As the real estate market continues to flourish, we’re seeing an even bigger drop in homes lost to the bank.
As 2015 moves forward, we’re continuing to see signs of a real estate rebound nationally, and especially here in Santa Clarita. Home prices climbed on average 12 percent last year, and we’re seeing continued value stabilization during the first quarter of this year when prices typically drop.
It wasn’t so long ago that many real estate agents (Ourselves included), had at least a noticeable percentage of our business come from distressed home buyers, many of whom were facing foreclosure by their lender. Last month, the SCV saw a total of 12 short sales on the market, with only 8 foreclosures being sold.
This isn’t just a local trend, Realty Trac reports that national foreclosures are down to their lowest level since July 2006, which was about a year and a half before recession began to rear its ugly head. 2006 was a very big year for real estate, with single family home prices in Santa Clarita peaking at $643,000 in April. By July, we began seeing a slight drop off, as the median price of single family homes dropped to $605,000, which is about $115,000 higher than the median price reported in February 2015.
After a 5 year drop in home prices in the SCV between 2007 and the end of 2011, we’ve seen home prices rise annually by double digit percentage points since 2013.
What’s causing these home price hikes?
A combination of low interest rates (Still below 4 percent) and a lower than average available number of homes for sale are still spurring the market in Santa Clarita. February saw 407 homes listed, with a total inventory of 703. This is still a few hundred homes shy of what we consider the beginning of a “balanced” market, so sellers have the opportunity for a quick sale. Low interest rates, along with changes in Fannie Mae, Freddie Mac, and the FHA which have loosened some down payment restrictions for home buyers are helping to generate a lot of interest in the homes that are available for sale. We’re still seeing multiple offers on some listings.
Is it time to sell your home?
Want to know more about the real estate market in the Santa Clarita Valley? Are you considering a move? The Lichen-Hooper Real Estate Team provides a full array of real estate services with agents who are licensed, experienced, and dedicated to helping you achieve all of your real estate goals.