Strong demand and a limited supply pushed Santa Clarita Valley home resale prices higher in 2013, according to data from the Southland Regional Association of Realtors.
The typical single-family home changed hands for $440,000 in December, off slightly from November’s $455,000 but up 9 percent over December 2012’s median price of $403,500.
The typical condominium sold for $255,000 in December – $40,000 lower than the $295,000 figure posted just one month earlier but still a full 27.5 percent ahead of the December 2012’s median price of $200,000.
For the full year, previously owned single-family home values in the SCV gained 14.7 percent on the year (to $421,625), while condo prices increased by 33.8 percent (to $257,142).
It was the first time the median condo price rose on an annual basis after declines in five of the last six years, and the second consecutive year of improvement in single-family home prices after five years of declines.
Buyers flocked to the more affordable condominium market in 2013, according to the Realtor group. More condos closed escrow in 2013 versus 2012; conversely, fewer single-family homes sold because there were fewer on the market. Short-sales and foreclosure sales ebbed, and other would-be home sellers sat on the sidelines.
“While demand was heavy with multiple offers common during much of 2013, a restricted inventory, tight credit, and rising resale prices limited home sales,” said Nancy Starczyk, president of the association’s SCV Division. “The inventory shortage was heightened as the number of distressed sales and foreclosures fell, and existing owners hesitated to sell due to uncertainties lingering from the Great Recession.”
Although still far short of the desired 5- to 6-month supply of homes, more single-family homes were listed for sale at the end of December on SRAR’s Multiple Listing Service (334) than on Dec. 31, 2012 (237), and more condos, too (138 versus 83).
Association CEO Jim Link predicted that “prices will continue to rise, but at a slower rate than 2013. What happens with federal housing policy remains the major wild card, and no one yet knows how new federal ‘ability-to-repay’ rules will impact access to credit.”