2017 was either an awesome year or a lousy year depending on whether you were successfully selling your home for near all-time high prices, or were among the crowd forced into multiple-bidding frenzys. Wallet Hub issued a list of nationwide real estate markets and graded them on "health". Santa Clarita came in the upper third of metros. Irvine, somehow ranked in the national Top Ten. This makes little sense as Irvine is insanely expensive. The criteria used is listed below on the left. Adjusted for inflation, Southern California’s median sale price is still 13 percent lower than it was during the summer of 2007.
Where did all the homes go?
2017 saw a sharp drop in the number of homes placed on the market. It has become a chicken and egg thing: existing homeowners can't afford to move up to higher priced homes, while baby boomers stay put instead of incurring Prop 13 penalties by moving, while renters wait for either of those two groups to pack up and get the heck out of the home they want to buy. Nothing is moving quite like it did in 2013-2014.
New home building isn't close to keeping pace with demand. Luxury home demand will taper a bit with the lowered mortgage interest deduction introduced in the new tax package.
Focusing in on the far more affordable condo and townhouse market, an average of 101 condos/townhouses sold each month.
Median Prices By City
Top Ten Neighborhood Median Sales Prices
Neighborhood Median Sales Prices (11-20)
Neighborhood Median Sales Prices (21-30)
Bottom Ten Neighborhood Median Sales Prices
Below: The most expensive home sold in Santa Clarita this year: $3.4 M.
Beyond the numbers, Santa Clarita learned that it will be joined by the mammoth Newhall Ranch project sooner than later. Negotiators struck a deal that finally lays to rest the remaining lawsuits that have prevented the 20,000+ home project from breaking ground.
Other than that, 2017 was quiet in terms of new construction. Yes, a new parking garage and Laemmle Theater project is well under way in Old Town Newhall, and Aliento is adding to the Canyon Country population. The Vista Canyon and Sand Canyon projects in Canyon Country seem like they are starting, so stay tuned...
If your 2018 includes a possible move, you should let me help lay out some options, as there are a few more moving parts in light of the new tax laws affecting real estate, as well as California's newest laws.