THROUGH THE ROOF HOME PRICES HIT RECORD HIGH IN AUGUST.

Byline: Gregory J. Wilcox Staff Writer

San Fernando Valley single-family housing prices soared to a record $255,000 during August, finally recapturing the value lost during the deep recession of the early 1990s, a trade group said on Monday.

Sales also rebounded, with escrow closing on 1,204 single-family homes, an annual gain of 6.5 percent, said the Van Nuys-based Southland Regional Association of Realtors.

Home prices also reached record levels in the Santa Clarita Valley.

During the 12 months ending in August, the median price for a resale home increased $43,000, a gain of 20.3 percent. The median, the point at which half the homes sold for more and half for less, is now $10,000 higher than the previous record of $245,000, reached three times during 1989, the group said.

``Most homeowners long ago recaptured any lost equity, but this record median price drives a stake through the statistical heart of the last recession,'' said Mitch Davis, president of the Realtors group.

The last year of the 1980s was the best, as far as prices, and so far 2000 is shaping up to be even better. For the first eight months of this year, the median averages $235,000 vs. $234,187 for the comparable period of 1989.

Industry officials and analysts had predicted that the lost value would be made up this year. But the timing was uncertain. So the timing and spread of August's record blindsided some observers. Prices have been marching upward for months. Prices hit $236,000 during July, an annual gain of 8.3 percent.

``We're not shocked but certainly surprised the median price shot up as quickly as it did,'' said Jim Link, executive vice president of the Realtors group.

The sharp appreciation is being attributed in part to a tight supply of single-family homes for sale, a long-running problem in the market.

Any price gains are good news for homeowners like Chatsworth resident Gene Synder, a general contractor, who paid $230,000 for his home 10 years ago. It wasn't that long ago that similar homes in his neighborhood were selling for $170,000.

``I got killed,'' he said of the recession that saw prices plunge throughout the Valley.

Snyder could probably sell his home for about $260,000 now, he says. But he's still not in the clear yet; he said he's put about $100,000 worth of sweat equity into improvements.

Don't look for a ``For Sale'' sign in his front yard any time soon.

``I'm not going anywhere. I'm still on the wrong side of this thing but in 2020 this house has got to be worth 300 grand,'' he said.

Winnetka resident Matt Velie, a manufacturers sales rep, is of like mind. He bought his house for $78,000 in 1978 but owes more than that on it today because of some business transactions.

A house across the street is listed at $239,900.

``I'm very happy that I own this house,'' he said. ``It's taken a while for (the value) to go back up.''

Some analysts note that there is also a downside to such a sharp price spike because it reduces affordability.

During July, only 36 percent of the households in Los Angeles County could afford the median priced home of $211,150.

``This is a number that everyone will accept and say, Gee, the market is back,'' said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. ``It's great news, especially if you own a house.''

But as prices rise, more and more people are pushed out of the market because they can't afford to buy.

This could lead to serious ramifications, especially for the fast-growing tech sector in the West Valley.

``It's growing rapidly and trying to attract young, talented employees. The question is, are people going to be able to afford housing?'' Kyser said. ``The bottom line is we haven't built enough housing anywhere in L.A. County.''

But Link at the Realtors group points out that a one-month jump by itself is not a trend and prices may retreat in September.

And for all of 2000 he is still predicting price appreciation of between 5 percent and 10 percent.

One reason prices are rising is that the inventory of homes for sale is falling. Last month there were 5,023 active listings, down 16 percent from a year ago. A number twice that total is typical.

``The current inventory represents a three-month supply in a huge region that would be better served, that is reduce pressure on prices, with a minimum six-month inventory . . . based on the current sales rate,'' Link said.

The condominium market was also strong during August. Escrow closed on 399 units, up 12.1 percent from a year ago and the median price was $140,000, an annual gain of 15.3 percent.

Home prices in the Santa Clarita Valley also hit a record-high in August.

The Santa Clarita Valley Division of the Southland Regional Association of Realtors released figures Monday that showed the median resale price of single-family homes rose to $250,000, beating the previous record set in July by nearly $5,000.

Staff Writer Kathleen Sweeney contributed to this story.

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Chart: EXPENSIVE HOUSING

The median price for a single-family home gained $43,000 on an annual basis during August to a record $255,000.

SOURCE: Southland Regional Association of Realtors