|
|
|
Santa Clarita Home Sales Zooming in July |
|
|
|
By Robert Boog
 July real estate sales activity for the greater Santa Clarita area (from June 15th through July 15th) raced upwards from the previous month. There are currently more than 110 new pending sales charging ahead through escrow. Pending sales are homes that are under contract, or in escrow waiting to clear inspection and financing contingencies prior to close. So while the newspapers bang the drum about banking woes, prudent purchasers are out house hunting!
Many buyers are pouncing on single-family bank-owned properties - with many of these properties selling in less than a week and causing some warnings to real estate agents that "properties must be listed for five days before seller will review any offer."
One real estate agent who represents bank-owned properties announced that he had 29 contracts written on a $450,000 Stevenson Ranch property, while another agent claimed she had received over 7 offers in less than three days for a North Oaks property in Canyon Country that was listed at $244,900.
There are a significant number of homes in Santa Clarita that are substantially dropping in price . The majority of these homes tend to be priced between $400,000 to $650,000. What used to be a "hot property" has seemingly gone stone cold. Two years ago, for example, it was difficult to find a newer single family Santa Clarita home listed for $500,000 -$600,000 that spanned 3,000 square feet in size. Today there are over 65 such homes listed for sale.
One such listing is a single-family residence with a three car garage listed in Saugus. Two years ago, an owner paid almost $850,000 for this new home that boasts 3,400 sq. ft. Today, the bank that owns it has marked the price down over $250,000 in order to sell it. Ouch.
In the single-family detached market under $400,000, it's a different story. For the most part, prices are holdings steady or even slightly increasing. Many buyers are using the FHA Nehiamiah "no down payment" program where the seller contributes a portion of the sales price (typically 6%) which pays for both the purchaser's down payment and closing costs. The buyer must document his income using standard income verification methods but this flexible arrangement is helping to heat up the "starter-home" market.
 Unfortunately, we have noticed with some buyers, a certain market indifference. If a purchaser detects there may be competing offers on a certain property, the buyer becomes hesitant and may elect not to offer at all. Many buyers feel that if they do not get their price and terms now - just wait and the market will decline further in the next few months.
Whether that happens or not remains to be seen. The declining stock market is leading some high-powered investors to dump their stock investments and purchase real estate believing that the price and supply of homes remains low by historical standards. Many investors feel that rents may nudge higher mainly because families leaving foreclosed homes need somewhere to go - and single-family home rentals are difficult to find.
Final thought: Buyers who have been disappointed in recent months while shopping the market may take note that FHA is considering abandoning the no-down Nehiamiah program altogether and forcing purchasers to come up with savings of their own. For this reason, buyers who are currently renting and might be purchasing in the starter category should consider getting their credit and income documentation in order. Rents may be hard to find now, but there is no rent control in Santa Clarita, and rents could adjust higher by winter.
Robert Boog
(661) 259-9723
(661) 259-9725 (fax)
Want to join Bob's email list?
www.sellinghomes1-2-3.com
 |
|
|
Show/Hide comment form