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SAN FERNANDO AND SANTA CLARITA VALLEYS SHOW HIGHEST RECORDED NEW HOME SALES SINCE POST-WAR BOOM OF 1991

 SAN FERNANDO AND SANTA CLARITA VALLEYS SHOW HIGHEST
 RECORDED NEW HOME SALES SINCE POST-WAR BOOM OF 1991
 LOS ANGELES, Oct. 9 /PRNewswire/ -- Total sales in the San Fernando Valley/Santa Clarita Valley market during the third quarter (July - September) of 1992 increased dramatically over second quarter 1992 levels, according to The Competitive Housing Market Report just published by The Meyers Group, an independent marketing research and consulting firm. Cumulatively, 691 attached and detached housing units were sold this quarter, compared to 490 sales in the second quarter of 1992, reflecting a 41 percent increase. Compared to the third quarter of 1991, sales this quarter are up 7 percent. "Cumulatively, the sales results this quarter are the highest recorded since the second quarter of 1991 when the post-war boom produced over 1,000 new home sales in this market area," commented Steve LaTerra, a consultant with The Meyers Group. While an increase in sales was predicted for this quarter, such a significant rebound was unexpected given the enduring nature of the California recession.
 While such an increase was unexpected, it is not unreasonable considering the extraordinarily depressed nature of sales during the second quarter of 1992. "The riots of late April/May produced unusually sluggish sales during a traditionally strong sales quarter. It is likely that many serious home shoppers postponed their buying decision until this quarter after things calmed down in the city," LaTerra said. The San Fernando Valley alone, which was more dramatically affected by the riots, showed an amazing 87.1 percent increase in sales over the previous quarter. Virtually every price range and product type showed tremendous improvement over last quarter in this area, indicating an across-the-board improvement.
 The sustained sales levels in Santa Clarita and the improved state of the San Fernando Valley are the first tangible evidence of improving market conditions in more than a year. If should be noted that improvement in sales this quarter may be more an indication of a return to the norm than of substantial market improvement. For example, in 1990 and 1991, there were an average of 701 and 748 new home sales per quarter respectively in the San Fernando Valley/Santa Clarita Valley market compared to 691 this quarter. And the Santa Clarita Valley alone showed virtually no change in sales from the second quarter.
 The outlook for the San Fernando/Santa Clarita Valley housing market is mixed. As anticipated, the impact of the riots on the housing market was short-lived, and buyers have apparently returned to the market. However, in the absence of improved economic conditions, consumer confidence levels and/or other significant sales incentives, it is difficult to project a prolonged recovery. As a result, based on the normal seasonal fluctuations of the housing market, the fourth quarter of 1992 will likely realize a slight decrease in sales, although prices will not likely suffer, and inventory will likely continue to decrease.
 The Meyers Group is an independent marketing research and consulting firm which serves the real estate industry in the Western United States. The Competitive Housing Market Report is a quarterly publication.
 -0- 10/9/92
 /CONTACT: Steve LaTerra or Mary Cameron of The Meyers Group, 818-501-8905/ CO: The Meyers Group ST: California IN: FIN SU:


LS-KJ -- LA029 -- 8601 10/09/92 19:51 EDT
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Publication:PR Newswire
Date:Oct 9, 1992
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