The inventory of homes listed for sale during June in the Santa Clarita Valley rose to the highest level since September 2016, yet even with the increase in supply, sales remained lackluster and resale prices continued to rise, the Southland Regional Association of REALTORS® reported Monday, July 23.
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 Southland Regional Association of REALTORS®.
“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 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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