Valley Housing Market Gets a Boost From Price Drop of 13% : Real estate: Single-family house sales rose 12% in September compared to 1992. Low interest rates and an abundance of homes on the market helped lure buyers.

By JILL BETTNER

Oct. 12, 1993 12 AM PT

TIMES STAFF WRITER

A 13% decline in single-family house prices in September stimulated the Valley’s housing market, as combined sales of existing houses and condominiums jumped 10% from a year ago, the San Fernando Valley Assn. of Realtors reported Monday.

Low interest rates and an abundance of homes for sale also helped lure prospective buyers into the market.

The realty association said 774 single-family houses in the Valley changed hands last month, marking the sixth consecutive month that single-family home sales have increased over the same period last year.

But while the September figure climbed 12% from the 691 houses sold in September, 1992, it was 7% below the 833 single-family houses sold in August.

“Considering the uncertainty still haunting the economy, the housing market is holding up better than expected, especially for this time of year,” said Alice McCain, president of the San Fernando Valley Assn. of Realtors.

“Around this time last year the market died, but buyers are still out there today,” she said. “Some of them are finding fantastic bargains.”

However, the number of foreclosed properties in the Valley has more than doubled since 1991, and that is helping to keep sale prices on their steep decline.

The average price of a single-family house sold in September fell 13% from a year earlier, to $244,100, but was up slightly over the $241,600 average price of a single-family house sold in August. (At the market’s peak in 1990, the average single-family house selling price was $296,700.)

The median price of a single-family house sold in September fell 11%, to $190,000 from $212,500 a year ago. “Median price” means half the houses sold last month for less than $190,000 and half sold for more than that amount.

Condominium sales revived a bit, the realty association said. Resales of condominiums totaled 150 in September, down less than 1% from 12 months ago, and up 19% from August.

Meanwhile, the average price of a condominium sold in the Valley last month fell 8%, to $139,500 from $152,400 a year ago. The median price fell 14%, to $127,900 from $148,000 in September, 1992.

In all, 924 houses and condominiums in the Valley closed escrow last month. That contrasted with 842 in September, 1992, and 959 in August.

The realty group said the Valley’s inventory of unsold houses and condominiums remained high, with 12,121 properties for sale in September--although that was down 9% from 13,389 this time last year, and 4% less than the 12,594 active listings in August.

The Valley realty association, the largest in California, reports housing sales by its 7,800 members in the area from North Hollywood to Calabasas. Its figures do not include sales of most new residences.

September Valley House Sales

North West

Avg. Price: $226,900

Sales: 42

North Central

Avg. Price: $235,000

Sales: 112

North East

Avg. Price: $148,800

Sales: 98

South West

Avg. Price: $275,600