Low interest rates for buyers and a solid gain in equity for sellers makes for a hot market.
Median single family home prices continued to nose upward in the Santa Clarita Valley between January and February of 2014, according to data from the Southland Regional Association of Realtors. The median price as of March 2014 (The last full month that statistics are available) is $462,000. This after seeing a slight dip in prices over the holiday season.
More good news for Santa Clarita home sellers!
260 homes closed escrow during the month of March. Of those, only 11 were foreclosures/bank-owned, and 19 were short sale properties. National figures show the number of “upside down” homeowners dropped over 25% since the first of the year.
So what exactly does this mean for homeowners? First of all, for those who WERE upside down on their mortgage, this means that many more are once again enjoying positive equity in their property. Second, homeowners who are ready to sell can take comfort in knowing that the market is still hot. There is a serious shortage of homes available for sale in Santa Clarita, and with home mortgage interest rates still incredibly low (Less than 5% as of the date of this article), buyers are still lining up to make offers.
How long will it last?
This is a good question for both buyers and sellers. Predictions by financial experts late last year were that mortgage rates would jump to over 5% by this time in 2014. So far, they’ve held, hovering in the 4 1/2% range.
As for homeowners, we’re seeing a slower, but steady, increase this year in prices. Slow is good, however. Seeing huge gains of 30% year over year (As we did in the early 2000’s) led to a very unstable real estate market by 2007. That, coupled with other negative economic factors nearly collapsed the market. Historically, real estate increases approximately 3 to 5% per year, which, under normal circumstances, makes it one of the safest investments anyone can make.
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