Home Prices in O.C. Rise 13% Over ’97

The median price of Orange County homes rose to $230,000 in August, a 13% increase from a year ago and the second-highest level ever recorded, a real estate research firm reported Monday.

It was the 15th consecutive month that prices showed a year-over-year increase, according to Acxiom/Dataquick Information Services.

After breaking the 5,000-barrier in June and July, sales fell in August to 4,710, but that amount still represented an 18% gain over the same period last year and ranks as the year’s third-highest, Acxiom said.

Analysts said the year’s frenetic pace could be slowed in the coming months by Asia’s financial woes and the volatile stock market. The Bay Area’s housing market, often viewed as a barometer for Orange County’s, already is cooling off.

Annual job-growth rates have tightened from earlier this year, and that eventually will cause “slower growth and sales,” said Howard Roth, a Bank of America senior economist. But, he said, “I don’t believe there will be a decline in home prices, because the supply is so tight.”

In fact, Orange County’s market fundamentals are strong enough to warrant at least a $10,000 to $15,000 increase in the median price, which by mid-1999 could easily eclipse the $236,000 record established in June, said John Karevoll, an Acxiom/Dataquick analyst.

“The worst-case scenario is that there will be a leveling off,” Karevoll said, adding that he expects sales at their current levels to continue at least until year’s end.

Even as the sales pace let up in August, Bill Plattos, general manager at First Team Real Estate in Costa Mesa, said business has been anything but slow. Although sales usually level off in August as families settle in for the new school year, Plattos said sales were up 40% from last August, and 49% year to date.

“The market is still good; there are still multiple offers,” Plattos said. “It’s in a little bit of a lull, but it will roll again. I see steady growth for a couple of more years.”

In spite of slowing sales, existing homes in Orange County led the nation in appreciation in recent months, recovering the value lost during the recession. When factoring in the sale of higher-priced new homes, the region remains as robust as anywhere.

“These numbers are strong,” Roth said. “We’re getting back to pre-recession highs, which means people are building equity in houses, and that’s very good for people who want to start up small businesses.”

One reason home resales declined from July to August is that new-home prices soared 38% from August 1997 levels. That differential--25%--could keep people from selling their homes and moving up into larger, more expensive houses, said Alfred Gobar, a longtime Orange County housing analyst.

“Many people thinking of selling a house have backed off because of the differential between the house they’ll buy and the price of their existing house,” Gobar said. “That discourages people from moving.”

But as builders struggle to complete more homes on increasingly smaller lots, buyers may perceive existing homes to be better values, leading to higher prices in that segment, Gobar said.

Overall, analysts said, there is “healthy activity” in all sales categories, from starter homes to million-dollar mansions.

The number of condo resales showed the sales increase at 42%, though at 1,135 units, there were 132 fewer sales than July.

Home resales also fell, to 3,115, a decline of 468 from July but 17% above August 1997.

New-home sales rose by 51 units from July, to 460, but were down 13% from a year ago mainly because inventory remains so far behind demand, analysts said.

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Orange County Home Sales

August home sales increased 18.1% from a year ago, but declined slightly from July. The median price jumped 13.3% from a year ago to $230,000, up slightly from last month’s median of $229,000. Sales, median prices of new and resale homes and condominiums and price per square foot, by ZIP Code:

