Valley Home Sales Slow Down in April

After a fast start to the spring buying season, San Fernando Valley home sales cooled in April, the result of continued consumer uncertainty about the economy, real estate officials said.

The number of homes that closed escrow in April fell 2.6% to 1,031, from 1,058 in March. Compared with April 2000, sales skidded 6.1%, according to the Southland Regional Assn. of Realtors.

“It’s not a fundamental shift in the real estate market,” said Jim Link, executive vice president of the association. “It’s more a case of people being more cautious with large investments because of a lot of factors.”

Rising fuel and energy costs, corporate layoffs and weakness in the stock market all contributed to the consumer caution during April, Link said. The uncertainty also appeared to cut into Valley home values, which fell 2.6% in April compared with the previous month.

The median cost of a single-family resale home (the price at which half of the homes sold for more and half for less) was $244,500 in April, down $2,500 from March but up 1.9% compared to the same month last year.

Judy Graff, an agent with Coldwell Banker in Burbank who has been selling real estate in the Valley for five years, said she has seen a slowdown in listings, which in turn translates to fewer escrows.

Even so, she said, the high cost of buying real estate, more than the economy, is giving buyers pause.

“As long as demand outstrips supply, you will see prices continue to float upward,” Graff said. “But people are less inclined to list their homes because they know they’ll be paying top dollar on the other end for the home they purchase.”

Condominium sales, which have benefited from soaring single-family home prices, held steady in April with 456 units closing escrow, the same as in March. However, the number was 5.1% ahead of April 2000, when 434 units changed hands.

To the north in the Santa Clarita Valley, the median price of a single-family home rose 2.3% to $265,000 in April, up from $260,000, during the previous month. Sales were up about 19.7% from March and up 55.2% from a year ago. The report said 289 single-family homes changed hands compared with 249 in March.

In the Santa Clarita Valley condo market, 160 units closed escrow, commanding a median price of $149,000--up 4.8% from March. The median condo price rose 15.8% compared with a year ago.