Printer Friendly

CONSUMER WORRIES AND WEAK ECONOMY RESTRAIN CALIFORNIA HOME SALES

CONSUMER WORRIES AND WEAK ECONOMY RESTRAIN CALIFORNIA HOME SALES
 LOS ANGELES, Sept. 25 /PRNewswire/ -- Consumer uncertainty and a weak economy restrained California existing detached home sales during August, the California Association of REALTORS (C.A.R.) reported.
 "Low consumer confidence put a damper on California's housing market during August, despite the most favorable interest rates in two decades," said C.A.R. President Chuck Lamb. "Our state's housing market continues to be affected by sluggish economic conditions gripping California," said Lamb, a San Fernando Valley REALTOR.
 Among elements of C.A.R.'s August resale housing report:
 -- Statewide, 368,130 existing, single-family detached homes closed escrow during August on a seasonally adjusted, annualized basis -- down 7.2 percent from a revised annualized rate of 396,890 homes sold in July.
 -- The August sales pace was down 10.4 percent from the revised August 1991 annualized rate, when 410,950 homes were sold.
 The annualized figure represents what would be the total number of homes sold during 1992 if sales occurred at the August pace throughout the year. It is adjusted to account for seasonal factors which influence home sales.
 -- The statewide median price of an existing, single-family detached home sold during August was $195,530, down 2.5 percent from a revised $200,480 in July.
 -- The August median price was down 2.4 percent from August 1991, when the median-priced home sold for a revised $200,340.
 A marked decline in non-seasonally adjusted home sales outpaced a slight drop in listings, compared with July, and expanded the inventory of unsold homes during August, as measured by C.A.R.'s Unsold Inventory Index. The index indicates the number of months it would take to deplete the supply of homes on the market at the current rate of sales.
 -- The index was 15.4 months in August, up from 13.0 months in July and 12.7 months in August 1991.
 -- The average interest rate for fixed mortgages dropped for the fifth consecutive month during August. According to the Federal Home Loan Mortgage Corp., fixed mortgage interest rates averaged 7.97 percent in August, down from 8.13 percent in July. Adjustable mortgage interest rates averaged 5.27 percent in August, down from 5.53 percent in July.
 Nationally, housing resale activity rose 4.7 percent from August 1991 on a seasonally adjusted basis, according to a report released today by the National Association of REALTORS.
 "The improvement in the national housing market from a year ago is a good sign, and sustained over time, it will provide a stimulus to the overall economy," said Leslie Appleton-Young, C.A.R.'s vice president of research and economics. "A continued improvement in the national economy will inevitably spill over to California's economy and housing market," said Appleton-Young.
 -- Statewide, closed escrow sales of existing condominiums fell 17.6 percent during August on a non-seasonally adjusted basis and were down 26.7 percent from August 1991.
 A significant increase in sales of condos with four or more bedrooms, compared with July, boosted the statewide condominium median price.
 -- The median price of a resale condominium rose 1.4 percent from $145,850 in July to $147,840 in August. Last month's median condo price also edged up 0.4 percent from $147,180 in August 1991.
 -- The condo Unsold Inventory Index rose to 17.5 months in August, up from 14.3 months in July and 12.2 months in August 1991.
 Regional sales and price data are contained in the following charts. (Regional sales data are not adjusted to account for seasonal factors which influence home sales.)
