During the past few weeks, we have seen the Santa Clarita real estate inventory increase in an amount by 30-35%.
Of course, that did some "damage" to the home sellers that were getting their homes in escrow within hours of them being made live.
Over the course of our tenure in real estate (started 1998), we have seen a lot of transitional real estate markets. Those which are experiencing a shift from a Buyers to a seller's market and visa versa.
To compound those events, we had also seen one of the worst economic downturns to a real estate and housing market ever experienced in the United States of America.
Even out of those hard times, people made BANK when it came to holding off, reading the tea leaves, and them striking when the market was at or near the bottom.
The Santa Clarita housing and real estate market bottomed out at the end of 2011 and the beginning of 2012. If you had the proverbial crystal ball that would have been the time to strike and buy, buy, buy.
726 active real estate listings are on the market as of today 08.19.2018, August 19, 2018. I wrote a blog post speaking about the historical inventory when there were only 347 active residential units for sale. That was on 2/10/2018 at 1355hrs. Read the Inventory Posting on Santa Clarita real estate blog
As my expertise advises me, we do not have enough inventory where the market is going to flip and become a home buyer's market. This is too premature and we don't have enough of a buyer slow down nor do we have the larger inventory numbers.
If the housing market continues with its present trend, we will see the coming of a home buyers market in the Santa Clarita Valley Cities. By the buyer drive continuing at its current intensity, we will only see the inventory contining to build throughout the Santa Clarita Valley cities.
December 2017 - 1016 units
July 2014 - 1650 units
July 2018 - 1444 units
These historical numbers reflect all housing types, the total inventory including land and other types of real estate. It gives a more complete picture when it comes to the Santa Clarita real estate dilemma.
These numbers don't include the new construction or new housing inventory. Those numbers are available with a call to your's truly and are new home builder specific.
I will tell you that most of the new home builders don't have a lot in the way of standing inventory. During the last boom in the real estate market, they would build without having a specific home buyer assigned.
New home builders are a bit more careful today in the present economy. They have grading and maybe some foundational processes in place. They don't typically have built out homes without a new home buyer in place.
If the Santa Clarita cities don't get a heightened home buyer drive and if we continue to have the numbers of active listings hitting the real estate market, we will make the shift from being a home sellers real estate market to a home buyers real estate market.
We have not seen a home buyers market since 2010-2011.
Some of the advantages a home buyer in a buyer's market will experience are choice. Lots of choices, lots of real estates to choose from from the active real estate inventory. The new homes will not be able to compete in most cases within a home buyer's market due to the sheer amount of homes for sale for them to choose from.
Typically, we see new home builders not able to compete on a price per square foot level. Although a new home does give a certain amount of additional money to the overall dollar amount when we speak of price per square foot, it won't be maximum profit for the new home builders in a home buyer's real estate market.
Something to watch for is going to be how the new home builders can compete on price and in the ways of other offerings. I'll keep you posted because I do represent a lot of real estate home buyers in the Santa Clarita Valley cities when it comes to them buying new homes from new construction builders.
When you are ready, reach out to me and I'll take great care of you and yours regarding your real estate needs. I will be here running deep until you are ready. I hope you have enjoyed our latest real estate update for the Santa Clarita Valley cities. I'm Connor and I am your local Santa Clarita real estate expert.