MLS


Broker Syndication Authorization

Data Integrity Standards

DataShare Area Coverage Map

Free IDX Link

ListHub

Matrix Information

MLS Fillable Disclosure Addendums

MLS Forms

MLS Rules

MLS Rules Changes

MLS Rules: Citation Policy

Neighborhoods/Areas/Tract Codes

Santa Clarita Area Letter

Santa Clarita Caravan Schedule

Sign Ordinance

Statistics



Advertisement
 

Advertise With Us!
Home > MLS > Statistics > Press Release

September 2019 (SFV)

Low Interest Rates on Home Loans Bumped Up Home and Condo Sales During September

Sales of existing single-family homes and condominiums in the San Fernando Valley rose during September over year ago tallies fueled by low interest rates on home loans, the Southland Regional Association of REALTORS® reported Friday, Oct. 18.

REALTORS® helped close escrow on 453 homes and 169 condos, up 7.3 percent and 34.1 percent, respectively, from September 2018 as buyers rushed to temper high prices with interest rates that were the lowest in more than three years.

“Interest rates on home loans have been trending lower every month since peaking in November,” said Dan Tresierras, president of the Southland Regional Association of REALTORS®. “Today’s low rates have a profoundly positive impact in the quest to buy a home.”

The median price of single-family homes sold during September was $705,000, which was up 5.2 percent from a year ago, though down 3.2 percent from August. The record-high median price of $735,000 was set in July.

Similarly, the condominium median price of $440,000 was up 2.3 percent over September 2018 and down 3.3 percent from August. The condo record of $455,000 came in June and again in August.

Even though the median prices of homes and condominiums rose from a year ago, the income needed to qualify for an 80 percent loan actually fell for both categories.

For example, the $141,000 income needed to qualify during September for an 80 percent loan on a median-priced home of $705,000 was down 5.1 percent from a year ago due to the 3.61 percent interest rate. Twelve months ago, the national average interest rate on a 30-year home loan was 4.77 percent.

Likewise, the income needed to qualify for a median priced San Fernando Valley condominium of $440,000 was $88,000, down 7.7 percent from September 2018.

Median price means half of the 622 home and condo sales that closed escrow in September had a lower price and half had a higher price, which also mean there were dozens of sales completed for less than stated minimum incomes.

While bumped higher due to low rates, sales still followed seasonal trends, which see the market gradually cooling as winter approaches.

Current home hunters will have fewer options to choose from as the inventory fell during September for the fourth consecutive month.

“Every month in 2018 and through May of this year the number of properties listed for sale increased, sometimes by as much as 42 percent over the prior year,” said Tim Johnson, the Association’s chief executive officer. “But that stopped in June.”

September saw a 24.6 percent drop in active listings that translated to an 1.9-month supply at the current pace of sales, which generally is regarded as inadequate to meet current demand and ease pressure off prices.

“Normally, a tightening inventory would fuel further price hikes as sellers would be emboldened,” Johnson said, “but with prices at or near record highs, affordability becomes a limiting factor for many prospective homebuyers.”

Of the 622 homes and condos that changed owners in September, 604 or 97.1 percent were standard sales involving traditional buyers and sellers. There were two foreclosure-related transactions, 0.3 percent, and six short sales, 1.0 percent, where the lender agrees to a sale price lower than the balance of an existing home loan.

Pending escrows, which are a measure of future sales strength, totaled 662 at the end of September, which was up 14.3 percent.

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.

— 30 —



   © 2020 Southland Regional Association of REALTORS®      Contact Us    |     Suggestions/Feedback    
Affiliates
Affiliate Benefits
Affiliate Member Lookup
Affiliate With Us
Sponsorship Opportunities
Community
Contribute to HAF
Going Green
Governmental Affairs
Homebuyer Grants
Events/Education
AREA Marketing Meetings
Calendar
Commercial Data Exchange
Leadership Institute
Online Ed
Sponsorship Opportunities
Webinars and Videos
Links
California Association of REALTORS®
California Bureau of Real Estate
Los Angeles County Business Federation
Los Angeles County Housing Resource Center
Los Angeles Housing Department
Los Angeles Neighborhood Councils
National Association of REALTORS®
Santa Clarita Valley Chamber of Commerce
The City of Los Angeles
The City of Santa Clarita
The Valley Economic Alliance
United Chambers of the San Fernando Valley
Membership
Application for Committees
Applications and Forms
Code of Ethics Requirement
Farming & Resource Materials
Member Benefits
Membership Resources
Outreach
REALTOR Action Fund
REALTOR Safety
Risk Management
MLS
Broker Syndication Authorization
Data Integrity Standards
DataShare Area Coverage Map
Free IDX Link
ListHub
Matrix Information
MLS Fillable Disclosure Addendums
MLS Forms
MLS Rules
MLS Rules Changes
MLS Rules: Citation Policy
Neighborhoods/Areas/Tract Codes
Santa Clarita Area Letter
Santa Clarita Caravan Schedule
Sign Ordinance
Statistics
Services
Advertise With Us
Auditorium Rental
Consumer Complaint Process
Print Shop
Professional Standards
R.E. Store
Tech Support Helpline
Tech Support Videos
Veterans
Privacy Policy  |  Accessibility