Summer Doldrums Hit Home Sales

The San Fernando Valley housing market lost some steam in August as home sales dropped from last year’s levels, and cheaper homes continued to dominate the market.

A total of 940 single-family homes changed hands in August, down 7% from 1,008 in the same month last year. The figure was roughly equal to the July total of 936.

The average price of a single-family home was up just 2% in August to $218,000 from $213,700 at the same time last year. That figure is 5% below July’s average.

But the median price--the point at which half the homes sold for more, and half for less--plummeted 18% to $138,000 from $169,000 in August 1995.

The price trends pointed to what has become a prevailing characteristic of the Valley market: a concentration of sales at the low end of the price scale. More people are buying smaller, cheaper homes, and fewer are buying more upscale ones.

“Homes in the middle and upper ranges, while seeing an improvement in activity, are still lagging,” said John Maquar, president of the Valley Realtors association. “That fact drives the median down even as prices in the lower ranges firm up.”

Although drama was lacking in the August statistics, Maquar said that if the current pace of sales hold, 1996 may still surpass 1995, making the year the best for numbers of homes sold since 1989.

Also in August, the number of condominiums sold in the Valley surged 33% to 229 from 172 in August 1995.

That number was down 7% from July, however.

The average price of a condominium in August was $104,700, about equal with last year’s average of $103,800, and down 6% from July’s average.

But the condominium median price dipped 19% to $79,000 from $98,000 at the same time last year.

The Realtors’ association reports sales statistics monthly from its 6,800 members from North Hollywood to Calabasas.