Condo, House Sales Rise 3% as Prices Fall : Real estate: Experts attribute surprising activity in the trade-up market to a 6% drop in the average cost to buyers.
Spurred by a 6% drop in average prices, sales of existing single-family houses and condominiums in the Valley rose a modest 3% in October compared with a year ago, reversing seven months of declining sales, the San Fernando Valley Board of Realtors reported Monday.
The board said 642 detached single-family houses closed escrow last month, up 1% from 633 a year ago, but down 7% from 691 in September.
Meanwhile, condominium sales--which have fallen sharply in recent months because of the greater availability of cheaper houses--surged to 170 in October. That was 8% higher than 158 condos sold a year earlier, and 13% better than in September when 151 units were sold.
Lorrie Griffey, the realty board’s president, said the increase may be a “momentary blip.” She added that “it’s way too soon to talk about a recovery, but any positive sign is welcome, especially as we enter the traditionally slow sales months.”
Real estate executives attributed October’s surprising increase to the continuing decline in housing prices. “The exceptionally fine prices seem to have finally gotten through to people,” said Dale W. Fay, who owns Century 21 Oak Tree in North Hollywood.
The average resale price of a single-family house fell 6% last month, to $264,200 from $281,100 a year ago. In September the average sales price was $281,200.
October’s home prices saw a double-digit drop in the southwest and southeast areas of the Valley, where homes are generally more expensive. Real estate executives said that helped boost activity in the sluggish trade-up market.
The median price for houses sold in the Valley dipped to $210,000 in October, a 7% drop from $225,000 a year ago and down 1% from $212,500 in September. (The median price means half of the houses sold for more than $210,000 and half sold for less.)
Meanwhile, the average price of a condominium that closed escrow last month was $152,000--basically unchanged from September, but down 2% from $154,500 a year ago. The median price for condominiums sold in October fell 7% from September to $138,000, and it was 5% lower than the median price of $145,000 in October, 1991.
The increase in condo sales reversed several months of sharply declining sales, which the realty board attributed to first-time buyers choosing lower-priced houses over condos. But in October, condo sales surged notably in the central part of the Valley because of a sharp drop in sale prices. For example, in the north central area that includes Northridge and Granada Hills, average condo prices dropped 13% last month, to $146,300 from $167,500 in September.
As in previous months, much of the latest month’s housing activity came from first-time buyers, who analysts said may have been prompted by a nudging upward of mortgage rates in October--although rates remain near the lowest in two decades.
Because of the increase in sales last month, the number of houses and condos listed for sale fell in October to 13,509 properties, basically unchanged from September but down 3% from October, 1991, the board said.
The Valley realty board, the largest in California, reports housing sales by its 8,000 members in the area from Agoura to North Hollywood. Its figures do not include sales of most new residences.
October Valley House Sales North West: Avg. Price: $310,000 Sales: 29 North Central: Avg. Price: $262,000 Sales: 86 North East: Avg. Price: $172,000 Sales: 109 South West: Avg. Price: $290,600 Sales: 211 South Central: Avg. Price: $302,800 Sales: 83 South East: Avg. Price: $265,300 Sales: 124
