Santa Clarita Real Estate News

Santa Clarita Valley Sales Up 45%

For the eleventh consecutive month, sales of existing single-family home surged compared to the prior year throughout the Santa Clarita Valley and as the rate of falling home prices appears to be easing, the Southland Regional Association of Realtors^® reported .

A total of 167 homes closed escrow during February, an increase of 52 transactions or 45.2 percent compared to activity reported 12 months ago.

Every month since February 2008 has posted significant increases in activity. The local market hit bottom in January 2008 when a record-low 99 homes sold. That's a far cry from the record-high 405 transactions in June 2005, the height of the recent boom market.

Condominium resales also posted significant gains with the 45 transactions up 21.6 percent over year ago totals.

Condo activity has posted nine consecutive months of increased activity, although like single-family homes the low point came in January 2009 when a record-low 31 condos changed owners. For comparison, the record high of 205 condo sales was set in April 2003.

"The market clearly is in transition with a growing number of buyers realizing that similar opportunities to purchase a home at a very favorable price have not been seen since 2003," said Nancy Starczyk, president of the Association's Santa Clarita Valley Division. "The market will remain volatile until all of the distressed properties have worked their way through the system, but we're inching closer to a normal market with each passing day."

Starczyk and Jim Link, the Association's chief executive officer, said the rate of decline in home prices is abating as activity heats up and buyers compete for the best of what is a relatively limited inventory.

There were 1,284 active listings on the market throughout the Valley at the end of February, a decline of 40.4 percent from a year ago and a drop of 6.1 percent from January.

At the current pace of home and condo sales, the active listings is a mere 6.1-month supply, only slightly above the 5- to 6-month inventory believed to represent a balanced market where neither buyer nor seller hold a negotiating advantage. "It's true that qualifying for a loan to purchase a home is much more difficult than just a few years ago," Link said. "Yet interest rates keep dropping lower and plenty of people with the help of their Realtor are navigating the process.

"The end of this down market may be approaching," Link said.

Resale prices remain soft, although the rate of decline appears to be abating and month-to-month increases becoming more common.

The median price of the 167 single-family home that changed owners last month was $408,000, down 16.7 percent from a year ago, but up 3.0 percent from January. With few exceptions, the median has been falling compared to the prior year since hitting a record-high $643,000 in April of 2006.

The condo median price of $225,000 reported this February was off 27.7 percent, but up 9.8 percent from January. After rising for years, the condo median has been sliding virtually every month since January 2006 when it hit the high point of $397,000.

"Prices will remain soft until foreclosures and short sales are behind us," Starczyk said, "but I do not expect to see any further dramatic declines. If anything, given increased sales activity, prices may stabilize, but neither do I expect any dramatic upward movement in prices anytime soon."

Pending escrows - a measure of future resale activity - suggests that this Spring will be like many others with increased activity as the traditional home buying season appears. There were 316 open escrows throughout the Santa Clarita Valley at the end of February, an increase of 27.2 percent over a year ago.