Housing Sales Jump While Prices Decline : Real estate: Last month’s sales of single-family houses increased 10% from March, 1993, but the average price dropped 8% from last year.
As they have for the past 12 months, sales of existing houses and condominiums posted a year-to-year increase last month, rising 5% from March, 1993. But, as has also been the case for the past year, prices continued to fall.
A total of 776 single-family houses and condominiums changed hands in March, compared with 736 units sold a year before, according to the San Fernando Valley Assn. of Realtors.
Last month’s sales climbed 30% from the 596 houses and condominiums that sold in February.
A jump in single-family house sales accounted for the overall gain. In March, house sales jumped 10% to 684 from 622 a year earlier, and surged 33% from February’s 513 house sales.
But the average price of a single-family house sold last month was $240,100, down 8% from the $262,300 average price in March, 1993. But the average price of houses sold last month was 4% higher than February’s average price of $231,600.
Last month, the median price of single-family houses sold declined 10% to $182,000, from $203,000 in March, 1993. A median price is the point at which half the houses sold for more than $182,000 and half sold for less. In February, the median sales price for a house was $180,000.
The realty association said the increased sales were triggered by an improving economy and a slight increase in mortgage interest rates, which caused potential buyers to hurry up and close deals before interest rates rose further. The realty group also said that properties in escrow--which it uses as an indicator of future sales activity--were at the highest level last month since August, 1989.
“Not even the Northridge earthquake and its flurry of aftershocks could stifle the demand for housing,” said Alice McCain, president of the realty association.
However, sales of condominiums remained on shaky ground in March, plunging 19% from a year earlier, from 114 to 92, although it marked an 11% increase from the 83 units sold in February.
The average price of a condominium sold in March was $133,100, down 12% from a $151,500 average price a year earlier, but 9% above the $121,700 average price in February.
The median price of condominiums fell 13% last month, to $125,000 from $144,000 in March, 1993, but rose 5% from February’s $119,000 median price.
A total of 8,410 properties were actively listed for sale in March, 31% lower than a year ago, and 44% fewer than the record high of 14,954 active listings in June, 1992.
The Valley realty group, the largest in California, has 7,800 members from North Hollywood to Calabasas. Its figures generally do not include sales of new homes.
March Valley Home Sales
Avg. Price Sales NORTH WEST $236,500 31 SOUTH WEST $286,000 230 NORTH CENTRAL $218,600 88 SOUTH CENTRAL $248,000 108 NORTH EAST $141,300 80 SOUTH EAST $230,000 147
