The median price of single-family homes sold during March in the Santa Clarita Valley hit its highest level since July 2010 while home sales increased 11.1 percent compared with March 2012, the Southland Regional Association of Realtors reported Thursday, April 25.
The $420,000 median price also was up 11.1 percent from this February and was only the second time since late 2011 that the median price broke the $400,000 benchmark.
Condominiums posted a median of $220,000, up 15.8 percent over March 2012. The condominium and single-family median prices are up 29.4 percent and 23.5 percent from their record lows for this cycle, which came in July 2012 and November 2011, respectively.
“The depth of pent-up demand for housing in our community is evident in the rise in prices and continuing increases in sales, even in the face of an incredibly limited inventory of homes for sale,” said Bob Khalsa, president of the Association’s Santa Clarita Valley Division. “Home prices in all price ranges clearly are on their way up. There are multiple buyers for almost every property, yet nowhere near the supply needed to satisfy demand.”
The Association reported a record low number of active listings for the Santa Clarita Valley at the end of March. The 312 listings fell below the prior record of 317 active listings reported in February. The March tally was down 56.9 percent from a year ago and represent a mere 1.1-month supply at the current pace of sales. A 6-month supply is needed to have a balanced market. For comparison, active listings averaged more than 2,200 per month during 2007 and fell below a 1,000 listings per month average for the first time last year when the average came in at 607 listings per month.
“The lack of listings clearly adds upward pressure on prices, which benefits underwater homeowners who have loans larger than the current resale value of their home,” said Jim Link, the Association’s chief executive officer. “Yet too few listings also skews the market, which may hinder a broader economic recovery and undermine the long-term stability of the housing market.”
Neither Khalsa nor Link believe current market dynamics will change anytime soon, yet both said they welcome the day in the not-to-distant future when traditional owners grasp the scope of the today’s opportunity, feel secure enough to re-enter the housing market, and list their homes for sale.
Sales of single-family homes in the Santa Clarita Valley during March increased 11.1 percent to a total of 200 transactions. The March tally also was 30.7 percent better than this February and was the best March in three years. Home sales have increased 102.0 percent from the record low of 99 transactions set in January 2008.
Condominium sales also soared during March, up 41.8 percent to 95 closed escrows, and 37.7 percent better than February. Local condo sales were up 206.5 percent from the low point of 31 closed escrows, which also was set in January 2008.
Part of the drop in active listings relates to the plunge in sales of homes that lenders acquired via foreclosure. So-called Real Estate Owned properties accounted for a mere 7.8 percent share of the local resale housing market last month. Short payoffs, where the lender agrees to a sale price that is less than the outstanding balance of the home’s loan, captured 30.0 percent of the March transactions. That percentage has been rising as lenders, often under pressure from federal and state regulators, have grown more accepting of short sales.
Standard sales, involving traditional owners with equity in a property and a measure of the overall health of the market, accounted for 61.4 percent of March escrows closed with the assistance of a Realtor.
The Southland Regional Association of Realtors® is a local trade association with more than 9,000 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
The median price of single-family homes sold during March in the San Fernando Valley increased 13.6 percent from a year ago to $430,000, the highest price reported since July 2008, the Southland Regional Association of Realtors reported Thursday, March 22.
The condominium median price of $281,000 jumped 22.2 percent from March 2012 to hit its highest level since June 2008.
Both totals were up sharply from the low points for this recession, with home prices up 26.8 percent and condo prices 51.9 percent higher.
“The drop in foreclosures, today’s extremely limited inventory, and growing competition for homes push resale price steadily higher,” said Sharon Barron, the 2013 president of the Association. “To be competitive in today’s market, buyers need to be well represented, fully qualified for a loan, and ready to make fast decisions.”
The 1,015 active listing total reported at the end of March was the second lowest number on record, behind only the 995 listings of December. Active listings were down 45.9 percent from a year ago and represented a 1.5-month supply at the current pace of sales. A 5- to 6-month supply typically yields a balanced market. For comparison, listings peaked for this cycle at 7,730 listings in October 2007 while the record-high listing tally of 14,976 came in July 1992.
