Before we get into our Santa Clarita real estate news and market update, I want to give you a bit of information related to average prices versus median prices.
If you are surfing the WWW and wanting to know about what is happening in real estate - within the Santa Clarita Valley or elsewhere, you have run into the words average and median.
There is a specific difference with those two words and when trying to digest the best real estate intel, knowing where the source is obtaining their numbers from is important.
Average - this is the number you are used to seeing when people "average" things. This is the total divided by 1/2. This is the number that I will be working with today for our Santa Clarita real estate news update.
Average Median - Out of all the numbers - this is where the provider will choose the one in the middle. Albeit, this is simpler, but in a smaller set of numbers - this can be hugely misleading.
|Month||Original Price, Average||Sale Price, Average|
I have included the numbers from the data that I had in the original source inquiry. These are from each of the Santa Clarita Valley cities, minus Acton and Agua Dulce. I have chosen to have those cities, not part of this particular Santa Clarita real estate news update due to the fact most are horse/agricultural properties and are not the same and being within the other Santa Clarita Valley cities.
In addition, another reason is the Acton and Agua Dulce properties are more akin to country living and will take longer to sell, at least historically. The drive for city living is stronger and more robust.
Taking a look at the data provided, we are seeing that prices in the Santa Clarita Valley cities are reducing.
These prices have seemingly reduced close to $40,000 overall from their original listing prices to date in October of 2018. If you look at the data chart for the Month of June - you will see a super hot and robust real estate market. This is the market just before the flooding of the market with 30%+ more real estate listings by way of housing inventory.
The additional listings are as a result of sellers hitting that critical mass which I have spoken about in the past on our Santa Clarita real estate news website.
It's time. They have to sell now. Then the contagious fire started happening. They were not about waiting anymore when they observed their neighbors home hit the real estate market for sale. They were off to the races for sure.
October 2018 is massively robust due to the system I'm using for the data results having only 7 days to compile versus an entire month dynamic.
However - you can see the months of inventory slowing starting to increase with a bit of a relaxation August 2018, then September 2018, moves the needle by a lot.
When people are discussing real estate they often ask the question if now is the time to buy or sell. They want to know the plain and simple answers to these questions.
One of the biggest questions in the real estate market has to do with the market breaking as it did back in 2006/2007. Is that going to happen? If so when?
From all the intel and data I scour. From all of the financial and business blogs and real estate articles I read, I deduce not "break" in the same way we observed over 10 years ago.
Now we, in the Santa Clarita real estate news field, are observing typical market adjustments as we see transitioning from summer to fall to winter.
The Santa Clarita Valley cities were very low in real estate inventory for the past 4+ years until we got to the end of our 2018 summer. It was at that time where we had additional homes and real estate inventory causing homes to slow down on the time it was taking to sell them. Buyers at that time started to see they had more choices when it came to home selection.
Now, I said slow. This "change" has only hinted that it may be starting. Before we get into a full-fledged home buyers market, I must remind you that a "normal" housing market is something like we have not seen in the Santa Clarita Valley for a long time.
These present changes to the local housing market are going to cause more temporary real estate agents in the Santa Clarita real estate market to go back to regular employment.
They won't be able to sustain a family or themselves on what they are able to make when this market returns to what is more normal.
The established real estate agents will be just fine. We have been representing home buyers and sellers in the Santa Clarita Valley cities since 1998. Our internet presence is beyond reproach on a local level. You are always going to have those "mega real estate syndication websites" trumping any local efforts to be in Google's Top 10 Sites organically. We are able to compete because we are, in their eyes, local niche real estate agents with a real Brick and Mortar address and real live offices.
The search engines know this and are able to place us on top of those spaces where people are searching. If you were to search for Santa Clarita real estate, for example, you'd find one of our Google Places for Local Business rankings.
The newer agents have to rely on the other systems that can generate leads for them. Unfortunately, this may price them out of being in the real estate business. The victor comes, for the other agents, when they can be established enough with past clients to have a "repeatable" real estate business.
It's at that time when they have a self-sustaining real estate business that is able to weather any real estate market. This applies just as long as they don't get too lifestyle heavy with the fancies in the world.
Santa Clarita real estate sold signs
This additional information related to the Santa Clarita real estate and housing market is brought to us by a call that I received yesterday, Sunday. Yes, I work on Sundays. In fact, I work every day of the week whether I'm needed or not :)
The caller lived in Canyon Country and wanted to know what happened to her neighbor's home that was for sale. She explained that she lives on Abelia and has a neighbor's whose home was listed for sale with a real estate agent who liked to play games. She thought that this agent removed her sign because of an issue that arose between the agent and the home seller.
I'm not one to Gossip, so I just relayed the facts. The home expired after 66 days on the market for sale. The agent also turned in a cancellation of listing before that at the 60-day mark.
