HOMES HIT $356,000 HIGH RECORD LEVEL IN MEDIAN PRICE ACCOMPANIED BY STRONG SALES.

Byline: Gregory J. Wilcox Staff Writer

The San Fernando Valley's residential real estate market jumped into its peak season during April with the median price soaring 21.7 percent to a record $356,000 amid strong sales, a trade group reported Thursday.

Intense demand and the lowest interest-rate environment in 40 years combined to fuel the market and the $63,000 in annual price appreciation, the third biggest ever, said the Southland Regional Association of Realtors.

Last month, consumers bought 1,259 previously owned single-family homes, 3.9 percent fewer than a year ago but 10.2 percent more than in March. Even though sales declined annually, it was the third-best April ever. The record is 1,396 sales in April 1986 and the April 2002 total of 1,310 is the second highest.

``We're into the peak season now so the summer months should be good,'' said Jim Link, executive vice president of the Van Nuys-based association.

Historically low interest rates will continue driving the market. This week, the rate on a 30-year fixed rate mortgage dipped to a record low of 5.34 percent, Freddie Mac, the mortgage company, said Thursday.

It's the seventh time this year that rates have sank to a record low, breaking the prior mark of 5.45 percent set last week and no big upturn is expected this year.

``That's just going to keep throwing more gasoline into the fire. It's going to stay hot,'' Link said of the market.

Analyst Nima Nattagh said the spike in the median price, the point at which half the units sell for more and half for less, is likely due to buyers capitalizing on the equity run-up to purchase bigger, more-expensive homes.

``All the indications are that the market is still strong. You've seen a slight drop-off in sales; the question is, will that continue over the next several months?'' he said.

The sales decline is not surprising, since association officials predicted that the market would soften from last year's robust level. Price appreciation remains stronger than anticipated, though, in part due to demand continuing to outpace supply.

``Demand is still very strong despite softening in the economy,'' said Nattagh.

In the smaller, more-affordable condominium market, consumers bought 422 units last month, 13.9 percent fewer than the year-ago record total for an April of 490 units. Sales slipped 4.5 percent from March.

The condominium median price skyrocketed an annual 38.9 percent to a record $225,000.

Tom Carnahan, president of the Realtors association, believes that this kind of single-family and condominium price appreciation is the exception rather than the rule.

``Many sellers are beginning to realize they cannot ask quite as high (a price) as they would like simply because the house up the street got a good price a couple of months ago,'' he said. ``There's no clear-cut turning point in sight yet, but real estate professionals and astute sellers sense that prices are beginning to hit an upper limit.''

The inventory increased 9.1 percent from a year ago to 2,629 properties, a typical trend for this time of year, but still a tight 1.6-month supply.

Pending escrows fell 9.7 percent, which Realtors said is probably a delayed result of the war in Iraq. ``If activity begins to wane slightly it won't be for a lack of prospective buyers. More likely, any dip in activity will be due to a lack of inventory,'' Link said.

Gregory J. Wilcox, [phone]

greg.wilcox(at)dailynews.com

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SOURCE: Southland Regional Association of Realtors