A Very strong sellers market persists in the Santa Clarita Valley Cities – Acton – Agua Dulce – Castaic – Canyon Country – Saugus – Newhall – Valencia – Stevenson Ranch.
First, a sellers real estate market has advantages pertaining to the sellers selling of homes, condos and town homes.
Before we get into the intel about the current market and what factors exist making it a sellers market, let’s get into the seller advantages.
Advantages to a Home seller in a Seller’s Market
Home Sellers during a sellers market typically enjoy the multiple offer scenarios.
Home sellers also get offers quickly, sometimes within minutes of their home being placed onto the official Multiple Listing Service.
Home sellers can choose those offers which have the strongest and best financing.
Home sellers can deny to fix, repair, and or credit certain items a home buyer may ask for within escrow.
Home sellers can also change the escrow time frame – reduce, increase – even ask for multiple days after escrow closes to move out.
A Home seller may also get a home buyer to agree with the reduction of contractual time frames.
If in contract the home buyer typically as 17 days for inspections – the seller can have this reduced. In this way the home seller can get another offer if the home buyer decides against buying their home after the inspection.
The home seller may also ask the buyer to remove their contingencies sooner than the 21 days the contract allows. This may pressure the buyer into sticking with the deal, not cancelling. Once contingencies are removed, the buyer’s deposit will be forfeited and become the sellers.
Factors that make a Seller’s Market
The number one factor that makes it a sellers market is low inventory. The Santa Clarita had it’s low point back in February 2017. That was a 4 year low regarding the active listings on the market for sale.
Buyer conditions also favor a sellers market being place. An example of buyer factors are low interest rates – where we are today. Just about 4% is what you can obtain for your interest rate on home mortgage. As is said in finance, “Money is cheap”. The issue that buyers are facing today is the extreme vetting that goes on to get approved for a home loan.
Time of year factors into a home seller’s experience. When we finish the winter and start spring sales pick up. This “pick up” equates to the Santa Clarita real estate market needle pushing closer to a sellers market, if we aren’t already. With more buyers, coupled with lacking inventory, and the good interest rates keeping buyer demand high – We are in a Santa Clarita home sellers market.
Whether you are on the real estate sellers side or the home buyers corner, make sure you are getting good advice and have an expert on your side. We always explain the best ways to both our buyers and sellers of homes. Please reach out when you are ready for our Real Estate consultation.