Kathleen Finnegan

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 San Fernando Valley home prices surged again in June amid plunging foreclosure activity and tight inventory, according to two reports released Monday.

Last month, the median home price in the Valley increased 29.3 percent, to $505,000 from $390,500 a year ago, said the San Fernando Valley Economic Research Center at California State University, Northridge. It was the 12th consecutive month of year-over-year price increases.

Just since May, the median is up 1.2 percent from $499,000, and June was the first time the median rose above $500,000 since May 2008, the center said.

“The median price is going up little faster than I expected but that’s because there are more sales in higher priced areas, which is a good sign the market is coming back,” said economist William W. Roberts, the center’s director.

There is also less distress in the market now.

Foreclosures in June fell 57.6 percent to 101 properties from 238 a year earlier. There were 102 foreclosures in May. This was the lowest level since 91 foreclosures in December 2006.

Fewer homeowners got in trouble with the mortgages, too. Default notices issued by lenders plunged 60 percent to 347 in June from 867 a year earlier, the center said. And they were down from 388 in May.

Roberts expects foreclosures to be in the 100 to 150 a month range for at least the rest of the year because of relatively high unemployment.

Sales of new and previously owned houses and condominiums fell 9.9 percent to 1,421 properties in June from 1,577 a year ago. Sales fell 13.4 percent from May.

The center tracks the market from Glendale through Calabasas.

The Van Nuys-based Southland Regional Association of Realtors report showed a similar trend. The group tracks the market roughly from Toluca Lake through Calabasas.

The association’s report showed that last month the median price of a previously owned house increased 27.2 percent to $507,500 from $399,000 a year earlier. But it fell 2.4 percent from $520,000 in May.

 

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