House, Condominium Sales Plunge 31% in January : Real estate: Activity was disrupted by the quake. Still, the number of units sold represents a 28% jump from the same period in ’93.
Sales of previously owned single-family houses and condominiums plunged 31% in January from the 1,080 that sold in December, after disruption caused by last month’s earthquake.
A total of 748 houses and condominiums changed hands in January, the San Fernando Valley Assn. of Realtors reported Monday. Despite the drop from December, January’s sales marked a 28% increase from the 584 units sold a year ago.
The local real estate market ground to a halt for nearly a week after the Jan. 17 quake, said Alice McCain, president of the local realtors association. The Mortgage Bankers Assn. of America said last week that about 21% of pending home escrows and refinancings in Southern California were disrupted by the earthquake. Also, some economists are predicting that the area will be hit by higher unemployment and a short-term drop in real estate prices.
Many in the real estate business also expect a surge in defaults and foreclosures. There were a record 3,650 residential foreclosures in the Valley last year--20 times more than in 1990, according to TRW-REDI Property Data in Riverside. And foreclosures could surge in the coming months because the earthquake has left thousands of property owners with significant or irreparable damage to their homes.
McCain, however, disputed the notion that the earthquake will affect housing prices or delay a recovery of the real estate market that’s expected to begin this year. After properties were reinspected in the Valley last month, McCain said, 75% of the escrows that were pending when the temblor hit closed.
The combined average price of houses and condominiums sold in January fell 8%, to $218,200 from a $238,100 average a year earlier. The median price also declined 8%, to $176,000 from $192,000, meaning that half the units sold for more than $176,000 last month and half sold for less.
The January average price was 5% below December’s $229,300 average. The median price in January was down 1% from $177,000 in the previous month.
The association also said its members reported more prospective buyers shopping for homes because of low interest rates, a dwindling inventory of houses for sale, lower resale prices and--as a result of the earthquake--people hunting for new places to live.
“The people who have lived in the Valley for a long time and have jobs are not fleeing and they are not giving up,” McCain said. “They’re rebuilding. Or they’re taking disaster loans and buying a replacement residence.”
Single-family house sales rose 29% to 634 in January, from 492 a year earlier. But the January sales figure was down 30% from 908 in December.
The average price of detached houses sold last month was $234,200, down 9% from $256,500 in January, 1993, and 5% below December’s average price of $246,700. The median house price in January fell 13% to $185,000 from $213,000 a year ago, and was down 3% from $190,000 in December.
The average price of condominiums sold in January fell 7%, to $129,300 from $139,500 a year before. Last month’s average price was 6% lower than the $137,700 in December. Meanwhile, the median price of condominiums sold declined 11% to $125,000 from $140,000 in January a year ago, and was 4% below the $130,000 median price in December.
Sales of condominiums grew 24% to 114 last month, from 92 in January, 1993, but fell 34% from 172 in December.
A total of 9,346 houses and condominiums were listed for sale last month, down 18% from the 11,409 listings in January, 1993, and 4% fewer than 9,759 in December. Last month’s total included 1,907 new listings.
The Valley realty association, the largest in the state, has 7,800 members from North Hollywood to Calabasas. Its figures do not include sales of most new residences.
January Valley Home Sales
North West: Avg. Price: $251,500 Sales: 35
North Central: Avg. Price: $213,200 Sales: 98
North East: Avg. Price: $143,500 Sales:79
South West: Avg. Price: $280,000 Sales: 207
South Central: Avg. Price: $224,000 Sales: 87
South West: Avg. Price: $234,500 Sales: 128
