Could it be true and if so why would someone dependent on making their living from representing buyers and sellers of Santa Clarita Valley real estate write about it?
Is the real estate market going to experience a series of home price corrections during 2017 in the Santa Clarita Valley? Are buyers going to become priced out of the market? Are interest rates going to continue to rise during 2017?
Both Paris and I monitor the Santa Clarita real estate market on a daily basis. We then take the market data we have gathered and provide it to our clients via the most trafficked real estate website for Santa Clarita at SCVnest.com.
We have been watching, as mentioned on this Santa Clarita real estate video, that 2016 was plagued by lacking real estate inventory. This was wonderful for home sellers, but disappointing for some home buyers. This scenario also caused real estate listings to obtain multiple offers in short order where home buyers were pitted against each other in bidding wars.
2017 is going to be more of the same. Maybe not with the multiple offer scenario, due to interest rate hikes and a market correction having not happened yet, but with lacking Santa Clarita real estate inventory and homes for sale.
One of the indicators that any lay person can watch and pay attention to is the stock market. When the market is up this creates a strong Bond Market. Then the Bond Market is strong, interest rates will start rising. We observed this during the last quarter in 2016 and will see it, depending on the stock market, in 2017.
Of course, you know what they say about opinions? 🙂
Now, if this trend, the rising interest rates, continues, we are going to see less inventory hitting the housing market for sale. This will be until those “new rates” sink in with prospective home sellers. Then those home sellers will reach critical mass, where they “have to” move and the rate comparison they are conducting, which is holding them up, will be a moot point.
In the big scheme of things, Interest rates are still ultra low when looking at interest rate history. We have had some ultra low(artificially) interest rates during the past few years – 3.0-3.2%APR. Those “artificially low” rates were awesome, no doubt. However, a 4.6% interest rate is still better than the 16% my parents had. On the other side of that argument, my parents house cost $19,000.00 when they bought it.
Want another tip when it comes to gauging the Santa Clarita real estate market?
Look at New Housing and New Home Builders. All Data Taken from our New Santa Clarita home page. We represent our clients at new homes, just let us know before you visit any new home builder in Santa Clarita, so we can educate you on how our New Home Buyer Benefit works! The new home builders rarely lose. As long as they are building, the market is going to continue to be wonderful.
Currently we have 17 new home centers and new builder communities in the Santa Clarita Valley cities.
- Canyon Crest – KB Homes
- Canyon Heights – KB Homes
- Phantom Trail – Williams Homes
Brighton at Five Knolls – Brookfield Residences
- Highglen at Five Knolls – Brookfield Residences
- Haywood at Five Knolls – KB Homes
- Grayson at Five Knolls – Tri Pointe Homes
- Everett at Five Knolls – Meritage Homes
- Plum Canyon – Van Daele Homes
- Providence at River Village – Beazer Homes
- Kensington at River Village – Beazer Homes
- Hartford at River Village – Beazer Homes
- Trestles – Williams Homes
- Claridad – Lennar
- Westcreek: Aria – Lennar
- Arte – Lennar
- The Villas at Town Center – Decron Properties
At the end of the day, buying or selling a home is a very personal decision. A decision of this magnitude needs to include all of the numbers and forethought before pulling the proverbial trigger.
We meet with clients all day long, either over the phone or in person. At their location or in my Santa Clarita real estate offices. We brain storm and develop great real estate game plans for those who are working with our Top Tier Santa Clarita real estate Business.
One of the items we discuss is the impact on taxable income. How much are you going to be able to “write off” related to you paying a higher interest rate and will that offset those figures? There is still a mortgage interest deduction which is one of the many reasons to buy Santa Clarita real estate.
I have received several calls from others in my business thinking I’m telling the masses not to sell or buy real estate. That is a knee jerk reaction to me relaying what could be coming in the future of real estate during 2017.
The fact of the matter is, it appears that interest rates aren’t going to be back at 3.2% anytime soon. Real Estate inventory is not being replenished at a rate which would shift the Santa Clarita real estate market into a Buyers Market. The stock market is gaining strength thereby making the bond market stronger causing mortgage interest rates to rise. We have a total change in leadership in the United States, which could impact real estate in very dynamic ways. etc…
I’m not a soothsayer, I’m a real estate advisor and consultant. It’s my pleasure to assist you with everything that is real estate. Even with things where I don’t extract a commission. If you help enough people get what they want, you’ll never be lacking for what you want, paraphrased from Zig Ziglar.
Have an awesome week and I’ll be back soon to talk about Santa Clarita real estate, I’m Connor MacIvor with REMAX and the owner and operator for the SCVnest/Paris911 real estate group.