Santa Clarita Home Sales Up 55%

Continuing an upward trend in sales that started in April, more homes sold throughout the Santa Clarita Valley than a year ago with the 172 closed escrows reported this November up 55.0 percent over November 2007, the Southland Regional Association of Realtors^® reported.

"That's a far cry from the record high 405 sales set in June 2005, but a strong indicator that the local housing market has bottomed out and resale activity is on the upswing," said Doreen Chastain-Shine, president of the Association's Santa Clarita Valley Division.

"With the increased buyer demand we're seeing we expect further improvement in sales and an end to the slide in prices," she said, "but that won't fully materialize until the economy stabilizes, foreclosures disappear from the market, and lenders start writing home loans again." Realtors^® also closed escrow on 62 condominiums during November, up 63.2 percent from a year ago.

'That compares with the record high of 204 condo sales set in April of 2003.

The median price of single-family homes sold during November throughout Santa Clarita was $400,000, off 23.4 percent from a year ago and dramatically below the record high of $643,000 which came in April 2006.

The drop off in the condo median price was even steeper during November - down 33.5 percent to a median of $210,000, well below the record high of $397,000 set in January 2006.

"The local market is clearly bouncing off the bottom with remarkable bargains going to buyers who come to the table with cash or a loan in hand," said Jim Link, the Association's chief executive officer.

"There would be even more sales, except lenders are not issuing loans even to some buyers who meet today's exceptionally stringent, constantly shifting underwriting standards.

"It's a very difficult, unpredictable market right now, which also means it's a time of immeasurable opportunity for those who are willing to jump in," he said. "It's much better housing market than a year ago and price declines are starting to slow, but further improvement won't come until the economy settles down and the credit market opens up."

Even with the financing difficulties and approach of the holidays, pending escrows - a measure of future sales activity - suggest that resale activity will remain relatively upbeat through the end of the year and beyond.

A total of 270 open escrows were reported at the end of November - up 65.6 percent from a year ago.

The Southland Regional Association of Realtors also reported 1,487 active listings throughout the Santa Clarita Valley as of the end of November. That was 36.5 percent below November 2007.

At the current pace of sales, the inventory represents a 6.4-month supply, up slightly from prior months but still just on the high side of the 5- to 6-month supply that real estate experts believe represents a balanced market.