The price of homes and condominiums sold in the San Fernando Valley during 2019 soared to record highs even as the inventory plunged to a record low and sales fell compared to 2018, the Southland Regional Association of REALTORS® reported on Tuesday, Jan. 21.
The annual price of single-family homes came in at $709,250, breaking through the $700,000 benchmark for the first time on record. The annual price was up 4.2 percent from the prior year and well above the $611,933 annual price reported in 2007 at the peak of last decade’s sales boom.
Similarly, condominiums sold in the Valley during 2019 set a record high with an annual price of $439,325, which was up 2.0 percent from 2018. The condo annual price has been above $410,000 for each of the last three years, with each surpassing last decade’s highest annual price of $394,917 reported in 2006.
The home and condominium sales negotiated by REALTORS® in 2019 generated $5.6 billion for the local economy, not including the related sales that typically come with transactions, such as landscaping, home improvement projects, and home furnishing purchases.
“Flaws in the market allowed prices to rise during last decade’s boom years even though there were thousands of listings available that should have kept prices in check,” said Nancy Troxell Carnahan, the 2020 president of the 10,300-member Southland Regional Association of REALTORS®. “A vanishing inventory last year along with exceptionally low interest rates pushed prices higher, even as the pool of qualified buyers in all price categories shrank and sales slowed.”
REALTORS® assisted 5,174 single-family home and 1,826 condominium transactions throughout the San Fernando Valley in 2019. The annual home sales total was down 3.5 percent from 2018. It was the lowest annual total reported since the Association started keeping the statistic in 1985. The record high annual total of 15,263 home sales came in 1988.
The condominium annual sales total for 2019 of 1,826 sales was down 1.2 percent from 2018. The record low annual total of 1,591 was set in 1994 while the record high annual sales tally of 5,041 came in 2002.
December ended with the 770 active listings, the fewest of any month on record reaching back to 1985. The prior record low of 819 home and condominium listings came in December 2017 while the record high of 14,976 was set in July 1992.
The active inventory has plunged for each of the last seven months with the last three months registering drops above 30 percent.
“Between limited inventory and sky-high resale prices statewide, we have a housing problem that can best be solved by doing all we can to increase the housing supply,”said Tim Johnson, the Association’s chief executive officer. “Lack of housing supply leads to rising prices and a shortage of affordable housing, which continues to push homeownershipout of reach of a growing number of families.
“Low interest rates on home loans help a percentage of prospective buyers,” he said, “but we’ve got a real affordability crisis when it takes a minimum annual income of $146,000 to buy a local median-priced home.”
December ended with sales of homes and condominiums up 5.5 percent and 36.9 percent, respectively. The home and condominium median price rose in December by 8.1 percent and 3.5 percent while the inventory plunged 34.0 percent. Pending sales, a measure of future closed escrows, were up 9.1 percent.
The Southland Regional Association of REALTORS® is a local trade association with more than 10,300 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
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