Santa Clarita Valley Home Sales Defy Statewide Trend

Local Realtor Association Says Market is Just Fine, Thank You

While other regions of the state are seeing a slowdown in home resale activity, the Santa Clarita Valley showed remarkable vigor during the first quarter of 2007, the Southland Regional Association of Realtors reported.

Sales of 608 single-family homes were up 18.1 percent over the same period a year ago and the 261 closed escrows reported this March were 14.0 percent higher. Condominium sales declined 4.9 percent to 274 transactions for the 1st quarter and were off 6.6 percent from March 2006.

For comparison, sales activity throughout California during March was off 20.8 percent from a year ago.

"Because local activity is down from the boom of several years ago even some Realtors would say higher sales can't be, yet I just put a home in escrow and I've been busier than I had been," said Larry Gasinski, president of the Association's Santa Clarita Valley Division. "Santa Clarita is a highly desirable isolated pocket that continues to draw people seeking a great lifestyle."

Gasinski said he was not surprised to see condo sales decline slightly.

"As prices soften on single-family homes and the selection widens," he said, "it makes sense that more people would opt to buy a home over a condo."

Despite public perception that prices are plummeting and the inventory soaring, both reflect only methodical, moderate changes, said Jim Link, the Association's Executive Vice President.
"Statistics suggest that prices will remain relatively flat or decline slightly, but not enough to warrant waiting a long time to buy," Link said.

The median price of the 608 homes sold during 1st quarter 2007 was $579,300, down 6.4 percent from a year ago, the Association reported. During March of this year, the single-family median was $580,000 off 3.3 percent from the figure reported in March 2006.

The 1st quarter 2007 condo median price was $369,000, down 6.4 percent from last year. And the condo median reported this March of $385,000 was off a mere 1.0 percent.

"Perhaps the 1st quarter trend with higher sales will continue as sellers adjust to the new realities and buyers realize that opportunities abound," Link said. "Actually, it's refreshing to experience a market that is balanced, where sales come at a steady pace."

Link and Gasinski noted that, despite reports to the contrary, there is not an excessive number of properties listed for sale. At the end of March the active inventory was up 14.6 percent to 1,953 listings. Of that number, 1,426 were single-family homes and 527 were condominiums. The March inventory was down 7.3 percent from the February total.

At the current pace of sales those 1,953 listings represent a 5.5-month supply - precisely the point where real estate experts believe the market is balanced between buyers and sellers.

"Today's inventory offers choices to buyers," Gasinski said, "but it is not a glut, the market is not flooded with listings. Wise buyers and sellers know the difference and understand what it means."