WYATT HAUPT

Staff Writer

Sales of new and existing homes in Riverside County soared 27.1 percent in July when compared to the same period last year, according to an industry report released Thursday. The dramatic rise in housing sales was attributed, primarily, to an increased demand for homes in the county, analysts said.

"You have a shortage of housing," said John Husing, director of Economics & Politics Inc. in Highland.

A total of 4,106 homes was sold in Riverside County in July, compared to 3,230 sales recorded in July 2000, according to a report Thursday from DataQuick Information Systems. The San Diego-based firm produces a monthly report on sales activity throughout the six-county Southern California region.

By comparison, 4,913 homes were sold in neighboring San Diego County last month, compared to 4,154 in July 2000, an increase of 18.3 percent, according to DataQuick. Orange County saw sales jump to 4,295 or 12.3 percent in July, when compared to 3,823 homes sold during the same period last year.

The housing shortage was also responsible for driving the median sales price for Riverside County homes up 16.5 percent to $184,000 in July, well above the $158,000 recorded in July 2000. San Diego County experienced slightly larger median price gains going to $267,000 from $228,000, up 17.1 percent, during the same period.

"We didn't have resale activity for a long time," said Marsha Swanson, vice president of the Southwest Riverside County Association of Realtors. "But now (sales) seem to be moving up, particularly into the executive area where the prices are higher."

Husing, who has spent nearly 40 years analyzing the Inland Empire economy, found common ground with Swanson, saying that more white-collar working professionals, such as accountants and technicians, are moving into the region, thus driving home prices higher. That's a big difference from the 1980s when blue-collar workers were flocking to the region because homes were more affordable than neighboring Orange and San Diego counties, he said.

"Today, a different group of people are moving out here," Husing said. "The folks are moving from San Diego to Temecula and Murrieta and there are those also moving from Chino Hills and other areas into the region."

While that influx of home buyers is good for the housing market, it does cause some problems for those workers who make the daily commutes to other counties for work, Husing said.

"For the white-collar worker it is a problem, because we don't have the jobs for them yet," Husing said. "They are commuting and they are angry, but eventually (their presence) will translate into job creation for them in the region … it's the same thing that happened with blue-collar workers."

Contact staff writer Wyatt Haupt at (909) 676-4315, Ext. 2615, or whaupt@nctimes.com.

8/24/01