AUGUST HOME SALES DIP 8% INVENTORY BULKS UP FOR BUYERS.

Byline: Gregory J. Wilcox Staff Writer

VAN NUYS - Home sales in the San Fernando Valley slipped 8 percent annually during August, reflecting price appreciation of $85,000 over the last 12 months and inventory that nearly doubled, a trade group reported Thursday.

Last month, consumers bought 1,207 previously owned houses, 109 fewer than in August 2003, according to the Van Nuys-based Southland Regional Association of Realtors. Sales were essentially flat versus July.

Activity has been below year-ago levels since April, indicating an easing of 2003's torrid pace is under way, but July's and August's counts are the best this year. The market now looks like it will live up to the expectation that sales this year will be slightly off the 2003 pace while prices increase.

Still, it will probably rank among the Valley's top five markets, said Jim Link, the association's executive vice president.

The median price remained locked in familiar territory, soaring an annual 21 percent to $485,000 while slipping less than 1 percent, or $4,000, from July. The record, $505,000, came in June.

August 2003 was the first time the median, the point at which half the units sold for more and half for less, hit $400,000.

While it remains a seller's market, buyers are finally catching a break. Inventory is building, albeit off a low level, and new listings in August increased 25.8 percent from a year ago to 2,615 properties. They were down 5.8 percent from July.

However, active listings totaled 4,994 properties at the end of August, up 97 percent or 2,458 houses and condos more than a year ago.

This increase in supply is good for buyers because they have more choice and time to make a decision, and sellers can't be as aggressive as in the past in setting their asking price.

There is now a three-month supply of product on the market, still well below the five- to six-month supply that is considered normal.

``Sellers will continue to have an edge simply because there is an acute housing shortage throughout the region,'' said association President Lynn Rinker. ``But it looks like buyers finally have a little more time to breathe.''

Jim Link, the association's executive vice president, said that buyers won't be successful pitching low-ball offers, but sellers have to set reasonable prices.

The entry level remains strong, with any property priced under $400,000 getting lots of attention, he said.

``This is the first opportunity in years for buyers to sort through a selection of properties and have the time to hunt for the home they desire,'' Lins said.

The condo sector continues to offer the best bargains.

During August buyers snapped up 470 condos, 2.4 percent more than a year ago.

The median price soared 22.3 percent, or $56,000, to $307,000.

Leslie Appleton-Young, vice president and chief economist at the California Association of Realtors, said that the Valley is following the pattern of the regional market.

Sales may pick up a bit in the next few months because August's activity reflects a time when interest rates were rising, and they have since fallen.

On Thursday, Freddie Mac, the big mortgage company, said that the 30- year benchmark rate dropped to 5.75 percent this week from 5.83 percent. That's the lowest level since the beginning of April.

``I think you see a market that is still good but taking a bit of a pause,'' she said. ``You might see a bump up in the next couple of months.''

Gregory J. Wilcox, [phone]

greg.wilcox(at)dailynews.com

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HOME PRICES SOAR

Source: California Association of Realtors

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