San Fernando Valley home prices hit another all-time high in June
The median home sales price in the San Fernando Valley last month topped $955,000, according to the Southland Regional Association of Realtors. That number is nearly 29% higher than June 2020, marking a fourth consecutive month above $900,000.
“Not long ago it would have been inconceivable that the San Fernando Valley would see the median home price inching toward $1 million,” said Diane Sydell, president of the association, in a statement. “Now it seems inevitable, especially with today’s wealth of buyers, dearth of inventory, and heated competition over virtually every listing.”
Home sales prices have been on the rise since many people have been working remotely and hunting for larger homes since the beginning of the pandemic. Unprecedented low mortgage rates have been fueling demand for home buying, causing home prices to soar.
The condominium median price has seen nearly a 13% jump, to $519,000 from June of last year. That number, though, is still below the April record high when condos were sold for $540,000.
A total of 554 single-family homes closed escrow during June, about 60% more than last year.
The association reported an extremely limited supply of condominiums listed for sale. The association assisted in the closing escrow on 169 condos during last month, a 30% increase from last year and a 3% decline from May.
“The market has been overheated and buyer fatigue may be a factor going forward,” said Tim Johnson, the association’s chief executive officer. “Too many buyers are weary of competing with unseen competitors and losing to a higher bidder even when they come to the market fully prepared to buy. ”
Across the Valley, there were 725 active home and condominium listings at the end of June, a nearly 25% decrease from last year.
That number of listings marks a one-month supply at the current pace of sales. In comparison, over 33 years, the supply has averaged a 5.6-month supply, according to the association.
Although there were 755 open home and condominium escrows at the end of last month, the association reports the market is cooling.
In the Santa Clarita Valley, sales jumped 43% as home median price hit a record $830,000 and nearly 34% jump in condo prices compared to June of last year, an indicator that the market is finally recovering from the pandemic-related stay-at-home orders.
The association assisted the closure of the escrow of 286 homes and 103 condos in the Santa Clarita Valley during last month, a drastic increase from last year.
“Buyer interest remains strong and sales would be higher if only there were more properties listed for sale,” said Nicole Stinson, chair of the Santa Clarita Valley Division Council of the association, in a statement. “With few listings, especially of condominiums, buyers may be hesitating as they compete over a dwindling supply with rising prices.”
The price of single-family homes set a new record high soaring to $830,000, nearly a 28% increase from a year ago. About 100 condos changed owners with a median price of $478,000, an 8.6% increase from 2020.
The number of available homes has been down since last year with 262 active condo and single-family home listings. Pending escrows were down 1% with 397 open escrows reported last month.