Home Prices Dip a Bit in January Doldrums

Home prices took a slight dive last month as the Orange County housing market went through its annual January slowdown, said TRW Real Estate Market Information.

The average price for all homes sold in the county during the month was $218,251, down 0.7% from December’s $219,774. The average price a year ago was $179,895, or about 21% less.

Unlike other studies, the Colton company’s market survey includes both new and used houses and condominiums.

Sales fell 27.6% during the month, from 4,639 units in December to 3,362 in January, TRW said.

That seems like a lot, but it’s about the same drop as last year, when sales fell 28.2% between December and January.

In fact, January home sales were about the same as a year ago, when 3,498 units were sold in January, 1988.

The winter months are traditionally a slow period for home sales, which then pick up in the spring.

Realtors are now watching the market closely to see if last year’s extremely heavy demand for housing will reappear. So many people were in the market for a house last year--and so few houses were available--that local home prices soared to among the highest in the nation.

Many experts, however, say that while 1989 home sales should remain strong, they won’t be as frenzied as last year. Price increases, they say, should stay well below 20%.