As the economy continues to recover in the midst of the coronavirus pandemic, housing prices hit a record high in the Santa Clarita Valley in September.
The median price of homes hit a record of $759,000, up 21.8% from a year ago, while the condominium median price rose 16.6% to $436,000, according to reports released Oct. 15 by the Southland Regional Association of Realtors.
This comes after the market took a nosedive in May, as the impacts of the shutdown were seen in the SCV, with only 111 single-family homes sold, down 54.5% from last year, according to SRAR reports.
“The shutdown from the coronavirus hit hard, driving sales and all activity down dramatically in May,” Louisa Henry, chair of the SCV division of the SRAR, said in a prepared statement. “Yet, the pandemic also unleashed heavy demand throughout Santa Clarita, fueled by historically low interest rates.”
Following the near record low figures in May, the housing market began its rebound, with sales of existing single-family homes surpassing 2019 totals for the third consecutive month in September.
A total of 268 single-family homes were sold in September, up 38.1% from last year, while the 132 condominiums sales increased 83.3% from 2019, per SRAR reports.
With interest rates at historic lows combined with the pent-up demand caused by the shutdown, SCV financial analysts agree that the housing market will continue to remain strong.
“Affordability has gone up, and with rates going down, people can actually afford more house,” Jerrod Ferguson, vice president at Vance Wealth, said in a previous Signal interview. “With rates at all-time, historic lows, the million-dollar house that was never affordable, now all of a sudden is … (as) their budget’s a little bit higher because they’re able to borrow more money at cheaper rates.”
However, the brake on activity will be a lack of inventory, as the 323 active listings were down 37.8%, though pending escrows, which is a measure of future sales, were up 37.6%, according to SRAR officials.
Even so, Henry said multiple offers were abundant, with buyer demand likely to keep sales high well into the fall.
SRAR member and SCV Realtor Marc Leos agreed, adding that it’s the low interest rates that will continue to assist in the recovery.
“Even with the low inventory, buyers are continuing their search,” Leos said. “These interest rates are hard to pass up.”
Back in May, Leos was much less optimistic of the market’s rebound, but he’s completely changed that opinion.
“Thankfully, I was wrong, and the market has surprised me,” Leos added. “It’s been extremely encouraging to see the turnaround, and I’m looking forward to seeing what the future real estate market brings post covid.”
In addition, Leos anticipates new developments, such as Vista Canyon in Canyon Country and FivePoint in Valencia, will assist in providing inventory to those looking to purchase homes in the SCV.