LOS ANGELES - The price of a home in the San Fernando Valley hit a record high last month with a median of $945,000, up 26% from the same time a year ago, the Southland Regional Association of Realtors said Monday.
The month's sales surpassed the previous record set in April, when the median sale price was $935,000, and it was only the third time on record that the median price of a single-family home in the San Fernando Valley reached over $900,000.
The median price for San Fernando Valley condominiums in May was $530,000, up 18.4% from the same month last year but down 1.9% from April, when the median price reached $540,000.
The association reported that 497 homes and 174 condominiums were sold during May, an increase of 108.8% and 163.6% respectively, compared to the record low at the same time last year when the pandemic prompted safer-at-home orders and business shutdowns.
"We're proud of how local realtors responded a year ago in the face of adversity and pleased as the economic recovery continues, with a complete re-opening imminent," said Diane Sydell, president of the 10,300-member Association.
"There are not enough properties for sale and heavy pent-up demand for housing is pushing resale prices higher and higher every month" she added.
While sale prices in the valley increased, and the region experienced heavy buyer demand, sales were limited due to a lack of inventory, the association reported. The association reported a total of 685 active listings at the end of May, down 34.1% from a year ago. The number of listings was up from the record low set in April, when the region had only 620 listings.
"Runaway home prices reward sellers, yet high prices diminish affordability and threaten the sustainability of the entire residential market," said Tim Johnson, chief executive officer of the Southland Regional Association of Realtors.
"Let's hope owners will be more comfortable, more willing to sell, once the economy fully re-opens and the threat of the pandemic recedes. If that happens, it may release some of the pressure on prices and give families more home buying options."
Pending escrows, which the association said is a measure of future activity, increased by 43.4% in May compared to the same month the previous year, with a total of 715 homes in escrow.