Econowatch

Econowatch/6/CW1st/mike2nd By JENNIFER NETHERBY Staff Reporter The San Fernando Valley housing market continued to see strong sales in May, with the median resale price hitting a six-year high of $220,000, according to the Southland Association of Realtors. The median home price for May was 17 percent higher than the like month last year. However, that most recent price remains 10 percent below the market’s peak in May 1989, when the median home sale price was $245,000. “We’re moving and shaking,” said Beth Sommer, president of the association. “More people have the ability to move up and we’re seeing more first-time home buyers.” The association also reported that the inventory of for-sale homes as of May, at 2,560, was also higher than a year earlier, when 2,299 Valley homes were listed. The association reported that a record number of home sales transactions entered escrow in May. While escrow closings dropped, they are expected to catch up in the coming months, Sommer said. Nima Nattagh, research director for First American Real Estate Solutions, which also tracks Valley home prices, predicted that by mid-2000, Valley home values will have returned to their pre-recession peaks. “That increase is pretty healthy, and it’s in line with what’s happening in the rest of L.A. and Southern California,” said Nattagh. “There’s still a number of homes in negative equity, though.”