Homes Sales Rise as Prices Decline

Home sales in Ventura County continued to rise during July, driven up by bargain seekers and first-time home buyers, according to a report released this week.

Nima Nattagh, an analyst with TRW REDI, which publishes the report, said 5,749 homes were sold in the county between January and July, or 19.2% more than in the same period last year.

“This is pretty much a continuation of what we’ve been seeing,” Nattagh said. “It’s a good, healthy market.

“But at the same time there is a considerable shift in activity towards lower-priced homes in the less-than-$175,000 range,” he said. “The market is really being driven by entry-level buyers. Prices are soft.”

Nearly 37% of the homes sold were priced under $175,000. The average price for a home purchased in the last seven months was $228,471. For the same period last year, it was $234,000.

Rising interest rates have yet to show an effect on the real estate market, Nattagh said.

“At about 8.5%, the interest rates are obviously higher than the average rates from last year,” he said. “But if you look back historically, say to 1989, the peak of the market, the interest rate was 10.32%. So rates are still in low in comparison.

“I don’t believe there is going to be a significant negative effect on the housing market from the change in interest rates,” he added. “But if there is, it probably won’t show up for a while.”