Home Sales Slowdown in the Santa Clarita Valley May Be Easing
Despite ongoing national reports about slow home sales and troubles in the home loan industry, a total of 111 single-family homes and 38 condominiums sold during November throughout the Santa Clarita Valley, the Southland Regional Association of REALTORS® reported.
The single-family resale total was down 39.3 percent from a year ago, a decline that was below the 50 percent or higher drops reported in other Southern California communities, suggesting that local buyers recognize the opportunities that exist in today's market.
"I don't think you can time the housing market anymore than you can time the stock market," said Larry Gasinski, the 2007 president of the Association's Santa Clarita Valley Division. "How do you know when any market has hit bottom and is on its way back up again?
"It's a buyers' market today so why not make an offer?" he said. "If you think prices will drop 10 percent over the next year, open up with an offer that is 10 percent lower than current sales comparisons. Waiting could mean the home you love will not be there, that favorable loan interest rates will be gone, or that you'll be competing with many more prospective buyers."
The 38 condos that sold were down 56.8 percent from a year ago when the total was 88 sales. The November tally was the lowest condo sales total on record, beating the prior low of 42 sales set in October 2007.
The median price of single-family homes sold during November was $522,500, down 9.9 percent from a year ago. The median has been falling slowly since the record high of $643,000 was set in April of 2006. After nine years of increases in the annual median price, 2007 is likely to post a decline of about 5 percent.
The condominium median price reported during November of $316,000 was down 13.4 percent from November 2006, but increased 1.9 percent from the median reported in October.
The condo record high of $397,000 was set in January 2006.
"The resale market in the Santa Clarita Valley appears to be finding a new equilibrium faster than other communities," said Jim Link, the chief executive officer of the Southland Regional Association of Realtors. "Until the lending industry starts making jumbo loans higher than $417,000 the recovery will be very slow. Still, the region's economic fundamentals are good and a growing number of buyers recognize that there are opportunities today that didn't exist just a short while ago."
A total of 2, 341 properties were listed for sale throughout the Santa Clarita Valley at the end of November, an increase of 7.2 percent from a year ago, but down 4.2 percent from this October, which suggests that the pace of listings is slowing.
At the current rate of sales, the active inventory represents a 16-month supply - a clear indicator of a buyers' market and well above the desired 5- to 6-month inventory that would represent a balanced market.
While statistics do not exist to prove the point, it is believed that today's inventory is far less than the totals reported in the early 1990s when the nation and the state were going through a deep economic recession.
"The market will remain stymied until more prospective buyers realize that affordable home loans are still available and that opportunities in today's market outweigh the risks of waiting," Link said. "The elements that made Santa Clarita desirable during the boom years - a great community, excellent value for the housing dollar, and a marvelous lifestyle - ensure that the local resale market will recover faster than other communities."
[from SRAR homepage Jan 11, 2008]
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment