July showed a price drop for single family homes along with a drop in interest rates.
New data released by the Southland Regional Association of Realtors showed what appears to be a shift in the direction of buyers in the Santa Clarita Valley as the median price of single family homes dropped by $14,000 in the Santa Clarita Valley to $465,000. SCV Condominiums also dropped by $5,000 in July to $285,000.
Interest rates also dropped to a near 52 week low earlier this month. As of Friday, August 22nd, rates are still near the 4% mark, holding at 4.15.
Are we shifting toward a buyer’s market?
We’re beginning to see a more balanced market here in the Santa Clarita Valley. July saw more available homes for sale, settling in at 916; a third more than were available this time last year, and about 2/3 more than were available in the first quarter of 2013. We now have about a 3 month supply of available homes for sale, which denotes a turn toward a more typical real estate market that can benefit both buyers and sellers.
Should sellers be worried about this market shift?
Despite summer being the hot time (No pun intended!) for buyers to jump into the market, looking back over home sales data for the past few years, we usually see a dip in prices toward the end of the season as the competition from sellers begins to rise. Even still, median prices were in the low $430K range at the beginning of 2014, so homeowners are still seeing substantial growth in their equity.
More escrows opened, more escrows closed.
Sellers should be confident in that more homes sold in July over June, with 373 homes sold, compared to 344 in the previous month. 415 homes opened escrow, compared to 370 in June.
Whether you’re buying, selling, or both, the Lichen-Hooper Team is your choice to help you realize all of your real estate goals. Contact us for a no obligation consultation.