We compiled and uploaded each of our market updates yesterday for the Santa Clarita Valley Cities. In some cases the price increase trend is still alive and well within the SCV. In others - we have reduced somewhat. I think this next year will be quite revealing. With all of the talk about fiscal cliff being more of a fiscal slide, I'm sure that most "sectors" will survive and interest rates will continue to remain low through 2013.
I also forecast one last great release by the banks and their foreclosure inventory. While this is not popular to opine - I think there is one last "Hoo Rah" left for the 5 largest banks that still hold gobs of foreclosure inventory. We posted up some numbers for Stevenson Ranch Foreclosure Data - as a side note this AM showing some of the values between the banks buying back their properties and then selling at the auction to third parties.
I have a feeling that the debt forgiveness act will also be re-approved and extended to the end of 2013. This is the "help mechanism" that was put in place by Bush back in 2007 that helps those that are short selling and foreclosing obtain a tax forgiveness for the difference between what they owed on their mortgage and what the home eventually sold for. This also reminds me to talk about Short Sales a bit - Head over to our Santa Clarita Short Sale Page within our SCV Realty Site for further intel.
I think the approval is going to be given to cut the mortgage tax deduction to a maximum write off of $500,000.00. It currently stands at homeowners being able to write off 1M in mortgage interest on their taxes as a deduction. Will this kill the market? Maybe not "kill" but it will cause some respectful pause for those that are looking to finance amounts greater than $500,000.00. I also think this may negatively affect those sectors of the housing world that are considered the "higher ends" of real estate listings.
If you look at the photo above - you will see that real estate in the Santa Clarita Valley cities is by no means dead. This is for the time period of a few days preceding Christmas and ending on 12/27/2012. During the span of time between 12/20 and today, you can see there have been 29 listings that have hit the real estate market for sale in the following cities:
- Canyon Country
- Stevenson Ranch
You will also notice that we have had 15 price changes happen on the Santa Clarita real estate for sale front. That primary has to do with the adjustment of the short sale listings after being approved by the banks holding the note. Sometimes the banks don't approve the list price established by the real estate agent handling the short sale. They sometimes comeback at a higher level after they have the home appraised or a BPO - broker price opinion - completed.
The staggering number during this previous week in Santa Clarita real estate is the number having to do with BOM (back on market) listings. Those are homes, condo's and town-homes that were in escrow that fell out. This could be for a number of reasons too. It could be that the bank, with regard to a short sale, was approved and came back at a price the buyer could not afford or was unwilling to pay. It could have been that a buyer discovered that there was something wrong with the property they were buying that they could not deal with. Sometimes the buyer asks for repairs on a Bank owned property and the bank says, "you agreed to buying the home in AS IS condition", and the buyer cancel's the transaction when they get that type of response from the bank.
62 people in the Santa Clarita valley are homeowners now that were not before this past week. We are happy for them and wish them well. We especially want to sent our Greeting and Salutations to our Real Estate sellers and buyers that closed during the past 7 days. It was our honor to have met, earned your trust and your business. Happy Holidays and let us know if you need anything at all.
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