Have home prices begun to drop? While the median price of homes sold in the San Fernando Valley in September increased 0.8 percent compared to year-ago levels, the latest data shows that home prices fell 2.5 percent from August 2005, the first such decline registered in the Valley since home sales began slowing this year. The median price of a single family home sold in the Valley in September was $595,000, off by $15,000 from the median price in August. The average home price in the month, $712,000, was off 1.8 percent from year-ago levels and 4 percent from levels one month ago. Meanwhile, the number of single-family homes sold in September sunk by more than 30 percent in September. The month saw 814 closed escrows, off 31.1 percent from September 2005 when 1,182 single-family homes were sold. Condominium prices did not fare much better. The median price of a condominium in the San Fernando Valley dipped 1.3 percent to $380,000 in September compared to $385 in September, 2005. Last month, the median condo price was also $380,000. The volume of condo sales was down by 31.3 percent at 299 in the month, compared to 435 condominiums sold in September, 2005. About 16 more condos, or 5.7 percent were sold in September than in August, 2006. SRAR characterized the price dip as a stabilization created as a result of speculators exiting the market.