July saw the heat index rise for San Fernando Valley residential market as home and condo sales rose 12 percent.However, prices posted modest gains – even as inventory hit its highest level since last November, according to data from the Southland Regional Association of Realtors.A total of 823 active listings were reported by July’s end, down 12.4 percent from a year ago after cracking the 800 mark in June. By comparison, January through May saw listings in the 600 range, including April’s record low of 620 listings.
For perspective, from 2003 through last year, the San Fernando Valleyaveraged 2,906 active listings monthly.“Rising inventory suggests multiple possibilities,” Southland Regional Association of Realtors President Diane Sydell said in the report. “It’s partly seasonal as the peak sales months pass, but it’s also a step in the direction of a new normal, with owners starting to be willing to list properties for sale while buyers resist ever-rising resale prices.”In the Valley, escrow closed on 531 single-family homes during July, an increase of 12 percent from a year ago. Some 190 condominiums changed hands last month, up 11.8 percent from July of last year and 12.4 percent ahead of June’s total.“Inventory is likely to grow as the off-season sets in and the year winds down,” said the association’s Chief Executive Tim Johnson. “That should normalize the market, especially if active listings get back to where they used to be at over 1,000 listings per month or much higher.”A slight increase in listings during July gave the appearance of price increases as the home median price of $920,000 was up 15 percent from July of last year, but down 3.7 percent from June’s record high of $955,000.Similarly, the condo median price of $530,000 was up 9.3 percent over a year ago, yet still below April’s $540,000 condo record.Forward-pointing pending escrows suggest that the market is plateauing as July totaled 722 open escrows — down 10.4 percent from last July.Santa ClaritaSanta Clarita Valley saw gains as more product came online.The median home price surged 24 percent as supplies increased 7 percent. A total of 277 single-family homes sold, up 1.8 percent, but 3.1 percent lower than June’s 286 reported sales.
Some 99 condominiums closed escrow — down 2 percent year over year and off 3.9 percent from June.“The local home market typically starts to slow around this time of year, though these remain unusual times,” said Nicole Stinson, chair of the association’s Santa Clarita Valley Division Council. “We’re still seeing strong sales, many with multiple offers, yet the pace appears to be slowing slightly, even as more homes hit the market and interest rates remain below 3 percent for 30-year loans.”The association reported 337 active listings in Santa Clarita at the end of July, up 7.3 percent over a year ago and the highest monthly supply since October. Of those July listings, single-family home listings climbed 21 percent while condominium listings dropped 21.8 percent compared to the previous year.The median price of homes that changed owners last month was $810,000, up 23.7 percent from July of last year, yet down 2.4 percent from this June’s record high of $830,000.The condominium median price for July hit $495,000, up 15.9 percent from a year ago and 3.6 percent higher than June; May set a condo record median price at $520,000.“Local home resale prices remain high as multiple buyers push prices above asking price,” Johnson said. “As more properties come on the market later in the year and more buyers resist paying higher prices, the market may find a new balance.”Pending escrows suggest the market is slowing. By July’s end, there were 376 open escrows, down 13.6 percent from last July when 435 homes and condo sales awaited closure.
Valley Home Sales Climb 12 Percent in July
