Following suit with most of Los Angeles, fewer homes in San Fernando Valley are selling, but they’re moving at record high prices thanks in part to cheap financing.
Overall sales dropped 14.7 percent in June year over year to 487, according to a monthly report from Southland Regional Association of Realtors cited by San Fernando Valley Business Journal report.
It’s the lowest total for June since the association began tracking sales in 1984. The association pinned it on low inventory. June was the first month since last July that inventory was down from 12 months earlier, although inventory has trended higher consistently since late 2017.
Median sales price was up 4.5 percent year over year to $722,000, the highest since the previous record of $708,000 set in May and August of last year. Association President Dan Tresierras said low interest rates on home loans kept people in the market, pushing prices higher.
Mortgage prices steadily rose last year before coming back down toward the end of the first quarter. CoreLogic analyst Andrew LePage said last month that rising interest rates and high pricing meant buyers in L.A. County couldn’t support the strong growth in pricing seen in recent years. Still, CoreLogic saw median sales price in May hit a record $615,000.
A nationwide analysis by ATTOM Data Solutions published earlier this year found that the average annual wage across the country is not enough to afford a median-priced home in 70 percent of counties across the country. [SFVBJ] — Dennis Lynch