Here is the Friday Finale recap for the Santa Clarita Valley cities real estate concerned.
We have seen the local markets becoming a bit looser, as we seem to be transitioning, at least for the time being, into a buyers market.
However, when the listings are priced right or reduced, they go within days.
Santa Clarita real estate recap
At this point, here is the past 7 day intel for the SCV cities:
- 95 new real estate listings have entered the Santa Clarita real estate market
- We have seen 50 real estate listings experience price changes – a majority are reductions
- We have also seen 53 homes enter the back-up status – they went into escrow
- As far as real estate listings that have come back onto the “for sale” market we observed 33
- 14 real estate listings expired, not selling within the contractual time frames
- The properties in the SCV that entered the pending status were 43
- 60 real estate listings closed escrow and sold in the Santa Clarita Valley during the past 7 days
As you can see, the real estate market continues to change, morph and buyers are buying real estate as sellers are selling.
Some of the interesting items to be noted above are the second bullet point, regarding Santa Clarita real estate price changes. We have seen that a majority of the homes, that have had price changes, were reductions in nature. Of the listings that experienced price increases, a majority of those were short sale (short pays) in nature that rec’d approval from the bank.
Underpricing Short Sales
Sometimes the banks don’t agree with the agent’s assessment of the “worth” of the home they are short selling for the person(s) in distress.
Sometimes, the banks have good reason. When a Short Sale listing agent undercuts the real estate market, with regard to the Fair Market Value listing price on a short sale, they have under contract, everyone suffers.
The short sale seller suffers, because their bank may only give them one chance to short sale. If the price is off, the buyer may walk and the bank may foreclose.
The under priced short sale listing, while being to obtain many leads for the listing agent, will harm the neighborhood numbers for the “standard sale sellers” therein.
From a buyer’s perspective, even though if their agent says the listing price of the short sale is a pipe dream, it’s hard, as a buyer, to disconnect from what is seen as being for sale and at the current price.
Those are some of the dangers that are inherent in underpricing real estate, especially short sale listings. While it does not matter, to the human seller, if the short sale sells for one dollar, the bank cares and won’t allow that.
Be safe – thanks for tuning into our Friday Finale and we hope you will reach out to the REMAX of Valencia’s Paris911 Team when you are ready to move. We’ll keep the light on for you (sorry, could not resist).