Good day everyone. Today is your real estate update for the Santa Clarita market activity.
I also will get into a question which was asked by our own The Signal newspaper to me and other’s in my industry.
- A total of 244 single-family homes changed owners in August, off 1.7 percent from August 2015 yet up 4.3 percent from July 2016.
- Similarly, 98 condominiums closed escrow, off 19.0 percent from 12 months ago, but up 4.3 percent from this July.
QUESTIONS – Briefly:
- What do you see occurring in the market that accounts for the slowdown from a year ago?
This answer is two fold:
First – this year we have an election year. This is going to slow the real estate market due to the unsteadiness of this particular election. Historically, election years have been somewhat slower than other “healthy” real estate years with regard to home closings.
What I sent to the Signal Newspaper:
We have seen a steady increase in price per square foot in Santa Clarita up from a year ago. This puts pressure on first time buyers who have been priced out of buying a single family residence to only qualifying for a townhome/condo.Secondly, we have an election year which has two candidates which make a lot of people a bit nervous. We see typical housing market slowdowns as approaching the four year election cycle.
- What drove August sales up from July?
This one is not as dynamic of an answer. Simply, school’s starting up are to blame. This trend happens every year, hence a city where there is huge drive to purchase and own real estate due to children being a large concern for the prospective home buyer.
Santa Clarita Valley is on the mend. In fact, when prices currently being 12-8% off of peak prices, the healing is nearing being complete. Interest rates are very low, artificially low – where the last FED comment says to keep them low. Housing inventory is increasing, giving home buyers more listings to choose from. Sellers know, while there is MORE inventory, it’s not enough to move the market from being a Seller’s market to a buyer’s market.
I’m Connor T. MacIvor and I’m glad to be at your service for real estate.