July O.C. Home Sales Highest in 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.
This follows a feverish second quarter for home sales in all of California. For the three months ending June 30, home sales rose 18% and the median home price rose 10.8% above the same period a year ago, the California Assn. of Realtors reported.
More than two-thirds of the state’s 337 cities and communities reported rising prices, with the median price at $204,680.
Meanwhile, the value of Americans’ homes is outpacing inflation in most of the nation’s metro areas, offering support to consumers’ confidence just as it is being threatened by the shaky stock market. Nationally, the median existing home price increased to $131,100 during the April-June quarter, up 6% from a year earlier, the National Assn. of Realtors said.
Orange County had the third-highest median price in the nation--$261,480 for an existing single-family home. San Francisco had the highest price, $329,390, followed by Honolulu, $305,000.
At a time of the year when home sales usually taper off, a total of 5,259 Orange County 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 for new and existing homes down to $229,000 last month from its all-time record of $236,000 in June, according to Acxiom/Dataquick Information Systems.
Acxiom predicts, however, that prices will resume their climb later in the year. Despite the decrease, the median price for new and existing homes in July was still the second-highest on record.
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.
First-time homeowner Bob Tomchak, 36, bought a two-bedroom townhouse in Tustin for $149,000 and figures he’s ahead of the game. Tomchak said his real estate agent told him comparable units are selling for $25,000 more.
“That’s a pretty good investment,” he said.
*
Associated Press was used in compiling this report.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Home Economics
Second-quarter home sale and price activity in California:
*--*
Pct. chg. in Pct. chg. in Median price from sales activity price 2Q 1997 2Q 1997 Calif. single-family $204,680 +10.8% +18.0% detached California condominium 153,970 +12.1 +29.7 Region* Central Valley 114,740 +6.4 +16.8 High desert** 96,890 --0.1 +10.3 Los Angeles 191,250 +10.4 +18.5 Monterey 285,340 +12.3 +19.3 N. California wine 212,180 +8.1 +18.9 country Orange County 261,480 +14.5 +30.6 Palm Springs/lower 140,870 +19.6 +25.9 desert Riverside/San Bernardino 120,010 +4.3 +24.9 Sacramento 127,560 +9.7 +10.7 San Diego 210,180 +14.6 +10.9 San Luis Obispo 175,850 +2.0 +55.3 San Francisco 329,390 +16.6 +16.2 Santa Barbara** 225,000 --4.1 --1.7 Santa Clara 378,320 +22.6 +13.9 Ventura 232,820 +6.1 +29.8
*--*
*Not seasonally adjusted. Based on closed escrow sales of single-family detached homes only (no condos). Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes sold.
**Due to the small sample size for these areas, prices and activity changes may be overemphasized.
Source: California Assn. of Realtors
