HOUSING DEMAND KEEPS SIZZLING.

Byline: Gregory J. Wilcox Staff Writer

VAN NUYS - Sales of single-family homes in the San Fernando Valley jumped 12.1 percent during February despite the 36th consecutive month of rising prices, inventories approaching historical lows and sloppy shopping weather, an industry tracker said Monday.

Escrow closed last month on 789 previously owned single-family homes, an increase of 85 from the number sold in February 1999, said the monthly market compilation from the Van Nuys-based Southland Regional Association of Realtors.

The median price hit $225,000, up $15,000 from February 1999. Prices last declined on an annual basis in February 1997.

The Valley's median peaked at $245,000, reaching that level three times in 1989.

``We are seeing remarkable strength in the market right now,'' said John Karevoll, an analyst with Acxiom/DataQuick.

Including the condominium sector, sales increased 15 percent on an annual basis.

The February sales performance outdid all posted for that month since 1989 and 1990, the association reported.

Sales had been softening recently, so February's numbers caught some industry watchers off guard.

``Frankly, I was surprised by the heavy sales activity,'' said Realtors group President Mitch Davis.

He estimates that prices will rise by 5 percent to 6 percent for all of this year over 1999.

Analysts also note the Los Angeles region is one of the hottest in the nation for price appreciation.

Karevoll said prices are close to historical highs in Orange and San Diego counties, and it could happen in the Valley by summer.

Nima Nattagh, an analyst at First Americal Real Estate Solution, said February's strong performance should not be considered trend-setting.

``January and February, and to some extent December, are difficult months to analyze and come up with some sort of a consistent projection,'' he said. ``We'll probably see some slowdown in the market, although I don't think it will be any cause for concern.''

One worry, though, is the inventory. Fewer new homes are being built these days while the region's population continues to increase.

Last month the number of new listings declined 12.5 percent to 1,434 and total active listings plunged 18.1 percent to 3,395.

Both Link and Davis can't recall a time in the past 20 years when the number of properties for sale was so low.

That's one reason why condominium sales jumped 25.6 percent last month to 285 units. These are getting more expensive, too, with the median price at $131,000, an 11.5 percent gain in the past 12 months.

And price appreciation in both sectors is not yet closing big numbers of buyers out of the market.

``Right now we're seeing activity in every price range and geographic area,'' Karevoll said. ``We're constantly being asked if the entry-level market is still functional, and it is. The entry-level market in the whole county is very active.''

CAPTION(S):

Chart

Chart: PRICE SURGE

The median price of a single-family home in the San Fernando Valley continued climbing in February.

SOURCE: Southland Regional Association of Realtors

Staff Artist