“A large percentage of owners who typically would be selling at this time of year are waiting for prices to rise higher,” said Jim Link, the Association’s chief executive officer. “Waiting may make sense if the sale price would be less than the outstanding loan balance.”
Yet, waiting may be unwise for owners who have equity in their homes and a desire to buy a different house, Link said.
“Yes, prices are likely to keep rising as the economic recovery continues,” he said. “But buyers will pay more for a replacement house while the risk increases with each passing day that interest rates on home loans also will rise.”
Realtors closed escrow on the sale of 498 single-family homes during March, a total that was up 30.7 percent from this February and down less than 1 percent from the 502 sales of March 2012. Despite the limited inventory, home sales are up 54.2 percent from the record low for this cycle, which came in January 2008.
March condo sales were up 20.1 percent from a year ago with 197 closed escrows. Condo sales were up 87.6 percent from the record low, which also came in January 2008.
“The recession hit the housing industry hard,” Barron said. “The recovery would be stronger, faster and more balanced if only there were more properties listed for sale.”
As an additional sign that the housing market is improving, more than two thirds of all closed escrows during March were standard sales, the Association reported. The 466 standard sales represented 67.1 percent of total closed escrows.
Short payoffs — where lenders agree to a sale price that is less than the loan balance — accounted for 154 sales or 22.2 percent to total closed escrows. There were only 69 Real Estate Owned transactions — properties sold by lenders that typically were acquired via foreclosure — or a mere 9.9 percent of all transactions.
The Southland Regional Association of Realtors® is a local trade association with more than 9,000 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
Courtesy Nick Timiraos
Housing inventories picked up modestly in March, offering some hope to home buyers who are grousing about slim pickings, according to a report released Wednesday.
The number of homes listed for sale in March jumped by 2.4% from February and has increased by 3.5% from January, according to data compiled by Realtor.com. Inventories typically rise in the spring as the peak home-sales season begins, and the recent uptick is outpacing last year’s increase of 2% from January to March. Inventories were still 15% below their levels of a year ago.
Inventories in March rose by nearly 14% in San Francisco, though they are still down by nearly 38% from one year ago. Other cities with large monthly inventory jumps included Washington, D.C., and Atlanta, which were both up around 9%, and Boston and Philadelphia, which saw inventories rise by nearly 8%.
Inventories dropped by 13% in Orange County, Calif., and are down by nearly 58% from one year ago, while Los Angeles posted a monthly drop of nearly 4%, leaving listed inventories at nearly half the level of one year ago.
Listings have dropped over the past two years as banks have slowed down foreclosures, investors have converted homes into the rental market, and would-be sellers have held out for higher prices. Demand has jumped as low mortgage rates have made housing extremely affordable.
Homes are also spending less time on the market. In Sacramento, Calif., half of all homes sold in fewer than 19 days, down from 60 days one year ago. Half of homes sold within 24 days in Denver, 26 days in Seattle, and 29 days in San Diego. Among the cities with the longest listing periods: half of homes sold within 88 days in Las Vegas, 87 days in Cleveland, and 84 days in New York. Nationally, half of all homes sold within 78 days, down from 89 days on year ago.
Median asking prices were mostly flat on a national basis in March, but they rose in 29 of the top 30 metro areas. Asking prices were up by almost 14% in Los Angeles, 9% in Orange County, Calif., and 6% in Detroit and Jacksonville, Fla.
The Realtor.com figures include sale listings from more than 800 multiple-listing services across the country. They don’t cover all homes for sale, including those that are “for sale by owner” and newly constructed homes that aren’t always listed by the services.
By Michael Kraus on January 2, 2013
Rest easy if you’re trying to short sell your house – you won’t face a massive tax bill as a result if you complete the sale in 2013.
