Say bye-bye to San Fernando Valley's home-sales boom

The L.A. Daily News

Signaling an end to the San Fernando Valley's real-estate boom, the median price of a home increased in July by its slimmest margin in a decade amid a lingering sales slump, a trade association reported Thursday.

The median price of a previously owned home rose just 1.2 percent, or $7,000, last month from the July 2005 level - to $607,000, said the Van Nuys-based Southland Regional Association of Realtors.

And it fell $18,000, or 2.9 percent, from June's record $625,000.

The increase hasn't been this close to negative territory since February 1997, when the median fell an annual 13.9 percent, to $155,000 - the low point of that bear market. The next month, it moved up 1.6 percent, to $160,000, and has increased from the previous year's level for 144 consecutive months.

But since last July the median has remained in a narrow range between the record and $590,000.

Sales have now fallen for nine straight months, plunging by 32.8 percent, to 809 transactions, in July. That's the lowest number sold in July since the 800 total for that month in 1993.

Markets usually go sideways at a top.This is because perceptions of what value begin to change.This really could be a change in the trend for several years in Southern California.