Average Price of Home Rises 4.4% in July, Reaches Record $211,600

The average price of a single-family home in the San Fernando Valley was a record $211,600 in July, the third month in a row a record has been set, according to the Valley Board of Realtors.

July’s average price was up 4.4% from the June average of $202,600.

The number of homes sold in July, however, fell 8.4% from June because of a shortage of homes for sale, realtors said.

Condominium sales continue to do well because many first-time home buyers are finding single-family homes too expensive for their budgets. The average Valley condominium sold for $116,900 in July, up from $114,600 in June.

Condominiums Affordable

“It’s clear when you look at the reports from our 8,200 members that, while single-family homes are in greatest demand, a growing number of buyers like the affordability and quality of condominiums,” said Steve Raynor, the board’s president.

A single-family home has turned out to be a solid investment. July’s average price is up 15.9% from July, 1986, and 32.9% from July, 1985, when the average home price was $159,200.

“There’s a limited supply on the market, but interest rates still are affordable,” said Jim Link, the board’s executive vice president. “That results in higher prices.”

Affluent home buyers are contributing to the surge in the average home price, snapping up a significant number of homes costing at least $500,000, the board said. “The buyers in the higher-end market are less affected by a jump in interest rates than those in median- or lower-priced homes,” Link said.

Prices Jump in Summer

Home prices usually jump during the summer as buyers with children go house hunting before the school year begins.

Condominium owners, whose residences have appreciated very little in recent years, finally have something to feel encouraged about. The average price of a Valley condominium climbed 2% in July.

That might not sound like much, but between June, 1985, and June, 1987, the average condominium price climbed only 9.5%.

In July, 289 condominiums were sold, up from 280 in June.

“Three years ago, condo sales were depressed,” said Link. “Now the very large differential between single-family homes and condominiums makes condos attractive to prospective buyers who might otherwise be frozen out of the market.”

The inventory of homes and condominiums for sale continues to shrink. In July, 6,262 residences were for sale, a 2.4% decrease from June and a 21.3% drop from July, 1986. “In this type of market, there are a lot of properties selling before they ever get into the multiple listing service,” Link said.

The Valley realty board, California’s largest, reports sales of houses and condominiums by its members in the area from North Hollywood to Agoura. Its statistics do not include most new residences, which are generally sold without a real estate agent, or existing homes that are sold by their owners.

JULY VALLEY HOME SALES

NORTH WEST Avg. Price: $218,500 Sales: 60 NORTH CENTRAL Avg. Price: $209,800 Sales: 226 NORTH EAST Avg. Price: $122, 700 Sales: 192 SOUTH WEST Avg. Price: $254, 168 Sales: 295 SOUTH CENTRAL Avg. Price: $245,900 Avg. Price: 168 SOUTH EAST Avg. Price: $207,500 Sales: 304 JULY VALLEY HOME SALES, MATT MOODY / Los Angeles Times