With inventory on the rise, now’s the time to buy, is the message from Santa Clarita Valley Realtors for August.
The number of SCV homes available hit the highest total since September 2016 — but sales remain “lackluster” and resale prices are rising, Realtors said Tuesday.
“Inventory in the Santa Clarita Valley has almost doubled from last year this time to this year,” said Mike Bjorkman, a broker for HomeSmart NCG and California Leasing, noting the four-month inventory currently available.
While resale prices continue to rise, according to a recent SRAR report, Bjorkman noted several factors that are influencing the residential real estate market.
“Interest rates are slowing people’s buying powers down,” Bjorkman said. “There are some indicators that our market is softening.”
Some things Bjorkman noticed include: Price reductions are up more in the last 30 days than they have been in the last three months; open house signs are appearing more frequently; agents used to call and ask how many offers are on a house — now they tend to ask how much room there is to negotiate downward, he said.
Realtors also helped close escrow on 103 condominiums, according to the SRAR report. That number is 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. He also expressed potential concerns for the market. “Now we have higher interest rates, with more rate hikes on the way, heightening affordability concerns, which already limit the pool of prospective buyers.”
However, for those in the market, there’s opportunity to be had, based on the numbers, Bjorkman added.
“You’d get a much better deal this month than you would have 60 days ago — more to choose from and more negotiable prices,” he said. “We pray the economy stays strong so we have stabilization.”