In May 2009 sales of single family homes in the Santa Clarita Valley (SFH’s) fell by 10.9% year over year.  They also fell 8.4% from the previous month.  According to the Southland Association of Realtors, May 2009 was the first year over year decease in sales activity for 13 months.   The median price of SFH’s decreased 11.1% year over year for May 2009 while falling 2.4% from the previous month.  This is only the second time this year that this figure has decreased month over month.  The median price for sales that closed escrow was $400 thousand for May 2009.

Condominium sales dived 9.3% year over year for May 2009 while climbing 15.3% month over month.  The median prices dived 21.3% year over year and 4% month over month.  But only 68 units closed escrow during May 2009, which may not provide statistical significance.  The median price of condos closing escrow during May 2009 was $240 thousand.

The ongoing dearth of listings continues to distort the market, however.  As of May 2009 only 1,010 single family homes and condos were actively listed on the SoCal Multiple Listing Service – near historic lows.  This figure represents an equivalent of 3.8 months supply of unsold homes compared with 6.6 months as of one year ago.  Real Estate professionals generally regard an inventory level of 5 to 6 months as a balanced marketplace.

A general perception in the marketplace is that decreased pricing deters sellers – included lenders from listing properties, while enticing buyers with higher affordability and availability of financing.  Is a market bottoming at hand?  – only time will tell.

This report was compiled from data provided by the SoCal Multiple Listing Service and the Southland Regional Association of Realtors.  The Santa Clarita Valley is comprised of the following localities; Castaic, Canyon Country, Newhall, Saugus Stevenson Ranch and Valencia.