Rising prices slowed sales of San Fernando Valley homes and condominiums in November, according to the Southland Regional Association of Realtors.
The median house price that closed escrow was $536,000, an increase of 11.7 percent in the same period a year earlier. The median condo price was $325,000, an increase of 8.3 percent from a year ago. Both prices, however, remain significantly lower from the peaks reached in 2007 and 2008.
A total of 420 houses changed hands in November, down 10.3 percent from a year earlier. Condo sales totaled 154 units, down 8.3 percent
Association President Roger Hance said the year will end with sales below expectations.
“Higher prices benefit sellers, but put buyers in a position where the down payment becomes much more of an issue, even as home interest rates remain near record lows,” Hance said in a prepared statement.
One sign of health for the market was the number of properties on the market, which climbed more than 23 percent from last November to 1,745. That equates to a roughly a three month supply, better than it has been but below the six-month supply that is considered optimal.
In the Santa Clarita Valley, median home prices jumped more than 8 percent from last November to $484,100. Sales rose 27 percent with 198 homes sold. Inventory also rose 6.4 percent from a year earlier to 565 active listings, about a 2.2 month supply.
Nancy Starczyk, president of the association’s Santa Clarita Valley division, attributed the higher sales to the improving local economy and the area being a desirable place to live.
“While other regions of the state report sluggish sales, a typical year-end trend, Santa Clarita seems to be closing on a strong note,” she said in a statement. “It’s a phenomenon we’ve experienced the last several years, with even December showing strong activity.”