How’s the Real Estate market in Santa Clarita? Information provided in this series of blogs covers “How’s the market?” topics. Today we look at how the Santa Clarita real estate market appears to stand at the end of the first quarter of 2013.
More and more people have been asking me the question “how’s the real estate market in Santa Clarita” and it’s nice to be able to report good news – a change from the past 5 years of doom and gloom from everywhere!
I have been listening closely to what is being spoken of in real estate meetings, the things talked about by my fellow real estate agents, and I have included those comments and my own experience and observations in my analysis.
I have also looked at the Santa Clarita real estate market statistics and it seems there is a pattern of real estate observations emerging that is not unlike many other cities in the nation. So let’s get at it! Single family homes only in this blog – condos and townhomes in another blog. Areas included in the numbers are Valencia, Stevenson Ranch,Saugus, Canyon Country, Newhall, Castaic, Agua Dulce and Acton.
How’s the Real Estate Market in Santa Clarita at the End of the First Quarter of 2013
How’s the real estate market in Santa Clarita at the end of the first quarter compared with 2 years ago? Let’s look at some graphs. One of the first Santa Clarita real estate market graphs we can look at is a graph that shows what has been happening over the last two years, as compared with the last 3 months. We will look at the number of homes for sale on the market as compared with the average number of days those homes were on the market till they sold, for that same month.
Santa Clarita Real Estate Market Analysis – Number of listings vs average days on the market
My own experience bears out what is shown. Number of listings vs days on the market for SANTA CLARITA, CA
- SCV # listings vs days on the market
Doing a market analysis for what the Santa Clarita real estate market has been doing in the last 3 months (first quarter of 2013) shows that not only have the number of real estate listings available to buyers in Santa Clarita real estate market gone down compared with the same periods in 2011 and 2012, the average number of days on the market has also decreased, and quite dramatically.
Buyers are increasingly faced with less homes to look at and make offers on, and sellers are finding their homes selling very quickly, in some cases within the same week (this varies according to price range).
Buyers with financing problems, credit problems and low money down are consistently being turned away by sellers who are looking at cash offers or high down payments to avoid appraisal problems with increasing prices which have accompanied the inventory shortage. Often long escrow periods waiting for financing to come through are also avoided, helping those sellers buy up for a lower price than a long wait might otherwise create.
While buyers facing the Santa Clarita real estate market today may often be paying over the asking price, there is still the lure of great interest rates and an expected increase in equity in their new purchase.
Investors have been, and continue to be, a large segment of the Santa Clarita real estate market. Often they are beating out first time home buyers who are frustrated with making offer after offer, month after month with nothing to show for it. This graph indicates that the number of active listings on the market is becoming more consistent and perhaps leveling out.
However, we may see an increase in listings next month as the Spring and Summer periods progress. Still not great news for buyers, as experience tells us that while listings may increase at this time of year, so do the number of buyers looking to move into a new home before the next school year begins. It will be tough out there, and a lot of competition.
How’s the real estate Market in Santa Clarita for real estate buyers and sellers?
It’s great for sellers in the Santa Clarita real estate market! About time! The years since 2008 have been dismal. A great market for buyers too if you can get into a property. Low interest rates and still low prices…..keep trying!
Santa Clarita Real Estate Market Analysis – Number of homes on the market
The previous graph showed a marked decrease in the number of listings and the number of days on the market over a 2 year period. The following graph shows the same in a little more detail but separating out each of the sectors……from the upper to the lower quartiles of the market. While it is obvious that the Santa Clarita real estate market has treated all price sectors of the market pretty much equally (top priced homes on the market following similar trends to lower priced homes on the market), this graph appears to show a bottoming out of the number of listings available in all categories of homes.
There may even appear to be an indication that we may be seeing an increase in inventory available. This probably indicate a change in the seasons as we enter the Spring and Summer markets and the fact that home prices have been increasing and more home owners have equity enough to sell and move.
That is a wonderful improvement for home owners of Santa Clarita real estate!
How’s the real estate market in Santa Clarita for buyers?
The Santa Clarita real estate market may show a small increase in inventory at this time. Does this small increase in inventory at this time help buyers? Probably not a lot since the Spring and Summer period also brings out more buyers and competition remains high none the less. Continued pressure on prices is expected.
How’s the real estate Market in Santa Clarita for investors?
When one asks the question of how’s the real estate market in Santa Clarita for investors, the question really is – when will investors begin to see the capital gains they have made on their low price purchases and begin divesting themselves of their assets? Or the banks for that matter?
Will investors facing the Santa Clarita real estate market hold on to their assets and reap rewards on increased rental prices plus increased equity? It’s still a great real estate market for investors, whether they have already invested or still thinking of investing. Rental values are good and there is pressure upward from potential buyers who cannot buy for lack of inventory.
I expect investors will sell as soon as they get a feeling that housing inventory will meet the demands of the number of buyers out there – what we call a normal market. We are not there yet.
Santa Clarita Real Estate Market Analysis – Market Activity Index
With the days on the market creating a quicker turnover of listings, and the price of homes rising, I expect to see a higher number of listings on the market as more and more home owners find themselves with equity enough to sell and wanting to move before interest rates and/or housing prices move upward.
The Santa Clarita real estate market analysis shows that with pent up demand from first time home buyers and buyers seeking to move into larger housing because of expanding families, (a shadow buyer pool) the days on the market is expected to stay low. (Current market conditions and world events prevailing). Every sector of the Santa Clarita real estate market has seen increasing activity since the mid to end of 2012, the lower sector leading the way.
Through most of 2012 most activity increases were seen in the lower price sector but now we are seeing a dramatic increase in the upper three sectors with the lower sector leveling off. Executive and luxury home interest remained low throughout 2012, but a sudden interest beginning in November 2012 and closing escrows since, shows the upper sector buyers suddenly finding a reason to buy as well.
Many of the upper sector homes selling for under the price of cost to build. Any drop off seen more recently in the Santa Clarita real estate market probably reflects the low inventory which is now seen across the board. Consumer confidence driven activity is expected to push prices up further as the number of buyers increase during the Spring and Summer months and inventory remains low in comparison.
How’s the real estate market in Santa Clarita 2013?
The Santa Clarita real estate market is expected to heat up further in the next quarter of 2013. Hold on to your hats!
How’s the Real Estate Market in Santa Clarita
Santa Clarita Real Estate and Homes – Pia Soper, Realty Executives Valencia Copyright 2002 – 2013