Equity has risen nearly $40K since January.
A report recently released by the Southland Regional Association of Realtors showed the median price of condominiums in the Santa Clarita Valley rose by $9,000 in October over the previous month.
The median price reached $89,000 last month, showing a total of $39,000 in equity gains since the beginning of this year, when prices averaged $250,000.
What has triggered this rise in condo prices?
First of all, the real estate market overall has had a pretty good year. We’ve seen stability in the marketplace for both condos and single family homes across the Santa Clarita Valley. Buyers have also enjoyed the benefit of low interest rates that have recently dropped back below 4 percent. The lending market, having instituted guidelines for Qualified Mortgages (QM) has boosted confidence in the real estate community by insuring that buyers who qualify for a home loan can TRULY afford the home they are purchasing. This has given a boost to mortgage investors as well. This is extremely important in the continuing recovery and growth of the real estate market.
One of the drawbacks for condo purchases is the limitations put on by FHA borrowers, as the Federal Housing Administration has guidelines for approving loans for condominiums based on several factors. A condo association must be “approved” by the FHA in order to be able to allow the sale of a condominium to go through for a buyer who has been approved for an FHA loan.
However, condo buyers can get around this by analyzing and fully understanding all of their loan options by contacting a qualified professional who can get them the right answers.
A condominium is a sound investment!
We regularly talk about the benefits of moving to the Santa Clarita Valley. If you’re a first time home buyer or investor, there are plenty of entry level condominiums and townhouses across the valley for you to choose from. Choosing the Lichen-Hooper Real Estate Team as your guide is knowing that you’ve made the first best step toward a sound investment.