Sales of Houses in the Valley Finish Strongly in 1993 : Real estate: But the 15% gain comes at a cost as the average selling price falls 11%, the lowest since 1988.
Sales of existing single-family houses in the San Fernando Valley finished 1993 on a strong note, leading to a 15% gain for the full year over 1992, the San Fernando Valley Assn. of Realtors reported Monday.
Although it was the first year-to-year increase since 1990, sellers paid the price. For all of 1993, the average price of a house sold fell 11% to $252,633, from $283,386 in 1992. Last year’s average selling price was the lowest since 1988, when an average single-family house sold for $248,492.
The number of single-family houses sold in 1993 was 8,899, up from 7,774 properties in 1992 and the highest since 1989, when 12,753 single-family houses closed escrow. The past year, however, also saw a record number of foreclosed properties in the Valley, which helped boost sales but also drove down prices. Condominium sales also fell 21% last year.
As in recent months, sales in December climbed sharply from the previous year, perhaps due to low interest rates, which are inching upward. Last month 908 single-family houses changed hands in the Valley, up 27% from 713 in December, 1992.
In December, the average price of a single-family house sold in the Valley was 246,700--up 3% from November but down 9% from $272,200 in December, 1992. But the median price of a house sold was $190,000 in December, which was down 10% from $210,000 a year earlier. The median price means half the houses sold for more than $190,000 and half sold for less.
Jim Link, the local realty association’s executive vice president, said he expects no sharp increase in housing prices this year. Link predicted sales will increase by 4% to 5% in 1994 from last year.
Despite the sales uptick in houses, sales of condominiums in the Valley failed to keep pace in 1993, as many first-time buyers decided to go with single-family houses instead.
For all of 1993, condominium sales dropped 21% to 1,607 units, from 2,031 condos sold in 1992. Condominium sales peaked in the Valley in 1989 when 4,571 properties changed hands, but have declined every year since then.
The average price of a condominium sold in 1993 dropped 7% to $140,800 from $152,200 in the previous year.
But in an encouraging sign, condominium sales rose sharply in December to 172, up 34% from 128 condominiums sold a year earlier. The average price of a condominium sold last month was $137,700--up 5% from November but down 9% from $150,600 in December, 1992.
Alice McCain, president of the Valley realty association, said she believes the local housing market has hit bottom. She said sellers’ prices were much more in line with reality. “The bottom feeders, the folks who insist on rock-bottom prices and double-digit price cuts, simply won’t buy a house (in 1994),” she said.
Inventory of houses and condominiums at the end of last year totaled 9,759 properties, a decline of 14% from 11,401 in 1992. There were 7,571 houses listed for sale, down 9% from 8,338 in December, 1992. Active listings of condominiums totaled 2,188--down 15% from 2,563 at the end of 1992, the local realty group said.
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.
Valley Single-Family Home Sales
Avg. Pct. Properties Pct. Year Price Chg. Sold Chg. 1993 $252,633 -11% 8,899 +15% 1992 283,386 -3 7,774 -10 1991 291,717 -2 8,585 -2 1990 296,675 +1 8,726 -32 1989 295,125 +19 12,753 -16
Valley Condominum Sales
Avg. Pct. Properties Pct. Year Price Chg. Sold Chg. 1993 $140,800 -8% 1,607 -21% 1992 152,212 -1 2,031 -23 1991 153,208 +1 2,646 -20 1990 151,983 +5 3,313 -28 1989 144,542 +14 4,571 +1
Source: San Fernando Valley Assn. of Realtors
