California Condo Sales Rise 5.4% in December : * Housing: Although state home sales were flat, they were up 0.9% nationally--confirming a modest recovery.

California realtors found hope Monday in figures that showed improvements in December housing sales, particularly the first year-to-year sales gains for condominiums in 16 months.

Nationally, housing sales were up 0.9% in December, the third monthly gain in a row and further confirmation of a modest housing revival, analysts said. Still, sales of previously owned homes for the full year 1991 fell to a six-year low, and most economists expect this year’s rebound to be restrained.

California’s existing detached-home sales remained steady in December after a moderate increase in November, the California Assn. of Realtors reported. Most metropolitan areas, however, showed modest gains both monthly and year-to-year, including Los Angeles, San Francisco and cities in Ventura and Orange counties.

The association said the most upbeat indicator was the upturn in condo sales.

“The improved condominium market is an encouraging sign that California’s housing market soon may be on the road to recovery,” said Chuck Lamb, a San Fernando Valley realtor who is president of the association.

Statewide, sales of existing condominiums rose 5.4% from November to December and were up 8.8% over December, 1990, according to the association’s seasonally adjusted figures. December’s year-to-year increase was the first since July, 1990. The median sales price for condominium resales was up slightly from the previous month as well--0.9%, or from $145,230 to $146,520. That constituted a 7.7% increase in price from a December, 1990, median of $136,050.

December, 1991, housing sales were 3.3% higher than the previous year, despite slipping 0.6% from November’s level.

The median price of an existing single-family detached home in California also rose in December--by a modest 2.3% from the November, 1991, price, or from $194,180 to $198,700.

Analysts both locally and nationally attributed much of the uptick in housing activity to extraordinarily low interest rates--which nationally averaged 8.5% in December for a 30-year fixed-rate mortgage.

“Low mortgage rates are holding the housing sector together,” said Dorcas T. Helfant, president of the National Assn. of Realtors. “Despite the lackluster economy, buyers are getting into the market while rates are this favorable.”

A recent slight upturn in rates may prod buyers to make their move soon.

“Historically, home buyers have responded to upticks in interest rates to capture still-favorable levels,” said Leslie Appleton-Young, vice president of research and economics for the California association.

Still, sales gains in the near future are likely to be modest, according to analysts.

“There’s certainly no expectation that there is going to be a real surge,” said Daryl Delano of Cahners Economics in Newton, Mass. “It’s probably going to be mid-year before things are really well established, so, for the year as a whole, we’re not going to see a big boom.”

Regionally, existing-home sales were mixed in December and for the year. They were up in the Northeast and the West but down in the South and Midwest.

California Home Sales

Figures are based on closed escrow sales of single-family detached homes. 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. Regional and condo sales data are not seasonally adjusted.

Percent Percent Percent change change change in in in sales price price activity Median from from from price Nov., ’91 Dec., ’90 Nov., ’91 Statewide (single-family) $198,700 2.3 4.4 -0.6 Statewide (condo) $146,520 0.9 7.7 5.4 Central Valley $118,560 2.5 9.9 5.5 High Desert* $92,310 -11.0 -12.5 -20.4 Los Angeles $209,190 1.6 1.0 1.0 Monterey* $226,440 -3.6 -2.5 5.6 Northern California* $134,690 0.3 -6.3 -13.3 Northern California Wine Country $189,710 -0.7 10.7 -13.7 Orange County $239,320 1.0 4.4 1.5 Palm Springs/ Lower Desert* $117,780 -5.3 3.9 -18.2 Riverside/ San Bernardino $134,420 -0.6 1.5 -0.7 Sacramento** $138,000 5.3 6.2 -3.0 San Diego $190,320 4.6 4.7 -11.6 San Francisco Bay Area $257,590 3.6 4.8 2.4 Santa Barbara* $218,750 -11.5 -4.7 6.2 Santa Clara $261,090 5.5 2.5 -9.9 Ventura $233,330 -0.4 -0.4 21.3

Percent change in sales activity from Dec., ’90 Statewide (single-family) 3.3 Statewide (condo) 8.8 Central Valley 1.1 High Desert* -17.8 Los Angeles 2.3 Monterey* 79.0 Northern California* 28.7 Northern California Wine Country -15.2 Orange County 21.1 Palm Springs/ Lower Desert* -18.8 Riverside/ San Bernardino -4.1 Sacramento** -6.0 San Diego 24.7 San Francisco Bay Area 19.1 Santa Barbara* 1.7 Santa Clara 10.3 Ventura 12.8

*Due to the small sample size in these areas, prices and activity changes may be overemphasized.

**Source: Sacramento Assn. of Realtors

Source: California Assn. of Realtors

Existing Home Sales Up in December, Down for Year.

Seasonally adjusted annual rate, millions of units

Dec., ‘91: 3.34

Nov., ‘91: 3.10

Dec., ‘90: 3.13

Yearly figures in millions of units

1982: 1.99

1988: 3.59

1991: 3.29

Source: National Assn. of Realtors.