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.
But what about the home buyers?
Admittedly, some home buyers in the Santa Clarita Valley have experienced frustration with the lack of available homes for sale. That being said, we’d urge any buyer not to give up their pursuit for the reasons we gave above: Low interest rates and rising housing prices.
Low Interest Rates
These are historical times we’re living in with regard to interest rates. Considering that historically, rates (On average) have hovered around 7 and a half percent. Interest rates have held at nearly historic lows (Currently in the mid 4’s) for nearly a year, and buyers have a great opportunity to leverage some incredible purchasing power to buy the home of their dreams.
Rising Housing Prices
Many buyers decide to stay “on the fence” because they get worried about rising home prices, and think it’s a great idea to wait “until they drop.” Take note: The last time the Santa Clarita housing industry saw a significant drop in prices was on the eve of the economic collapse that struck the real estate industry in 2008. The problem with “waiting until prices drop,” is that you never know when your investment will begin to see a positive gain.
Right now, prices are rising steadily, but not at the unsustainable rapid rates that they were prior to the real estate collapse a half decade ago. Think about it: Had you bought a home in Santa Clarita a year ago, you would have experienced (On average) a 22% increase in the value of your property.
So what are you waiting for? Whether you’re buying or selling, contact Team Avalos to learn more about market conditions that will help you achieve all of 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