The median price of condominiums in the Santa Clarita Valley reported in August set a new record high of $420,000, an increase of more than 5% from a year ago, according to a report by the Southland Regional Association of Realtors.
Data released in September showed that the new high broke the previous record of $415,000 reported in June due to low interest rates, and four of the last five months have seen a condo median above the $400,000 benchmark.
For comparison, the highest price reported last decade was $397,000 in January 2006.
The report also shared that single-family home sales increased by 9% during August. After four months above the 600-listing benchmark, properties listed for sale fell 22.6% during August to 541 active listings. It was the second consecutive month that listings fell following 13 consecutive monthly increases.
“There’s plenty of demand for housing in Santa Clarita, driven in part by low interest rates and limited by inadequate supply,” said Amanda Etcheverry, the 2019 chair of the Santa Clarita Valley Division of the association. “Some buyers are cautious, but others understand that a low interest rate gives them powerful, added buying power.”
The current inventory represents a 1.6-month supply, “a level not seen since June 2018 and woefully inadequate to meet demand,” the report said.
“Lower interest rates on home loans are a double-edged sword,” said Tim Johnson, the association’s chief executive officer. “They help lower the cost of a home loan for buyers, but also support today’s high prices, which makes housing unaffordable to large numbers of prospective buyers while keeping inventory low.”
The median price of homes that changed owners last month came in at $605,000, which was unchanged from a year ago, yet off 4% from July. Unlike most other Southern California communities, Santa Clarita has not seen the median home price surpass the record set during the boom of last decade. The record high of $643,000 came in April 2006, the report said.
A guide by the association titled “income-to-loan guide” showed that an income just more than $121,000 was needed to qualify for an 80% loan on a Santa Clarita median-priced home of $605,000. Three of the last four months have seen less income than the prior year needed to buy a local, median-priced home.