House, Condo Sales Shoot Up 50% in April
Sales of existing single-family houses and condominiums in the San Fernando Valley in April surged ahead of the previous month’s levels--the second such increase in a row. But after a year of generally declining sales, the increase pushed sales only slightly ahead of the level set in April, 1990, according to figures released by the San Fernando Valley Board of Realtors on Monday.
Last month, 1,178 single-family houses and condominiums were resold in the Valley--50% more than 783 in March, but only 1% more than the 1,162 sold a year earlier.
“We have guarded optimism,” Jim Link, executive vice president of the board, said. “We don’t take this as the beginning of some huge escalation in the real estate market.” The level of sales is still far below the all-time high of 2,559 set in April, 1979, he said.
Moreover, unlike the previous two months, the number of housing sales in escrow at the end of April--at 1,149--was slightly lower than the number of houses and condominiums actually sold during the month--a possible sign that sales recovery of the last two months could be slowing down, according to the board. Most escrow periods last 30 to 60 days, so most of those pending sales should become final within the next two months.
Link predicted that sales in May would not grow as rapidly as in April and March. “Next month, you’ll see a very slight increase,” he said.
A total of 865 single-family houses were resold in April, marking a 45% increase from 595 in March and a 5% increase from 824 a year ago. The average resale price of a single-family house rose 2% to $285,900 in April from $281,600 the previous month, but still remained 6% lower than $303,100 a year earlier.
Steve Owen, the board’s president, said he believed that the moderation in prices since a year ago--although slight--had brought more first-time house buyers into the market compared with the third- and fourth-time buyers who drove up the market in 1988 and 1989.
“It sure helps,” he said.
Condominium sales shot up 67% in April to 313 from 188 in March--but were still 7% lower than in April, 1990. The average resale price of a condominium rose 4% to $148,300 in April from $143,000 in March--but fell 1% from $149,800 in April, 1990.
One factor that may have helped to keep prices from rising as sharply as sales is that the inventory of unsold single-family houses and condominiums remained high in April.
A total of 12,523 condominiums and single-family houses went begging in April--5% more than 11,926 in March and almost unchanged from 12,501 a year ago. The all-time largest unsold inventory was in July, 1990, when 13,973 houses and condominiums were up for sale.
The large inventory was fed, in part, by an 18% increase in the number of houses and condominiums added to the listings in April compared with March; but the 3,153 new listings in April were still 9% fewer than the 3,471 added a year ago.
“A lot of these new listings are people who were on the market last year” but gave up trying to sell their homes when the market began slumping, Link said.
The Valley realty board, the largest in California, reports housing sales by its members in the area from Agoura to North Hollywood. Its statistics do not include sales of most new residences.
APRIL HOME VALLEY SALES NORTHWEST
* Avg. Price: $305,600 * Sales: 31 NORTH CENTRAL * Avg. Price: $270,000 * Sales: 149 NORTH EAST * Avg. Price: $181,200 * Sales: 138 SOUTH EAST * Avg. Price: $315,100 * Sales: 234 SOUTH CENTRAL * Avg. Price: $290,400 * Sales: 113 SOUTH WEST * Avg. Price: $330,200 * Sales: 200
