Valley home sales spike as prices fall 37%

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Sales of existing single-family houses spiked by 82% in the San Fernando Valley in September as median prices fell by 37% from year-ago levels, the Southland Regional Association of Realtors reported today.

Median prices paid for single-family homes fell to $392,500, down from $425,000 in August, and $623,700 a year ago. Median prices in the Valley have now rolled back to July 2003 levels.

Realtors in the area believe the spike in sales is the beginning of a recovery for the housing market: ‘Recovery of the local housing market is underway,’ said Mary Funk, president of the SRAR. ‘Every time a foreclosed home finds a new owner or a buyer expresses confidence by buying a home from a traditional seller, we move a step closer to resolving the housing crisis and returning to some level of normalcy.

In a news release, she continued, ‘Even as some home owners still struggle with the excesses of the past, once-in-a-lifetime opportunities to buy are available now or will soon emerge.’

Here’s the median price of an existing single-family home in the Valley for the month of September, going back to 1987:

1987: $169,900
1988: $215,000
1989: $245,000
1990: $230,000
1991: $229,000
1992: $212,500
1993: $190,000
1994: $180,000
1995: $158,000
1996: $158,000 (Decline from peak: 35.5% over seven years)
1997: $169,000
1998: $189,900
1999: $225,000
2000: $247,000
2001: $270,000
2002: $320,000
2003: $393,000
2004: $490,000
2005: $590,000
2006: $595,000
2007: $623,700 (Increase from bottom: 295% over 11 years)
2008: $392,500 (Decline from peak: 37% over one year)
Source: SRAR data

-- Peter Viles

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Photo credit: Los Angeles Times