While mortgage rates are back on the rise, they are still phenomenally low for home buyers.
After years of continually dropping to historic lows, mortgage interest rates are slowly on the rise. That being said, as of this posting they are still hovering below 4 percent.
While rates are rising, it’s important to note that home sales, as well as prices, are also still on the rise.
Santa Clarita has experienced an 11 percent jump in home prices for both single family residences and condominiums in the past year, and overall the market has improved into the double digits across the country as well. Most people know and understand a lot about trends in real estate sales, such as supply and demand, economic conditions that drive prices down and/or up, and indicators for growth and expansion, but how is it that interest rates have remained so low during the so-called “Great Recession,” and what are some of the factors driving them upward again?
Mortgage Backed Securities and the Federal Government
We saw many bad things happen in 2007 and 2008 with the fall of banks and lending institutions deemed “too large to fail.” So much so, that by the Fall of 2008, the Federal Government stepped in to buy up Mortgage Backed Securities to the tune of $85 billion per month. Mortgage Backed Securities (Also known as MBS) are loans bundled into packages and sold as stock options whereby money is based on the principal and interest payments on the packaged loans. That’s the definition in its simplest form, however MBS can be much more complicated than that based on the offerings and desires of the investor. Since November of 2008, government backed MBS have helped keep interest rates low since the Fed will guarantee a return on the investment. Continue reading Rising Mortgage Rates Affect Re-fi’s, But Not Home Sales
Santa Clarita unemployment rate drops .4% in April while housing prices continue to rise.
According to the State of California’s Employment Development Department, Santa Clarita’s unemployment rate dropped to 5.7% during the month of April 2013, down .4% from the previous month. Santa Clarita’s unemployment rate is 3.6% less than the rate for Los Angeles County, which has a 9.3% overall unemployment rate. The statewide unemployment rate dropped to 9% in April 2013, down .4% from the previous month.
Santa Clarita remains on firm economic ground.
According to city sources, Santa Clarita fared much better than surrounding communities in the wake of the so-called Great Recession, which hit businesses and homeowners alike beginning in late 2007, with much of its impact felt for several years thereafter. While many of Santa Clarita residents did feels the recession’s effects, the city remained on solid economic footing throughout.
Fortunately, the Santa Clarita Valley housing market has bounced back along with the employment numbers. Many homeowners are seeing growth in equity in their properties, and home sellers are experiencing multiple offers and selling their homes at or above listing price in many cases. Continue reading How Santa Clarita’s Unemployment Rate Drop Affects The SCV Real Estate Market
February Real Estate Sales Figures For The Santa Clarita Valley Show An Increase In Property Value For Single Family Homes
According to figures from the Santa Clarita Valley Economic Development Corporation and the Southland Regional Association of Realtors, the Santa Clarita Valley showed an average increase of 5% in single family home values during the month of February.
Median prices for single family homes rose to $379,000 in February from an average of $360,000 in January of this year. Condominium prices also rose slightly in February to an average of $220,000 from January 2013’s high of $206,700.
March Figures Show Agua Dulce At Top Of Pricing Index For Housing
The Southland Regional Association of Realtors reported housing sales figures for the month of March 2013. Valencia had the highest number of new listings at 90 and a median list price of $489,000; followed by Canyon Country with 82 new listings with $400,000 as its price median which is the lowest in the Santa Clarita Valley. Total figures for all of the Santa Clarita Valley for the month of March are as follows: Continue reading Santa Clarita Valley Home Prices Rise While Unemployment Drops
Homes are Selling in the Santa Clarita Valley
It’s true what they’re saying about the real estate market: A recovery is at hand. Higher consumer spending , receding unemployment figures, record stock closings as well as double digit jumps in real estate values in many parts of the country are all great signs of a brighter economic future.
After years of sagging sales and a bottoming out of property values due in large part to what’s now being referred to as the “Great Recession”, we’ve seen a big jump in the Santa Clarita housing numbers.
According to Trulia.com, the average price per square foot for Santa Clarita properties has increased slightly over 15% from the same time last year. Loan applications, which were soft at the beginning of this year, are gaining in volume as buyers come out in force to take advantage of the market with historically low interest rates. With this overall gain in property value, many homeowners once upside-down on their mortgage are once again seeing a return of equity. Continue reading Santa Clarita Real Estate Market Rebound in Full Swing