Realtors® negotiated the sale of 194 single-family homes in the Santa Clarita Valley during July, the Southland Regional Association of Realtors reported. That total was down 18.1 percent from a year ago and 5.8 percent below the June tally.
"The local home market is continuing to see a correction," said Larry Gasinski, president of the Santa Clarita Valley Division of the Southland Regional Association of Realtors®. "Some prospective home buyers are sitting on the sidelines because they are unsure of where the market is going.
"Yet, by waiting they may find themselves priced out of the market," Gasinski said. "Even if prices fall slightly over the short-term, which seems unlikely, higher interest rates may offset any perceived price advantage." The median price of the single-family homes sold last month was $570,000, down 5.8 percent from a year.
The median has been hovering around the $600,000 mark since the record high of $640,000 was set in April of 2006.
"Despite the uncertainty caused by problems in the home financing industry, home loans are still available," Gasinski said," especially for buyers who can bring at least 5 percent for a down payment and can provide documentation of income."
Realtors® also negotiated 83 condominiums during July. That figure was down 32.0 percent from a year ago but up 16.9 percent from this June.
A total of 286 properties were open escrow - a measure of future activity - at the end of July. That was down 18.3 percent from a year ago July and off 2.1 percent on a month-to-month basis. Both numbers are better than what has been reporting recently, suggesting that the Santa Clarita Valley housing market is beginning to level off.
"The local market is in the doldrums right now," said Jim Link, the Association's executive vice president. "Buyers who are unfamiliar with Santa Clarita are hesitant to jump in until they can feel the wind blowing in specific direction. Yet, by then, they may have missed great opportunities.
"Today's inventory of homes listed for sale offers the best selection in years," Link said. "With more an more people coming to California, when this market correction is finished, the inventory most likely will get tight once again."
A total of 2,358 properties were listed for sale at the end of July. That was down 5.4 percent from a year ago and up only 1.6 percent from the total reported at the end of June of this year. At the current pace of sales, the inventory represents an 8.5-month supply, considerably improved from the less than I-month supply that was common during the recent sellers' boom, yet only slightly above the 5- to 6-month supply regarded by industry experts as the sign of a balanced market.
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