House Sales Fall 25% While Listings Soar

Sales of existing single-family houses and condominiums in the San Fernando Valley plunged 25% from July to August, while the number of properties for sale reached an all-time high, the San Fernando Valley Board of Realtors reported Monday.

A total of 974 residences were sold during August, down from 1,296 in July and 2.5% below the 999 homes sold in August, 1990. The downturn followed a 12% monthly sales gain in July and diminished hopes that the sputtering recovery of recent months would continue through the summer.

Even more troubling than the sales decline, however, was the record inventory of unsold housing in August. The 14,330 single-family houses and condominiums for sale represents a whopping 14.7-months supply at the current sales pace.

As he has stated in recent months, board President Steve Owen said the Valley has “an unprecedented buyer’s market” for housing.

But Owen continued to warn sellers that they are pricing their houses too high. “If you’re not willing to face reality, to accept the fact that you must make concessions to sell, don’t waste your time and your realtor’s time,” Owen said in a statement.

The 750 single-family residences that sold last month marked declines of 24% from July and 1.3% from a year earlier. Condo sales, at 224, were down 26% from the previous month and off 6% from August a year ago.

Despite the slow sales and big inventory, prices of single-family homes continued to post modest gains. The average price of houses sold last month was $313,200, up 3.8% from July and 6.5% above a year earlier.

The single-family median price was $237,000, 2.2% higher than July and a 3% increase from August, 1990. The median price means half the houses sold for more than that price and half sold for less.

The average condo sales price was $156,300, virtually unchanged from July, but 5% higher than a year before. The median price of $149,000 fell 1.3% from July, but was up 10.4% from August, 1990.

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.

August Valley House Sales North West: Price: $346,500 Sales: 34 North Central: Price: $302,800 Sales: 98 North East: Price: $179,200 Sales: 114 South West: Price: $343,800 Sales: 246 South Central: Price: $394,300 Sales: 111 South East: Price: $303,800 Sales: 147