As part of the fiscal cliff deal, the Mortgage Debt Forgiveness Act of 2007 has been extended for one more year. Under normal circumstances, debt forgiven as a result of a short sale or mortgage modification would count as income for tax purposes. For instance, if somebody owes $250,000 on their mortgage and their lenders agrees to a $200,000 short sale, $50,000 in debt is forgiven. This would have been taxable without an extension of the law.
According to RealtyTrac data, short sales made up 22% of all residential short sales in the third quarter of 2012, a 17% year-over-year increase. A failure to reach an extension to this debt forgiveness law would have been deleterious to the nascent housing recovery.
At the end of the day, short sales are an important mechanism to clear negative equity from the housing market. Although not totally benign, they tend to have less negative impact than foreclosure (which is probably the most destructive market clearing tool).
Click here to see the full text of the bill. Scroll to Title II – Individual Tax Extenders. Under that heading, scroll to Section 202 – Extension of Exclusion From Gross Income of Discharge of Qualified Principal Residence Indebtedness, and you will see an extension through January 1, 2014.
Contact me today to discuss your options
Sean Seckar - 661-644-2945 RealEstateInSCV@aol.com
Realtors closed escrow on 217 single-family homes during October in the Santa Clarita Valley, an increase of 23.3 percent over a year ago and 14.2 percent better than the September tally, the Southland Regional Association of Realtors reported on Tuesday, Nov. 27.
It was the fourth time this year the monthly total broke the 200-sale benchmark. October home sales were up 119.2 percent from the record low for this cycle, which came in January 2008.
A total of 83 condominiums also changed owners last month, down 2.4 percent from a year ago and off 8.8 percent from this September. Nonetheless, the October total was up 167.7 percent from the low for this cycle, which also was set in January 2008.
“Traditional buyers are coming back into the market as they finally understand the scope of today’s opportunities, even with an incredibly limited inventory,” said Erika Kauzlarich-Bird, president of the Association’s Santa Clarita Valley Division. “Not only is Santa Clarita a fantastic place to live, but today’s prices are unlikely to be seen again for a long while.”
While trending higher, in large measure due to multiple offers on almost all properties, the $360,000 median price reported for October was off 1.1 percent from a year ago. The condominium median price, however, rose 7.0 percent to $200,000.
“Santa Clarita is part of a statewide trend that has seen the supply of homes listed for sale fall sharply lower with each passing month,” said Jim Link, the Association’s chief executive officer.
“Some of the inventory decline is due to a drop in listings of bank-owned properties, which is a positive sign that the market moving back to normal,” he said. “It’s also partially due to the fact that too many owners owe more than their home’s current resale value, which makes it difficult to move and take advantage of today’s market opportunities.”
There were 373 active listings at the end of October on the MLS operated by the Association. That was down 66.3 percent from a year ago and marked the third consecutive month that the inventory fell to a record low. It was also the third consecutive month that the inventory decline was in excess of 60 percent.
At the current pace of sales the inventory represents a record-low 1.2-month supply. That compares to a 4.2-month supply a year ago and the ideal of a 5- to 6-month inventory, which represents a balanced market where neither buyers nor sellers have an advantage.
“Despite a vanishing inventory, we’re confident that 2013 will see strong activity and continued improvement in the local housing market,” Link said. “There’s pent-up demand for housing out that is generating multiple offers on virtually every property.”
Of the total single-family home and condominium sales last month, 12.7 percent were REO’s, bank owned property typically acquired via foreclosure, 35.1 percent were short sales, where lenders allow a sale for less than what is owed, and 36.5 percent were standard or traditional equity sales. REO sales have been trending lower while short sales and standard sales posted their highest percent so far in this market recovery.
The Southland Regional Association of Realtors® is a local trade association with more than 9,000 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
Single-family home sales jumped dramatically during October throughout the San Fernando Valley with multiple offers on most homes pushing resale prices higher, the Southland Regional Association of Realtors reported on Tuesday, Nov. 27.
A total of 635 homes closed escrow, up 21.4 percent over a year ago and 25.7 percent better than this September. It was the highest monthly sales total since June 2010 and the first time in 14 months that the sales total broke through the 600-sale benchmark.
