O.C.'s Median Home Price Up Again as Market Keeps Humming

By DARYL STRICKLAND

March 12, 1999 12 AM PT

TIMES STAFF WRITER

The price of a typical Orange County home rose 7% in February, to a median $226,000, an indication that prices are headed to record levels in the months ahead, a real estate research firm reported Thursday.

The price was the highest for any February this decade. It marked the 21st consecutive month that home values have gone up from the same month a year earlier, a trend that outpaced the most optimistic predictions.

With prices and sales surging in what is considered the housing market’s off-season, analysts said the median price should exceed the county’s all-time high of $236,000 within the next few months.

“The patterns we’re seeing are that sales and prices continue to go up, and I think that will continue through the spring anyway,” said John Karevoll, an analyst at Acxiom/DataQuick Information Systems, the LaJolla research firm that released the report.

If the trend continues, he said, the median price--meaning half of the homes cost more, half cost less--should top the record by May.

Indeed, the market has been behaving as if it’s already springtime, when activity normally picks up, said Phil Schaefer, a Seven Gables Real Estate agent who sells in Santa Ana’s Floral Park area.

There are only eight out of roughly 2,000 homes for sale in that area, an unseasonably low figure, he said. Nearly half of the homes sold have attracted multiple offers.

“I think people thought it would be over by now, but I’m not seeing that at all,” said Schaefer, noting that his February sales doubled the number of transactions in the same month last year. “If spring will be better than it is right now, then the market will be wild, out of control.”

Last month, a total of 3,002 homes and condominiums sold in the county, the highest total for any February this decade, Acxiom/DataQuick reported.

The median price for the month actually slipped $5,000 below the median in January as buyers concentrated on searching for bargain-priced homes as an investment. Still, observers said they were surprised by the market’s continued momentum.

Indeed, home values in the first two months of the year were up about 11% over the same period last year, Karevoll said.

Real estate agents agreed they have seen the market’s warmth replace February’s usual off-season chill. “Mortgage rates were low, the holidays were over and people felt better about everything,” said Claire Phillips, an agent at Century 21 Grisham-Joseph, who covers North Orange County, where the bulk of the county’s older homes are located.

Karevoll also noted that smaller homes are appreciating at a faster clip than even during the market’s surge six months ago, allowing more families to parlay their equity into larger homes.

Eighteen months ago, when lawyers Kim and Darren Barker bought their first home for $207,000 in the Santiago Park area of Santa Ana, they figured it would take seven or eight years to build equity high enough to move.

That guess wasn’t even close. After painting the walls, building a patio, and making other minor improvements, the couple put their home on the market, thinking they could fetch $250,000 to $260,000. They got $290,000.

“We didn’t expect it to happen so quickly,” said Kim Barker. “If it would’ve sold for less, say $250,000, it wouldn’t have been worth it to move . . . but it’s a seller’s market.”

In February, the median new-home price surged 20% to $324,250, as demand continued to outpace construction. Prices of existing condos rose 9% to $158,500, as that once-sluggish segment of the market continued to rebound. The median price of resales homes climbed 8% to $240,000.

On a square-foot basis, home prices rose 11% in February to $1.48, the highest point since 1990.

Adjustable-rate mortgages, a gauge used to determine how far buyers stretch themselves financially, have plummeted to 14% of the total, a near-record low. These mortgages made up roughly 50% of the total in the mid-1990s.

And February foreclosures dropped below 400, one of the lowest levels ever, Karevoll said.

