Southland Association of REALTORS(R) released May stats for both the Santa Clarita and San Fernando Valleys. Both show that prices and number of sales have improved over the prior month. So, it look like we're at a turning point!
Mortgage rates fall, applications rebound - Rates on 30-year fixed mortgages fell for the first time in three weeks after the Federal Reserve said last week that it expects inflation to level off, according to mortgage backer Freddie Mac. Mortgage application volume rose 3.6% during the week ended June 27, according to the trade group Mortgage Bankers Association's weekly application survey. (CNNMoney, 7/2 and 7/3)
Single-Family Homes Sales in the Santa Clarita Valley Increase 23%, Posting 5th Consecutive Month of Gains
Sales of existing single-family homes picked up during May in the Santa Clarita Valley, posting the fifth consecutive month of increases, the Southland Regional Association of Realtors reported on Thursday, June 26.
Realtors closed escrow on 220 homes, an increase of 22.9 percent over a year ago May and 23.6 percent higher than the tally reported this April. May also marked the first time since June 2007 that more than 200 homes sold in a single month. Every month since January has seen more homes sold than the prior year.
With more activity coming in the lower price ranges, the median price of the single-family homes sold during May slipped by 14.1 percent from a year ago to $450,000.
The condominium median price of $305,000 was down 14.1 percent from a year ago, but up 9.3 percent from the April median.
Pending sales – a measure of future resale activity – increased 19.0 percent from a year ago to a total of 339 open escrows. However, pending sales fell 11.0 percent compared to this April.
Surprisingly, the inventory of homes for sale is dropping, hitting levels that are close to levels where industry experts believe the market is balanced between buyers and sellers. At the current pace of sales, the inventory represents a 6.6-month supply. A balanced market appears when the inventory offers a 5- to 6-month supply.
San Fernando Valley Home Sales Rise for the Fifth Consecutive Month
The residential real estate market in the San Fernando Valley faired better than other regions of the state during May as buyers negotiated enough bargains to post the fifth consecutive month of sales increases, the Southland Regional Association of Realtors reported on Thursday, June 26.
Increased sales activity in the lower price ranges continued to bring the median price of homes sold down while also reducing the inventory of properties listed for sale.
A total of 669 single-family homes closed escrow throughout the San Fernando Valley during May. That was an increase of 6.4 percent from a year ago and 22.3 percent higher than the April sales total. While overall activity remains low by historical standards, every month since January has seen more sales consummated with the help of Realtors.
Following traditional buyer preferences, condominium sales were down 32.8 percent from a year ago to a total of 168 closed escrows. However, condo sales did rise on a month-to-month basis, posting a 15.1 hike over April.
The median price of single-family homes fell 30.8 percent to $450,000 as buyers focused on properties priced under $500,000.
Likewise, the median price of the 168 condos sold last month fell by 22.7 percent to $299,000.
Pending sales – a reliable measure of future sales activity – suggest that sales will remain strong through the coming months as buyers show ongoing faith in the local economy and the residential real estate market.
The pending sales total of 1,122 open escrows was up 19.9 percent from a year ago and 3.7 percent higher on a month-to-month basis.
Indeed, the 7,078 properties listed for sale throughout the San Fernando Valley was a surprisingly low number. It was up 5.7 percent from a year ago, but down 2.2 percent from the April tally.
At the current pace of sales, the inventory represents a mere 8.5-month supply. That is still a buyers’ market, but the inventory is down from the double-digit supply of recent months and close to the 5- to 6-month supply deemed to represent a balanced market.
For comparison, the number of properties listed for sale during the 1990s hit a record high of a 23-month supply. Even at the worst point in the current cycle, the highest the inventory rose was to a 15.1-month supply.
Sources: Southland Regional Association of REALTORS(R), CNNMoney
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