Housing Market at a Glance for the SFV, SCV, and AV

I expect new data to be released this upcoming week – please check my news blog at http://changhomesnews.blogspot.com/ for the latest once it’s released.

San Fernando Valley Home Sales Down 24% during July; median price of $630,000 up 4%
Ongoing turmoil within the home lending industry, tighter qualifying standards for home loans and the negative psychological impact both have on prospective home buyers squeezed the single-family home resale market in the San Fernando Valley during July, the Southland Regional Association of Realtors reported recently.

A total of 617 single-family homes changed owners during July, down 23.7 percent from the 809 sales of a year ago and 10.6 percent lower than the June tally.

Reflecting more activity in higher price ranges, the single-family median price of $630,000 was up 3.8 percent in July compared to a year ago. However, it was off 3.8 percent from the record-high of $655,000 that was set this June.

Realtors also assisted in the sale last month of 276 condominiums. That total was down 12.9 percent from a year ago, but up 12.7 percent from the June total.

The median price of the 276 condos that changed owners last month was $407,500, up 1.9 percent from a year ago and from the June 2007 figure. The condo median has been hovering around the $400,000 market since the record high of $415,000 was set in February 2006.

Reports of problems in the relatively small so-called sub-prime sector of the home loan industry has the biggest impact on first-time home buyers. The sub-prime market catered to buyers with a weak or flawed credit history and limited income.

Even some buyers with good credit and money for a down payment are sitting on the sidelines, hesitant to jump into the market because of the negative publicity and unfounded fears that prices may drop.

“Prices in the San Fernando Valley are unlikely to fall much,” Wayne Chang, REALTOR® with RE/MAX of Valencia said.

Instead, Chang said, the Valley’s established communities and mature, vibrant economy suggest it will weather this market readjustment with little impact on resale price.

A total of 7,195 properties were listed on the Association’s Multiple Listing Service, up 12.8 percent from a year ago and 5.4 percent higher than the total reported this June.

At the current pace of sales, the inventory represents an 8.6-month supply, slightly higher than the 5- to 6-month inventory that represents a balanced market. During the height of the sellers’ market, the inventory frequently hovered at less than a 1-month supply.

Santa Clarita Valley home sales down 18%; Median price of $570,000 off 5.8%
Realtors negotiated the sale of 194 single-family homes in the Santa Clarita Valley during July, the Southland Regional Association of Realtors reported recently.

That total was down 18.1 percent from a year ago and 5.8 percent below the June tally. “Some prospective home buyers are sitting on the sidelines because they are unsure of where the market is going,” said Wayne W. Chang, REALTOR® with RE/MAX of Valencia.

“With the continuing changes in the mortgage industry, these buyers may find themselves priced out of the market by waiting on the sidelines now,” Chang said.

The median price of the single-family homes sold last month was $570,000, down 5.8 percent from a year. The median has beenhovering around the $600,000 mark since the record high of $640,000 was set in April of 2006.

Realtors also negotiated 83 condominiums during July. That figure was down 32.0 percent from a year ago but up 16.9 percent from this June.

A total of 286 properties were open escrow – a measure of future activity – at the end of July. That was down 18.3 percent from a year ago July and off 2.1 percent on a month-to-month basis. Both numbers are better than what has been reporting recently, suggesting that the Santa Clarita Valley housing market is beginning to level off.

“The local market is in the doldrums right now,” said Jim Link, the Association’s executive vice president. “Buyers who are unfamiliar with Santa Clarita are hesitant to jump in until they can feel the wind blowing in specific direction. Yet, by then, they may have missed great opportunities.

A total of 2,358 properties were listed for sale at the end of July. That was down 5.4 percent from a year ago and up only 1.6 percent from the total reported at the end of June of this year.

At the current pace of sales, the inventory represents an 8.5-month supply, considerably improved from the less than 1-month supply that was common during the recent sellers’ boom, yet only slightly above the 5- to 6-month supply regarded by industry experts as the sign of a balanced market.

Antelope Valley Summary
The AV continues to be a buyer’s market. As of early August, the latest that data was available for Antelope Valley residential inventory, there was a total of 5902 homes on the market.

Additional data available September 7, 2007, shows the number of residential listings rose 13% in August while prices dropped 12% in the Antelope Valley region.

Number of units sold was down 62% comparing August '07 to August '06, and sales prices were down 13% comparing August '07 to August '06.

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Please check my news blog at http://changhomesnews.blogspot.com/ for the latest market figures once they are released the first week of the month. If you have any questions, please contact changhomes@gmail.com.