Home Sales Drop 5.5% in 4th Quarter

Existing home sales fell 5.5% during the final three months of 1990 and closed the year down 11.6% from the fourth quarter of 1989, a real estate trade group said today.

In California, sales of existing homes declined 17.1% last year from 1989 levels, but sales remained nearly double the level recorded during the 1982 downturn. Statewide, 446,370 homes were sold in 1990.

The National Assn. of Realtors said resales nationwide during October, November and December totaled a seasonally adjusted annual rate of 3.42 million units, down from 3.62 million in the third quarter and 3.87 million in the same period of 1989.

Sales for the entire year totaled 3.61 million units, compared to 3.78 million a year earlier and 3.95 million in 1988.

Sales of new homes also plunged during 1990, according to Commerce Department statistics. They were down 17.5% to 536,000 units, compared to 650,000 in 1989.

Realtors economist John A. Tuccillo attributed the year’s decline to a combination of higher interest rates early in 1990, a declining economy and fears of war.

Existing-home sales represent about 80% of the housing market.

The realtors said the national median price of an existing home was $92,200 during the fourth quarter, down 4.6% from the third quarter. However, the median price was off just 0.5% from the fourth quarter of 1989.