Home Sales Cool as Prices Continue Up : Slowing Blamed on Climbing Interest Rates, Time Required to Process Escrow

Prices of single-family homes in the San Fernando Valley continued to rise last month. The Valley Board of Realtors reported that the average sales price in July was $182,500, up 3.8% from June and 14.6% from July a year ago.

But the sales volume also shows a market that has cooled since the heated selling of May and June. The board said Valley realtors sold 1,339 homes in July, down 11.8% from June, although still 13.4% higher than the 1,181 sold in July, 1985.

Board President Temmy Walker blamed the slower sales on the recent upturn in interest rates and on realtors whose time is taken up trying to close escrows, instead of making new sales.

Walker noted that fixed-rate mortgages were as low as 9% earlier this year, but have risen to about 11% lately, although variable rates have remained at about 8% or 9%. She also said the crush of sales and refinancings have added weeks to the escrow process.

Walker attributed the higher sales prices to a continuing short supply of homes available in the Valley in the face of strong demand.

The average price of a single-family home in the Valley has been on an upward trend since February, when the figure was $154,700. The average price rose to $160,500 in March, $166,400 in April and $175,800 in both May and June.

On a year-to-year basis, the percentage increases in the price of a single-family home has ranged from 4.7% in April to a high of 11.2% in June.

The condominium market last month remained much better than it was last summer, when it was in a deep slump, but it was down from June. Realtors sold 218 condos in July, down 15.5% from June but still up a whopping 50.3% over July, 1985. The average condo price was $109,800, down 3.7% from June but up 1.3% from the same month last year.

The board compiles figures for home and condo sales handled by its members in the area from North Hollywood to Agoura. Sales of new homes and condos are generally not included because such sales usually aren’t handled by real estate agents.