HOME PRICES UP 20% OWNERS' EQUITY KEEPS RISING IN SELLERS' MARKET IN VALLEY.

Byline: Gregory J. Wilcox Staff Writer

The median price of a previously owned home in the San Fernando Valley soared to a record $343,000 during March, appreciating an annual $57,500 amid strong sales, a trade group said Monday.

Thanks to low interest rates and strong demand, consumers bought 1,142 single-family homes last month, down an annual 4.2 percent because of tight inventory, while the median price jumped 20.1 percent, said the Van Nuys-based Southland Regional Association of Realtors.

But sales skyrocketed 45.3 percent from February, a good indication that this will be another strong year for residential real estate.

Last month's single-family sales total of 2,812 is still the third best for a March in 14 years. The record was set last year with 1,192 sales.

Sales typically rebound between February and March, and the year's third month sets the tone for the summer's peak buying months, the association said.

``The housing market is not going to tank. Maybe we're not going to have as good a year as last year, but I don't think talk of a housing recession is called for,'' said Nima Nattagh, an analyst at FNC, which supplies market information to the mortgage-banking industry.

Mortgage rates remain below 5 percent, and forecasts call for them to remain low for the rest of this year.

``Interest rates may bounce back up slightly from historical lows, but no one expects to see a quick, dramatic rise anytime soon,'' said the association president, Tom Carnahan. ``The continued activity also reflects a deep-seated consumer confidence in the local economy. That suggests today's sellers' market will continue well into the future.''

One indication is that there is about a 1.7-month supply of product for sale where a market area the size of the Valley needs a six-month supply.

Carnahan noted this is the tightest market he's seen in 25 years in the business. And when properties come onto the market, they sell quickly.

Condominium activity generally mirrored the market in detached, single-family homes.

During March escrow closed on 442 units, down an annual 3.3 percent but up 36 percent from February. The median price, the point at which half the units sold for more and half for less, increased 17 percent to $205,000.

That was down 4.7 percent from February's record of $215,000.

Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., said that these are strong numbers and should bode well for the region.

``Most analysts say the resale housing market will be strong for most of the year, and this (sales report) speaks to another strong performance, which is good news for the local economy. So goes the San Fernando Valley; so goes all of L.A. County,'' Kyser said.

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Chart:

VALLEY MEDIAN HOME PRICES

SOURCE: Southland Regional Association of Realtors

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