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SCV home sales remain steady in May

Posted: June 19, 2014 5:59 p.m.
Updated: June 19, 2014 5:59 p.m.

Sales of single-family homes in the Santa Clarita Valley remained steady in May, while sales slowed in the San Fernando Valley, according to a report released by the Southland Regional Association of Realtors.

The 210 homes recorded as sold in the SCV in May were up 7.1 percent from a year ago but were equal to the same number sold in April.

Sales in the past two months, however, were nearly double the sales in each of the three months recorded in the first quarter.

“Home sales are coming in stronger than expected, which bodes well for the summer home-buying season,” said Nancy Starczyk, president of the SCV Division of the realty group.

Over the hill, sales of homes in the San Fernando Valley dropped 4.4 percent in May compared to April and dropped 13.6 percent from a year ago.

The median price in May for Santa Clarita Valley single-family homes remained unchanged from the $485,000 recorded in April but represented an increase of $53,000 per home over January of this year.

Prices were up 15.3 percent from a year ago.

The median price was the highest post-recession median price since February 2008, when prices first dropped into the $400,000 range.

It is also up 42.6 percent from the record low of $340,000 set in November 2011, the realty association reported.

Median prices in the San Fernando Valley, however, were $520,000 in May, making it harder for buyers to qualify under stricter lending standards, according to Roger Hance, president of Southland Regional Association of Realtors.

Median prices in the San Fernando Valley were $485,000 in January, the same price now being recorded in Santa Clarita.

SCV condominium sales of 94 units were up 6.8 percent over April but have dropped 8.6 percent from May 2013.

Condo sales have been in decline since they peaked post-recession in August 2013, when 129 units sold.

Condo median prices of $281,000 in May are down from $300,000 in July of last year. May prices, however, were the highest recorded for 2014.

“Condo sales are lagging partly because too many HOA boards of directors have not taken steps to be qualified for buyers to receive FHA loans and also due to affordability issues as resale prices rise,” Starczyk said.

A total of 633 property listings point to signs that a steady recovery in inventory is in place.

The number of homes listed for sale reflects a 2.2-month supply, more than double the record-low 312 listings recorded in 2013. A six-month supply, however, is desired for a balanced market.

Another indicator of a recovering market is that nearly 90 percent of all residential sales in May involved traditional home buyers.

Foreclosures and short-sales combined dropped into the single-digit territory. They represented only 8.9 percent of the total market, down from 35.8 percent last year.

“Santa Clarita is a highly desirable community which is out-performing other regions of the state,” said Jim Link, the realty group’s chief executive officer.

“Even inventory is slowly growing, which expands options for buyers and reflects renewed optimism in the housing market.”




ricketzz: Posted: June 20, 2014 6:29 a.m.

This is bubble territory. A massive correction is overdue. Beware the "new" economy.

Unreal: Posted: June 20, 2014 10:57 a.m.

This is not a bubble.

Prices are still correcting from all the short sales and that is why you are seeing increases in prices.

A good strong marketwith multiple offers on well priced properties and interest rates still very low.

cms96: Posted: June 23, 2014 11:21 a.m.

This is a bubble waiting to burst. If you recall the rates were still pretty low during the start of the last bubble. I can remember hearing about rates being the lowest they've been in 40 years. And that was in 2005. The price increase have been mainly due to the so-called flippers that were buying up all the distressed homes, fixing them up and reselling them for a profit.
What you will begin to see are Days on Market increasing and a stagnation in sales. The home prices have increased too rapidly and are way too high to keep the market moving.

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