Rise in Valley Home Prices Shows Shift to Seller’s Market
The San Fernando Valley’s strong buyer’s market appears to be in transition, with sellers better able to negotiate prices, according to figures released Monday by a local realty association.
More single-family homes were sold in the Valley last month than in any January since 1989, according to the report, in another sign of an improving real estate market.
Prices also rose last month, with the average price tag up 3.8% over a year ago to $237,000. The median sale price also increased by 9.7% over last January, to $174,000.
But the higher prices also signal a shift in the balance of power between buyers and sellers--and a warning to buyers that low offers may no longer be snapped up, the authors of the report said.
“Buyers no longer dictate the sale price on homes in tip-top condition by submitting low offers and expecting to negotiate,” said Bud Mauro, president of the Southland Regional Assn. of Realtors.
“On the other hand, sellers of homes not in good condition can’t expect the ame kind of activity just because their neighbor’s home sold at top dollar,” Mauro said.
“Realtors are going nuts trying to educate both groups that it’s no longer a pure buyer’s market and price concessions are still needed to move certain properties.”
The number of houses sold last month, 825, represents a 42.5% increase over the number sold for the same period a year ago, the report shows.
Between December and January, the volume of single-family home sales dropped 28.4%, according to the report. But January consistently has seen a sales lull since 1990.
The data suggests that the recovery should continue in the months ahead, with 1,391 homes in pending escrows. That represents a 28.3% increase over December’s escrow figure, and is 77.7% higher than the number of homes in escrow in January 1997.
While single-family homes sales climbed, the condominium market has been slower to recover. Condominium sales dropped 14.7% to 180 from last January. And last month’s sales could not match what real estate agents called an unusually strong December, when condo sales reached 304.
But the median price of a condo increased to $103,000, an increase of 19.8%. Last month, the average condo price rose 18.3% over the previous January, to $114,200.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
January Valley Home Sales
North West
Avg. Price:
‘98: $228,300
‘97: $202,100
Sales: 144
+ 8%
*
North East
Avg. Price:
‘98: $130,300
‘97: $123,300
Sales: 135
+ 2%
*
South East
Avg. Price:
‘98: 288,600
‘97: 271,800
Sales: 147
- 3%
*
South Central
Avg. Price:
‘98: 246,400
‘97: 258,200
Sales: 200
+ 4%
*
South West
Avg. Price:
‘98: 269,600
‘97: 271,100
Sales: 186
- 5%
