We have been updating the Real Estate market in the Santa Clarita Valley with the current Market Related Data.
If you saw my last report with the comparison between November 2010 and December 2010, you will have known that the closing figures were strange to say the least. Comparisons between two months revealed a rise in Median Prices to be in the arena of $35,000.
I stated during that Video Presentation, we must have more data – a couple of more months to really determine if we are on the road to recovery with regard to the Santa Clarita Real Estate Market.
Here we have the Median Sold Prices – you can see that there was a reason for my last Real Estate update reflecting the sold prices between the months of December 2010 and November 2010, having increased. However, when we compare those figures with these prices closing January – We show a small increase between November 2010 and January 2011 – We also can deduce that “end of the year sales goals” are indeed alive and well. With all of the scurrying of those wanting to buy and sell Real Estate – those closings happened in larger numbers at higher prices.
Supply and Demand for Real Estate is on the decline – Comparing the end of the year 2010 to the beginning of 2011 – January.
Supply is still at an all time high in the Santa Clarita Valley Real Estate world. However, there are many of those listings that should not be showing as “active” status.
Active Status indicates there are no offers submitted – no offers that the “owner(s)” are working on. Such is the case with a short sale – if the offer has been submitted to the bank, the home shall be placed in another category – such as Back Up Offers or Pending Offers.
With the delay of the banks with the handling of the short sales, some agents not knowing the short sale process better, or with Foreclosures and the Banks wanting to take 21 days to review offers – this figure is a bit inaccurate of true market Supply. I know this because when I call for our clients the agents representing some of the “short sellers”, they have already received and submitted an offer at sometime in the past. There are a lot of those cases that should be excluded by the proper “status update” within the MLS system by the Listing Agents.
The 6 cities this report and Data Stream was prepared from are:
- Canyon Country
- Stevenson Ranch
When we talked about numbers rising and the apparent increase of Home Values when comparing two months at the end of last year, 2010, the reasoning can be shown with this Chart. You will see the numbers of properties recording as “sold” were up from November 2010 to December 2010 – Look at the final column, Closed Escrows are at an all time low for the entire year in the Cities that compose the Santa Clarita Valley.
You can see here how many Months Supply of Inventory we have in the Santa Clarita Valley Real Estate World. We can also deduce that this could be an indication of Market Recovery in our Valley.
Due to this Dramatic Decrease in the Supply of Real Estate inventory in the SCV – We will have to do a review with the Closing Figures for February 2011 to see if we are going to start leveling out.
When we have concluded this Real Estate Market, we are not going to see HUGE gains as we did back in 2006 and 2007 with regard to Real Estate Prices. We will find months that will be regarded as a “leveling off” period. After the “leveling off” period has concluded – we are going to see minor market increases and subtle market decreases. It will be in no way as dramatic that we observe presenting itself in a Unstable Real Estate Market.
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Final Word to Agents: I put on all of our flyers and write in most of our articles, “If you are working with a Realtor, Stay Loyal…” -BTW, that is one of my first questions with anyone that inquires by phone or email!- I received a call from an agent that was interested in a property we have for sale in Newbury Park. He was thankful because as he and his client were viewing the home, his client remarked about what I had hand written on our property information flyer – It was the same quote from above! Stand strong and stare opposition in the face, make it your friend and then take it to dinner – You will be surprised what you will learn 🙂