Santa Clarita Valley home sales up 22%

Sales of existing single-family homes increased 22.2 percent throughout the Santa Clarita Valley during July with the 237 closed escrows up 43 transactions from the 194 total of a year ago, the Southland Regional Association of Realtors reported on Thursday, Aug. 28.

According to the sales statistics the median price of single-family homes sold last month was $441,000, down 22.6 percent from a year ago, well below the record high of $643,000 reached in April 2006.

Most of the sales activity is concentrated on homes listed for less than $500,000, which then pulls the overall median price lower.

At the current pace of sales, the inventory represents a 5.5-month supply. Industry experts believe a balanced market - where neither buyer nor seller hold sway - appears when there is a 5- to 6-month supply.

The mismatch between the public's view and reality often leads to fruitless negotiations as buyers think sellers must accept ridiculously low purchase offers.

"Realtors need to educate buyers before they even get in the car to go look at a property," Chastain-Shine president of the Southland Association of Realtors Santa Clarita Valley Division said. "Buyers think they can negotiate with the bank on a foreclosed property, but there really is very little room for negotiations when you have a financial institution struggling to recover money invested in a property."