Low interest rates continue to spur home sales in the SCV.
Single family home prices remained unchanged last month from August, holding steady at a median price of $490,000 according to data released by the Southland Regional Association of Realtors.
This comes as good news for sellers at a time when the market begins to shift and slow as the summer season comes to a close. Condominiums did take a slight dip last month, but dropped only $5,000 in median price overall.
Median equity in single family homes has risen $57,100 since January, with condos rising $30,000 over the course of this year. Considering your investment options, where else can you increase your overall wealth by this much in only 9 months?
Will mortgage rates remain low?
A few weeks back, rates dipped below 4 percent for the first time since the spring of 2013. This spurred a lot of not only buying activity, but a mini “refi boom” for homeowners looking to refinance their mortgage to a lower rate. They have ticked up a few 10ths of a percent, and are currently holding just over 4 percent, but even still, these are incredible rates, considering the historical average (Taken over the past 40 years) hovers right around 8 percent. The big question is, of course, will the STAY low? Continue reading Santa Clarita Home Prices Hold Steady Through September
Mortgage rates hit their lowest in 18 months. Now is the time to buy!
Who knew? Recent positive economic forecasts have had a positive effect on the real estate industry. Considering it was just a little over a year ago that some financial analysts predicted interest rates over 5%, it’s amazing to see that, as of October 15th, mortgage rates dropped BELOW 4 percent.
So how did this happen, when rates were expected to climb?
If you go back a year and a half or so to early 2013, we saw interest rates dip to historic lows (Nearly to the mid 3% range). Now, rates have been helped along since November 2008 by federal stimulus package known as Quantitative Easing, which pumped $85 billion per month into the Mortgage-Backed Securities market. This of course gave confidence to investors, which helped the Federal Reserve maintain (and even reduce) loan rates.
In the spring of 2013, the Federal Reserve hinted that they may begin tapering off the amount of monthly stimulus, which caused panic among some investors, who began selling off their Mortgage-Backed Securities. This initiated a brief chain reaction, which forced rates to rise to over 4%, where they have been holding for a little over a year.
In 2014, the Federal Reserve began reducing their stimulus, which is now down to $25 billion per month (Saving taxpayers over a half trillion dollars per year). During this time, interest rates held in the very low 4% range. In the past few weeks, the Fed announced no new changes in rates based on positive economic news in the job and investment markets. In other words, they wouldn’t want to “rock the boat” during what’s becoming an exponential positive economic growth spurt. Continue reading Interest Rates Dip Below 4 Percent
More requests from buyers leave agents scrambling to find homes for sale.
Santa Clarita has seen a decent summer as far as real estate goes. Prices and interest rates have remained steady, and we have seen an increase month over month in listings and sales, as well as inventory for sale.
Lately however, it seems there is a late summer surge with regard to buyers looking for homes and, for the first time in quite a while, some real estate agents are scrambling to find homes that will satisfy their buyers’ needs.
So what might be causing this end of summer buying spree?
Interest rates are still holding in the low 4 percent range for qualified buyers, and even low for certain types of loans such as 15 year fixed and FHA loans. It’s a great opportunity for buyers to flex their purchasing power and get into a home before the end of the year. Continue reading Is Santa Clarita Seeing a Mini Real Estate Surge?
Low interest rates and more homes for sale in the SCV are giving buyers more options this year.
Data released by the Southland Regional Association of Realtors for the month of July show some interesting trends that are creating more opportunities for buyers, while still benefiting sellers as well.
The median price of single family homes dropped by nearly $14,000 from June, and condo prices dropped by $5000. That being said, sellers should take note that price fluctuations typically happen when the market heats up. We have also seen an increase in the number of escrows opened, and closed, during July…more good news for sellers. A total of 500 homes were listed for sale last month, with 415 escrows opened, and 373 escrows closing. Single family home prices are up by $35,000 from July of last year.
We’re still asking the question: “Why rent, when you can own?”
A lot of you who are still renting do so because you may think your choices and options are limited when it comes to buying a home. Pricing and financing are always two big concerns that keep potential home buyers on the fence, but with interest rates still incredibly low, your purchasing power is at its best. As far as financing goes, there are several options that can create opportunities to get into a home with low money (or in some cases, no money) down. Continue reading Is Santa Clarita Shifting To a Buyer’s Market?
Things are heating up in the Santa Clarita Valley real estate market.
This is the perfect time of year to consider buying or selling a home. It’s the best opportunity for families to take advantage of school breaks in transitioning to a new home and a new neighborhood.
In Santa Clarita, we’ve seen single family home prices rise over 15 percent in the past year, and condo prices jump $46,000 in equity. For homeowners, this is great news. Those who are considering selling their homes should see these rises as a great opportunity to get the best value for their home.
Homes in High Demand
Late last year, it was predicted by some financial experts that mortgage interest rates would rise to over 5 percent due to the reduction of federal dollars that had stimulated the mortgage-backed security market. Even with a $30 billion monthly reduction, interest rates are still hovering in the low 4 percent range. This news is bring out qualified buyers who are looking to take advantage of their increased buying power and find the home of their dreams. Continue reading Summer Home Buying Season Hits The Santa Clarita Valley
Home prices take a positive bump in March as Buying Season begins to heat up.
