Santa Clarita Valley Home Sales Up

From the Southland Regional Association of REALTORS(R):

A total of 195 single-family homes changed owners throughout the Santa Clarita Valley during September, in increase in activity of 85.7 percent compared to a year ago, the Southland Regional Association of Realtors^® reported.

Twelve months have elapsed since the record low of 105 sales was set in September 2007, but today's market is looking very different.

"Activity is picking up with much of it centered on sales of bank-owned properties that are being sold as a result of foreclosure proceedings," said Doreen Chastain-Shine, president of the Association's Santa Clarita Valley Division. "It's back to basics with lots of hard work to complete the sale of a foreclosure or a property listed for sale by a traditional owner. However, it's clear that we near or at the bottom of this cycle and one-by-one foreclosures are being sold."

Condominium sales also increased 41.3 percent to a total of 89 transactions, the Association reported. Condo sales have been steadily increasing each month since they hit their low point of this cycle in January with 31 transactions.

"Sale of foreclosed properties will continue occupy the market for some time," said Jim Link, the Association's chief executive officer, "but I'm confident that the worst is passed."

The median price of single-family homes sold last month feel 22.6 percent from a year ago to $433,500, a drop of $126,500 from the $560,000 median of September 2007.

The median price has been inching lower since the record high of $643,000 was set in April 2006. Every month this year has seen the median come in under $500,000, but September was the first month to dip below $450,00.

Likewise, the condo median price of $250,000 was down 30.9 percent - a drop of $112,000 from the $362,000 median of September 2007. It was the first time since 2003 that the condo median hit $250,000.

"There are incredible opportunities on the market today and a growing number of buyers are casting a vote of confidence in the local economy," Chastain-Shine said. "Plus, it's likely that programs coming from Washington, D.C., will create even more options, especially for first-time home buyers."

Pending escrows - a measure of future resale activity - were up 148.4 percent at the end of September, suggesting that the market will remain strong for months to come.

Realtors reported a total of 1,588 active listings throughout the Santa Clarita Valley at the end of September, down 36.3 percent from a year ago.

At the current pace of sales, the active inventory represents a 5.6-month supply. Real estate experts believe a balanced market exists - where neither buyer nor seller have an advantage - when the supply hovers between a 5- and 6-months inventory.