Current Santa Clarita market statistics provided via the Southland Regional Association of Realtors, the SRAR. That is our local Board of Realtors and where I'm a full-fledged member in good standing.
During today's real estate radio show, I was crunching the numbers and talked about the 5 top housing market indicators that I view in relation to the local housing market.
One of the stats that I typically run jumped out to me and I wanted to give further clarification pertaining to it.
38% of the homes experience at least 1 price reduction
This is at least a single price reduction before closing escrow. There are plenty of homes that go through multiple price reductions during their listing period.
The Cities analized were Castaic, Canyon Country, Newhall, Saugus, Stevenson Ranch and Valencia California. My Santa Clarita real estate inquiry and data was also used restricting the results to only Residential real estate.
In some cases, the listing cycle is relatively short. This is due to the home that has been listed for sale moves quickly. This happens when the home is priced right by an expert in the real estate business and when that same property has a high buyer drive within the local market.
Homes that meet those specific criteria move quick and can have been sold before processing or within a very compressed escrow time.
For the data point, I ran the current residential listings that meet three criteria within the local Santa Clarita housing market.
I ran the current active listings, those homes which are in escrow, but where the sellers want them to still be shown and still have additional offers. The final status that I included are those Santa Clarita real estate listings which are being shown currently as "pending". The pending status is where the homes are in escrow and where the listing agents are confident they are going to finish and close escrow.
The real estate and housing markets are home buyer and seller dependent. This is one example of the market changing. People are "used to" a particular type of rhetoric that they are hearing buzzing in their ears. They have received, over and over, intelligence about real estate friends, family, and other sources.
My viewership for our YouTube channel and the listens to my HousingRadio show has grown over the years. I have been able to increase my audience whereby people I run into recognize me and find that I'm easy to talk to. So, they ask, "How is the market doing?"
Bad real estate market data and updates can be the reason why bad decisions are made. I want to keep my clients informed and safe from making mistakes.
When you are ready, hit me up and I'll take great care of you. Be safe - I'm Connor with REMAX and I'll be here when you are ready to have your real estate WON.
Real Estate Radio show transcription:
Housing Radio: (00:01)
Good to everybody. Connor Macgyver, a lot of people ask us how we get that market data and how we compile it so everybody knows what's going on here in the Santa Clarita Valley market. And I'll tell ya, I do have kind of a cool system. So let me give this to you and I'll show you what we do when it comes to publishing, publicizing the market data so you can actually see it and so people can take small bite-sized chunks of it. So let's go ahead and pull this out here. I just need to find the right, the right access point. So we're going to go ahead and go to SCV blog.
Housing Radio: (00:41)
And one of the most recent articles I've written actually the most recent, so hence this video is about five recent trends for Santa Clarita real estate. So I look at five things when I'm putting the market together, courses, other dynamics that get involved. But these are like the main, the main things that are looked at with regard to Santa Clarita real estate, wanting to know and answering those questions that people have pertaining to the local market. So the first thing is gonna talk about new construction, new homes. If the new builders are pulling out of the market and they're leaving town, it's probably a good indicator that something bad is about to happen. This is something that we did see last real estate cycle. They weren't all abrupt like that. All of a sudden, one day they're one day gone. But towards the end as we got closer to 2007 they definitely were slowing down.
Housing Radio: (01:31)
So that's something to watch right now. Currently in Santa Clarita Valley and this is the uh, the Intel year. So let me pull this. You'll see here in Santa Clarita valley, there's just a ton of new housing construction, new Santa Clarita homes.com, new Santa Clarita homes.com. That's my system. But you'll see, I mean there's just, there's just so much building and they're continuing to build more. They do have a lot of new inventory that's going to be coming as well. Next thing we want to look at as the resale inventory and when we want, when we're watching this dynamic. As you can see here, the a, the graphic has been very sick lik like all of real estate up and down. Of course now we're swinging into an upward trend where we're starting to gain more inventory on the market. If there's enough buyer drive, then it's gonna absorb that inventory.
Housing Radio: (02:23)
If there's not enough buyer drive, then we're going to start building inventory. So instead of a hundred units or so, we're gonna have 200 300 as long as that keeps going, then we're going to start getting into different real estate dynamics in the local market. We're going to transition from a sellers market into the inbetween, which is kind of the middle between seller and a buyer's market and then finally into the buyer's market. Another great statistic to look at though happens to be that. Now the next one we're gonna look at, and I also talked about foreclosures, bank owned properties, real estate room listings, and short sales default sales as being part of that indicator. Because if we start a lot of those property types coming on the market, again, another great indicator that the market is starting to go from being somewhat healthy into a distressed mode.
Housing Radio: (03:09)
Now taking longer to sell real estate. Looking at those timelines, we're doing that as well because the longer it takes to sell houses, it's gonna indicate either a lot of inventory, lower buyer drive, but most likely it's a lore lower buyer drive. Another indication with the, with regard to market out here in Santa Creative Valley, we look at these things now when you're looking at real estate down, I will tell you that you want to look at a larger picture, a larger snapshot of what's going on, not week to week or maybe even month to month. You want a good, a good chunk, three, maybe four months, so maybe working on quarters per year, every three or so months looking at that data. What happens is, and I put this in here in the fake real estate news cycle because there's fake news everywhere. There are a lot of, a lot of companies, a lot of people syndication websites or whatever that will put out information that might be true on some fronts but ultimately are going to not be true in the overall case.
Housing Radio: (04:13)
They might put out things that have changed this week but aren't going to be prevalent next week so you can see that they'll take small tidbits of information like a market change or a market shift going from the winter months into the summer months. Do those comparisons and then throughout that data getting people nervous or whatever, whatever the data is going to support, they're gonna throw it out there. Being fake real estate news. We want to look at larger pieces anyway. I think it helps. I'm interest rates is all our, also something incredibly important to look at. One of our local best lender here in Santa Clarita. He did help us prepare this soil put together where those rates were as of yesterday, the 17th but again, something to look at and we're at four or less just depending on your credit score and all this other factors, but when interest rates are high or if interest rates go up or down, that's gonna again cause the market to start to fluctuate.
Housing Radio: (05:15)
There's rumors that you know the powers that be want to get those interest rates down to 3% which will really kick off that market moving not only in resale fashion, but it would also kick off the market in refinance fashion. So in the resale and refinance world, it'd be incredible because even yours truly they went down to 3% would be refinancing the real estate wheel. But again, that's somewhat of a rumor. We'll see if that even happens. But right now they're just about four and all time. Not Bad, not bad at all. Really, really good interest rates. So that's something else. Price reductions and the Santa Clarita Valley. Now, currently we're 38% a, I read to the math that so a 38% of the listings out out of these 1,130 to a 466 excuse me, 432 had their prices decreased. So we see that whenever we see those numbers, it looks like the market's starting to change.
Housing Radio: (06:13)
This is month over month, so you're going to want to look at that data as well. What properties are having their prices changed? Of course, if it goes the other way, you see a lot of sellers starting to increase their prices online of the real estate they have for sale or something's going on, especially if they're getting those higher prices. The market has started moving quicker. I'm Connor archiver. Please check out STV blog.com Eretria right here to STB nest and I am absolutely honored that you took the time to watch this video. When you're ready, I'm here, Conor macgyver, remax, be safe and we'll talk to you soon.