O.C. Housing Sales Hit 9-Year High
Spurred by rising incomes and lower interest rates, home buyers last month pushed Orange County housing sales to their highest level in nine years.
The 33% surge in sales, to 4,589 in April, means that the region’s real estate recovery has reached full throttle, analysts said, with every segment of the market showing significant growth.
Home resales, which accounted for 70% of all transactions in Orange County, cracked the 3,000 mark for the first time since September 1988, according to Acxiom/DataQuick Information Services. That’s 36% higher than year-ago levels.
Condo resales jumped 54% from a year ago, to 1,044.
Prices did not match the sales growth, however, with the median price in Orange County falling to $220,000 in April, from $221,000 in March. New homes, which typically carry a higher median price tag, accounted for a smaller percentage of total sales.
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But the sales surge in Orange County--which usually leads Southern California in sales and price trends--bodes well for the thousands of Southland homeowners who bought at the peak of the last real estate cycle, when median prices in Orange County hit $223,000 in June 1991.
Home values in many parts of the region fell 15%--and in some cases more during the recession of the early 1990s. But prices are expected to return to or surpass pre-recession levels this summer, a pattern already taking shape in several Bay Area counties.
“There’s no doubt we’re poised for further price jumps,” said John Karevoll, an Acxiom/Dataquick analyst.
Sales also have hit record highs nationally. A combination of low mortgage rates and a strong economy has sent consumer confidence soaring. The combined value of home mortgages is on track to top $1.1 trillion this year, according to the Mortage Bankers Assn. of America. That would be the highest level ever, surpassing 1993, when millions refinanced their homes.
Real estate agents said that while the market in Orange County is strong, it hasn’t reached the white-hot level of the late 1980s.
“We are beginning to see more multiple offers,” in some cases three or four buyers on one house, said Bob Chapman, manager of Coldwell Banker’s Laguna Niguel office.
But he still sees homes getting no offers at all.
The reason is that buyers have tempered their optimism, Chapman said. Many remember overpaying for homes that fell sharply in value and, as a result, buyers have been more cautious. Moreover, there are fewer homes to choose from.
“It’s an honest, active market, warming up substantially, but it’s not burning out of control,” Chapman said.
Led by growth in coastal areas, all regions of Orange County are showing higher sales volume.
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In past cycles, the recovery began with million-dollar mansions and worked its way down to the entry-level market. Now, with sales rising in all segments, the gap between the market’s upper and lower tiers is narrowing.
The bottom quarter, for example, saw prices rise at a 1% clip a year ago, lagging the market’s high-end homes. Today, prices in the entry-level segment are growing at a 6.7% annual clip--on par with the market’s top end.
As a result, signs of economic trouble among buyers are fewer. Foreclosures declined for the 18th consecutive month, to 630 in April. And adjustable rate mortgages, a gauge of how much buyers need to stretch in order to qualify for a loan, dropped to 15.9% of all home loans made in April--the lowest mark since Karevoll began recording statistics a decade ago.
* REAL GAINS
Orange County home sales for April by zip code. D1
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Orange County Home Sales
Home sales surged to 4,589 in April, up 32.6% from a year ago. The median price jumped 14.6% to $220,000, compared to $192,000 a year ago. (Main story, A1.)
