HOLD FOR RELEASE MONDAY, JAN. 16, 1989

CONTACTS:

Jim Link, Executive Vice President 818-786-2110

David Walker, 818-222-1335

20,000 HOME SALES 2ND BEST YEAR FOR VALLEY HOME OWNERS, BUYERS

LOS ANGELES--(BW)--Resales of existing homes shot to their highest level in a decade during 1988 with the year ending as the second best in the 69-year history of the San Fernando Valley Board of Realtors.

The 19,714 sales yielded a record $4.4 billion for the economy of the San Fernando Valley, up 13.1 percent from the $3.89 billion in housing resales reported in 1987.

The only year that ended with more housing sales was 1979 when Board members negotiated a total of 19,964 sales, a mere 250 more than 1988.

"Some 29,614 homeowners listed their homes for sale last year on the computerized Multiple Listing Service operated by the San Fernando Valley Board of Realtors," said Buddy Bernard, the 1989 president of the Board, which is the largest in California.

"Incredible demand for home ownership extended to all price ranges," Bernard said.

"But a strong force fueling the market during 1988 was a flood of existing homeowners who listed their homes for sale hoping to trade up to bigger and better homes," said Jim Link, the Board's executive vice president. "Everytime someone traded up, that opened the way for first and second time buyers to move to more affordable units."

The demand for housing translated into record sales levels and a 22.2 percent annual increase in the average price of single-family homes. The average price for single-family homes sold during 1988 was a record $248,492, up 22.2 percent from the 1987 average of $203,433.

Practically every month brought reports of a new record high in both average and median resale prices.

For example, the average price for December was a record high of $280,200 while the median -- which means half the homes sold for more and half for less -- was a record $223,000.

Condominium activity for 1988 was equally heavy as buyers took advantage of relatively affordable prices.

While single-family prices increased at double-digit rates, the annual price increase for condominiums was a modest 6.1 percent, the San Fernando Valley Board of Realtors reported. The average resale price of all condos sold during the year was $127,017, up $7,284 from the 1987 condo average of $119,733.

The record high condominium average price for a single month also was set in December, hitting $134,900. The highest median monthly resale price of $134,000 for a condominium was set in February 1987.

Reasonable condo prices fueled demand and led to the breakneck sale pace.

A total of 4,510 condos sold in the San Fernando Valley during 1988, up 42.4 percent from the 3,167 sales reported in 1987.

"Condo prices clearly lagged behind single-family home appreciation rates last year," Link said, "but housing, not investment decisions, appeared to motivate most condo buyers. They know condos represent an affordable way to enter the housing market while finding desirable housing."

Nearly 28 percent of all condominiums sold during 1988 were located in the Board's southeast section of the Valley, an area including Sherman Oaks and North Hollywood. Of the 4,510 condos sold last year Valleywide, 1,245 were in the southeast corner.

Another 947 condos sold in the southcentral reporting area, including Tarzana and Encino. The northeast Valley was the third most active area for condo sales with 805 sales reported from the communities including Van Nuys and San Fernando.

Listings of condominiums for sale followed the same pattern. Of the 6,356 condos listed for sale last year, 28.4 percent or 1,804 listings came from the southeast Valley, followed by 21.6 percent from the southcentral, and 20.2 percent from the northeast Valley communities.

An average of 376 condos sold every month during 1988 with 530 new condo listings hitting the market.

The southeast Valley also captured the most single-family home sales during 1988, but otherwise sales differed from the condo pattern, Link said.

A total of 15,263 single-family homes sold last year with 25.1 percent or 3,837 of those sales reported in the southeast Valley communities.

The second busiest region for single-family home sales was the Board's southwest reporting area, encompassing Woodland Hills, West Hills and Canoga Park. That area registered 2,817 sales or 18.5 percent of total single-family activity.

The northeast Valley, with 2,543 sales, was third for 16.7 percent of single-family sales.

Activity throughout the two areas encompassing the mid-section of the Valley were relatively equal. The northcentral Valley, including Northridge, and the southcentral Valley reported sales of 2,320 and 2,316, respectively.

The northwest Valley, including Chatsworth and portions of Canoga Park reported the fewest single-family sales during 1988: 800 or 5.2 percent of total single-family activity. An average of 1,272 single-family homes sold every month Valleywide in 1988.

Single-family listings followed the same pattern as sales: of the 23,252 single-family homes listed for sale last year, 6,095 or 26.2 percent came from the southeast Valley. The southwest Valley region was second with 4,380 sales or 18.8 percent of the total.

December housing sales remained unseasonably strong, with 1,033 single-family sales reported, up 15.4 percent over 1987, and 368 condo sales, up 37.8 percent.

December saw three new monthly price records established, Link said.

Both the single-family average and median resale price set new highs for a single-month's activity: the average was a record $280,200; the median a record $223,000.

The average resale price of condos sold during December also soared to a record high -- $134,900.

Records rose and fell every month during 1988, Link said.

More than 12 sales and price records were set only to be outdistanced by the next month's figures, Link said.