Home Sales Rise Thanks to First-Time Buyers

Home sales in Southern California rose in October, the result of low mortgage interest rates and a strong market for entry-level houses, a real estate information service reported.

A total of 25,840 new and resale houses and condos were sold in October in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 4.3% from 24,777 for the month before, and up 5.6% from 24,480 for October last year, according to DataQuick Information Systems.

The sales count was the highest for any October since 1989 when 29,653 homes were sold. So far this year 255,465 Southland homes have been sold, up 1.3% from 252,085 last year.

“While potential buyers in move-up and prestige markets are holding back, entry-level buyers are jumping in. A lot of people are qualifying for home loans now who couldn’t have a year ago because of today’s lower interest rates and more inclusive lending standards,” said Mike Ela, DataQuick president.

The median price paid for a Southland home was $233,000 in October. That’s down 1.3% from September’s $236,000, and up 9.2% from $214,000 for October last year.

The typical mortgage payment that Southland buyers committed themselves to paying was $1,143 in October. A year ago it was $1,186 when interest rates were higher. The all-time peak was April 1989, at $1,360, DataQuick reported.