuco/Coto 92679 124 -6.1% $380,000 43.7% $119 Tustin 92780 63 3.3% $175,000 0.0% $118 Tustin 92782 82 100.0% $233,500 -8.4% $122 Villa Park 92861 11 10.0% $475,000 -1.0% $157 Westminster 92683 90 32.4% $182,000 2.2% $123 Yorba Linda 92886 83 18.6% $265,000 17.3% $128 Yorba Linda 92887 68 28.3% $364,750 36.1% $133 Other -- 300 -- -- -- -- Countywide 5,259 35.9% $229,000 15.1% $127

Community ’98 Med. /Zip Sq.Ft.(1) Aliso Viejo 92656 $155 Anaheim 92801 $124 Anaheim 92802 $127 Anaheim 92804 $116 Anaheim 92805 $126 Anaheim 92806 $121 Anaheim 92807 $136 Anaheim 92808 $145 Brea 92821 $133 Buena Park 90620 $137 Buena Park 90621 $116 Corona del Mar 92625 $381 Costa Mesa 92626 $150 Costa Mesa 92627 $174 Cypress 90630 $136 Dana Point 92624 $235 Dana Point 92629 $194 Foothill Ranch 92610 $156 Fountain Valley 92708 $145 Fullerton 92831 $131 Fullerton 92832 $130 Fullerton 92833 $133 Fullerton 92835 $147 Garden Grove 92840 $128 Garden Grove 92841 $136 Garden Grove 92843 $135 Garden Grove 92844 $125 Garden Grove 92845 $148 Huntington Beach 92646 $164 Huntington Beach 92647 $163 Huntington Beach 92648 $174 Huntington Beach 92649 $190 Irvine 92604 $171 Irvine 92606 $137 Irvine 92612 $169 Irvine 92614 $186 Irvine 92620 $149 La Habra 90631 $125 La Palma 90623 $128 Laguna Beach 92651 $376 Laguna Hills 92653 $160 Laguna Niguel 92677 $175 Lake Forest 92630 $141 Los Alamitos 90720 $198 Mission Viejo 92691 $150 Mission Viejo 92692 $146 Newport Beach 92657 $343 Newport Beach 92660 $262 Newport Beach 92661 $595 Newport Beach 92663 $331 Orange 92865 $133 Orange 92866 $178 Orange 92867 $148 Orange 92868 $112 Orange 92869 $141 Placentia 92870 $129 R. Santa Margarita 92688 $148 S. Juan Capistrano 92675 $150 San Clemente 92672 $195 San Clemente 92673 $170 Santa Ana 92701 $130 Santa Ana 92703 $110 Santa Ana 92704 $126 Santa Ana* 92705 $159 Santa Ana 92706 $130 Santa Ana 92707 $135 Seal Beach 90740 $176 Stanton 90680 $111 Trabuco/Coto 92679 $155 Tustin 92780 $126 Tustin 92782 $147 Villa Park 92861 $189 Westminster 92683 $133 Yorba Linda 92886 $145 Yorba Linda 92887 $150 Other -- -- Countywide $147

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(1) Median resale price per square foot

*Includes Lemon/Cowan Heights

Sales, Price Trends

Monthly Sales: 5,259

Median Price: $229,000

July Sales: 5,259

July Median Prices: $229,000

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Source: Axciom/DataQuick Information Systems; Researched by JANICE JONES DODDS / Los Angeles Times

Sales Up

July home sales in Orange County jumped 35.9% from last July, to 5,259, the highest for any month in nearly 10 years.