2017 - CONTINUING SELLER'S MARKET? PRICES ARE STEADY, MOVING UP! SELLERS ARE RECEIVING MORE EQUITY OUT OF THEIR HOMES!
After all we have been through in the last 7 years, almost all industry indicators are showing strong signs of the market turning positive.
1) Original List Price vs. Sales Price - Over the last 6-12 months and more specifically the last 6 months, we have seen a decrease in the difference between the Original List Price a home comes on the market for and the final Sales Price the home actually sells. BUT NOW we are seeing Sales Price is exceeding List Price. What does this mean? It shows that home sales prices are actually trending over their original market value asking price which means that sellers are getting more sales price than they have since 2007-2008 downturn.
2) Low Interest Rates - Our lending team recently locked in several buyers at a rate of below 4% on the 30 year fixed rate loan. Interest rates are a key factor, along with home prices that have moved the home affordability index lower and allowed buyers more buying power. Several months ago when interest rates spiked a buyer who could afford a $2,000 mortgage payment has moved from near $300,000 to $325,000. That extra buying power sometimes means the extra bedroom that buyer needed or a home in better condition or closer location to work/schools/shopping.
3) Low/Moderate Inventory - In the Santa Clarita Valley especially we are experiencing a low inventory of saleable homes but a continuing increased buyer demand. Inventory remains low/moderate which limits buyer's choices and still gives sellers an opportunity to get fair market value for their home. In 2011 we had 1100 active homes and in 2008 when the market peaked and inventory rose, Active homes reached 2200-2500 homes. A previously normal market in Santa Clarita was 1200-1500 Active homes during the summer selling season. Currently we have between 400-500 homes on the market 1st Quarter 2017.
What does this mean for you? - For owners who have been underwater and hoping to sell this is great news! With low/moderate inventory, most homes that are well maintained are garnering a premium, receiving multiple competing offers.
You need to know what your home is worth. You will be surprised. Please give me a call today for a free home value evalution. Call me 661-755-5711