SRAR just reported a few positive numbers regarding the Santa Clarita real estate market. Sales of single family homes in Santa Clarita increased 23.6 percent higher than that of the tally in April. Also, May 2008 was the first month on record since June 207 that the tally of single family homes sold reached over the 200 mark. May became the 5th consecutive month of increasing sales of Santa Clarita single family homes.
A few other noteworthy snippets from the May figures are as follows:
- The inventory of homes for sale , 1,946 at the end of May, was 13.1 percent lower from a year ago, and 3.4 percent lower than that of April’s figure.
- The current inventory of Santa Clarita homes for sale is at a point where many industry experts believe the market is balanced between buyers and sellers. We’ll have to see how sales pick up and or continue through the Fall 08.
- At the current pace of Santa Clarita home sales, the inventory represents a 6.6 month supply. A balanced market appears when the inventory offers a 5-6 month supply.
- The median price of a Santa Clarita single family home at the end of May was $450,000, representing a drop of 14.1 percent from one year ago.
- The median price of a Santa Clarita condo at the end of May was $305,000, representing a drop of 14.1 percent, but up 9.3 percent from the April 2008 median.
- Pending Sales increased 19 percent from a year ago to a total of 339 open escrows, however the May figure was slightly lower than April’s pending home sales statistic.
As you can see, we’re approaching a balanced real estate market, where prices have become SO low, that it has spurred a very significant spark in home purchasing activity, thus decreasing the actual inventory of homes available for sale. All that, despite the steady flow of foreclosures hitting the Santa Clarita real estate market. The true test of where we’re headed will be after Summer passes, and how this home buying activity will either continue, or halt. If it makes a noticeable pause in the strength we’re seeing now, we may reverse our inventory stats as foreclosures won’t stop hitting the market no matter what for the next 12 months about.
I predict that no matter what month it is, prices will keep inching a little bit lower each month due to the foreclosures and how they’re being priced, and so whether we’re in September, November, or December…the buyers are here to stay, and they are buying these good deals. The only thing that can put a damper on the buying activity is a measurable increase in interest rates. And if interest rates increase, there will be less buyers, so banks will have to drop prices even further, and then watch out for the investor buyers bringing in all cash, as they’re already doing now!
I think no matter what, the market is on the right track (locally) and the worst seems to be over.
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