Santa Clarita Median Home Price Sets Record High

Sales of existing single-family homes and condominiums in the Santa Clarita Valley remained exceptionally strong during September even as median resale prices set new highs, the Southland Regional Association of Realtors reported.

A total of 330 single-family homes changed owners, only two sales or less than 1 percent off from the same period a year ago. The 173 condominiums sold during September – the best condo tally on record for the month – represented a 40.7 percent increase in activity or more than 50 transactions.

“Buyers might be a little more thoughtful, a little more hesitant than a year ago before they agree to buy a home or condo,” said Mike Davis, president of the Association’s Santa Clarita Valley Division, “but they are Santa Clarita Valley Median Price Sets Record High not waiting very long, they still have great faith in the market and most buyers are driven by a burning desire to own a home in the Santa Clarita Valley. ”Prospective buyers in other communities may ask questions about a ‘bubble,’ but not in our Valley,” Davis said. “There are still far more buyers than there are properties listed for sale in all price categories.”

Indeed, the inventory of properties listed for sale remains low, although there are early signs that it may be building on a month-to month basis. The active inventory stood at 1,123 listings at the end of September, down 14.3 percent from a year ago, but up 32.7 percent over the August 2005 tally.

“A 33 percent increase is significant,” said Jim Link, the Association’s executive vice president, "yet the number of total listings is still so low that any increase will have a dramatic effect.” Link and Davis agreed that it will take many months of increases before the active inventory builds to the five- or six-month inventory that offers somewhat equal footing to buyers and sellers, instead of the sellers’ market that has reigned for many years. “To achieve that kind of balance would require an active inventory in excess of 2,500 listings, not the paltry 1,123 listings,” Davis said. With interest rates on home loans on the rise from historical low levels, Davis and Link said they expect to see an influx of buyers who have been on the fencing waiting to see which way the market will go. That surge may further strain the limited inventory and add even more upward pressure on prices.

The median price of the 330 single-family homes that changed owners last month was $594,500, up 20.1 percent or $99,500 over a year ago. It broke the prior record high of $580,000 reported in July and August of this year and inched closer to the $600,000 benchmark – a level that seemed unthinkable half a decade ago when the annual median resale price was a mere $247,400. The median price of the 173 condos sold last month also hit a record high of $379,900. It was up 17.3 percent over September 2004 for an increase of $55,900.

Pending escrows – a measure of future resale activity – fell 7.7 percent from the figure reported a year ago, but the decline could be related more to the limited inventory and seasonal factors. Sales typically taper off as school begins, holidays approach and the year winds to a close.

Linda Slocum, Your Santa Clarita Real Estate Expert!
HoneyStartPacking.com

Source: SRAR Realtor Report 10/25/05

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Linda Slocum
HoneyStartPacking.com
Santa Clarita Real Estate