Hi everyone. If you have not tuned into our Santa Clarita real estate radio show at HousingRadio.com, then you need to have a listen. I give insight and market tips on how to get the best bang for your efforts with real estate. That includes those of you that are not even considering doing anything but renting forever (to) those of you who are educated and multiple performing home buyers and home sellers (investors too).
It's fun and I have a great time producing our Monday Market updates for the Santa Clarita Valley and beyond within the Greater Los Angeles Communities.
Now - onto the current market conditions for the Santa Clarita Valley - as far as real estate is concerned. We bring to you February 14, 2019 - HUMP DAY.
Foreclosures in Santa Clarita Valley
This part of our Santa Clarita current market conditions is about the distressed real estate inventory that is currently in process and for sale - plus I have put together a list of the sold foreclosures and bank owned homes that have closed in the past 90 days below(click on More). This gives you a good indication as to how the local market is doing.
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When the housing market returns to less than 1% distressed inventory out of the current active homes for sale, then that market is deemed to be healthy.
Santa Clarita real estate is currently healthy and the market health needle is moving from the middle between the sellers and buyers zone back to the seller's zone.
Inventory is still low for this time of year and couple with the current buyer drive, we have started to see multiple offers on homes that were priced aggressively.
Santa Clarita new inventory
There are several things to consider when talking about "new inventory". One is the homes that are entering the market which has been owned before by a person, once new, but now being sold for the first or umpteenth time.
Those homes that are new construction and being offered by the new home builders. (I will have a separate heading talking about new homes and new home construction in the Santa Clarita Valley below)
Single Family Residences, Condos, and Townhomes are the lions share of inventory that I'm hired to represent buyers and sellers with. Every once in a while I will get a call to help someone with buying land, manufactured homes and mobile homes. Those types of residences cause me to not be 100% comfortable in home buyer and seller representation. I want to work with what I know. Those types of construction are not my forte. However - I know great agents that make those types of homes their business. Contact me for a referral if you are interested.
During this past week, my research pertaining to the Santa Clarita real estate market shows that 81 real estate listings entered the housing market for sale. There was a handful that was immediately put on HOLD status. If you are on one of our searches on SCVnest.com pertaining to what you are wanting to buy in real estate, or have our real estate updates for your home being emailed to you, you may have seen a blip on the radar.
There may have been a home that you observed hit your email inbox, but when you clicked on the property it was not there. That is an example of a home being put on hold until further notice. I have a couple that is interested in buying in Valencia Hills, and this was the case this past week.
I have contacted the agent and she stated that the home sellers are not quite ready. (whatever that means). I'd suppose she is attempting to get the "Listing Cred" before it goes "live". The real estate syndication websites will pull the data quickly once the home is entered into the multiple listing service MLS, once that happens, even when the agent puts the home on HOLD - in most cases it still shows as being "active and for sale". That's syndication websites for you.
55 homes in the past week that are for sale in the Santa Clarita Valley had their prices changed. A large majority of those homes were price decreases. If you want to see those homes that have had their prices decreased we have a top link on our Santa Clarita real estate website.
These were listing price to listing price reductions. Something to consider is if those "price reductions" in the Santa Clarita Valley market are actually "sold price reductions" to be compared with the past sold homes. If the latter is the case, we are seeing prices reduce in Santa Clarita real estate.
If those homes with the price changes (reductions) in the Santa Clarita Valley were reduced on listings that were too highly priced in comparison with those past sold homes, then there is not a market correction taking place.
Know the difference. Currently, in the Santa Clarita Valley, we are continuing our flat trend that started just before the main holiday season - October of 2018. I will keep you posted and if there is any change to the direction of home prices, you will be the first to hear about it here on our Santa Clarita real estate website.
12 homes this past week in the Santa Clarita Valley fell out of escrow. Meaning, they are back in the market from being under contract with a home buyer(s) that wanted to buy them.
There are various reasons why this occurs, and most have nothing to do with the current condition of the residence. Neither do these cancellations have to do with something that was "discovered" during one of the inspections that took place when a home buyer is buying a home.
What is the number one reason why a home falls out of escrow? Buyer changing their mind and wanting to buy a different home.
Ethical - depends. Does this change create an issue for the home buyer? That depends as well. For issues such as this, you need to make sure that you have a good, knowledgeable real estate agent who is experienced.
New Santa Clarita Homes - New Construction
This past week I had a couple of clients that I took into the Pardee home's within Skyview in Santa Clarita Valley. We looked at the models and I'm liking what Pardee is doing with not placing too many upgrades inside. Some new home builders really overdo it, in the case of Pardee - I'm liking what I see.
My general disclaimer when I am representing clients with new homes and within a new home builder communities are,
"Imagine this home as a plain box, white with laminate and carpet." "Try to mentally remove all furniture, wall coverings, landscaping and other amenities like accordion doors etc.."
I also attempt to get a builder list that shows that is included and what upgrades the model homes have. Those lists, if the new home builder is being totally upfront and transparent, are available and will also have the corresponding prices for each upgrade.
When you want to see the new homes, I invite you on a new home tour. It's fun, free and without obligation. I ask the tough questions from an investor and homeowner standpoint. I want to find out about future developments, when the price updates are and how those are communicated. I want to see the past historical sales and projected prices that have been worked out on the builder's end.
There is so much that is not asked for when it comes to buying a new home by most buyers, guidance is super helpful. The best thing is that I'm free for you to use to represent you when buying any home, including new homes and homes from new home builders. Call and I'll take you on our New Santa Clarita home journey.
Meanwhile, if you want to look online without giving up your right to me being your representative, go to SCVnew.com - that is my website and it shows all the new home and new construction sites in Southern California, including those within the Santa Clarita Valley cities.
One more thing - if you happen to go to the new home builder communities alone, without me, never ever sign anything or register in any way. Play the spy. Don't give up any of your personal or private information. Not even to get your name in some sort of "interest" list.
Some of the new home agents pride themselves on cutting out your agent. Some do this in purpose and others don't. However, having your own representative for FREE and at no detriment to you concerning all that is offered to anyone at new housing, is your right.
I'm here for you, just reach out when you are ready.
The Sold Santa Clarita Homes
I received a phone call last week from a past client/partner of mine. Partner, as in having worked with when I was an LAPD cop.
He wanted to refer his son to us but had some issues with the way the economy is currently.
He wanted to know what I thought about the current housing market and if I observed any danger signs from those "global" and "local" changes within it.
I reminded him when the stock market gets shakey - gold, silver, and other "tangible" items get scooped up. Real estate is a "tangible" item. You can hold onto it.
There is a lot of equity in the current housing market within the Santa Clarita Valley cities. I remember back before the collapse of the housing market 100% financing was a thing. There were a lot of home buyers that were using that type of financing where they had to come out pocket with nothing in order to buy a home.
Those buyers also were very attracted to lending guidelines and lending options that are non-existent today. All of the lending practices and guidelines have been shored up where there are no games played and no Imaginary money sources to be used when needing to qualify.
Also, balloon loans and adjustable rate mortgages are virtually non-existent.
To buy a home, you need a down payment, unless a Veteran.
That down payment goes from FHA 3.5% to as much as your ability to put down and be comfortable with the program and payments.
During the last week Santa Clarita Valley recorded 43 homes that closed escrow, that compared with the 81 real estate listings that entered the housing market give an indication that we are starting to see inventory building, time will tell.
When you are ready, make sure you hire smart and get yourself a great and experienced real estate agent in Santa Clarita Valley. I am available and will help my home buyers and home sellers to the best of my ability. I don't play games and give intel straight, without any curveballs thrown.
The coming Santa Clarita real estate market
During the next few months, we will have more and more real estate inventory added to the for-sale market. We will see if the home buyer drive is able to keep up. If the home buyer drive gets soft, then we are going to experience more standing real estate inventory in the Santa Clarita Valley.
If that happens, we may see a slump in housing prices. However, this ultimately depends on interest rates and the current buyer drive continuing its course.
Historically, real estate inventory builds in a healthy market starting at the end of Q1 and proceeds throughout the summer months. That is the time when the home buyer drive in the Santa Clarita real estate market is also higher than at other times during the year.
Schools and upsizing are the largest drivers of the Santa Clarita real estate market during the spring and summer months.
New Relocations are the third largest driver of the Santa Clarita real estate economy during the spring and summer months.
Those folks moving from the Santa Clarita Valley and those needing to downsize partially make up additional types of home buyers and sellers in the Santa Clarita Valley.
I'm Connor with HONOR and I'll be here for you as I have been since 1998, representing my home buyers and sellers in the Santa Clarita Valley and elsewhere in Southern California.
Please call for a telephonic appointment or an in-person appointment at my offices located at 25129 The Old Road, Santa Clarita CA, 91381 - Suite 114!