By Ray the Realtor Kutylo
Signal Contributing Writer
What was a seller’s market in the spring decidedly changed to a more balanced market in the last half of 2018.
We expect that to continue, barring any sudden large macro-economic event. The recent gyrations of the stock market have likely cooled any inclination of the Fed towards interest rate increases, at least for now. Increased job creation and employment opportunities, both nationally and locally, show a solid economic foundation that bolsters consumer confidence.
What I’m trying to say is that this is a buying opportunity for those who are on the cusp of a decision, otherwise known as “sitting on the fence.” When housing inventory is low, buying can present some challenges. The perfect home might not show up for you, but frankly speaking, among the home buyers I’ve worked with starting in 1986, only a handful found their “perfect” home.
There is nearly always some compromise, whether it is the price, condition, location, interest rate, amenities, upgrades, schools, family approval or any one of a 100 things buyers condition their purchase on. Right now, we are in a Goldilocks period of the housing market, that is neither too hot nor too cold — it’s time to buy.
So, who are the home buyers in the Santa Clarita Valley for 2019?
After years of tepid action, this year, the millennials will be buying homes. Trulia commissioned a recent survey that showed more millennials will become homebuyers in 2019, and will drive purchases in the starter home and condo/townhome market. The largest gains in homeownership rates in recent years were among those under 35 years old, with more of these younger Americans saying they intend to buy a home soon. Of Americans aged 18 to 34, 21 percent say they plan to buy within the next 12 months, up from 14 percent last year.
Another significant group of homebuyers this year will be home sellers. Once an acceptable offer comes in on a home listed for sale, these home sellers will be looking for their next home as home buyers.
The majority will likely be looking locally for a better home for them, however they define what is “better.” It could be a larger home, a smaller home, a newly-built home, another neighborhood, or any number of motivators. Sometimes changes in the family drive the decision, which could be newly-blended families, divorce or an empty-nester decision. These contingent buyers are motivated, and their purchase is subject to a successful and often a concurrent close of escrow. Home sellers would be wise to seriously consider the purchase offers from these buyers.
Changing demographics will also be a driver of home-buying activity. The Santa Clarita Valley is a diverse community, and many home buyers of varied ages and backgrounds will continue to come to the SCV for all of the reasons we love to live here: friendly people, relatively good schools, suburban safety, good local government, parks and recreational activities, and increasingly, more entertainment and leisure venues.
Ray “the Realtor” Kutylo is the team leader of the SCV Home Team at Keller Williams VIP Properties. The Team brings experienced and professional service, commitment and value to every transaction, whether you are a home buyer or seller. Ray can be reached at (661) 312-9461 or by email at [email protected]. The views expressed are his own and not necessarily those of The Signal. CA DRE 00918855