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
Newhall Land & Farm’s newest master-planned community to begin pre-sales.
Since they broke ground on the first master-planned development in 1967, Newhall Land & Farming Company has continued to help maintain a great quality of life in the Santa Clarita Valley by providing homes and developing neighborhoods that have the entire family in mind.
That being said, their latest development, Villa Metro, offers a variety of family homes that will be situated near the best that Santa Clarita has to offer; including shopping, schools, and easy commuter access.
Featuring a total of 315 homes when completed, the neighborhoods of Villa Metro will be designed with contemporary Mediterranean-themed architecture and a small town vibe. Villa Metro is located off Gladding Way between Soledad Canyon and the Cross Valley Connector, which will give residents ease of access in and around Santa Clarita. It is also located near the Metrolink Train Station for those who wish to take advantage of its commuting opportunities. Continue reading Villa Metro Offers a Variety Of New Homes For Valencia Buyers
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
Educating yourself about your loan options during the home buying process can save you money and frustration.
A recent Zillow survey showed some interesting statistics about what home buyers actually know (Or don’t know) about obtaining a home mortgage loan. Out of 1,000 current and prospective homeowners, it was discovered that:
- 34 percent don’t know what the term “APR” means
- 31 percent don’t believe it is possible to obtain a home mortgage loan with less than 5% as a down payment
- One in four believe that they must close escrow using the same lender who originally pre-approved them for their home loan
Let’s clarify these home mortgage myths, shall we?
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