Valley Home Sales Dip as Prices Leap 22% Over ’98

San Fernando Valley home prices jumped 22.1% last month over year-ago figures, with the median home price hitting $210,000.

At the same time, however, the rising prices helped slow the number of sales--which dropped 10.8% from February 1998 figures, according to a real-estate report released Monday.

“Buyers are more cautious today and the inventory of choice homes for sale is still thin, which slows the race to buy,” said Beth Sommer, president of the Southland Regional Assn. of Realtors.

A total of 5,054 homes were listed in the San Fernando Valley at the end of last month--up 5% from February of last year. That number includes 4,144 single-family homes and 910 condominiums.

Although the number of single-family home sales dropped--with 704 homes sold--227 condominiums closed escrow--an increase of 2.7% over last February.

In the much smaller market of Santa Clarita--where there were 1,114 properties listed at the end of February--home prices rose as well.

The median home price there soared to $220,000, up 15.9% over a year ago.

The number of home sales increased 2% in spite of the increase in prices--a testament to the high demand for housing in the area, the real estate group said.

“While other areas of Southern California see sales going down slightly, the Santa Clarita market is hot and is only going to get hotter,” said Jim Link, executive vice president of the Southland real estate organization.

Sommer said she does not expect 1999 home sales to be as strong as last year.

“But we think it will come close,” she said. “That was at probably the lowest end of prices. Now we will lose a few buyers, but this is still way below the all-time highs. People know this is a time to buy.”