OMG – “Santa Clarita real estate Prices – they are on the rise and have been since 2011 in specific Santa Clarita Cities.”
“Don’t Panic”, as has been said in the “Hitchhikers Guide to the Galaxy.” Now is not the time to lose your footing. Stand fast and just make sure your real estate agent is doing their “due diligence”.
Real Estate prices follow specific trends. Currently we have low interest rates – Today’s rate is around 3.55% for a 30 year fixed mortgage. That is inclusive of a non jumbo loan – 417k and under for Los Angeles County. BTW – if you are looking for a loan – we can give you access to the BEST lenders in Santa Clarita Valley.
Another factor to look at, that is equally responsible for the increase in Santa Clarita real estate prices, is the Santa Clarita real estate inventory. We are severely lacking in that department and have been on a decline over the past several months in the SCV Cities.
There may be relief in the way of new inventory hitting the market in the coming months. I am almost 99.9% sure of it. Some of the data on the net comes in the way of changes to the “Debt Forgiveness Act”, implemented in 2007. Giving a homeowner that has had distress with their property – short selling or foreclosure – an escape hatch when it comes to having to pay taxes on the difference between the amount they owed and the amount the property sold for.
There is also rumor that some of the major “financial” players are going to start selling their REO, Real Estate Owned, inventory at bulk sale. That would equate to hundreds of thousands of units, USA wide, hitting the market in the coming months. Those prices, due to the numbers, would cause the median sales prices in the market to decline.
Elections are inherently bad for Real Estate. We are waiting for the outcome of the 2012 election. Depending on who gets into office could mean the difference to our market continuing to recover or another dip in real estate prices. Remember the Debt Forgiveness act I just mentioned in the preceding paragraph? That is due to expire December 31, 2012, if not extended.
Shadow Inventory – This one has been talked about since 2009. There are properties that are bank owned just sitting vacant. The banks are moving inventory but controlling the release. This contributes to the real estate prices rising. We watch the NOD’s and Bank Owned trades via our Foreclosure Radar System. It is quite informative – click here to view our Foreclosure Radar Portal. You can type in city names or zip codes to see the “off market” activity within any area in Southern California.
I cannot say 100% that we are on our way to recovery within real estate. It would take only a minor change in the increasing of the interest rate to slow down the Buyers in the Real Estate market.
Some of the buyers in the world think they have missed the boat. I would say they have not. Although there are a lot of investors, those 20% down and cash types, that are swarming on every new listing that fits within their specific profile, FHA and VA buyers are also buying homes, condo’s and town-homes. Develop a game plan with your real estate professional that includes hitting properties that are in distress, but are not on the market for sale. Our method is called a One Party Show!