Whenever I prepare a quarterly update for you, I consider the title. How do I convey that the market has changed again in a way that isn’t too dramatic (lots of homes are taking MUCH longer to sell) and also conveys the positives (some homes can still sell in 2 or 3 weeks)?? I considered the title “What is selling, what isn’t and why?” to introduce what I think is a market that we will have for the next few years. That market is one recently described by the LA Times as a “normal” market, and I think that is accurate.
So what does that mean to you? In this quarter’s post I will share 5 things that are definitely happening in the market that if I were considering selling, I would want to know. I expect these trends to be with us into 2015 and maybe 2016 too for reasons I wont get into here, but many experts agree with me. I will start with the numbers then hit the trends. First, inventory in Santa Clarita has gone up from about 500 homes in Spring to almost 800 homes today. Even condos, which were the hottest thing going in 2013 have seen inventory triple. When that happens homes take longer to sell, price becomes an issue and sellers thinking their home would sell in 30 days or less are not happy when it takes three times that. That leads to trend number one, homes taking much longer to sell.
In the spring of 2013 the average time it took for a home to sell under $500,000 was 27 days. That is very fast by almost any historical standard. In the second half of the year, it went up to 42 days-still very comfortable for most sellers. This year that price range was at 48 days for the first half of the year, but where we have really seen the timelines increase is over $500,000 and especially over $700,000. With few exceptions. most parts of town are over 90 days and all signs point to it being longer in the second half of the year. Why? because 70% of the buyers are under $500,000 in Santa Clarita. So here is what it means to anyone considering selling; give yourself plenty of time. Even more than you think. If you have a home valued over $500,000 prepare for at least 3 months and maybe longer unless you have a home that is way better than the competition