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Community Pct. Median Pct. ’97 Med. ’98 Med. /Zip Sales Chng. price Chng. Sq.Ft.(1) Sq.Ft.(1) Aliso Viejo 92656 155 50.5% $192,000 9.1% $124 $137 Anaheim 92801 37 15.6% $154,000 12.4% $110 $118 Anaheim 92802 25 0.0% $163,889 3.1% $99 $120 Anaheim 92804 79 38.6% $162,000 1.9% $108 $123 Anaheim 92805 55 37.5% $163,000 19.9% $113 $117 Anaheim 92806 23 9.5% $193,000 11.6% $103 $112 Anaheim 92807 87 45.0% $236,000 10.3% $115 $128 Anaheim 92808 67 42.6% $270,000 23.9% $139 $145 Brea 92821 46 9.5% $217,500 13.9% $121 $131 Buena Park 90620 57 5.6% $178,000 14.1% $132 $137 Buena Park 90621 27 -3.6% $147,000 -12.5% $102 $109 Corona del Mar 92625 35 9.4% $662,500 8.8% $348 $320 Costa Mesa 92626 50 42.9% $224,500 7.4% $131 $139 Costa Mesa 92627 55 61.8% $225,000 27.8% $145 $183 Cypress 90630 71 16.4% $192,000 -13.9% $123 $146 Dana Point 92624 12 0.0% $289,500 41.2% $194 $208 Dana Point 92629 66 20.0% $288,750 11.5% $168 $184 Foothill Ranch 92610 23 -28.1% $257,500 28.1% $119 $146 Fountain Valley 92708 78 8.3% $254,000 11.9% $130 $147 Fullerton 92831 39 116.7% $186,500 26.9% $120 $142 Fullerton 92832 17 54.5% $187,000 23.0% $126 $141 Fullerton 92833 74 57.4% $178,000 17.9% $117 $133 Fullerton 92835 52 48.6% $312,001 26.3% $128 $151 Garden Grove 92840 60 13.2% $163,000 9.4% $110 $131 Garden Grove 92841 42 40.0% $179,250 0.1% $111 $135 Garden Grove 92843 37 -14.0% $138,000 2.2% $128 $135 Garden Grove 92844 27 28.6% $164,000 41.4% $104 $118 Garden Grove 92845 34 41.7% $214,090 21.6% $131 $146 Huntington Beach 92646 95 41.8% $239,500 12.4% $136 $178 Huntington Beach 92647 56 9.8% $229,500 -1.9% $144 $167 Huntington Beach 92648 116 90.2% $290,000 15.1% $155 $178 Huntington Beach 92649 70 79.5% $330,750 46.3% $176 $199 Irvine 92604 71 61.4% $240,000 13.2% $141 $174 Irvine 92606 32 45.5% $326,500 39.5% $125 $156 Irvine 92612 58 18.4% $269,000 -0.4% $147 $167 Irvine 92614 58 56.8% $237,000 1.3% $148 $181 Irvine 92620 81 44.6% $235,000 2.2% $141 $156 La Habra 90631 72 80.0% $163,000 6.5% $120 $120 La Palma 90623 26 62.5% $265,000 18.3% $125 $144 Laguna Beach 92651 39 -11.4% $470,250 1.8% $291 $373 Laguna Hills 92653 115 17.3% $192,750 -1.2% $134 $148 Laguna Niguel 92677 214 38.1% $290,000 16.0% $142 $174 Lake Forest 92630 155 47.6% $207,250 6.3% $114 $143 Los Alamitos 90720 30 25.0% $380,000 33.3% $172 $205 Mission Viejo 92691 110 13.4% $249,250 34.7% $129 $143 Mission Viejo 92692 115 0.9% $272,000 19.3% $120 $148 Newport Beach 92657 19 137.5% $480,000 36.8% $159 n/a Newport Beach 92660 66 8.2% $537,000 23.4% $208 $266 Newport Beach 92661 2 -33.3% $451,000 -37.0% $443 $390 Newport Beach 92663 36 9.1% $392,500 44.8% $284 $373 Orange 92865 19 -9.5% $195,000 17.5% $121 $140 Orange 92866 14 -33.3% $216,500 13.4% $158 $166 Orange 92867 40 -4.8% $237,500 8.4% $127 $136 Orange 92868 22 83.3% $146,100 12.4% $103 $117 Orange 92869 74 25.4% $217,500 20.8% $120 $140 Placentia 92870 83 23.9% $222,000 7.8% $108 $124 R. Santa Margarita 92688 162 22.7% $178,000 4.1% $112 $148 S. Juan Capistrano 92675 86 59.3% $301,250 56.1% $120 $144 San Clemente 92672 65 -8.5% $275,000 11.8% $152 $178 San Clemente 92673 36 -5.3% $329,000 33.2% $134 $169 Santa Ana 92701 49 25.6% $129,000 4.9% $117 $111 Santa Ana 92703 43 0.0% $142,000 27.9% $107 $121 Santa Ana 92704 71 18.3% $145,000 3.6% $120 $121 Santa Ana* 92705 51 -3.8% $319,000 29.7% $129 $152 Santa Ana 92706 42 31.3% $176,500 9.6% $124 $134 Santa Ana 92707 60 27.7% $139,656 -0.2% $120 $120 Seal Beach 90740 31 40.9% $342,000 7.9% $199 $206 Stanton 90680 37 60.9% $121,500 21.5% $101 $106 Trabuco/Coto 92679 99 -20.8% $380,000 47.3% $124 $157 Tustin 92780 70 20.7% $156,000 -9.8% $113 $122 Tustin 92782 61 56.4% $240,000 -5.9% $116 $150 Villa Park 92861 17 70.0% $460,000 -6.9% $155 $156 Westminster 92683 89 36.9% $185,000 2.8% $128 $136 Yorba Linda 92886 82 22.4% $268,000 19.6% $134 $153 Yorba Linda 92887 63 26.0% $349,000 26.4% $139 $151 Other -- 178 -- -- -- -- -- Countywide 4,710 18.1% $230,000 13.3% $128 $144

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*Includes Lemon/Cowan Heights

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

Times

Sales, Price Trends

1997

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Sales Median price Aug. 3,989 $203,000 Sept. 3,953 $207,000 Oct. 4,173 $208,000 Nov. 3,166 $210,000 Dec. 4,147 $215,000

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****

1998

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Sales Median price Jan. 2,711 $212,000 Feb. 2,940 $211,000 March 4,061 $221,000 April 4,589 $220,000 May 4,507 $226,000 June 5,098 $236,000 July 5,259 $229,000 Aug. 4,710 $230,000

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****

August

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Sales Median price 1994 3,270 $208,000 1995 3,162 $190,000 1996 3,390 $196,000 1997 3,989 $203,000 1998 4,710 $230,000

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