Housing Market at a Glance 5/7/2007

Hi, everyone,

The summertime season is almost upon us, although the weather today would make me think it’s already here! I thank you for allowing me to send you my monthly Real Estate Newsletter – the main article that was supposed to be included in today’s edition is attached. It provides the latest information on the market in the San Fernando and Santa Clarita Valleys, as released by the Southland Regional Association of Realtors, of which I am a member.

It basically states that single-family home prices over the quarter have dropped 3.3% versus last March (down 6.4% for the 1st quarter overall) in the Santa Clarita Valley and that inventory increased 14.6% from last year – representing a 5.5 month supply, which is considered a balanced market, where both the buyer and seller have influence on prices and transactions. In San Fernando Valley, prices down 1% versus last March and inventory up 27.6% to a 5.2 month supply.

As I study home prices and these trends every day, I am well-aware of the effects of the news of foreclosures and the sub-prime “meltdown” in this market. The real news is not as bad as they would have you think. Remember the media does tend to sensationalize the “dull-figures” in crime, celebrities, as well as economic data. Prices are down a little bit, and inventory is up in both valleys. This should bring buyers to the market as they have more influence than they ever had in the past decade. And homes, if priced right, will sell quickly.

No one has a crystal ball. Interest rates, for now, remain low as well – recent reports from the Fed show that they are still worried about inflation pressures, which may cause them to raise interest rates this summer. For those buyers still on the sidelines, remember that buying a home is a long-term investment – the benefits of buying now in tax savings and emotional security, among other items, may overweigh waiting for the “market to fall down further.”

As a matter of fact, I also had a meeting with a state economist last week who stated that he does not see home prices continuing to fall much further, instead he shows in his charts that we are at a stable equilibrium right now. This market is not the same as the recession market of the early 1990s (another sensational story being broadcast in the media). Businesses still continue to make profits, the stock market continues to hit record highs, and people continue to flow into California and the Los Angeles Metro market.

Well, that’s the news as I see it – my 2-cents. Please let me know if you have any questions, or if I can help you move closer to your dreams, whether that be selling your home or buying your next home (or both!).

I wish you a pleasant & productive month, and a Happy Mother’s Day to the Moms!

First Post

Welcome to Wayne’s Real Estate World!


This blog is an archive of articles which I have written for my monthly newsletter, Wayne's Real Estate Report, which is distributed to my clients, potential buyers and sellers, and VIPs. I have gradually written more and more articles that focus on what I see on the front lines of the real estate world in Northern Los Angeles County, encompassing San Fernando, Santa Clarita and Antelope Valleys.



Occasionally I might just have to say something exciting or vent - I might do it here, but don't count on it.


If you’d like to be included in my monthly newsletter, email me at changhomes@gmail.com.