Home Sales Jump 52.4% Over ’85 Pace : Single-Family House Demand Up, Despite Delays, Higher Prices
Single-family home sales in the San Fernando Valley rose 52.4% last month from June of 1985, the biggest increase this year, the Valley Board of Realtors reported.
Realtors sold 1,519 homes in June, up 7.4% from May.
The board, whose figures do not include new homes, also said that the average sale price of single-family homes was up 11.2% in the same period, to $175,800, the same as May.
Board officials noted that prices and volume were very strong despite delays in processing mortgages and closing escrows.
“People simply want to buy homes faster than lenders and appraisers can handle the demand,” board president Temmy Walker said. “We’re seeing hundreds of home sales go into escrow, yet many are falling out as loan commitment periods end.”
The condominium market also showed continued strength, at least contrasted with the prolonged slump it was in last year.
The average condo sale price rose 8.5% from the year-earlier period to $114,000, but that was up only $300 from May. Realtors sold 258 condos in June, up 60.2% year-to-year and down 4.4% from May.
Lower Interest Rates Cited
Walker called the increase in single-family home sales “amazing,” attributing it to lower interest rates. The June increase of 52.4% far exceeds previous month increases this year; year-to-year sales volume rose 28.9% in May, 24.6% in April, 19% in March, 4.8% in February and 13% in January.
Overall, Walker said, “the market is superheated, but recent increases in interest rates and delays in completing loan documents and appraisals are moderating the marketplace, although prices are still climbing.”
The board also reported that the number of single-family homes listed with realtors at the end of June was 5,916, down 11.6% from the previous year and down 1.1% from May. On the other hand, perhaps because of improved demand after years of depressed sales, the inventory of condos listed was 2,060, up 12.8% year-to-year and 6.3% from May.
