Skip to main content

Santa Clarita Valley Home Prices Bottoming Out

Santa Clarita Valley Home Prices Bottoming Out

Single-family homes sales during July in the Santa Clarita Valley held even with activity reported a year ago and gained 16.3 percent over this June.

235 homes closed escrow, down two sales or 0.8 percent from a year ago, but up 33 sales from this June. The 237 sales were the second highest monthly figure since the low point of this market of 99 sales was reported in January 2008.

88 condos changed owners, up three sales from a year ago and off a single transaction from the 89 closed escrows reported this June. Condo resales also have been gaining momentum since the low-water mark of 31 transactions in January 2008.

Buyers interest in puchasing has increased across the board, with homes priced under $500,000 receiving the most activity and multiple bids common.

"Inventory is half of what is was in 2008 while the pool of prospective buyers continue to expand as financing and low interest rates are available today. Plus the $8,000 federal tax credit for qualified first time buyers.

Active inventory is 807 listings as of the end of August off 54.6 percent from the 1,778 listings of July 2008. At the current pace of sales, the activity inventory represents a mere 2.5-month supply. A year ago the supply at the then current pace of sales was 5.5 months. A balanced market occurs when there is a 5- to 6-month supply.

The median price of the 235 homes that sold last month in the Santa Clarita Valley was $410,000, down 7.0 percent from a year ago and equal to the median reported in June.

The median has been above $400,000 in all but one month since the low point for this cycle of $385,000 was reported in December 2008.

Price declines from the prior year have been getting smaller with July being the second consecutive month the decline was in single-digit territory after 16 months of double-digit drops with the largest being 27.0 percent in December 2008.

The 88 condos that changed owners last month had a median price of $218,900, down 23.2 percent from a year ago and off 5.8 percent from the June 2009 median.

The median has been steadily rising since the record low median of $205,000 was posted this January.

Pending escrows - a measure of future resale activity - increased 11.0 percent from a year ago. There were 425 open escrows at the end of July; a year ago there were 385

"The competition in the lower price ranges and increasing sales in higher priced properties have the effect of stabilizing the median price. There’s still unknown certainty out there, but prices appear to have bottomed out.

Message

David Hoshaw
Broker, CRS, GRI, e-PRO
Weichert, Realtors - Hoshaw & Associates
28009 Smyth Drive Santa Clarita, CA 91355
661-287-4466 ext. 226

Labels:

Comments

Post a Comment

Popular posts from this blog

What to look for in a real estate agent

There's a common saying in the real estate industry regarding the vast number of agents in the business: "If you don't have any friends who are agents, then you probably don't have any friends at all." With so many agent out there, how can you make an intelligent decision? Do you choose a friend, neighbor or coworker? Should you work with an agent at a large firm, a small firm, a franchise or an independent? While there's an exception to every rule, and every marketplace has its own nuances, here are some solid rules to apply when you want the best representation to protect your interests. Demand Experience Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate. Look for Commitment Another problem we have in the industry is a large number of part-time and recreational salespeople. No matter how long they have been in real estate, their lack of f...
Post a Comment
Read more

A Down Payment Anomaly

Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are finding that smaller down payments result in better interest rates—but also higher payments. Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable to borrowers who put down 20 percent to 25 percent--partially because the GSEs consider these borrowers to be more of a credit risk since they are not required to purchase private mortgage insurance. According to Fannie Mae, borrowers benefit from this industry practice because they are able to leave themselves a financial cushion by not issuing larger down payments, and can instead save the extra money for emergencies. It is important to note though that smaller down payments mean higher monthly payments because the loan itself will be larger. To read the full story, please click here Message David Hoshaw Broker, CRS, GRI, e-PRO Weichert, Realtors - Hos...
Post a Comment
Read more

Getting the Best Tax Break When Selling Your Primary Residence

Getting the Best Tax Break When Selling Your Primary Residence When you sell your primary residence, you may be able to save thousands of dollars by taking advantage of one of the best available tax breaks.  Provided that you have lived in the home as your primary residence and owned it for at least two of the past five years, when you sell your home, you can exclude from income up to $250,000 of gain ($500,000 for married couples filing jointly).  This tax benefit can be used once every two years.  Did you know that a married couple can qualify for the entire $500,000 exclusion even if only one spouse has owned the property for two years?  Or that you don’t need to own the home and use it as your primary residence the same two years?  Read on for a few pointers that may help you take advantage of this tax benefit when you sell your primary residence.  Pointer One - $500,000 Exclusion for Married Couples Available Even if Only One Spouse Owns Home for...
Post a Comment
Read more