by Joshua Suess
Today's market can be summed up simply: Sellers Market. A "balanced" market is 6 months of supply and we have gone from 3.2 months of supply last June to only 1.7 months of inventory today. The number of homes for sale has dropped by nearly 50% since my last update - a staggering statistic! The run-up in prices is occurring across our valley and particularly on pool and/or view homes. Along with low inventory and price increases, the removal of the buyers-appraisal contingency upfront and buyers bringing additional cash to the table is prevalent in today's market.
We listed and sold a Valencia Northpark home in less than a week with over 30 offers. The buyer removed the appraisal contingency upfront as we were able to get our sellers $55,000 above the most recent sales. Two more of our listings in Saugus Pacific Hills and Fair Oaks Ranch allowed our sellers to walk away with $51,000 and $67,500 more than their neighbors did. Same thing in the Sunset Heights neighborhood in Canyon Country and in Valencia Creekside, where we were able to achieve sale prices not seen for years. We listed a pool home in Valencia Alta Vista and set a record high sales price since 2007 for that model. When we initially met with our clients to discuss our plan of action for their home, the most recent sale for their model was $485K and they believed a short sale was inevitable. We sold their home for $606,000, avoided a short sale, and our sellers walked away with $121,000 more than they ever thought possible! Even in higher price points, such as the Castlerock tract of Valencia Northbridge which we sold our listing in 2 days above list price for $800,000 and repeated again with the neighbors’ home, that we sold over one weekend with multiple offers above list price. What surprises me is how much less other agents told these sellers their home was worth!
The best part of all of this are the phone calls we receive from homeowners thanking us. They thought they had no other option but to short sell their home and are now able to refinance or sell for a profit!
Remember all of the short sales in Santa Clarita? Well, they're essentially gone, for now. As I write this, there are less than 20 active short sale listings on the market in all of Santa Clarita!
Why do I say “for now?” One belief is that the number of homeowners who fall behind on mortgage payments will rise again, bringing short sales back into the market later this year. What is for sure: If inventory levels or interest rates rise significantly, the market will slow down.
If you are considering selling your home, price and demand are high so do it now before the market shifts again. Hire the right professional who is able to market your home for all it's worth.
Who you work with matters!