Housing Market at a Glance: Santa Clarita Valley

Santa Clarita Valley home sales down 19% from a year ago, but rise 15% from May

Realtors sold a total of 206 single-family homes in the Santa Clarita Valley during June, down 18.6 percent from a year ago, but up 15.1 percent from the tally of this May when 179 homes closed escrow, the Southland Regional Association of Realtors reported Thursday, July 26. The August report is scheduled to be distributed in the first two weeks of September.

Members of the Association also sold 71 condominiums, down 39.2 percent from a year ago and off 21.1 percent from this May.

"Today's buyers understand that this market, while still going through an adjustment phase, is not like the 1990s when the bottom fell out," said Larry Gasinski, president of the Association's Santa Clarita Valley Division. "The economy is strong and expanding, the selection of homes for sale is the best in years, and sellers finally are willing to negotiate and compete for qualified buyers.

"No doubt, qualifying for a home loan is more difficult now than just a short while ago, especially for people interested in buying an entry level priced home, and particularly if they have a flawed credit history," Gasinski said.

"Yet most eventually wind up with a loan and a new home," he said, "which is something that cannot happen to people waiting and hoping to time the market perfectly."

The median price of the single-family homes sold last month was $605,000, down 0.8 percent from a year ago and off by 1.6 percent from this May. The all-time record of $643,000 was set in April of 2006.

The median price of condominiums sold during June was off 1.3 percent from a year ago to $370,000. However, the condo median was up 4.2 percent from this May.

"First-time buyers continue to bear the brunt of the tough new lending standards," said Jim Link, the Association's executive vice president. "Yet properly priced homes are still selling and loans are still being issued."

Pending escrows - a measure of future resale activity - decreased 23.6 percent compared to June 2006 to a total of 292 open escrows. However, pending escrows increased on a month-to-month basis - rising 2.5 percent.

There was a total of 2,320 active listings at the end of June, down 5.5 percent from a year ago.
At the current pace of sales, the inventory represents an 8.4-month supply at the current pace of sales, only slightly higher than the 5- to 6-month inventory regarded as a balanced market.

Courtesy of the Southland Regional Association of REALTORS(R)