Valley Home Sales Rise 7% in June

By JULIA SCHEERES

July 15, 1997 12 AM PT

SPECIAL TO THE TIMES

Sales of single-family homes in June rose 7% in the San Fernando Valley compared with a year ago, but the average sales price fell 2% in that same period, as the strong demand for homes in the $200,000 range pulled prices down.

A total of 1,003 single-family homes closed escrow last month, compared with 942 sales a year ago, according to a report published by the the San Fernando Valley Assn. of Realtors.

Last month, the average home sold for $228,100 in the Valley, compared with $233,400 in June 1996.

The hottest segment of the residential real estate market continues to be homes priced under $200,000, which represent 62% of the Valley’s home sales, said Mel Wilson, president of the San Fernando Valley Assn. of Realtors.

Wilson recommended that home sellers who wish to divest themselves of their property as quickly as possible give the residence a good scrub-down before hanging out the “for sale” sign.

“Homes priced under $250,000 that are in move-in condition sell very rapidly today,” Wilson said. “Homes that need work languish for months without any activity.”

Sales of homes in the highest end of the market continue to be sluggish, with only 1% of the closed escrows reported in June priced over $800,000. Only six sales were made of homes listed at more than $1 million, said Jim Link, executive vice president of the Realtors group.

“It’s a little bit troubling to a lot of sellers in the $500,000-and-above range to see that they’re going to have to negotiate with buyers,” Wilson said.

The lower-priced homes tend to be concentrated in the central and northeast Valley, while the more expensive residences are in the Woodland Hills and Studio City areas.

Compared with home sales, condominium sales moved rapidly last month but prices also remained relatively flat.

In June, 308 condominiums were sold, up 18% from 261 a year ago, and average prices fell 0.5% to $98,800, compared with $99,300.

Wilson attributes the fast-moving market to interest rates, which have fallen to 7.5% for a 30-year, fixed-rate loan from 8.5% a year ago.

“People are seeing that they can move out of a two-bedroom apartment into a condo and, instead of throwing away money in rent, write off mortgage payments instead,” Wilson said.

Indeed, it appears that more Valley residents are choosing to buy residences rather than lease them, statistics show.

The number of single-family homes and condominiums on the market fell 13.7% to 6,213 last month, a record low for June and dramatically lower than the record high of 14,976 set in July 1992, the association said.

The Valley realty association tracks sales by its 5,800 members from North Hollywood to Calabasas.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

June Valley Home Sales

North West

Avg. Price: $200,700

Sales: 227

North East

Avg. Price: $121,200

Sales: 157

South East

Avg. Price: $279,400

Sales: 158