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
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.
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.