What a Santa Clarita real estate seller’s market means HousingRadio Episode 2017-009

    The Santa Clarita real estate market is in a Seller’s Market

    During today’s real estate radio show on HousingRadio.com in the Santa Clarita Valley we see that we have inventory which is lacking causing the real estate market to remain in a sellers housing market. Meaning the real estate market is weighted to being in a seller’s benefit zone.

    Examples of what a Seller’s Housing Market means to Home Buyers:

    • Competition is high for the real estate listings

      • Real estate inventory is limited
    • Multiple offers are typically received in short order

    • Offers received are usually countered with terms weighted heavily in the seller’s favor

    • The most secure loans are wanted (limiting the “most questionable” types of loans)

    • Home Sellers are Looking for larger down payments – 20% down or more

    • Removal of more Buyer contingencies during the buyer’s offering phase

    • Limiting of “pre formatted” buyer time frames for inspections and appraisal

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    This is the market we are in today within the Santa Clarita Valley Cities. During our monitoring of the market we have concluded that we have been in this type of market for the past several years due to the lacking real estate inventory.

    What happened to the Santa Clarita real estate market?

    To recap – The housing and real estate market collapsed as marked by the mega subprime lender falling in 2007. This resulted in a domino effect where other banks and lending companies started to not get payment on millions of mortgages, thereby resulting in their demise.

    The Santa Clarita Foreclosure and Bank Owned market started with the banks and lenders starting the foreclosure processes against those homeowners who were unable to pay their mortgages.

    The Santa Clarita real estate market bottomed out in 2011 and in the beginning of 2012. This was the low point of the last real estate cycle where in some cities and with some homes, we were 45% from peak prices which were seen within Santa Clarita in 2006/2007.

    You need a Santa Clarita real estate game plan!
    You need a Santa Clarita real estate game plan!

    After that point, real estate prices started to climb. The lending world had a lot of new rules and regulations imposed on it. Borrowers were scrutinized much harsher when it came to wanting to borrow money to buy Santa Clarita real estate. 

    Ultra Low Interest rates were achieved in the Nation and within the Santa Clarita real estate money borrowing world. Rates as low as 3.31% were seen for a super brief time in 2012. 

    During 2016, we still had limited homes for sale, keeping the real estate market in the seller’s zone. We also had very low interest rates, in the 3’s which kept buyers happy and approaching the “for sale” real estate inventory, prepared for a battle.

    Refinances were also making lenders and banks a lot of money – Saving the homeowners in Santa Clarita tons in interest after refinancing their home loans.

    Then we observed that in November 2016, the Stock Market start to make records, thereby making the Bond Market super strong, causing the raising of real estate mortgage interest rates into the 4’s.

    That brings us to today in Santa Clarita real estate. We will have to wait to see if the rising interest rates are going to be enough to slow the Santa Clarita buyer drive for homes. 

    The other side of that coin is whether or not the rising interest rates are going to be enough to cause prospective home sellers looking to upsize or downsize, to not move forward with selling and moving due to them having an ultra low interest rate due to refinancing or buying when interest rates were low.

    I’m Connor with HONOR and I’m glad to be of service regarding all of your housing and real estate needs. I’m right here in Santa Clarita Valley, I travel to other neighboring cities to representing both homebuyers and home sellers. I’ll be there for you as I have been for so many others since 1998. Be safe – thanks for reading and sharing our Santa Clarita real estate market Monday’s HousingRadio.com Episode.

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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