Average Home Price Dips in October
The average price of a single-family house in the San Fernando Valley, which had reached record highs for eight consecutive months, fell slightly in October to $211,100, the Valley Board of Realtors reported.
October’s average house price was down $2,600 from September’s record of $213,700. In October, 1986, the average house price was $178,700.
In the Valley condominium market, meanwhile, the average price in October climbed 7.3% to $123,500 from September’s average of $114,500. But the October average was still $900 below August’s average of $124,400. There were 260 condominiums sold in October, compared to 262 in September.
The fourth quarter traditionally is the slowest period for Valley realtors. Prices and sales typically fall as both buyers and sellers prepare for the holiday season.
“If your house is on the market, you’re not interested in a lot of strangers traipsing through your house near holidays,” said Jim Link, the board’s executive vice president.
But the fourth quarter of 1987 could be different. Board officials were encouraged by October’s results because the average single-family house price fell only slightly, and because 1,079 houses were sold in October, compared to 1,072 in September. “It means that the market is holding fairly steady,” said Link. “Usually, we see October start to trail off.”
The board attributed the strong October sales, in part, to the shortage of houses and condominiums for sale. The total inventory of houses and condominiums for sale last month was 5,880, down nearly 24% from October, 1986.
The Oct. 19 stock crash could provide a further impetus to Valley home and condominium sales because it triggered a lowering of mortgage rates.
“I think we may see a stronger November than in normal years because interest rates are starting to dip,” Link said. “More homes and condos are more affordable to more people. People who dropped out of the housing market may get back in.”
The Valley realty board, California’s largest, reports sales of houses and condominiums by its members in the area from North Hollywood to Agoura.
Its statistics do not include most new residences, which are generally sold without a real estate agent, or existing homes that are sold by their owners.
North West--Avg. Price: $225,600.
Sales: 56
North Central--Avg. Price: $210,000.
Sales: 164
North East--Avg. Price: $124,600.
Sales: 172
South West--Avg. Price: $246,372.
Sales: 238
South Central--Avg. Price: $239,700
Sales: 158
South East--Avg. Price: $215,600
Sales: 291
