Home prices hold fairly steady going into 2015 in the Santa Clarita Valley.
January showed single family homes dropping in median price by $15,000, which is not uncommon for this time of year as sales slow down slightly after the holidays. What’s interesting is that condominiums in the Santa Clarita Valley increased in January by $15,000 over December 2014. The last time the SCV saw condo prices jump (rather than fall) in January was in 2006.
This interesting rise in condo prices could be attributed to a few factors:
Federal Housing Administration (FHA) guideline changes for first time home buyers.
The FHA has made several changes to their approach toward first time home buyers in 2014. This included initiating an incentive program called Blueprint For Access. They have also reduced the cost of Private Mortgage Insurance by about 35 percent.
Interest rates have remained low.
Interest rates have remained below 4 percent for several months, prompting some if the largest gains in loan applications for the month of January that the lenders have seen in quite a while. These low rates have improved purchasing power, especially for first time home buyers.
Fannie Mae and Freddie Mac reducing down payment requirements.
Fannie Mae and Freddie Mac, the two privately held government institutions that back many loans had tightened up lending requirements as a result of the recent recession. Understanding the need to address first time home buyers and others who may find it difficult to come up with a 20 percent down payment, these institutions have lowered their down payment requirements, allowing qualified borrowers to obtain a home mortgage with as little as 3 percent down.
Is it time for you to venture into home ownership?
Team Avalos Real Estate is your choice when it comes to buying or selling a home in the Santa Clarita and San Fernando Valleys. We are trained, experienced, licensed, full-service Realtors® who are ready to help you reach all of your real estate goals. Contact us for a no obligation consultation, and let us help you achieve success.
Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Office: (661) 290-3743
Carlos direct: (818) 399-4093
Rose direct: (818) 590-2077