Home Sales Pick Up; Prices Firm

By JILL LEOVY

July 16, 1996 12 AM PT

SPECIAL TO THE TIMES

Single-family home sales in the San Fernando Valley gained momentum in June, continuing the pattern of the last several months. But despite the quickening sales trends, a long-awaited rebound in prices remained elusive.

A total of 985 homes were resold in June, up 4% from the same month a year ago, according to the San Fernando Valley Assn. of Realtors, which tracks housing market trends.

For the first six months of 1996, home sales surged 10% ahead of the total for the first half of the previous year. If the trend continues, this could turn out to be the best year for real estate sales in terms of sheer numbers since 1990, when the market entered its five-year slump, the association said.

“The buyers are out there, and a general optimistic attitude pervades . . . the market,” said president John Maquar.

But June’s median price, the point at which half the homes sold for more, and half for less, was $141,500, down 17% from June 1995 and 2% from this May.

Average prices showed improvement: June’s average price was $233,400, 3% higher than last year’s average, and 7% higher than May’s. In fact, it was the highest monthly average price for a single-family Valley home since March 1994.

Prices have firmed, Maquar said. But there is no reason to expect that they will begin rising faster than the rate of inflation any time soon, he added. People may be out shopping for homes in greater numbers, but they are still cautious, and the market is still heavily weighted toward bargains. Most of the homes changing hands are selling for under $250,000.

Condominium sales in June surged also. A total of 266 condominiums changed hands, up 45% from June 1995, but down 6% from May.

Condo prices declined, although not as steeply as in some recent months: The median Valley condominium price in June was $89,000, down 3% from $92,000 in June of last year. The average condo price was $99,300, almost even with the June 1995 average of $99,700.

The Realtors association tallies numbers monthly from its 6,800 members from North Hollywood to Calabasas.

* RELATED STORY: D1

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June Valley Home Sales

NORTH WEST

Avg. Price: $200.900

Sales: 214

NORTH EAST

Avg. Price: $128,600

Sales: 144

SOUTH WEST

Avg. Price: $290,800