There’s nothing on the horizon that will prevent Orange County’s housing market from continuing its steady growth. “The numbers are rock solid,” Karevoll said.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Orange County Home Sales

Orange County February home sales totaled 3,002, the highest for that month in a decade. The median price jumped 7% from a year ago, to $226,000. Sales of new and resale homes and condominiums, median price and median price per square foot, by ZIP code:*--*

Community Pct. Median Pct. ’97 Med. /Zip Sales Chng. price Chng. Sq.Ft.(1) Aliso Viejo 92656 119 -1.7% $222,000 15.3% $122 Anaheim 92801 15 -37.5% $156,000 15.8% $111 Anaheim 92802 15 -11.8% $177,000 9.9% $116 Anaheim 92804 58 75.8% $170,000 9.0% $113 Anaheim 92805 40 37.9% $158,500 4.3% $111 Anaheim 92806 17 13.3% $202,500 6.0% $104 Anaheim 92807 48 11.6% $254,000 16.9% $119 Anaheim 92808 51 -15.0% $260,000 52.0% $145 Brea 92821 33 43.5% $210,000 -18.0% $128 Buena Park 90620 25 4.2% $175,000 5.1% $129 Buena Park 90621 26 52.9% $223,500 41.9% $103 Corona del Mar 92625 13 8.3% $585,000 16.6% $266 Costa Mesa 92626 43 7.5% $234,500 22.9% $138 Costa Mesa 92627 34 13.3% $233,500 14.5% $163 Cypress 90630 28 12.0% $203,250 9.0% $120 Dana Point 92624 5 -16.7% $300,000 31.3% $291 Dana Point 92629 42 -17.6% $308,000 14.1% $162 Foothill Ranch 92610 14 -30.0% $280,500 21.2% $130 Fountain Valley 92708 42 -10.6% $246,000 11.8% $126 Fullerton 92831 23 -25.8% $203,000 -24.5% $120 Fullerton 92832 19 216.7% $170,500 -3.6% $148 Fullerton 92833 45 60.7% $181,000 7.3% $129 Fullerton 92835 34 21.4% $279,750 5.6% $136 Garden Grove 92840 29 -31.0% $170,000 12.2% $114 Garden Grove 92841 16 -30.4% $158,250 -5.8% $121 Garden Grove 92843 19 11.8% $166,500 6.4% $112 Garden Grove 92844 22 46.7% $143,750 -10.4% $118 Garden Grove 92845 16 6.7% $215,000 17.2% $146 Huntington Beach 92646 63 18.9% $247,000 14.9% $151 Huntington Beach 92647 41 -10.9% $235,000 4.9% $157 Huntington Beach 92648 52 -27.8% $333,000 9.2% $160 Huntington Beach 92649 30 -41.2% $365,000 32.7% $198 Irvine 92604 29 26.1% $225,000 -5.9% $149 Irvine 92606 26 -39.5% $259,250 -3.6% $140 Irvine 92612 41 51.9% $277,500 20.7% $150 Irvine 92614 30 -28.6% $223,500 2.6% $154 Irvine 92620 45 0.0% $252,500 -1.8% $141 La Habra 90631 39 -9.3% $159,000 -2.2% $121 La Palma 90623 8 -50.0% $269,000 26.6% $113 Laguna Beach 92651 32 10.3% $582,000 25.2% $285 Laguna Hills 92653 80 21.2% $160,000 5.6% $131 Laguna Niguel 92677 156 6.1% $273,500 5.4% $156 Lake Forest 92630 97 31.1% $200,000 0.0% $126 Los Alamitos 90720 11 10.0% $320,000 8.5% $181 Mission Viejo 92691 68 6.3% $226,500 8.4% $136 Mission Viejo 92692 68 -27.7% $266,000 8.1% $130 Newport Beach 92657 14 -26.3% $498,000 -28.9% n/a Newport Beach 92660 54 92.9% $490,000 -2.8% $242 Newport Beach 92661 5 400.0% $1,525,000 246.6% $477 Newport Beach 92663 21 -12.5% $320,000 -9.2% $276 Orange 92865 23 91.7% $188,500 9.6% $126 Orange 92866 6 -53.8% $227,500 23.0% $148 Orange 92867 36 -14.3% $230,000 10.8% $125 Orange 92868 13 62.5% $157,000 21.7% $133 Orange 92869 59 47.5% $273,000 28.5% $127 Placentia 92870 48 14.3% $226,500 6.7% $123 R. Santa Margarita 92688 103 -28.5% $189,000 -3.6% $127 S. Juan Capistrano 92675 60 33.3% $212,500 11.8% $128 San Clemente 92672 43 -27.1% $252,500 6.5% $158 San Clemente 92673 18 -14.3% $345,000 -12.7% $159 Santa Ana 92701 34 21.4% $85,500 41.9% $103 Santa Ana 92703 33 106.3% $135,000 21.6% $120 Santa Ana 92704 57 5.6% $146,750 11.0% $123 Santa Ana* 92705 31 -13.9% $314,000 22.4% $146 Santa Ana 92706 26 -10.3% $192,500 8.8% $116 Santa Ana 92707 33 -13.2% $152,000 3.1% $119 Seal Beach 90740 15 -21.1% $340,000 -0.4% $206 Stanton 90680 21 90.9% $142,000 6.0% $119 Trabuco/Coto 92679 96 -27.8% $363,500 31.2% $128 Tustin 92780 59 43.9% $185,000 8.8% $134 Tustin 92782 34 -24.4% $206,250 -14.6% $125 Villa Park 92861 5 66.7% $495,000 23.1% $142 Westminster 92683 59 18.0% $197,000 17.6% $126 Yorba Linda 92886 45 9.8% $277,500 6.7% $131 Yorba Linda 92887 41 28.1% $384,750 39.4% $140 Countywide* - 3,002 2.1% $226,000 7.1% $133 Other -- 103 -- -- -- --