So, while the listing shows expired, it really was canceled before that date.
The caller went onto say the agent told the seller that her home was worth more than it was. She was unsure as to why but opined that it was to obtain the home listing.
I verified that some real estate agents, the newer ones, operate in this manner, sometimes. Not everyone, of course, but some. They do so in order to increase their listing portfolio. What they don't realize is that doing this equates to a home listing not being able to sell.
Or it equates to price reductions by the home seller and those are a tough sell for savvy and smart home sellers. They happen to remember that the interviewed agent A who told them to price their home at x amount of dollars. And that "X amount" of dollars is where the smooth-talking real estate agents want to have the home priced at to sell.
The time that was wasted between the time in which the home was listed for sale and the time when the agent asked for the price reduction is of concern. If the real estate market had been on an incline, or if it had been a more robust market, then no worries. However, most real estate markets don't continue to increase forever. As we have experienced in the past within the Santa Clarita real estate market and what we are currently experiencing.
The current Santa Clarita real estate market is entering into the fall and winter months. This is a market which will be starting its annual slow down related to homes being listed for sale and homes sold.
This year-end activity is only made a bit worse for home sellers due to the additional inventory added to the active listings which caused a longer day on market timeframe to exist.
Simply, put, it's taking longer to sell homes and the fall and winter months aren't going to help.
After getting into that with this lady she further commented that there was a "Sold" and "In Escrow" sign placed onto the for sale sign at least three different times during the two months that the listing was listed for sale.
I said those signs are used by some real estate agents who want to show the "neighbors" that they are successful in selling homes. They want to get that information out to those who live nearby that may be considering selling the real estate they own.
Signs like those do a good job advertising the agent and do initiate sign calls from others who may be interested in hiring them for their real estate services.
She said that may be true, but the issue is the home never had received an offer.
That set me back a bit. I'm nowhere nieve, but I did not expect that agents were using these tactics to increase their business.
I told her, that is a new one on me. However, my surprise if from me not being that way and so far from the comprehension because that's not me.
My method is not by the trick and device. I was a cop way too long and plus my core ethics don't surround the playing of people. Our business was founded on solid principles of value, honesty and hard work.
She said that I should know and that I should door knock the home and let the owner know that I can do it better than that dishonest real estate agent.
Door knocking, I said, I hate to be interrupted at home so I don't interrupt others.
What I will do is I will see if we have a home buyer that is interested in that neighborhood and that particular type of home.
Only with a real pre-approved home buyer, one that I can show the love letter of and prove to the person who wanted to sell they are "verified", would I ever approach a homeowner.
She said that was the way she'd liked it and commended me.
Best real estate referral system
Know for certain that most real estate agents are good and really have their buyers and sellers interests at heart.
All you have to do to find them is to look online and make the calls to see how they interview. What are they saying to you? How are you feeling during the conversation? Are they sounding a bit Greasy, or do you have confidence in what they are saying and how they are addressing your questions and concerns?
This may be easier said than done, but you are probably the best resource to know whether or not you are comfortable with another person, not to mention any service provider.
If you are outside of the local Santa Clarita and Greater Los Angeles County areas, I'm happy to refer you a real estate service provider that will be there to represent you as we represent our Santa Clarita real estate clients.
The Blessing of our business is not just in the way that we take care of those wanting to buy or sell real estate. The much larger blessing is all of the contacts we have made since our start in real estate since 1998.
Our referral reach pertaining to other Real Estate agents we know personally spreads across all 50 states. It covers all property type specialties with those other agents from Single Family Homes, Condos, town-homes and throughout the luxury housing communities.
We have specific real estate agents who operate as I do in the dissemination of good real estate news. They know their market in and out and are always concerned for their clients who are buying or selling real estate. They treat their clients as if they, the agent, was the one buying or selling real estate. If it's not the "right" time, they let their clients know. If now is the time, they let their clients know that also.
There are different markets and there are varying strategies that are market dependent concerning the best ways in which to represent a home buyer or home seller. I find those agents for those wanting the best in the real estate business.
Santa Clarita real estate updates multiple times per week
Thanks for taking the time to check out Santa Clarita real estate news and the changes to the local SCV real estate and housing markets.
We are here for you when you are ready. We have other resources that you will find very useful and if you are wanting to keep track, as a homeowner, of what your current home is worth, you will find that link below this text.
Track the Value of my Santa Clarita Home
We have our housing radio Santa Clarita real estate radio show posted here. There you will find that we have literally thousands of episodes pertaining to Santa Clarita real estate news and are glad to serve you in all your real estate needs.
For the top performing and top indexed Santa Clarita real estate blog - click on the preceding link. On our Santa Clarita Blog, you will find all of the real estate articles and associated real estate information pertaining to what you are wanting to do in real estate, whether buying or selling in any market.
Be safe - Talk soon.
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