Affordability issues and a lack of inventory continue to limit resale activity in the San Fernando Valley, according to the Southland Regional Association of Realtors.
During November 458 single-family homes sold, a month-over-month drop of 65 sales. The noticeable drop in activity occurred following a period, March to October, when monthly resale totals consistently eclipsed 500. The top month this year for single-family sales was July, with 603 closings.
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The recent drop in sales has only slightly affected home values, as the median price of a sold home stood at $535,000 in November, down year-over-year by $1,000. While minor, the decline in value is notable, as November marked the first time since February 2012 that the median price was lower on a year-over-year basis.
Declining inventory levels have played a part in values remaining relatively stable. Entering December there were 1,096 single-family listings in San Fernando, a nearly 15 percent year-over-year drop.
On a positive note, total sales activity for 2015 will outpace 2014 levels in San Fernando. During the first 11 months of this year 5,614 single-family resales traded. In 2014, a total of 5,643 homes closed.
The market’s condo sector also took a recent dip in activity, as during November 161 properties sold. This equated to a 23 percent month-over-month decline in sales volume.
The median value of a condo sold in November was $367,500, which was up $42,500 on a year-over-year basis. Declining inventory is one reason for this uptick, as supply is down by nearly 20 percent year-over-year.
Similar to the market’s single-family sector, 2015 will represent a stronger year for condo closings than 2014. Entering December a total of 1,970 had sold compared to 1,983 closings in all of 2014.
