O.C. Home Sales Fall 6%; Prices Still Up

Orange County home sales fell in October--the first year-to-year decline in 16 months--but prices continued their upward march, climbing 10.6% from a year ago to a median $230,000.

Sales fell 6%, to 3,913 homes, as the gyrating stock market and sharp shifts in mortgage rates apparently spooked some buyers.

But the sales downturn may prove to be little more than a one-month aberration, said John Karevoll, an analyst at Acxiom/DataQuick Information Systems Inc. in La Jolla.

“There’s nothing on the horizon that’s ominous,” Karevoll said. “Frankly, there’s nothing we see in the numbers that could derail this for a while.”

Indeed, once mortgage rates began retreating after a brief surge, people resumed buying homes at a healthy clip, and that should result in a stronger-than-usual November housing market survey, he said.

October’s median price matches the second-highest median ever reported in Orange County, first reached in August this year. The all-time high of $236,000 was set in June.

In one of the biggest years ever in Orange County’s housing industry, year-over-year prices have risen by double-digit increments in 11 of the past 12 months. The only exception came in September, when prices barely missed the mark, rising only 9.7%.

Like the rest of the nation, where home sales are on a record pace, Orange County’s housing market still is expanding, Tuesday’s report indicates. Given that job growth remains strong, the current housing boom should be sustained through much of next year.

Home values have continued rising throughout the state. Across California, homes surpassed their pre-recession levels in October, and the same is expected in Orange County this month. Because of rising values and economic growth, the number of Orange County homeowners facing foreclosure dropped to 1,379, the smallest number since Acxiom began tracking the number in 1992.

Prices grew across the board in year-over-year comparisons, the monthly survey showed. For instance, the median price of a new home soared 33%, to $354,250, from $265,500 a year ago. Resale condo prices jumped by 16%, to a median $151,500, and home resale prices grew 9%, to a median $240,000.

Still, usually optimistic real estate agents are sensing a softening in the market. They note that buyers are looking at a broader selection of homes, rather than snapping up the first one available.

“Buyers don’t have the sense of urgency they had three or four months ago,” said John Williams, an agent with Re/Max South.

And that is affecting sellers. Of 10 listings Williams has currently, seven have trimmed their prices, usually in 2% increments.

Moreover, Williams hasn’t seen multiple offers on a home in two months.

“We’re not seeing the bottle rocket-style appreciation we saw three or four months ago,” he said.

No one knows that better than Lori and Daniel Ott. The Aliso Viejo couple, hoping to trade up into a larger home, put their three-bedroom, 2 1/2-bath home on the market in September.

They noticed that the exact same model, a block away, sold for $268,900 in July, so that’s the price they asked for when they put their home on the market in September. For two weeks, the couple didn’t get one request to see the house.

They cut the price by $4,000, which resulted in several showings, but no offers. They dropped the price another $4,000, got an offer and sold the home this month after the buyers negotiated $5,000 more off the home, to $255,900.

“The reason we lowered our price is because other homes in our neighborhood lowered their prices too,” said Lori, 28. The family still turned a healthy profit, more than 30%, which should allow them to buy a larger home in the area, she said.

A shortage of inventory was partially to blame for October’s sales downturn. Although condo sales jumped 13%, new-home sales plunged 36%, to 388, because there aren’t enough lots ready for construction.

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Orange County Home Sales

October home sales dropped 6.2% from a year ago, but the median price increased 10.6% to $230,000. Sales, median prices and median price per square foot of new and resale homes and condominiums, by ZIP Code:

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Community Pct. Median Pct. ’97 Med. ’98 Med. /Zip Sales Chng. price Chng. Sq.Ft.(1) Sq.Ft.(1) Aliso Viejo 92656 102 -25.5% $192,500 0.3% $124 $105 Anaheim 92801 29 -29.3% $157,500 11.7% $110 $125 Anaheim 92802 25 38.9% $161,000 -0.6% $123 $127 Anaheim 92804 65 -14.5% $170,000 13.3% $115 $125 Anaheim 92805 35 -31.4% $164,000 23.3% $117 $132 Anaheim 92806 30 36.4% $213,500 21.8% $106 $117 Anaheim 92807 76 24.6% $240,500 17.3% $116 $131 Anaheim 92808 82 57.7% $271,500 19.9% $128 $149 Brea 92821 41 32.3% $245,000 18.9% $125 $139 Buena Park 90620 67 28.8% $179,000 13.5% $130 $132 Buena Park 90621 22 4.8% $146,000 0.0% $97 $117 Corona del Mar 92625 33 22.2% $640,000 8.0% $314 $282 Costa Mesa 92626 64 28.0% $235,000 14.1% $128 $154 Costa Mesa 92627 61 15.1% $199,500 -16.2% $194 $173 Cypress 90630 47 -28.8% $190,000 14.3% $125 $132 Dana Point 92624 10 -23.1% $214,500 -36.0% $190 $166 Dana Point 92629 63 -29.2% $282,750 4.7% $169 $188 Foothill Ranch 92610 16 -55.6% $275,000 40.8% $124 $138 Fountain Valley 92708 69 1.5% $252,000 16.7% $128 $147 Fullerton 92831 39 5.4% $227,000 24.4% $118 $141 Fullerton 92832 10 -47.4% $166,750 4.9% $127 $141 Fullerton 92833 47 -7.8% $179,500 6.8% $128 $142 Fullerton 92835 29 7.4% $280,000 23.9% $123 $143 Garden Grove 92840 59 59.5% $172,500 9.2% $118 $132 Garden Grove 92841 26 -18.8% $174,500 1.7% $120 $130 Garden Grove 92843 40 -4.8% $155,000 11.1% $114 $128 Garden Grove 92844 22 -15.4% $133,500 -0.7% $118 $113 Garden Grove 92845 31 82.4% $228,500 17.2% $150 $165 Huntington Beach 92646 63 -20.3% $228,750 -3.3% $152 $168 Huntington Beach 92647 56 -15.2% $248,750 12.3% $148 $165 Huntington Beach 92648 94 -6.0% $306,000 4.6% $142 $184 Huntington Beach 92649 68 -8.1% $270,000 2.3% $179 $189 Irvine 92604 41 -14.6% $217,250 1.8% $145 $167 Irvine 92606 39 34.5% $320,500 38.1% $127 $160 Irvine 92612 39 -31.6% $239,000 -10.5% $155 $173 Irvine 92614 54 31.7% $230,000 9.5% $163 $186 Irvine 92620 58 -39.6% $247,500 -9.8% $136 $149 La Habra 90631 69 23.2% $160,000 14.3% $115 $133 La Palma 90623 20 42.9% $278,250 21.5% $133 $131 Laguna Beach 92651 45 -16.7% $460,000 2.2% $305 $280 Laguna Hills 92653 94 -8.7% $161,500 -7.7% $125 $152 Laguna Niguel 92677 165 -18.7% $305,000 20.3% $150 $172 Lake Forest 92630 130 11.1% $200,000 0.0% $124 $150 Los Alamitos 90720 22 46.7% $306,000 -4.1% $193 $202 Mission Viejo 92691 100 -6.5% $225,000 11.8% $131 $153 Mission Viejo 92692 99 -31.7% $248,500 0.9% $123 $150 Newport Beach 92657 23 -32.4% $546,000 9.6% $237 $483 Newport Beach 92660 62 -11.4% $492,500 -6.5% $241 $243 Newport Beach 92661 9 12.5% $430,000 -9.1% $354 $333 Newport Beach 92663 28 -36.4% $241,250 -48.7% $277 $345 Orange 92865 24 140.0% $222,500 11.1% $144 $133 Orange 92866 11 -21.4% $225,000 11.8% $144 $164 Orange 92867 42 35.5% $210,500 -10.4% $132 $141 Orange 92868 17 13.3% $150,000 -2.0% $126 $153 Orange 92869 47 -29.9% $259,000 42.3% $127 $146 Placentia 92870 67 -4.3% $200,000 -4.8% $115 $133 R. Santa Margarita 92688 137 -28.6% $214,000 16.9% $124 $149 San Clemente 92672 73 19.7% $318,750 33.1% $172 $175 San Clemente 92673 20 -13.0% $312,500 18.8% $150 $184 S. Juan Capistrano 92675 59 -31.4% $190,000 -47.2% $121 $136 Santa Ana 92701 31 -6.1% $87,000 8.7% $117 $128 Santa Ana 92703 36 -12.2% $130,000 -0.2% $116 $129 Santa Ana 92704 67 -9.5% $147,000 13.7% $118 $129 Santa Ana* 92705 44 -21.4% $272,500 -10.8% $147 $149 Santa Ana 92706 36 16.1% $182,000 10.3% $120 $141 Santa Ana 92707 48 -14.3% $136,000 7.9% $118 $136 Seal Beach 90740 26 13.0% $380,000 34.8% $183 $167 Stanton 90680 17 13.3% $147,000 51.5% $100 $103 Trabuco/Coto 92679 58 -54.7% $368,500 27.3% $128 $150 Tustin 92780 54 0.0% $199,500 14.8% $119 $136 Tustin 92782 83 45.6% $265,250 -13.9% $129 $142 Villa Park 92861 8 0.0% $534,000 26.2% $153 $152 Westminster 92683 95 26.7% $190,000 13.3% $121 $141 Yorba Linda 92886 77 30.5% $249,000 -0.8% $132 $146 Yorba Linda 92887 48 -23.8% $347,500 -0.7% $133 $149 Other -- 70 -- -- -- -- -- Countywide 3,913 -6.2% $230,000 10.6% $130 $147

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*Includes Lemon/Cowan Heights

(1) Median resale price per square foot

Sales, Price Trends

Monthly Sales: 3,913

Median Price: $230,000

October Sales: 3,913

October Median Prices: $230,000

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