The inventory of homes listed for sale during June in the Santa Clarita Valley rose to the highest level since September 2016, yet sales remained lackluster and resale prices continued to rise, the Southland Regional Association of Realtors reported Monday.
A total of 278 single-family homes changed owners last month, a drop of 9.4 percent from a year ago that saw 307 sales, which was the highest monthly total reported since the economic recovery began. Following seasonal patterns, June sales were up 23 percent over May.
Realtors also helped close escrow on 103 condominiums. That was down 13.4 percent from June 2017 and off 1.9 percent from May.
“Owners see prices at or near record levels, they see interest rates rising, and they realize that this truly would be a great time to list their property for sale,” said M. Dean Vincent, chairman of the Santa Clarita Valley Division of the 10,300-member SRAR.
“Yet even further small increases in the active inventory would be unable to satisfy pent-up demand for housing,” Vincent said. “Now we have higher interest rates, with more rate hikes on the way, heightening affordability concerns, which already limit the pool of prospective buyers.”
The median price of single-family homes sold during June was $610,000, up 4.1 percent from a year ago, but off 0.8 percent from the $615,000 median reported in May, which was the highest monthly median since the economic recovery began.
While most of the records set last decade have been broken, the local median price record of $643,000 in April 2006 has yet to fall.
The condominiums sold in June had a median price of $390,000, up 5.4 percent from 12 months ago, yet 3.5 percent below May’s median of $404,000. The record high condominium median of $410,000 was set this April,
“Even a modest increase in inventory is welcome,” said Tim Johnson, the association’s chief executive officer. “Yet, so long as inventory stays tight, we’ll see upward pressure on resale prices.
“With two additional hikes in interest rates expected later this year affordability will become even more of an issue,” he said. “Buyers refusing to pay increased prices may prompt home sellers to limit price hikes, which could offset some of the upward pressure created by a limited supply.”
The combined inventory of 605 active listings was the highest monthly tally since September 2016 and only the second month since February 2015 to post a year-to-year increase. Despite the increase, the inventory represents a mere 1.6-month supply at the current pace of sales. An ideal supply would closer to a 5-month or 6-month supply.
After flirting with the record low supply of 312 listings in December, the inventory has been trending higher, largely following seasonal trends.
There were zero distressed sales of condominiums last month and only two foreclosure-related homes and one home short sale reported. That meant that 99.0 percent of the market consisted of standard sales involving traditional buyers and sellers.
Pending escrows — a measure of future sales activity — tallied 329 open escrows at the end of June. That was down 12.7 percent from a year ago.
The Southland Regional Association of Realtors is a local trade association with more than 10,300 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
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26 Comments
Valerie Kirk let’s sell and move to Idaho
Your Mexican you can’t!
Last name is as white as they come. I can blend in
Mark Fuhrman might shoot me.
Thats all the middle class getting out of this jerry brown nightmare like l am gonna do soon.
Right behind you! Import the third world and you get the third world, along with the money grabbing leadership that trades welfare for votes!
And currently how many thousands of homes are in development ? How about scv invest into infrastructure instead of 1500 houses being built in the wash off 14 and Sand
Exactly
Lots of people are moving to ID!
They’re smart!
?
I’m sure the ID natives LOVE it.
Yes here and Utah. Lots of people are so done with So California.
Barrie White SELL SELL SELL
Easier said than done?
Does it look like one road in and out. Does not matter we’re out of this madness .
Todd Kaufman
What a joke it is to want to live here!!!
Cuz we need to move out of Cali
Ignorant people throwing blame on a political party. Not surprised. Can’t afford California? Its simple, LEAVE!
Thinking of Gardnerville, NV or Charlotte NC
SCV is great and run by mainly Republicans but the state is run by Dem’s and is really falling apart.
Immigration (or I should say colonization) is out of control, homelessness, drugs, job market has NOT recovered as well as rest of country due to the taxes in our state. Rents our kids can’t afford so they still live at home with us!! 2 of my kids are out of area now and happy to be. One is leaving in 2 weeks for NC.
Sell while the market is up. Sell to an immigrant. Santa Clarita is filled with non-whites now. Let them deal with the impending housing crash. I’m gonna move to Henderson, NV.
MAGA
Another housing bubble.
The kind of people that are buying these homes, are the people that can afford it. They are usually people that have good paying jobs and work in the day. They dont have time to party all day, like some of my neighbors that have lived in their homes for over 30 years with their adult kids. The kids cant afford to live anywhere else, because instead of preparing themselves for the future, they party.