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.
These numbers also represent very promising signs for home sellers, especially those who were once “upside down” on their home mortgage (Meaning that the value of their home loan was more than the fair market value of their property). The rise in housing prices and home sales in the past year have contributed greatly to the overall recovery of the real estate market, which is welcome news on an even larger scale as we continue to see positive signs in our overall economy.
Good News For Home Buyers
Earlier this year, many home buyers in the Santa Clarita Valley fought ferociously with each other over limited real estate inventory, driving a market completely dominated by home sellers. While this did help to trigger a dramatic rise in property value, such low inventory can lead to volatility where economic and market predictions can become hazy. The big question on everyone’s minds a few months ago was “How long can this last?”; not the best way to proceed on a long term real estate investment strategy.
However, we’ve seen a slight rise in available residential inventory for sale in the Santa Clarita Valley, standing at just over 500 homes at the end of August. Still below the average of around 1200, but a good start in helping balance out the market to more stable conditions that will benefit both buyers and sellers in the long run.
Questions about the real estate marketplace?
Team Avalos has the answers. Contact us for a no obligation conversation about your real estate goals.
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