“Home sales are up nearly 100 percent from the record low set in January 2008,” said Wendy Silver-Hale, president of the Association. “What’s particularly noteworthy is that much of this activity is fueled by traditional homebuyers as the percentage of distressed sales continues to diminish.
“The return of regular homebuyers is the signal that the market continues its march to normalcy,” she said. “There are still plenty of issues that need to be resolved, but buyers finally understand that today’s prices and low interest rates represent a once-in-a-generation opportunity.”
Local Realtors also closed escrow on 204 condominiums, a total that was down 6.0 percent from a year ago, but would have been higher if only there were more properties for sale.
Active listings throughout the San Fernando Valley continued their disappearing act, with the 1,285 active listings at the end of October down 56.3 percent. October marked the third consecutive month that active listings set a record low.
At the current pace of sales listings represent a 1.5-month supply, which is indicative of an extremely limited inventory. A 5- to 6-month supply is regarded as balanced, giving neither buyers nor sellers an advantage. For comparison, when the market ground to a halt in 2007, listings soared to 7,730, which was a 16.0-month supply at the then current pace of sales.
“Barring something negative happening, like going over the so-called fiscal cliff, the local housing market will continue to improve through 2013,” said Jim Link, the Association’s chief executive officer. “The foreclosure market has pretty well run its course, with not many REO’s coming on the market.
“We’ll be dealing with short sales and underwater loans for a long while,” he said, “yet the limited inventory and pent-up demand for housing are pushing prices higher, which helps growing numbers of current owners return to a break-even or perhaps a positive position.”
When those issues are sorted out, more listings should become available.
Link and Silver-Hale also noted that while lenders have shortened and simplified the loan approval process, short sales are still taking far longer to close escrow than traditional sales. Furthermore, lenders are maintaining tight appraisal and underwriting standards.
"Most borrowers are finding they need a sizeable down payment, often 20 percent or more, and a strong FICO score to qualify for a loan, especially if they are buying in the higher price ranges,” Link said.“Cash is still king, as buyers with good credit and steady employment, but smaller down payments, are having difficulty finding a loan."
First-time buyers looking in the median or lower price ranges may qualify for a low-down FHA loan, yet they often find themselves bidding against investors with all cash.
With multiple offers popping up on most transactions, the median price of homes and condos sold last month posted strong increases. The median home price of $380,000 was up 8.6 percent from a year ago while the condo median of $235,000 was 4.4 percent above October 2011.
Real estate owned sales — property held by lenders that typically was acquired through foreclosure — accounted for 9.4 percent of all closed escrows last month. Short sales, where the lender allows the sale at a price less than the outstanding loan, increased to 22.9 percent, while standard or traditional sales surged to 52.9 percent, the highest level since the Association recently started tracking this statistic. Some 14.4 percent of sales did not specify the type.
At a time of year when activity typically tapers off, pending sales — a measure of future activity — came in with a positive number, in large measure because of renewed interest by traditional buyers. The 959 open escrows at the end of October were up 4.2 percent from a year ago.
The Southland Regional Association of Realtors® is a local trade association with more than 9,000 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
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By Tiffany Hsu November 29, 2012, 11:10 a.m.
Contracts to buy previously owned homes soared 5.2% in October, reaching a high set more than five years ago.
And index of so-called pending sales hit 104.8 last month, the same level reached in March 2007 and an improvement from 99.6 in September. The gauge is 13.2% above its year-earlier level, according to the National Assn. of Realtors.
At 100, the measure is considered healthy. Pending sales are usually seen as a forecast of finalized sales, which tend to come after a one or two month lag.
Quiz: How much do you know about mortgages?
The index has risen year-over-year for the last 18 months straight, according to the trade group. The cause? Steady job creation, rising consumer confidence, record-low mortgage rates and a positive trend in home prices, according to NAR’s economists.
Contracts soared 15.6% in the Midwest from September to October and jumped 5.5% in the South. Hurricane Sandy caused a 0.1% dip in the Northeast, according to NAR, while squeezed inventory in the West resulted in a 1.1% slip.
