HOLD FOR RELEASE ON: SUNDAY, JANUARY 27, 2002

MEDIA CONTACTS:

Jim Link, Executive Vice President, 818-786-2110, 818-231-6165

David R. Walker, 818-222-1335

Multiple Records Set in 2001 as Annual Home Sales in the

San Fernando Valley Rise for the 6^th Consecutive Year

C

ombined sales of existing single-family homes and condominiums for 2001 in the San Fernando Valley posted the best total in 14 years, the Southland Regional Association of Realtors reported today.

Realtors negotiated 17,361 sales last year, up 2.4 percent over the prior year and the sixth consecutive year of sales increases.

Transactions completed by members of the Southland Regional Association of Realtors generated more then $4.9 billion for the local economy.

AResidential real estate continues to reflect an underlying confidence in the economy,@ said Olga Moretti, 2002 president of the Association. ABuyers are out in numbers and today=s low interest rates keep housing within reach of most families even as resale prices show steady increases.

AWe see little on the horizon that could dampen demand for housing,@ Moretti said. AThe tragedy of Sept. 11 brought activity to only a temporary standstill and buyers seem convinced the local economy is stronger than other parts of the state and the nation.@

Sales of existing single-family homes accounted for 12,501 of the total 17,361 transactions completed last year, the Association reported. The figure was 1.0 percent ahead of the 2000 total and the first year to post a gain after two years of moderate declines in single-family activity. It was the third best total since 1989.

The annual record for single-family home sales was set in 1988 with 15,263 closed escrows.

Condominium resale activity rose to a record high during 2001. Realtors completed 4,860 condominium sales last year, up 7.1 percent over the prior year. The tally for 2001 beats the prior record of 4,571 condo sales set in 1989. Condo sales have posted annual increases in activity for the last seven years.

AWith prices of single-family homes rising to record levels, it=s clear that condominiums will be the most direct path to home ownership for many families,@ said Jim Link, the Association=s executive vice president. ALow mortgage interest rates and relatively affordable prices mean many renters could buy a condominium and wind up with a mortgage payment comparable to what they now hand over every month in rent.@

The median price of the 4,860 condos sold last year rose to a record high $152,167. It was 11.4 percent higher then 2000 and well above the prior record of $145,142 set in 1992.

Similarly, the median price of single-family homes that closed escrow in 2001 rose to a record high $258,583, up 8.7 percent over the prior year. It was the second consecutive year a record was set and the fifth consecutive year to see increases in the annual median.

ASellers must realize that proper pricing is now more essential than ever,@ Moretti said. AThe surest way to kill a sale is to reach to far, too fast, and list a property with an unrealistic price. Buyers are savvy and simply will not overpay even if the supply is extremely limited.@

Indeed, the only constraint on the market appears to be a dearth of properties listed for sale. The Southland Regional Association of Realtors processed 26,412 listings last year, down 4.8 percent from the prior year. More telling, however, there were only 3,527 properties listed for sale at the end of December, down 8.4 percent from a year ago.

At the current sales pace, that represents a little more than a two-and-a-half month inventory in a vast region where experts generally agree a six-month supply B or nearly 8,000 listings B is essential.

Both Moretti and Link expected strong resale activity to continue well into 2002 although the limited inventory along with rising resale prices may slow the pace slightly.

AAt times it looked like the economy was faltering during 2001,@ Link said, Abut housing activity defied the trends and reassured consumer that all was well. We see nothing that would suggest 2002 will deviate from that pattern. We=re expecting an extremely busy Spring home buying season.@

The Southland Regional Association of Realtors is a local trade association with more than 7,000 members serving the San Fernando and Santa Clarita valleys. It is one of the largest local associations the nation.

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