SCV Sales Show Renewed Activity

Home and condominium sales during March in the Santa Clarita Valley showed renewed activity on a month-to-month basis even as sales remained down compared to a year ago, the Southland Regional Association of Realtors® reported.

A total of 151 single-family homes closed escrow during March, up 31.3 percent from the total reported in February. March activity was off 42.1 percent from a year ago, but home sales have been gaining momentum since hitting the record low of 99 transactions in January.

Likewise, condominium sales were up 45.9 percent during March compared to February for a total of 54 closed escrows. Condominium activity also has been on a downward trend for some time, but appeared to have bottomed out with the record-low 38 sales posted in November. March condo sales were down 52.2 percent from a year ago, but each month this year has shown increased activity.

"Has the worst passed? Perhaps, although it will still take many months to workout the impact that foreclosures have on the market," said Doreen Chastain-Shine, president of the Association's Santa Clarita Valley Division. "But buyersare out looking at properties, with some of them making offers and others still wondering if now is the time to act."

Pending escrows - a measure of future resale activity - were surprisingly robust.

A total of 307 properties were in escrow at the end of March, up 12.5 percent from a year ago and 24.3 percent higher than this February. Pending escrows have been on the rising since September when they hit the record-low of 155 open escrows.

‘There is no doubt that the quick run-up in prices during the boom years, today's higher inventory of homes for sale, and the presence of foreclosures have a triple impact on sales and prices," said Jim Link, the Association's chief executive officer.

"However, gradually rising sales will reduce the impact on resale prices."

The median price of the 151 single-family homes sold last month was $470,000, down 19 percent from a year ago and off 4.1 percent from February. The low point in this cycle came in January when the median hit $460,000. That compares to the record high of $643,000 which was set in April of 2006.

The condominium median price during March was $275,000, down 28.6 percent from March 2007 and off 1 1.0 percent on a month-to-month basis. The high point for condo prices came in January 2006 when the condo median stood at $397,000.

There were a total of 2,085 properties for sale throughout the Santa Clarita Valley at the end of March.That was up 6.8 percent from 12 months ago, but down 4.4 percent from this February.

At the current pace of sales, the inventory represents a 10.2-month supply - still clearly a buyers' market, yet a considerable reduction from recent months when the inventory was in the mid to high teens.

"Clearly, the market has shifted gears," Chastain-Shine said, "although it will take months before we'll know with certaintythat the market has stabilized, but it certainly looks like it's moving in that direction."