[SRAR] – The median price of single-family homes sold during May throughout the Santa Clarita Valley hit its highest market since October 2007 while sales ebbed slightly, the Southland Regional Association of Realtors reported this week.

A total of 200 single-family homes closed escrow during May, down 4.8 percent from a year ago and 12.7 percent below this April.

The sales dip reflected a too-tight inventory of homes listed for sale and a narrowing of the number of prospective home buyers who can qualify to buy a home at today’s prices.

The median price of $530,000 was up 9.3 percent over May 2014 and 6.0 percent higher than this April. It was the third consecutive month the median price was above the $500,000 benchmark and at its highest mark since October 2007.

“After seeing too many months of double-digit price increases,” said Bob Khalsa, president of the Santa Clarita Division of the Southland Regional Association of Realtors, “it makes sense that we’re into single-digit gains. When the market is working properly, as it is now, buyers simply refuse to pay or simply cannot pay ever-increasing prices.

“That means home sellers, working with their Realtor, will need to ensure a home truly merits its list price,” Khalsa said. “Current market realties make it clear that buyers will go only so high, which means the market is working as it should.”

Condominium sales of 109 units came in 16.0 percent higher during May compared to 12 months ago, even as the condo median price of $315,000 matched the figure reported this January, which was the highest since December 2007. The condominium median price was up 12.1 percent from May 2014.

“The Santa Clarita market has a steady momentum going,” said Jim Link, the Association’s chief executive officer. “We may see a bump up in activity as buyers who have been hesitating jump into action may finally get going now that interest rates on home loans are likely to rise later this year.”

The association reported a total of 373 pending sales—a measure of future sales activity—which was up 12.7 percent over a year ago May.

There also were 633 active listings on the Multiple Listing Service operated by the Association. That was off 4.5 percent from a year ago. Limited listings in all price categories remain a primary brake on sales, especially as buyer demand stays strong and is likely to intensify.

Distressed sales play only a minor role in today’s home resale market, accounting for a combined 4.2 percent of all closed escrows.

Foreclosure-related sales held a 1.3 percent share of the market, short sales 2.9 percent, while standard sales, involving primarily traditional buyers and sellers, came in at 94.5 percent, which was the highest percentage since the Association started keeping these statistics.

The Southland Regional Association of Realtors® is a local trade association with more than 9,100 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.