The median price of single family homes in the Santa Clarita Valley continued to rise in March as we saw a 5% increase in prices between February and March of this year. Currently, median home prices are hovering at $462,500, up 10% from this time last year.Year over year prices have risen just over 22%.
While prices aren’t rising month over month quite as fast as in 2013, we are seeing solid gains in home sale. We’re also seeing more homes on the market in the Santa Clarita Valley (Slightly more than double of the available homes for sale this time last year). However, inventory is still very short compared to what’s considered a “normal” market. Currently, there are nearly 800 homes for sale in the SCV, which only reflects about a two month supply. A healthy, balanced “for sale” inventory rests at 1200 homes.
Is it still a “Seller’s” Market?
Home sellers in the Santa Clarita Valley are still in the “driver’s seat” negotiation-wise due to the low availability of homes for sale coupled with continually rising home prices. This, along with interest rates that are still holding below 5 percent, makes for a market that is still pretty hot. Continue reading Single Family Home Prices On The Rise In Santa Clarita
Qualified home buyers can still get an incredible rate on a home loan mortgage, but weren’t they supposed to jump?
Sometimes the finance world can be tricky business. In most cases, it’s not about the money on hand, it’s about the money that might be made. With that regard, many finance experts make their living (and a good one at that!) forecasting the financial market. Think of Fritz Coleman. Only instead of telling you it might rain tomorrow, he tells you that mortgage interest rates are going up.
Well, interestingly enough, many forecasters predicted mortgage rates would jump to over 5 percent by 2014 and yet, they have remained steadily just below 4 1/2 percent.
So why DID financial experts predict a rise in mortgage rates?
Don’t be fooled. Oftentimes financial experts are fairly correct in their predictions about the money and mortgage markets. They take into account not only what’s happening in the real estate market, but the national and international financial markets as well. In this day and age, it’s all integral and relevant to any asset that may increase (or decrease) in value, such as real estate. Continue reading Mortgage Rates Remaining Low Despite Predictions
November 2013 real estate outlook shows brisk sales for homes across the country.
The real estate market typically slows down over the holidays. Usually buyers and sellers decide to hold off on any decisions beginning from right after Halloween to sometime right after the new year. In a typical market, home listings last through the holidays with few chances of getting large numbers of buyers through the door for preview. This also usually means that homes remain on the market longer.
However, a recent report from Redfin.com showed that over 27 percent of homes in over 23 metropolitan areas across the country had homes on the market for two weeks or less through the month of November. This means that yes, homes sold quickly!
According to the Redfin report, nearly 29 percent of homes in the Los Angeles real estate market (Which includes Santa Clarita) sold in under two weeks in November, 2013. The average “days on market” (The number of days a home is listed for sale before a purchase contract is accepted) in the Los Angeles real estate market in November was 22; up only 2 days from October. Continue reading Homes Sold Quickly During Holiday Season
If you’ve been “on the fence” about selling, now is a good time to take advantage of the real estate market.
2013 has been the best year in real estate since before the recession hit the market hard just over 5 years ago. With sales figures reaching double digit percentages over last year coupled with a national economy in full recovery, all signs point to continued good news for the 2014 real estate market.
In the past few years, we’ve encountered many home owners who have considered selling, but have sat “on the fence” for various reasons. Mainly, they wondered if they could get top dollar for their home. If you are considering selling your home for any reason, here are three great reasons why you should get more serious about your decision in 2014:
1. Housing inventory is low.
One thing that has driven the housing sales boom in 2013 was low inventory…too low, actually. There were certain times during 2013 where the Santa Clarita Valley sat on less than a 30 day “supply” of available residential real estate for sale. As it stands now, the SCV only has about a 45 day supply. A good, healthy real estate market in any community will have enough housing to make up about a 6 month supply. In the Santa Clarita Valley, a 6 month supply equates to between 1200-15oo homes on the market. Continue reading Thinking About Selling Your Home in 2014? Here Are 3 Top Reasons Why You Should!
Federal Reserve will reduce amount spent monthly on Mortgage Backed Securities.
For just over 5 years, the Federal Reserve has purchased Mortgage Backed Securities (MBS) to the tune of $85 billion as part of the stimulus program enacted in November 2008. Known as Quantitative Easing (QE), this purchase of bonds helped to shore up the real estate market by helping to keep interest rates low. QE gave confidence for investors because of the security the ongoing stimulus provided to the market.
Late last spring, the Federal Reserve hinted that they may eventually end Quantitative Easing due to marked improvements in the nation’s economy. Investors, nervous that they may no longer rely on the stimulus guarantee, initiated a selloff of MBS that caused mortgage interest rates to jump nearly a full percent. The Fed changed their course late in the summer, and QE continued without any changes.
Changes ahead, but how will they affect the real estate market?
On December 18th, the Federal Reserve announced they would reduce Quantitative Easing by $10 billion per month. Good news from an economic standpoint in that taxpayers will be saved $120 billion during the course of the year. So far, the stock market has reacted positively, with markets closing up since the news was announced. Interest rates have not been affected either…yet…but so far the outlook appears positive.
All of this seems to be good news to start the new year. November saw home prices in Santa Clarita the highest in five years, when values peaked just before the recession took hold. Overall we’ve seen significant gains in the housing market in 2012, and with the improvement of economic conditions, we should see continued gains into 2014. Continue reading Fed Eases Mortgage Stimulus, Rates Hold Steady