The median price of homes sold during October in the San Fernando Valley hit $625,000, the highest monthly median price since August 2007, the Southland Regional Association of Realtors reported on Monday, Nov. 21.
The median price has been above the $600,000 benchmark every month this year since April and twice — during October and August — peaked at $625,000. That was 11.2 percent higher than a year ago October. Until April, the local median price had been below $600,000 every month since late 2007, hitting rock bottom at $339,000 in December 2011, which is when it started it’s steady climb. For comparison, the October median was 4.6 below the record high $655,000 median of June 2007.
The median price of condominiums sold Valleywide during October was $355,000, down 3.8 percent compared to the prior year and off 5.3 percent from September.
“Faced with growing buyer resistance to rising resale prices, the condo median price has been drifting down since peaking at $397,000 earlier this year,” said Gina Uzunyan, president of the Southland Regional Association of Realtors. “Properly priced condos still sell quickly because there simply are not enough listings available to satisfy demand.
“But, at least for the moment and especially as seasonal forces come into play, buyers are thinking longer and harder about the impact on their finances before jumping into a home or condo purchase,” Uzunyan said.
A total of 485 single-family homes changed owners during October in the San Fernando Valley, the Association reported. That was down 7.3 percent from a year ago and off 13.7 percent from this September. The total reflected traditional seasonal patterns, though it was the lowest tally for the month since October 2007.
Realtors also helped closed escrow on 200 condominium sales last month. That was off 4.3 percent form October 2015 and 2.0 percent below this September. The year likely will end with home and condominium total sales below 2015 levels.
“2016 will be remembered for its extremely limited inventory of homes for sale,” said Jim Link, the Association’s chief executive officer. “Even with tight inventory, buyers finally resisted once prices soared to levels not seen since last decade.
“I don’t see anything on the horizon that is likely to trigger a sudden rising in listings of homes and condos for sale,” he said.
Active listings fell statewide 6.0 percent from a year ago and locally there were only 1,587 active listings at the end of October throughout the San Fernando Valley. That was down 4.3 percent from a year ago and represented a 2.3-month supply at the current pace of sales, which was identical to a year ago.
Pending escrows, a measure of future sales activity, fell 9.2 percent.
Distressed sales fell even farther off the local radar. Of the total 685 home and condo transactions last month, 94.6 percent were traditional standard sales. Eighteen were foreclosure related for a 2.6 percent market share, while 11 were short sales with a 1.6 percent market share.
The Southland Regional Association of Realtors® is a local trade association with more than 9,500 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
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