After having a lackluster start at the beginning of 2014, we’re seeing a huge gain for attached homes.
Numbers recently released by the Southland Regional Association of Realtors show the median price of condominiums in Santa Clarita ticking upward again in June of this year. This is the third straight month of significant gains, increasing by $9000 in equity over May. Condo prices have increased a total of $40,000 since the beginning of 2014.
The rise and fall…and rise of condo prices.
Condos are a great value, whether you’re a first time home buyer, downsizing, or looking for an investment property, they are full of potential from a value perspective. Those looking to purchase a condo should consider their financing options however, as the FHA (Federal Housing Administration) may place limits on financing for certain condo complexes. These limits are based on a few factors, including HOA guidelines and owner/tenant ratios. Contact us for a list of FHA-approved condominiums. Continue reading Condos Prices Jump Upward For Third Straight Month
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
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
Home mortgage rates continue to drop as 2013 nears an end.
Home buyers were in a bit of a struggle over the summer. Not only did interest rates take a 1 percent jump, but available housing inventory for sale was still pretty scarce. Prices rose due to such a high velocity demand from not only buyers who wanted a residence to live and/or raise a family, but investors were still snatching up properties as well.
With the considerable rebound in housing prices, it’s no wonder that buyers are back in the game. Knowing that the investment they make will begin to grow equity almost immediately whetted the whistle of those looking for homes, and sellers took complete advantage. Many home sellers experienced multiple simultaneous offers, putting them completely in the driver’s seat as far as price, terms and conditions against the buyer whose offer was finally accepted.
A slight shift in the real estate market that turns into a win-win for both buyers and sellers.
As interest rates rose over the summer, housing sales began to level off slightly, bringing about a slow rise (VERY slow!) in available houses for sale. While inventory is still low in Santa Clarita, it has raised a few hundred units from around 300 at the end of summer, to around 500 in October. Now, this is typical as the year winds down and the holidays near. Many sellers consider holding off listing their home until after the new year, although there are many who are serious enough about selling that they will continue to offer their homes to buyers straight through. Continue reading Another Reason To Buy a Home Now: FHA Loan Rates Dip Below 4%!
Positive signs continue to aid full recovery of the real estate market.
For the first time in five years, the average price of single family homes in the Santa Clarita Valley rose to $450,000, according to the Southland Regional Association of Realtors. And while condominium prices dropped slightly last month, condo sales volume reached the highest level since 2006. This is great news for anyone considering selling their home.
This news comes on the heels of other positive signs in the Santa Clarita Valley real estate market, including a drop in interest rates and a slight rise in available home inventory for sale, all good news for home buyers.
Short Sales and Bank-Owned Properties Dropping As Well
The number of Pre-Foreclosure Sales, or short sales, has also dropped dramatically in the Santa Clarita Valley. Where as recently as last year we saw short sales accounting for over 47 percent of overall real estate sales, in August of this year they stand at 18.7 percent. Bank Owned, or Real-Estate-Owned (REO) properties stood at slightly over 4 percent. Continue reading Santa Clarita Housing Prices At Pre-Recession Levels
Real estate recovery netting higher yields for SCV home prices not seen since early 2008.
With another indication that the real estate recovery is in full swing, housing information for June 2013 shows prices for single family homes in the Santa Clarita Valley averaging at $430,000. This is roughly the same sale price average as homes sold in the fall of 2008, just before the onset of the Great Recession that led to falling housing prices and a rise in mortgage foreclosures. Average Santa Clarita Valley condominium prices averaged $263,000 in June.
As mentioned in a previous article, we’ve seen housing prices jump overall in Southern California by nearly 30 percent between June of 2012 and June of 2013.
Santa Clarita foreclosure sales way down compared to last year.
According to the Southland Regional Association of Realtors (SRAR), standard sale homes (Homes for sale that are not facing foreclosure or any other economic threat) have risen over 30 percent since June of 2012. We’ve seen an increase to just over 69 percent for standard sales, compared to 32 and a half percent in June of last year. This is due in large part to the recovery of equity in homes that may have been “upside down” (Where the home value is less than the value of the loan) as a result of the recession. Continue reading Santa Clarita Housing Prices Close To Pre-Recession Levels
Housing prices in the Southland rise to a new year-over-year record.
RealtyTrac, the company that collects and reports nationwide statistics and trends for the real estate industry, recently reported that housing prices in Southern California jumped 28.3% in June 2013 over June of last year. According to RealtyTrac, this is the largest jump in housing prices since they began generating data in 1989. This includes double digit jumps for the Santa Clarita housing market as well.
Los Angeles County had the largest price jump at 30.8 percent year-over-year, with Riverside County a close second at 30.4 percent. Locally, Santa Clarita housing prices have seen an 18% rise.
The real estate market has returned, but will it last?
We’ve seen a tremendous turnaround in the real estate market in the past few years, dramatically so from the dark days following the economic issues that sparked the so-called “Great Recession” back in 2008. Interest rates remained steady, and even dropped to historic lows thanks in part to the Federal Reserve guaranteeing mortgage backed securities to the tune of $85 billion per month. With the economic rebound came more qualified home buyers who were ready to take advantage of the low mortgage rates. This, coupled with “boomerang buyers” (Home buyers who may have left the market a few years earlier due to short sale or other methods of avoiding foreclosure), have led to a buying surge. Of course, lower than normal housing inventory for sale sparked what turned into a seller’s market, which has helped spur the dramatic rise in home prices. Continue reading Southern California Home Prices Jump Over 28% In June