MEDIAN PRICE THROUGH ROOF VALLEY HOME COST AT STAGGERING $600,000, BREAKING FIFTH CONSECUTIVE RECORD.

Byline: Gregory J. Wilcox Staff Writer

VAN NUYS - The median price of a typical San Fernando Valley house hit a record $600,000 in July - a whopping $111,000 increase in the past 12 months as sales maintained a strong pace.

It's the fifth consecutive price record this year, the Van Nuys-based Southland Regional Association of Realtors reported Thursday. The annual rate of appreciation, 22.7 percent, was 8.1 percentage points higher than the comparable number for June.

``I've got to tell you it's surprising even to us,'' said Jim Link, the association's executive vice president.

The high price didn't deter buyers, though.

During July consumers bought 1,203 previously owned houses - seven fewer, or 0.6 percent, than a year ago.

How much they got for their money depended on location.

For example, in North Hollywood $601,000 bought a two-bedroom, one-bathroom 1,499-square-foot home built in 1936. In Winnetka, $605,000 bought a four-bedroom, 2.75-bathroom 2,100 square-foot-house built in 1956.

Market watchers have been saying for months that prices can't keep up this pace.

``The feeling is even stronger today, but for more than a year we've been saying this seller's market surely must cool off soon, yet it keeps on going,'' said association president Jim Ezell.

Neither he nor Link believe a dramatic decline in activity or a drop in prices will materialize.

Strong demand, tight but improving supplies, low interest rates and a variety of loan programs continue to drive the market.

The association believes that interest rates would have to climb above 7 percent to slow sales and bring down prices. That is not anticipated for up to 16 months.

``We all feel that the market is cooling off, but the sales numbers and prices tell a different story,'' Link said.

The less expensive condominium market mirrored single-family activity.

Last month 398 condos changed property, a decline of 24 percent and due mostly to supply issues. The median price hit a record $385,000, an annual increase of 28.8 percent.

At the end of July, association members had 2,810 properties listed for sale, about a 1.8-month supply. A five-month supply is considered a balanced market in which neither the buyer nor seller holds excessive leverage.

``I think everyone is asking, how long can this keep going? They are scratching their heads,'' said Jack Kyser, chief economist at the Los Angeles County Economic Development Corp. ``If anything is affordability-priced, people will jump on it.''

Gregory J. Wilcox, [phone]

greg.wilcox(at)dailynews.com

SIZZLING PRICE

The typical Valley house, by the numbers.

--11 percent of Los Angeles County residents can afford it.

--A minimum income of $139,160 qualifies you to buy it.

--$3,479 a month pays for it.

Source: California Association of Realtors

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SIZZLING PRICE (see text)