House Prices Set Another Record; Sales Increase 35%

Despite expectations of a seasonal slowdown, houses in the San Fernando Valley continued selling at a brisk pace in October, rising 35% from a year earlier, the San Fernando Valley Board of Realtors reported Monday.

The average price of a house climbed to a record $268,900, up 1% from the previous record of $265,300 set in July. The October sales figure is 27% higher than the $211,100 average price for a house in October, 1987.

The average price for a condominium was a near-record $133,000, off $200 from the high set in September. The October figure is 8% higher than the $123,500 average sales price for a condominium in October, 1987.

No Sign of Slowdown

Real estate agents usually expect a slowdown in October, but have not seen any signs of the market cooling off significantly. Tom Carnahan, the board’s president, attributed it to two reasons: Mortgage rates have eased slightly, and many home buyers want to buy now because they expect prices to keep rising.

This year has been one of the strongest for Valley home sales, triggered by lower interest rates, a growing population and a shortage of available housing in the area. Sales have been so strong that the 16,688 houses and condominiums sold through October surpassed the 16,495 houses and condominiums sold all last year. The largest number of homes sold for a single year was 19,964 in 1979.

Overall, 1,869 houses and condominiums were sold by the board’s members in October, the 13th best month ever. Condominium sales climbed 61% from a year earlier to 418, with house sales rising to 1,451. Still, the board said the number of condominiums sold has eased slightly from summer.

The highest average price in the area was $330,225 in the southwest area, which includes Woodland Hills and West Hills. The lowest was $157,200 in the San Fernando and Sun Valley areas.

The survey, published each month by the Valley realty board, California’s largest, is based on home resales reported by its members in the area from North Hollywood to Agoura. The figures do not include sales of new homes or residences that are sold by their owners.

OCTOBER VALLEY HOUSE SALES:

North West

Average Price: $283,400

Sales: 66

North Central

Average Price: $276,500

Sales: 223

North East

Average Price: $157,000

Sales: 263

South West

Average Price: $330,255

Sales: 326

South Central

Average Price: $296,700

Sales: 220

South East

Average Price: $270,500

Sales: 353