Home sales in the Santa Clarita Valley during January posted a record low of 99 transactions, down 42.4 percent from a year ago when 172 single-family homes changed owners, the Southland Regional Association of Realtors reported.
The prior record low of 105 home sales was recorded in September of 2007 while, for comparison, the record high of 405 sales was set in June 2005.
Likewise, a total of 31 condominiums closed escrow last month, down 57.7 percent from January 2007 and the lowest tally on record. The prior record low of 38 sales came in November 2007 while the record high of 204 sales was set in April 2003.
"Buyers are expecting whopping discounts and sellers are not being realistic with their asking prices," said Doreen Chastain-Shine, president of the Association's Santa Clarita Valley Division. ‘'There are plenty of opportunities, but the market is deadlocked, at an impasse, and will remain that way until buyers realize that prices are not plummeting and sellers accept that they no longer have the upper hand.
"The market is moving toward a new balance and there is a slight upswing in activity, some of which is due to seasonal factors," Chastain-Shine said, "but a stable, balanced market will not emerge until both parties get real."
The median price of single-family homes sold during January fell below the $500,000 for the first time in three and a half years. The median price of $460,000 was down 21.8 percent from a year ago and well below the record high of $643,000 set in April of 2006.
Similarly, the condominium median price fell below $300,000 for the first time in three and a half years with the $284,900 January median down 20.9 percent from the prior year. The record high of $397,000 came two years ago in January 2006.
Statistics produced by the Association indicated that the pending escrow total increased 21.9 percent on a month-to-month basis. That supports the contention that next month's sales numbers may be slightly higher.
However, pendings were down 48.7 percent compared to a year ago.
"It will take several more months before we can be certain," said Jim Link, the Associations chief executive officer, "but we believe the market is near or at the bottom of this cycle and we fully expect resale activity to pick up in the weeks and months ahead.
"Sales will not return to pre-2007 levels anytime soon," he said, "but some semblance of normalcy, stability and realistic pricing will begin to emerge."
A total of 2,163 active listings were reported at the end of January, up 22.9 percent from a year ago.
At the current pace of sales, that represents a 16.6-month inventory - a buyers' market by any definition, especially since experts believe a balanced market appears with an inventory of 5- to 6-months.
While statistics are unavailable to support the conclusion, Association executives believe the inventory was much higher during the recession of the early 1990s, a fact reflected by today's relatively modest price declines and one which weighs in against steep price discounts.
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