Community ’98 Med. /Zip Sq.Ft.(1) Aliso Viejo 92656 $142 Anaheim 92801 $125 Anaheim 92802 $132 Anaheim 92804 $123 Anaheim 92805 $127 Anaheim 92806 $125 Anaheim 92807 $141 Anaheim 92808 $153 Brea 92821 $136 Buena Park 90620 $139 Buena Park 90621 $135 Corona del Mar 92625 $284 Costa Mesa 92626 $154 Costa Mesa 92627 $169 Cypress 90630 $158 Dana Point 92624 $149 Dana Point 92629 $199 Foothill Ranch 92610 $172 Fountain Valley 92708 $154 Fullerton 92831 $133 Fullerton 92832 $128 Fullerton 92833 $145 Fullerton 92835 $141 Garden Grove 92840 $128 Garden Grove 92841 $128 Garden Grove 92843 $127 Garden Grove 92844 $125 Garden Grove 92845 $160 Huntington Beach 92646 $169 Huntington Beach 92647 $171 Huntington Beach 92648 $182 Huntington Beach 92649 $233 Irvine 92604 $173 Irvine 92606 $152 Irvine 92612 $176 Irvine 92614 $187 Irvine 92620 $159 La Habra 90631 $130 La Palma 90623 $133 Laguna Beach 92651 $379 Laguna Hills 92653 $143 Laguna Niguel 92677 $176 Lake Forest 92630 $142 Los Alamitos 90720 $208 Mission Viejo 92691 $157 Mission Viejo 92692 $156 Newport Beach 92657 n/a Newport Beach 92660 $259 Newport Beach 92661 n/a Newport Beach 92663 $269 Orange 92865 $144 Orange 92866 $173 Orange 92867 $133 Orange 92868 $133 Orange 92869 $144 Placentia 92870 $120 R. Santa Margarita 92688 $145 S. Juan Capistrano 92675 $144 San Clemente 92672 $188 San Clemente 92673 $149 Santa Ana 92701 $128 Santa Ana 92703 $128 Santa Ana 92704 $131 Santa Ana* 92705 $168 Santa Ana 92706 $136 Santa Ana 92707 $140 Seal Beach 90740 $182 Stanton 90680 $119 Trabuco/Coto 92679 $155 Tustin 92780 $130 Tustin 92782 $148 Villa Park 92861 $189 Westminster 92683 $139 Yorba Linda 92886 $152 Yorba Linda 92887 $157 Countywide* - $148 Other --

*--*

(1) Median resale price per square foot

*Includes Lemon/Cowan Heights

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

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Sales, Price Trends

February 1998

Monthly Sales: 2,940

Median Price: $211,000

February Sales: 1,800

February Median Prices: $191,000

February 1999