Price of Average Home Hits a Record $202,600

The rich just keep getting richer in the spiraling San Fernando Valley real estate market. In June, the price of the average Valley home hit $202,600, surpassing the record price set in May by $1,300, the Valley Board of Realtors reported Monday.

What is more, sales of single-family homes and condominiums were up 11.2% over May. The 1,639 homes and condos sold made June the third best month realtors have seen in eight years.

High prices and confusion over future interest rates, precipitated in part by the June 3 appointment of Alan Greenspan as Federal Reserve Board chairman, don’t seem to be deterring home buyers.

“Homeowners, especially upper-income buyers, ignored the uncertainty surrounding mortgage interest rates and plunged into the market,” said Steve Raynor, president of the Valley Board.

Meanwhile, the surge in condo prices derailed in June. The average condo sold for $114,600 in June, a $5,900 drop from the May price of $120,500 and up only $600 from a year ago. Raynor said the decline indicated a preference for low- to moderate-priced condominiums rather than a softening condo market.

The board’s inventory of 4,602 homes was 22.2% below the inventory in June, 1986. “What we’re seeing is strong competition for a limited number of quality single-family homes,” said Jim Link, the board’s executive vice president. “Combine competition and limited inventory, and the effects are predictable.”

JUNE VALLEY HOME SALES

Avg. Price Sales NORTH WEST $188,300 71 SOUTH WEST $226,000 330 NORTH CENTRAL $200,900 213 SOUTH CENTRAL $221,600 223 NORTH EAST $119,000 183 SOUTH EAST $216,500 339