 C.A.R.'s median price and sales data for detached homes are based on reports from 83 boards of REALTORS around the state. Median condominium price and sales data are based on a survey of 32 boards. The median price for both detached homes and condominiums is based on closed escrow sales. Sales revisions reflect the re-seasonalization of monthly sales data using seasonal factors calculated with the 1979-1991 sales.
 The California Association of REALTORS is a statewide trade association with 126,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
 AUGUST 1992 REGIONAL SALES AND PRICE ACTIVITY(a)
 Regional and Condo Sales Data Not Seasonally Adjusted
 Percent Percent Percent Percent
 Change Change Change Change
 in in in Sales in Sales
 Price Price Activity Activity
 Median from from from from
 Price July 92 Aug. 91 July 92 Aug. 91
 Calif. (sf) $195,530 -2.5 pct -2.4 pct -7.2 pct -10.4 pct
 Calif. (condo) $147,840 1.4 pct 0.4 pct -17.6 pct -26.7 pct
 Region
 Central Vly. $116,610 -2.1 pct -3.2 pct -4.9 pct -13.6 pct
 High Desert(b) $108,550 -2.2 pct -6.9 pct 8.3 pct -8.6 pct
 Los Angeles $211,420 -1.4 pct -4.9 pct -8.3 pct -16.2 pct
 Monterey $216,670 -4.1 pct -7.4 pct -27.6 pct -15.1 pct
 Nor. Calif. $137,390 0.5 pct -0.6 pct -3.3 pct 12.4 pct
 Nor. Wine Co. $193,000 -0.9 pct 1.3 pct -0.2 pct -26.5 pct
 Orange Co. $233,130 -1.3 pct -3.4 pct -10.2 pct -12.7 pct
 Palm Springs/
 Lower Desert(b) $130,560 4.3 pct 0.1 pct -15.3 pct -28.9 pct
 Riverside/
 S.B. $135,260 -2.2 pct -0.2 pct -21.7 pct -24.9 pct
 Sacramento(c) $133,000 -0.4 pct -4.9 pct -10.8 pct -29.1 pct
 San Diego $178,820 -6.3 pct -10.1 pct -17.5 pct -16.6 pct
 S.F. Bay $257,140 -2.5 pct -2.7 pct -9.6 pct -3.8 pct
 Santa
 Barbara(b) $225,000 0.0 pct 11.0 pct -22.3 pct -21.9 pct
 Santa Clara $242,810 -4.2 pct -9.1 pct -2.7 pct 10.9 pct
 Ventura $228,920 -2.5 pct -3.5 pct -36.7 pct -38.1 pct
 (a) Based on closed escrow sales of single-family, detached homes only (no condos). Reported month-to-month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
 (b) Because of the small sample size in these areas, prices and activity changes may be overemphasized.
 (c) Source: Sacramento Association of REALTORS
 sf - single-family detached home
 Source: California Association of REALTORS
 A comparison of median home prices by region for August 1992 and August 1991:
 August August
 1992 1991
 California (sf) $195,530 $200,340
 California (condo) $147,840 $147,180
 Region
 Central Valley $116,610 $120,520
 High Desert $108,550 $116,590
 Los Angeles $211,420 $222,320
 Monterey $216,670 $234,090
 Nor. California $137,390 $138,160
 Nor. Wine Country $193,000 $190,460
 Orange County $233,130 $241,300
 Palm Springs/Lwr. Desert $130,560 $130,380
 Riverside/San Bernardino $135,260 $135,510
 Sacramento $133,000 $139,900
 San Diego $178,820 $198,930
 San Francisco Bay $257,140 $264,190
 Santa Barbara $225,000 $202,780
 Santa Clara $242,810 $267,250
 Ventura $228,920 $237,290
 Source: California Association of REALTORS
 -0- 9/25/92
 /CONTACT: Lotus Lou or Jeff Hershberger of California Association of REALTORS, 213-739-8304/ CO: California Association of REALTORS ST: California IN: FIN SU:


EH-LS -- LA004 -- 3463 09/25/92 11:01 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 25, 1992
Words:1295
Previous Article:ONASCO COMPANIES, INC. ANNOUNCES A REVERSE STOCK SPLIT
Next Article:WENDY'S HEATS UP AMERICA'S TASTE BUDS WITH SPICY CHICKEN FILLET SANDWICH


Related Articles
HOME SHOPPING NETWORK REPORTS FIRST QUARTER RESULTS
FED ECONOMIST PUTS CALIFORNIA WOES IN PERSPECTIVE
FANNIE MAE FORECASTS 1994 HOME SALES AT HIGHEST LEVEL SINCE 1978
Two cheers for slower growth.
RETAIL SALES RISE 0.6% IN JANUARY.
MORTGAGE RATE DIP KEEPS HOMES SELLING.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters