S.F. Valley Homes Sales Remain Stable

A flicker of activity in the trade-up housing market during September combined with strong activity by first-time buyers held sales of existing single-family homes and condominiums virtually even with August, the San Fernando Valley Board of Realtors has reported.

A total of 842 properties closed escrow, with 691 of those sales single-family homes and 151 condominiums, board figures showed.

While the number of active listings fell 5.5% in September compared to a year ago, there still were 13,389 properties listed for sale on the Multiple Listing Service operated by the Valley Board of Realtors.

More than half the sales reported in September were in price ranges traditionally dominated by first-time buyers.

But board statistics also showed strong activity in portions of the San Fernando Valley with generally higher priced homes. For example, the Southeast corner of the Valley--including Studio City and Sherman Oaks--reported more single-family and condo sales last month than any of the board’s other reporting areas.

The average price of the 147 homes that closed escrow in the southeast region last month was $312,400. The relatively high average suggests that owners who sold to first-time buyers earlier this year now may be buying larger, slightly more expensive homes.

Regardless of the price range, however, buyers are negotiating ruthlessly, slashing thousands of dollars off the original list price.

Single-family homes that sold in the most popular price range--$250,000 to $300,000--reported an average price reduction of 13.5% from the original list price, realty board officials said. That translates to a reduction of about $40,000.

While not hit as hard, the final price of the most popular condominiums--ranging from $150,000 to $200,000--sold last month with average cuts of 9%, or $14,000 to $18,000 off the original price.

Homes priced in line with today’s market realities sell quickly, said Lorrie Griffey, president of the San Fernando Valley Board of Realtors. Otherwise they languish on the market for months. Even the most popular single-family homes were on the market for 190 days, or more than six months before they sold. Condos that sold last month required 132 days, or more than four months, of marketing to find a buyer.

“People with the bucks to buy a home clearly are in the driver’s seat in the current market,” Griffey said. “Properties must be flawless and owners and real estate agents must be cooperative, or buyers simply walk out and go down the block or across the street to make an offer elsewhere.”