Sales of new and resale homes and condominiums by ZIP Code:
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April Pct. April Pct. High Community,Zip Sales Chng. Median Chng. Price Aliso Viejo 92656 166 36.1% $187,750 13.6% $760,000 Anaheim 92801 31 -13.9% $145,000 9.8% $209,000 Anaheim 92802 30 42.9% $159,000 3.6% $264,500 Anaheim 92804 66 1.5% $166,000 7.1% $279,000 Anaheim 92805 46 12.2% $158,091 9.0% $285,000 Anaheim 92806 29 81.3% $180,000 1.6% $233,000 Anaheim 92807 82 90.7% $213,750 3.8% $469,000 Anaheim 92808 73 40.4% $272,500 3.8% $505,000 Brea 92821 60 114.3% $222,500 11.3% $460,000 Buena Park 90620 36 -21.7% $173,500 10.9% $410,000 Buena Park 90621 39 95.0% $156,000 8.5% $455,000 Corona del Mar 92625 33 50.0% $552,500 2.8% $2,150,000 Costa Mesa 92626 44 4.8% $225,000 13.6% $390,000 Costa Mesa 92627 62 34.8% $205,000 10.5% $469,000 Cypress 90630 61 69.4% $201,000 2.3% $500,000 Dana Point 92624 13 30.0% $270,000 35.8% $499,000 Dana Point 92629 71 0.0% $315,000 27.0% $1,280,000 Foothill Ranch 92610 26 13.0% $273,000 7.7% $409,500 Fountain Valley 92708 82 41.4% $244,250 6.4% $444,000 Fullerton 92831 47 80.8% $228,000 36.1% $430,000 Fullerton 92832 15 -21.1% $155,000 8.8% $417,000 Fullerton 92833 55 1.9% $170,500 8.3% $445,000 Fullerton 92835 26 -13.3% $305,000 18.4% $695,000 Garden Grove 92840 71 44.9% $160,500 7.0% $350,000 Garden Grove 92841 35 40.0% $175,000 6.1% $291,000 Garden Grove 92843 42 23.5% $155,000 6.5% $210,000 Garden Grove 92844 34 100.0% $130,000 -10.3% $217,000 Garden Grove 92845 34 112.5% $217,500 15.4% $355,000 Huntington Beach 92646 82 34.4% $240,000 19.7% $620,000 Huntington Beach 92647 69 97.1% $225,000 8.2% $424,545 Huntington Beach 92648 103 114.6% $299,000 19.2% $847,000 Huntington Beach 92649 68 47.8% $262,500 19.9% $1,350,000 Irvine 92604 61 64.9% $240,000 17.1% $465,000 Irvine 92606 55 205.6% $291,000 20.0% $415,500 Irvine 92612 72 71.4% $248,000 -21.6% $1,025,000 Irvine 92614 51 45.7% $225,000 12.5% $806,000 Irvine 92620 79 102.6% $260,000 -5.8% $541,000 La Habra 90631 63 -13.7% $165,000 8.6% $325,000 La Palma 90623 14 16.7% $250,500 6.6% $284,000 Laguna Beach 92651 60 30.4% $415,000 2.5% $3,000,000 Laguna Hills 92653 124 33.3% $162,500 -6.6% $837,000 Laguna Niguel 92677 216 19.3% $272,500 4.8% $1,300,000 Lake Forest 92630 107 44.6% $211,500 22.6% $477,500 Los Alamitos 90720 33 32.0% $306,250 15.6% $485,000 Mission Viejo 92691 120 46.3% $229,000 13.4% $430,000 Mission Viejo 92692 141 36.9% $231,000 7.7% $591,000 Newport Beach 92657 22 37.5% $480,000 13.5% $782,000 Newport Beach 92660 75 38.9% $405,000 -14.3% $2,000,000 Newport Beach 92661 4 -33.3% $1,112,500 106.6% $1,910,000 Newport Beach 92663 34 21.4% $287,500 -13.9% $1,753,000 Orange 92865 27 28.6% $216,000 13.7% $400,000 Orange 92866 10 -66.7% $217,500 8.7% $270,000 Orange 92867 56 64.7% $224,500 27.7% $875,000 Orange 92868 14 0.0% $125,000 -17.8% $172,000 Orange 92869 90 69.8% $239,500 11.5% $800,000 Placentia 92870 75 23.0% $218,000 7.4% $388,000 R. Santa Margarita 92688 134 12.6% $200,000 12.4% $425,000 S. Juan Capistrano 92675 71 -11.3% $276,000 63.3% $1,200,000 San Clemente 92672 79 31.7% $229,500 15.3% $775,000 San Clemente 92673 37 12.1% $260,000 13.0% $1,275,000 Santa Ana 92701 32 -8.6% $91,000 -31.6% $199,000 Santa Ana 92703 43 22.9% $148,000 19.4% $1,307,272 Santa Ana 92704 64 10.3% $151,000 7.9% $261,000 Santa Ana * 92705 82 127.8% $368,750 27.6% $1,250,000 Santa Ana 92706 46 84.0% $172,000 6.2% $620,000 Santa Ana 92707 52 10.6% $130,000 4.0% $335,000 Seal Beach 90740 19 -17.4% $317,000 -2.5% $428,000 Stanton 90680 26 8.3% $107,500 4.6% $159,000 Trabuco/Coto 92679 124 19.2% $329,750 24.0% $1,475,000 Tustin 92780 67 42.6% $190,500 14.8% $329,000 Tustin 92782 45 21.6% $225,000 -2.6% $529,000 Villa Park 92861 15 66.7% $430,000 1.2% $919,000 Westminster 92683 82 3.8% $175,500 6.5% $320,000 Yorba Linda 92886 84 33.3% $247,000 7.9% $710,000 Yorba Linda 92887 32 -15.8% $245,745 -16.8% $530,000 Others 121 - - - - Countywide* 4,589 32.6% $220,000 14.6% $3,000,000
Homes Entering Community,Zip Foreclosure Aliso Viejo 92656 6 Anaheim 92801 5 Anaheim 92802 7 Anaheim 92804 9 Anaheim 92805 17 Anaheim 92806 0 Anaheim 92807 14 Anaheim 92808 5 Brea 92821 11 Buena Park 90620 17 Buena Park 90621 4 Corona del Mar 92625 0 Costa Mesa 92626 9 Costa Mesa 92627 2 Cypress 90630 12 Dana Point 92624 2 Dana Point 92629 6 Foothill Ranch 92610 1 Fountain Valley 92708 17 Fullerton 92831 6 Fullerton 92832 10 Fullerton 92833 14 Fullerton 92835 7 Garden Grove 92840 10 Garden Grove 92841 16 Garden Grove 92843 12 Garden Grove 92844 7 Garden Grove 92845 6 Huntington Beach 92646 10 Huntington Beach 92647 9 Huntington Beach 92648 5 Huntington Beach 92649 4 Irvine 92604 2 Irvine 92606 1 Irvine 92612 2 Irvine 92614 2 Irvine 92620 7 La Habra 90631 18 La Palma 90623 1 Laguna Beach 92651 4 Laguna Hills 92653 18 Laguna Niguel 92677 21 Lake Forest 92630 17 Los Alamitos 90720 2 Mission Viejo 92691 17 Mission Viejo 92692 5 Newport Beach 92657 0 Newport Beach 92660 10 Newport Beach 92661 1 Newport Beach 92663 1 Orange 92865 6 Orange 92866 1 Orange 92867 7 Orange 92868 5 Orange 92869 5 Placentia 92870 10 R. Santa Margarita 92688 15 S. Juan Capistrano 92675 11 San Clemente 92672 6 San Clemente 92673 1 Santa Ana 92701 12 Santa Ana 92703 25 Santa Ana 92704 20 Santa Ana * 92705 5 Santa Ana 92706 14 Santa Ana 92707 20 Seal Beach 90740 1 Stanton 90680 6 Trabuco/Coto 92679 7 Tustin 92780 12 Tustin 92782 4 Villa Park 92861 5 Westminster 92683 18 Yorba Linda 92886 14 Yorba Linda 92887 5 Others 6 Countywide* 630
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*Includes Lemon/Cowan Heights
Source: Acxiom/DataQuick Information Systems
Sales, Price Trends
Monthly Sales
April 1998: 4,589
Median Price
April 1998: $220,000
