February Home Sales Spur Talk of Rebound

More single-family homes sold during February in the San Fernando Valley than in any February for the last six years, according to the San Fernando Valley Assn. of Realtors. But while prices appear to have ceased a steep downward slide, they do not show much sign of bouncing back.

Nonetheless, the February report was striking enough to prompt real estate agents to speculate that the Valley market, after years of declining prices, may have entered a comeback phase.

“We think this is the year of the turnaround,” said Fred Sands, chief executive officer of Fred Sands Realtors. “There is a perception that things aren’t going to get any worse in L.A. We now have job growth, population growth.”

“Buyers are much more confident about their jobs and the economy,” echoed John E. Maquar, president of the Realtors’ group, in a written statement. “The attitude is extremely upbeat.”

A total of 626 homes closed escrow last month, up 12% from 559 in February of 1995.

The median price--the point at which half the homes sold for more and half for less--was up a little--3% to $180,000 from $174,000--a sign of increased activity in the market.

Median prices may also be drifting up because, after months of sales activity concentrated at the bottom of the market, agents are finally beginning to see more expensive homes get snapped up, brokers said.

Sales increases “are across the board this time,” said Sands, adding that his agents have sold several homes in the $1-million to $2-million range in the Valley in recent weeks. “We haven’t seen that in awhile,” he said.

“Second- and third-time buyers--even if they have little equity in their property--now have the opportunity to sell low, and at the same time, buy low. That’s the key,” said Pat A. Zicarelli, past president of the Realtors’ group and owner of Style Realty in Tarzana.

Sales of more high-end homes, however, were not sufficient to boost the average single-family home price, which slipped another 6% in February to $210,900, from $225,300 in February last year, according to the Realtors’ group.

The number of homes sold in February, although the highest in years, was down 13% from the January figure of 721. February’s average price was also 4% lower than January’s average of $219,200.

A total of 6,205 homes are now listed for sale in the Valley, up 6% from a year ago.

February marked the second consecutive month of increased sales activity in the Valley, after 1995 ended with a disappointing slump.

On the condominium front, though, the trend of the last several months--soaring sales and slipping prices--continued unabated.

A total of 186 condos closed escrow last month, up 74% from a year ago, and their average price was $105,000, down 2% from $107,300 a year ago. The median price of a Valley condo was $88,000, down 8% from $96,000 a year ago.

The February condo sales figure is 5% less than January’s figure of 196, and the average price is 6% lower than January’s mean of $112,000.

The San Fernando Valley Realtors’ group tracks home sales statistics from its 6,800 members from North Hollywood to Calabasas.