Santa Clarita Valley 2003 Home Sales, Prices Hit Record Highs

For the fourth consecutive year, annual sales and prices of residential housing sold throughout the Santa Clarita Valley during 2003 rose to record levels, the Southland Regional Association of Realtors reported on Thursday, Jan. 14, 2003.

A total of 3,794 single-family homes changed owners last year, up 15.8 percent over 2002, making it the busiest year on record. A record 1,852 condominiums also sold last year, up 10.5 percent.

The 5,646 transactions negotiated by local Realtors generated $1.9 billion for buyers, sellers and the local economy.

AEvery year we think the local market could not possibly get any busier,@ said Doreen Chastain, the 2004 president of Association=s Santa Clarita Valley Division, Abut demand for local housing is insatiable. Many more homes would have sold, if only we had a larger inventory.@

Low interest rates on home loans kept the market humming even as the median resale price jumped to record highs.

The annual median price of the 3,794 homes sold last year hit a record high $376,608, up 16.8 percent over 2002. It was the largest percentage increase in the annual median and a far cry from the $204,742 annual median reported in 1998.

Condominiums, which showed an annual median of $124,158 just five years ago, also hit a record high of $237,233. That was 28.2 percent ahead of the 2002 annual median price and the third consecutive year of double-digit increases.

ARising resale prices benefit many people,@ said Jim Link, the Association=s executive vice president, Abut there comes a point of diminishing returns, when too many people are knocked out of the market in every price range simply because they cannot afford to buy.@

Low interest rates throughout 2003 mitigated some of the impact of rising prices, but historical data shows that at some point rising prices restrict the pool of prospective buyers, especially in the entry level price ranges.

Already, only 25 percent of households in California can afford to buy the statewide median-priced home of $386,760, according to the California Association of Realtors. That number was down 5 percent compared to the same period last year.Chastain and Link expected residential real estate in the Santa Clarita Valley to be busier than most other communities in Southern California through 2003. However, they said the pace of sales may slacken slightly due to an extremely limited inventory of homes listed for sale. If that happens, increases in the median price also may moderate.

During a time of year when sales typically slow down, 326 single-family homes changed owners during December. That number was up 24.0 percent over December 2002. The 143 condominium sales sold last month were off 5.9 percent.

December pending escrows B a measure of future resale activity B increased 19 percent on both an annual and monthly basis.

The Southland Regional Association of Realtors is a local trade association comprised of more than 9,000 members serving the San Fernando and Santa Clarita valleys. It is one of the largest local associations in the nation. Go to www.srar.com to search for every home listed for sale in the San Fernando and Santa Clarita valleys.

Southland Regional

Association of Realtors

Santa Clarita Valley

Combined Residential Re-Sale Statistics

December 2003

Southland Regional

Association of Realtors

Santa Clarita Valley

Single-Family Re-Sale Statistics

December 2003

Condominium Re-Sale Statistics