DQNews Archived Article

Southland Home Sales Dip

by Real Estate Analyst John Karevoll
October, 1998

La Jolla, CA.— Home sales in Southern California dipped in August from a relatively hectic July and August, although the sales pace did stay at a ten-year seasonal high, a real estate information service reported.

A total of 25,032 new and resale homes were sold in Los Angeles, Ventura, Orange, San Diego, Riverside and San Bernardino counties in September. That was down 3.8 percent from 26,026 for August and up 17.4 percent from 21,320 for September a year ago, according to DataQuick's Products Division.

Sales normally decline from August to September. Last September's sales count was the highest for any September since 1988 when 31,023 homes were sold.

"The turbulence in the mortgage market may slow things down a bit, but the effect may well be temporary. Purchase activity will probably get time-shifted forward by a few weeks or a month. With the state's solid economy and job growth, the fundamentals are still in place for a strong residential real estate market," said Mike Ela, leader of DataQuick Products Division.

The median price paid for a Southern California home was $185,000 in September. That was down 1.1 percent from $187,000 in August, and up 7.6 percent from $172,000 for September a year ago. On an annual basis, prices have been going up in the region for two-and-a-half years. Price appreciation remains strong when adjusted for these shifts in market mix.

DataQuick Products Division monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. The sales counts are estimated for San Bernardino County because of late data availability for the last two days of September.