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Santa Clarita Valley Single Family Residence Price Trends as of 11/09

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December 11th, 2009 by Phil Levy

 

The following charts depict pricing  trends for single family residences in the Santa Clarita Valley for the past two years ending November 2009. 

The first chart labeled Median Sold Price by Month clearly shows a pricing bottom in Dec.  The figures on top of each bar represents the average days on market (DOM) pertaining to the closed sales for each month.

The second chart depicts Months Supply of Inventory defined as the number of active listings divided by number of closed sales for a particular month.  This is an indicator of the undersupply or oversupply of available listings.  Real Estate Professionals generally regard 6 months of inventory as representative of a balanced market.  The blue line above the bars depicts the average DOM pertaining to the these active listings an indicator of how long it takes listings to go into escrow.  November 2009 shows 1.7 months of inventory, a two year low.    The consequence of this low inventory level is multiple offers sometimes even above the asking prices.  This is a tough and frustrating market for buyers since so many of the homes are either short sales which require a cumbersome and time consuming process to secure the lenders’ approvals.   However buyers are also encouraged by an historically high affordability level.

CMM_Report_MedianSoldPrice_chartCMM_Report_MSI_chart

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Foreclosure Radar Reports Record California Initial Foreclosure Filings for March 2009

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April 15th, 2009 by Phil Levy

Foreclosure Radar a web site that tracks every California foreclosure reported on April 14, 2009 that March 2009 set a new record for filings of Notices of Default (NOD), the initial public filing in the foreclosure process.  

In March 2009, 54,268 NOD’s were filed in California.  This represents a 29% month over month increase and a 26% year over year increase.  These filings also rose 26% from its previous peak reached in April 2008.  

In March 2009 33,178 Notice of Trustee Sale (NOTS) filings were recorded.  This was an increase of 82% month over month and 20% year over year.   This figure was down 15% from it’s peak reached in July 2008.

During the same month, however 10,040 properties were auctioned representing a 41% month over month decrease and 37% year over year decrease.  The is the last step in the foreclosure process and should be considered a lagging indicator.

The dichotomy between the increased NOD and NOTS filings and decreased sheriff’s auctions is explained by delays in foreclosure proceedings caused by various government programs aimed to assist distressed property owners through additional notification requirements (i. e. CA SB 1137) and moratoriums (i. e. Fannie/Freddie) which expired at the end of March 2009.  Additionally many financial institutions may have postponed foreclosure proceedings pending Federal stabilization efforts such as TARP, Making Home Affordable Plan, and certain accounting changes, whereby lenders anticipated a market or Federal guarantees for troubled loans.

Some increase to foreclosure activity can thus be expected now that the legislative and administrative dust has settled.  It remains to be seen whether the mortgage modification or refinance programs included in President Obama’s Marking Home Affordable Plan will significantly effectuates a reduction in foreclosures.

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