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Monday, Dec 4, 2023

The Number

Last year the number of homes sold in the San Fernando Valley went up 8.2 percent, while the price increased 6.8 percent. The average home in the Valley sold for $554,208, according to the Southland Regional Association of Realtors. Average price of San Fernando Valley home in 2015 Gina Uzunyan, president of the association and co-owner of residential and commerical brokerage Koenig Properties in Valley Village, said as apartment landlords continue to ratchet up rents, it’s encouraging tenants to become homebuyers. “Rents and house payments are comparable, depending on the price range of the property, especially on the threshold for first-time buyers,” she said. “I’ve had so many clients call me and say, ‘I’m glad I bought because if I had stayed the rent would have gone up several times.’” Condominium prices increased even more than homes in 2015. According to the association, the average condo in the Valley rose 9.2 percent last year to $351,208. That’s up from $217,367 in 2011 – a 62 percent jump in four years. “Affordability issues” explain condos’ popularity, Uzunyan said. “A lot of people, based on prices and income, may not be able to buy a home. If we can’t find a home in their price range, the next best option is to buy a condo or townhome,” she said. Higher interest rates loom as a potential cloud on the horizon, but for now they haven’t materialized. Although the Federal Reserve raised interest rates in December, the rates for home buyers have not changed yet, and they are currently lower than at some points last year, Uzunyan noted. She said 2015 was a healthy year for the market and she expects a slightly better performance in 2016. “So far, we don’t have enough data because the year has just started and January and February are a slow time,” she said. “But we are projecting we will have a decent year.” – Joel Russell

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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