On Wednesday, the government said new home sales dipped 0.3% last month, which dampened recent evidence of a strong housing rebound.
http://www.latimes.com/business/money/la-fi-mo-pending-home-sales-20121129,0,3697683.story?track=rss
By E. Scott Reckard
November 29, 2012, 7:51 a.m.
Mortgage interest rates edged up a hair from their record lows this week, with lenders offering the 30-year fixed loan at an average of 3.32%, Freddie Mac said in its latest survey.
Borrowers would have paid an average of 0.8% of the loan amount in upfront lender fees and discount points to obtain the rate, Freddie Mac said. That was up from an average 0.7% in lender charges for a 3.31% 30-year loan in last week's survey, the latest in a long series of record lows set this year.
The 15-year fixed mortgage, popular with refinancers seeking to pay off their loans faster, was being offered this week at an average 2.64% and 0.6% in lender fees, up from 2.63% and 0.6% in fees a week earlier.
Start rates for adjustable loans also were little changed, although few people would opt for a variable rate at this peculiar point in time. The start rate for a hybrid loan that becomes variable after five years fixed was 2.72% -- higher than that of the 15-year fixed mortgage.
Quiz: How much do you know about mortgages?
Concerns about the so-called fiscal cliff have depressed interest rates as demand increased for ultra-safe Treasury securities and insured mortgage bonds from Freddie Mac and other government-backed issuers, Freddie Mac economist Frank Nothaft noted.
The yield, or effective interest rate, declines on bonds when demand rises.
Freddie Mac asks mortgage lenders around the country each Monday through Wednesday about popular combinations of rates and points they are offering to low-risk borrowers. The survey doesn't include third-party charges often paid by borrowers, such as for title insurance and appraisals.
Mortgage pros say solid borrowers often can find somewhat lower rates than those in the survey by shopping around.
A sellers' market appears to be emerging in some areas in California. The California Association of Realtors® (C.A.R.) said Thursday that favorable home prices and record-low interest rates are making the market competitive to the point that nearly six of ten houses are receiving multiple offers. C.A.R. made the comments as it released results of its 2012 Annual Housing Market Survey.
Fifty-seven percent of home sales featured multiple offers in 2012, the highest in at least the past 12 years. Each home that received a multiple officer received an average of 4.2 compared to 3.5 offers in 2011. Lower priced homes and distressed properties -bank-owned real estate (REO) and short sales - had more multiple offers than market sales, seven out of ten compared to one-half.
Competition has led to higher prices and 41 percent of homes sold at the asking price, the highest portion since 2005 and up from a long-run average of 32 percent. Homes also sold faster with market sales taking 32 days on average compared to 67 days in 2011 and REOs in 30 days compared with 50 days last year. Short sales still take longer than other sales because of the complexity of the process but the number has been cut to 90 days from 141.
Nearly a third of all homebuyers paid with all cash in 2012 and 16 percent of buyers bought for investment purposes. International buyers made up 5.8 percent of the buyers with the largest numbers coming from China, Canada, India, and Mexico.
Seventy-seven percent of buyers were purchasing a primary residence and 40 percent of those who were first-time buyers bought either an REO property or a short sale, down from 44.3 percent last year primarily because of a shortage of inventory in those categories.
Very few home buyers have a second mortgage, probably reflecting tighter lending standards. The share of home sales with second mortgages has dropped from 43.4 percent in 2006 to 1.8 percent in 2012.
"Well-qualified buyers are recognizing the once-in-a-generation opportunity to purchase a home in California and are jumping into the market," said C.A.R. President LeFrancis Arnold. "However, the fierce market conditions have forced many buyers to compete with all-cash offers and investors, setting off multiple offers and bidding wars, making it even more difficult for first-time buyers to become homeowners."
C.A.R. has conducted its market survey since 1981, mailing it to a random sample of 15,000 Realtors throughout the state. This survey seeks information about the Realtor's most recent sales transaction that closed in the second quarter of 2012.
