Home Sales Near Best Showing in 5 Years, but Prices Go Lower : Real estate: The June total of 1,125 existing single-family houses closing escrow is two homes shy of five-year mark set in May. Median sales price down 14%.
Sales of existing single-family homes in the San Fernando Valley last month were close to the best showing in five years, as escrow closures in June shot up 41% from the same month a year earlier. But prices continued to sink: the average resale price for a single-family house in the Valley last month was $229,800, down 14% from a year earlier.
The San Fernando Valley Assn. of Realtors said 1,125 single-family houses closed escrow last month, up from sales of 800 for the same month a year ago. The June total fell just two homes shy of the five-year mark set in May, helped by low interest rates and perhaps low asking prices because of an ample supply of foreclosure properties still coming to the market.
Last month the median sales price for single-family houses also slipped 14% to $176,000, down from $204,500 in June, 1993. The median price is the point at which half of the houses sold for more than $176,000 and half sold for less than that.
From May to June, the average resale price of a single-family home dipped another 1%, or $2,500.
The Valley realty group said prices continue to be depressed partly because some homeowners or lenders are unloading quake-damaged properties, and also because the lingering effects of the recession continue to hinder demand. Though some shoppers are rushing to take advantage of low prices and interest rates, the market is fragile, said Jim Link, the association’s executive vice president.
“Any quick increase in asking price quickly would shut sales down,” he said.
Condominium sales in June totaled 146, up slightly from sales of 141 the same month a year ago, the association said. The average resale price of a condo, however, dropped 22% to $119,700 last month from $152,500 a year ago. The median resale price last month was $112,600, down 17% from the $135,000 median in June of 1993.
The earthquake appeared to continue to hamper the supply of houses and condos, as active listings in both categories totaled 8,304 in June, down 3% from the previous month and down 36% from June, 1993, when 13,063 units were listed.
But many foreclosed properties are not included in the realty group’s list of housing inventory for sale.
Under normal circumstances the combination of shrinking supply of properties for sale and rising sales normally would translate to higher prices. But brokers have said repeatedly in recent months that prices could remain depressed until quake-damaged properties are cleared from the market and buyer confidence improves.
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.
June Valley Homes Sales
NORTH WEST Avg. Price: $207,200 Sales: 57
NORTH CENTRAL Avg. Price: $200,200 Sales: 158
NORTH EAST Avg. Price: $138,700 Sales: 139
SOUTH WEST Avg. Price: $277,537 Sales: 370
SOUTH CENTRAL Avg. Price: $243,600 Sales: 177
SOUTH EAST Avg. Price: $223,400 Sales: 224
