HOLD FOR RELEASE ON: Monday, January 22, 2001

MEDIA CONTACTS:

Jim Link, Executive Vice President, 818-786-2110

David R. Walker, 818-222-1335

San Fernando Valley Home Sales During 2000

Post Third Best Tally Since 1988

Realtors negotiated 16,957 transactions throughout the San Fernando Valley during 2000, a total that was up 1 percent over the prior year, the Southland Regional Association of Realtors reported today.

Buyers propelled condominium activity to near record levels last year and rising resale prices combined with a limited inventory to temper the single-family home resale market.

While still well below the record annual high of 19,964 sales set in 1979, the year 2000 ended as the third best since 1988.

AWith only one exception, every year since 1993 has seen the local real estate market gain momentum,@ said Wendy Furth, president of the 6,800-member Southland Regional Association of Realtors. AWe fully expect the trend to continue in 2001, especially now that we can thank Mr. Greenspan for lowering interest rates, which keeps a home purchase within reach of many more families. All in all, 2000 was a great year to be in real estate.@

The 16,957 transactions negotiated by local Realtors for buyers and sellers represented $4.5 billion for the economy of the San Fernando Valley.

ATotal resale activity was up in each of the last five years,@ said Jim Link, the association=s executive vice president, Abut a closer look at the statistics suggests that the market would be much busier in 2001 except for the twin realities of a limited inventory and rising prices.@

Link and Furth agreed that prices will rise about 8 percent in the new year while sales will hold even or fall slightly from the strong pace set last year.

Both also agreed that any ground lost to the recession of the 1990's has been fully recaptured. Neither expected current fears of a possible slowdown in the national economy to have a significant impact on local residential resale activity.

AThere are no indications that the economy will burst,@ Link said. ADemand for housing remains exceptional while interest rates are down; both hold the promise of a strong future for local real estate.

ASupply is the number one problem for buyers with affordability right behind it and both merely slow what everyone agrees is a very healthy pace of home sales,@ Link said. ASellers are in pretty good shape although they must be realistic in setting the sale price. Sellers must remember that every price increase narrows the pool of people who can afford to buy.@

Single-Family Home Sales Fall 3.4% as Prices Rise 12%

Three out of every four sales that closed escrow last year throughout the San Fernando Valley were single-family homes. The 12,421 closed escrows represented a 3.4 percent decline in activity from 1999 B a decline that came as no surprise as single-family resale prices continued to rise and the inventory constricted.

The median price of homes that closed escrow in 2000 rose 12.0 percent to a record annual high of $237,792.

AFinancing is working in favor of buyers with lower interest rates and a higher loan limit,@ Furth said. AEvery time those interest rates drop we can qualify more people and it=s always the first step that is the toughest.

AIt=s worth the extra effort to get into a single-family home, more now than ever,@ Furth said.

Home sales were strong throughout all of last year, Furth said, even as total annual activity declined for the second consecutive year in a row. Single-family sales peaked in 1998 with 13,242 closed escrows. However, the 2000 total was down only 821 sales from that level and local real estate experts believe the market remains strong.

AIn just four years we made up all the ground lost to the recession of the 1990's which was a very rapid recovery,@ Link said. ALast year=s sales total was closer to a sustainable annual sales pace than the earlier madcap dash to buy homes.@

Following seasonal patterns, December single-family home sales fell from the November figure, but the 986 total was up one transaction from the prior year.

Condominium Sales Surge 15%; Median Price Jumps 10%

Rising resale prices of single-family homes continued to trigger exceptional activity during 2000 in the condominium resale market, the Southland Regional Association of Realtors reported today.

A total of 4,536 condominiums changed owners through the services of a local Realtor, the association reported. That number was up 15.2 percent over 1999 and marked the sixth consecutive year of increases in condominium resale activity.

2000 was the second best year on record for condominium sales behind only the 4,571 sales posted in 1989. For comparison, condominium sales activity last year was up 228 percent from its record low point of 1994 when only 1,591 condos sold.

ACondominiums have made a stunning comeback from the double whammy of the recession and the Northridge earthquake,@ Furth said. AWho could have predicted that current demand for condos would be so outrageously high.@

Furth said a correctly priced condominium literally vanishes off the market shortly after listing.

AIf it=s prepared properly, a condominium is gone within days or weeks,@ Furth said. AWe simply do not have a large enough inventory of condominiums to satisfy demand.@

Furth and Link believe condominium resale prices still remain within reach of many first-time buyers.

The median annual price of condominiums that closed escrow during 2000 was $136,550. That figure was 10.5 percent higher than a year ago and marked the fourth consecutive year of price increases. The record annual low of $89,392 was set in 1997.

The year ended on a strong note with the 391 condos that closed escrow last month representing a 26.1 percent increase over the total posted in December 1999.

The computerized Multiple Listing Service of single-family homes and condominiums during 2000. That total was down 4.8% from 26,488 active listings posted in 1999.

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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