Valley Housing Sales Rise 18.7% Over July ’96 Pace

Sales of single-family homes in the San Fernando Valley jumped 18.7% in July over a year ago and average selling prices rose 1.8%, reflecting continued strong demand in the lower-priced end of the housing market.

July was the third consecutive month that home sales topped 1,000 units, according to the San Fernando Valley Assn. of Realtors.

The Valley’s residential real estate market is the most active in six years, with sales and prices of single-family homes continuing to rise steadily, the group said.

“This is the first time since 1989-90 that we have seen the number of sales and prices increasing at such a constant rate,” said Jim Link, vice president of the Realtors association.

A total of 1,111 single-family homes were sold last month, compared to 936 a year ago, according to the group’s statistics.

Last month, the average Valley home sold for $234,100, up 1.8% over the $230,000 average recorded in July 1996.

Median home prices increased 6.7% in July to $167,000 versus $156,500 a year ago. The median price means that half the homes sold last month for more than $167,000 and half sold for less.

The high-water mark for median home prices was in 1991, when it hit $240,000.

Job opportunities in the entertainment and high-tech industries are leading more people to call the Valley their home, boosting home sales, said association President Mel Wilson.

“Consumer confidence is up and people feel good about the economy,” he said.

The Realtors group expects increased activity in the trade-up market as lower-end home sales rise. Homes prices under $200,000 represent 62% of the group’s sales, Wilson said.

“You have a great opportunity to sell if you own a home anywhere near the July median resale price of $167,000,” Link said. “With activity still stronger on the lower end of the market than in the mid- to upper-price ranges, buyers have a rare opportunity to get the most out of their housing dollars.”

Quality listings--homes that are in move-in condition--are selling within a matter of days and sometimes attract multiple offers, he added.

The association predicted that proposed federal tax legislation allowing many homes to be sold tax-free would galvanize the housing market in the coming months. Under the new rules, a married couple could shelter up to $500,000 in profits on a home sale from federal taxes.

Sales in the condominium market also picked up, but prices continued to fall.

In July, 295 condos were sold, up 19.9% over the 246 sales a year earlier. Last month, the average selling price for a condominium was $95,900, down 13.5% from $110,900 a year earlier. But the median condo sales price rose 2.2% last month to $86,900 from $85,000 in July 1996.

The San Fernando Valley Assn. of Realtors tracks sales by its 5,800 members from North Hollywood to Calabasas.

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July Valley Home Sales

North East: Avg. Price: $128,400; Sales: 187

South East: Avg. Price: $266,800; Sales: 203

South Central: Avg Price: $229,100; Sales: 237

South West: Avg Price: $307,200; Sales: 235

North West: Avg Price: $220,100; Sales: 234