For
Release on: Sunday, January 23, 2000
Jim
Link, Executive Vice President, 818-786-2110
David
R. Walker, 818-222-1335
1999 Home Sales Hit Highest Total of the Decade
More
homes and condominiums were sold during 1999 throughout the San Fernando Valley
than in any other year of the decade, the Southland Regional Association of
Realtors reported today.
Realtors
negotiated 16,794 transactions, an increase of 1.4 percent over the total
reported in 1998 and the fourth best year on record. The combined value of the
transactions generated in excess of $4.1 billion for the local economy.
AResidential
resale activity has been increasing every year since 1995,@
said Mitch Davis, president of the association. AThe new year looks just as promising as 1999, although rising
resale prices and a lack of inventory may limit resale activity.@
Indeed,
the number of single-family homes sold last year actually fell compared to 1998
with the difference made up by exceptionally strong activity in the condominium
resale market.
A
total of 12,858 single-family homes changed owners last year, a number that was
2.9 percent lower than the 1998 total. It was the first year after three
consecutive years of gains that the single-family total fell.
The
single-family shortfall was made up with a double-digit increase in condominium
resales B the fifth consecutive year of
increases. A total of 3,936 condominiums closed escrow last year, up 18.8
percent over 1998.
ARising
prices and low inventory B those two factors greatly influenced
the market last year,@ said Jim Link, the association=s
executive vice president. AYou cannot sell what you don=t
have and that in itself puts more upward pressure on prices.@
The
average price of all single-family homes sold last year was $272,233, up 4.0
percent from the prior year. It was the
third highest average of the decade, but well below the record high of $296,675
posted in 1990. The condo annual average
of $134,725 was up 5.7 percent. That figure also was well below the record high
of $153,208 set in 1990.
Barring
any unforseen events, Davis and Link agreed that most
of the equity lost during the recession of the early 1990s may well be fully
recovered by the second half of 2000.
AThere
are no hard and fast rules and many factors are involved, including the price
range and location,@ Link said, Abut
we believe full recovery is in sight if the resale market keeps moving at its
current pace.@
They
also agreed that 2000 will end with total sales equal to 1999 or slightly
ahead. Some of the activity will be due to a resurgence of what is known as the
Atrade-up
market,@
Link said.
AAs
prices rise,@
Link said, Athere
will be a renewed interest by existing owners to move to bigger, better or
newer properties.@
The
Multiple Listing Service operated by the Southland Regional Association of
Realtors processed a total of 26,488 property listings last year. That figure
was up only slightly from the prior year.
However,
December ended with fewer than 4,068 active listings throughout the San
Fernando Valley. That figure was down 16.3 percent well below the 6,000
listings Realtors agree are needed to satisfy demand in such a vast geographic
area.
December
also saw 985 single-family homes close escrow, down 3 percent from the prior
year, and 310 condo sales, up 13.6 percent.
The Southland Regional Association of
Realtors is a local trade association comprised of more than 6,800 members
serving the San Fernando and Santa Clarita valleys. It is one of the largest
local associations the nation.
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