The number of homes for sale in Santa Clarita has drastically decreased over the last year or so. So, how’s the real estate market in Santa Clarita? The answer is, median home prices are rising steadily and the days on the market for a seller is dropping. Good news.
Interesting to note that the number of closed sales over the past several years has yo yo’d around a fairly “even” line. I might have expected that if it were completely all about a rise in demand the number of sales would have been increasing since at least about July 2012. But it has been somewhat steady. So, is it all about demand, or only about a drop in inventory? Why a drop in inventory? Another blog coming on that.
One thing appears to be sure, as the two lines get closer and closer together, we would expect that we are going to see a greater escalation in prices. But is that necessarily the case? Markets also have a way of reacting………..
As that escalation in price occurs, and less home owners are underwater, (national statistics say that 40% of those formerly underwater are now above water) there will be an expectation of an increase in number of homes being put on the market. Will this cause a leveling off of prices? We are beginning to see some leveling off of the inventory and even a trend upwards. Will this trend continue? The next few months will tell.
Will investors begin to pull out of the market place if prices continue to rise and and cause a leveling off of prices? Again time and prices will tell.
Will the first time home buyers and move up buyers finally be able to jump in without competing against cash offers when investors pull out? Will they then keep those $ values rising with multiple offers still being a part of the market?
Will the investors be around for quite some time and still compete with the person actually looking for a home and we see an even greater escalation?
Hard to tell exactly what is going to happen as yet and how the market will react, but I do know, there are a lot of buyers out there who have not been able to buy – offer after offer and no success. A shadow inventory of buyers, if you will. All these buyers will have a role to play in how the market trends.
The affordability index is still good, interest rates are still low. Buyers are eyeing any home that comes on the market………who really knows how quickly the affordability index may change. But change is certainly in the air.
Spring is here and Summer is around the corner…….The real estate Market Activity Index for Santa Clarita is showing to be clearly in the seller’s court with very low day’s on the market and mulitple offers. A lot of potential sellers want or need to move up. As soon as they see a value rise in their home they can work with, they will be on the market. It seems buyers will be there to snap it up!
Perhaps we need to hold on to our hats!