Housing Market Still in Slump as Sales Dip 15% in September : Real estate: A monthly report says the huge inventory of residential properties dropped slightly from an all-time high in August.
The housing slump continued in September as sales of existing single-family houses and condominiums in the San Fernando Valley fell 15% from August, and the huge inventory of unsold houses and condominiums dipped only 4% last month from its all-time high in August, the San Fernando Valley Board of Realtors reported on Monday.
In September, 846 houses and condominiums were sold, compared to 999 in August, but sales plunged 41% from 1,433 in September a year ago. The board attributed the decline in sales to “uncertainty over the national economy.”
Despite the sluggish market, single-family house sellers apparently kept their asking prices up. The average resale price of a single-family house rose 1% in September to $297,300 from $294,200 in August. But the price fell 5% from $311,900 in September, 1989.
Sales of single-family houses fell 18% to 620 in September from 760 in August, while plummeting 40% from 1,025 during September of 1989.
Due to the slow market, large numbers of residences again went begging in September. A total of 13,560 houses and condominiums went unsold in September, compared to the record of 14,126 in August--and marked a 21% increase from the 11,245 residences for sale in September, 1989.
The unsold inventory might have been even higher, were it not for a dramatic decrease in new listings. The number of houses and condos added to the market declined to 2,492 in September--27% fewer than the 3,418 new listings in August, and 25% fewer than 3,315 in September, 1989.
“We view this drop in both current inventory and new listings as a healthy sign,” said Jim Link, executive vice president of the board, in a statement.
Meanwhile, the average resale price of a condominium fell 2% to $145,800 in September from $148,800 in August. Since September, 1989, the average resale price of a condominium has fallen 4%, from $151,800.
Condominium resales fell 5% to 226 from 239 in August, and dropped 45% from 408 in September, 1989.
The Valley realty board, California’s largest, reports housing sales by its members in the area from North Hollywood to Agoura. Its statistics don’t include sales of most new residences.
SEPTEMBER VALLEY HOME SALES
NORTHWEST: Chatsworth
Avg. Price: $306,000 Sales: 25 NORTH CENTRAL: Northridge, Granada Hills
Avg. Price: $273,200 Sales: 85 NORTHEAST: San Fernando, Sun Valley
Avg. Price: $184,600 Sales: 149 SOUTHWEST: Canago Park, Woodland Hills
Avg. Price: $383,800 Sales: 125 SOUTH CENTRAL: Reseda, Tarzana
Avg. Price: $331,600 Sales: 75 SOUTHEAST: North Hollywood, Studio City
Avg. Price: $329,700 Sales: 161
