Local real estate and housing inventory are best described in the five ways that we have seen prove true over the years.
This is how the local Santa Clarita home experts look at the housing market.
The data has to be apples to apples. The townhomes and condos are going to have a different dynamic as it pertains to local performance. Their price ranges make them more attractive to the first time buyer and also the investors in the world.
The chart for this particular entry comes from my multiple listing service for Santa Clarita Valley. You can see all the available real estate listings on SCVnest.com. Current housing inventory for Single Family Residences in the Santa Clarita Valley as of 6/02/2019 at 1356hrs is 509 active real estate listings.
When I ran the data reports I observed our low point in Santa Clarita real estate inventory for the Single Family Homes to be at the low point December of 2018 within the year parameter I researched.
Days on Market Timeframes
Something noticeable – researching the local SFR Days to Sell time frames – we see that also has reduced at the same time while we see an increase in housing inventory. Available units for sale in Santa Clarita Valley – Single Family Homes, has increased by 70+ listings from the low point of December 2018.
This dynamic to gauge a real estate market is super important when speaking with home sellers and also home buyers.
Home Sellers want to know how long, on average, it’s going to take to sell their home. The research and the DOM experience for the sellers also convey really important information as to how the “current market home buyers” see their home as compared to the other real estate listings they may be in competition with.
Price ranges are really varied in the Santa Clarita Valley in the Single Family home housing type. Currently, you are able to purchase a single-family home in the SCV cities from in the mid to high $400,000’s.
When a home is for sale that is basically comparable with another which is adhering to the current Days on Market time frame average and does not sell, it’s a good indicator that the specific home has some type of issue.
The issues that are most prevalent can be contained within the same zip code, where there are more dense populations with homes closer together, versus a home that happens to be more “rural” in nature located off of the beaten path. The second housing type, off the beaten path, will not sell as quickly as the more urban housing location.
These tips are important when it comes to being a buyer or a seller in the local Santa Clarita real estate housing market.
Currently, distressed housing and real estate inventory is very low. Actually, to put that better, it’s a normal market and having less than 1% distressed (foreclosures) is typical in a “normal and healthy” real estate market.
This indicator is what is talked about with my Santa Clarita Sellers and home buyers. All home buyers want a “great” deal which bank owned and distressed homes tend to be. However, this is not always the case, as the banks don’t fail 🙂 – They are going to set the value of the foreclosure and bank owned asset within the real estate market variation. They are also going to want to shoot for the “top price” obtainable.
When Paris and I worked for CitiBank, this was the strategy. In most cases, we were priced at an under market value. This was a 90 day in the future estimate where we had determined the market was still trending down. The offers that were received on each foreclosure asset were multiple in number. Each offer was responded to in “highest and best” fashion. Paris then pits those offers against one another and in most cases the bank made out better than they would have without using that pricing strategy.
New Construction and new home builder activity
If you want to truly understand how the housing market is doing, all you have to do is have a look at the new home builder activity.
They have literal think tanks of real estate housing market number crunchers that are looking at many data points in relation to the housing market.
- The new home builders then making decisions based on those variables to establish whether or not they are going to build or not build.
2. Then, if the result is built, they are going to decide whether to build standing inventory (this is a super hot market indicator).
3. Are they going to build a percentage of homes as “standing inventory” – which is a hot market indicator?
4. New home builder communities closing shop early – watch out. Before the last drop in the real estate cycle, this happened 7ish months out from the subprime lender failing.
Then you have lesser market confidence type indicators, such as building to own, etc.
In the Santa Clarita Valley, we are in between DEFCON 1 and 2 🙂 – information as of 06/02/2019.
Interest rates and loan types
If the Homebuyer is the head, then the interest rates are the neck. Interest rate rumors of a potential increase, make home buyers want to buy.
Interest Rate increases also make home sellers want to sell.
If they reduce, then that creates a refinance housing and real estate market.
I watch the interest rates every single day. It’s ultra important to keep track so I can best inform the home buyers and sellers that we are working with and others that I meet that just want to know the housing market health.
Recently we had the meeting of the FED where they kept rates the same as they were before. The obvious observation is that the interest rates won’t always stay the same. In fact, there will be changes in the future. Will those interest rates change for the better or for worse?
When I’m translating the real estate and housing market in Santa Clarita Valley or Las Vegas for our home clients, I ensure that I’m making decisions which are taking into account all of the real estate market data.
These five points are critical in the dissemination of good real estate housing market updates.
I am Connor with HONOR MacIvor. I have been representing home buyers and sellers since 1998. During that time I have helped thousands of people either sell or buy real estate.
Google me and you’ll see where I am and what I’m about. Call me to talk about how I will be able to serve your Santa Clarita real estate and hosuing needs. 661.400.1720.