Strong Economic Growth Forecast in Santa Clarita Valley(SCV)
The USA considers itself into the golden era of the economy having full employment status, promises to cut personal and corporate taxes, restructure trade deals and focus on infrastructure and defense and homeland security in all states and so in its Santa Clarita Valley. Santa Clarita Valley, with population 181,972(est. 2016) is the ideal location for families and business. It is a thriving cluster for industries such as film production, aerospace manufacturing, biomedical and high-tech. The City of Santa Clarita, the winner of the 2016 Most-Business Friendly City, has sought to create a balanced community that is inviting to both businesses and residents.
Santa Clarita has an unemployment rate of 4.7% against US average of 5.2%. It has seen the job market increase by 1.4% over the last year. Future job growth over the next ten years is predicted to be 38.1%. The average income of a Santa Clarita resident is $33,879 however median household income is $83,178.
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Commercial Projects Approved and/or Underway in SCV
- VTC Square at 49,000 square feet.
- Tourney Place, a 51,000-square-foot medical office.
- Chinquetera, a 91,000-square-foot office park.
- Oakmont (West Creek) a 95-bed assisted living facility in the architectural review.
- Tourney Road Hotel, a 290-room hotel.
- An expansion of Master’s College at 240,000 square feet.
- Oliver Hotel, a 134-room hotel that’s supposed to begin construction sometime this year.
- Vista Canyon, a 950,000-square-foot complex with a theater, hotel and retail and Needham Ranch, a 508-acre project with 4.2 million square feet.
Santa Clarita Valley's Job Market
Santa Clarita Valley expects the highest job growth to come in high-paying professionals, technical and science sectors which include law and accounting firms, makers of medical devices, bionics and advanced manufacturing, hospitality. Given the predicted economic growth in Santa Clarita Valley, there is huge scope for growth in industry and hence employment avenues. Infrastructure continues to be a little faster than other places because, in Santa Clarita, there is still land for growth. SCV offers a blend of small-town charm and sophisticated urbanization.
Condominium Annual Sales Rise 6%
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Real Estate Statistics/Trends in Santa Clarita
The Southland Regional Association of Realtors(SRAR), one of the largest local association serving Santa Clarita Valley, has surveyed the real estate business through the Santa Clarita Valley and well explained the statistics for their variations over a period.
As per its report REALTORS helped close escrow 215 single-family home sales and 90 condominiums during July 2018 throughout Santa Clarita Valley with the highest total monthly sale of 278 for any month in a current year which measures the future sales activity in SCV. REALTORS further guessed that the sales had been influenced by seasonal factors as well as affordability and a lack of inventory of homes listed for sale in SCV. At present, there was not enough housing under construction in the Santa Clarita Valley. As a result, median prices are rising, and at some point “affordability does become an issue”.
Increase in the trend of the median price of homes has been observed. The median price of homes that closed escrow during July was $600,000, up 2.6 percent from a year ago, yet off 1.6 percent from this June’s $610,000 median. The Real Estate Market trends indicate an increase of $10,000 in median home sales over the past year. Santa Clarita home values have gone up 4.6% over the past year, and further rise by 4.3 % is predicted within next year.
The median price of homes currently listed in Santa Clarita is $564,900 while the median price of homes sold is $520,900. The median rent price is $2,700. People prefer rental houses in place of purchase of their own houses which are very costly at present.
Condominiums that changed owners in Santa Clarita during July had a median price of $379,000. That was up 5.9 percent from a year ago, yet 7.6 percent below the record high $410,000 condo median established this April.
Given increasing demands of homes and affordability factor, there is need to enhance the production of housing and subsequently increase in the listings of inventory to maintain a healthy and affordable housing market, reliable sources of REALTORS have opinioned.
Listings on the increase trend in Santa Clarita Valley
Given more demand for homes, the increase in listings has been observed. There were 672 active listings at the end of July. That was up 29.2 percent from a year ago, representing a 2.2-month supply at the current pace of sales which was the second consecutive increase in the inventory after three-and-a-half years of consecutive declines.
And, there were zero condominium short sales or foreclosure-related transactions during July, and only one in each category for single-family homes. That means that 98.7 percent of the combined residential sales of 305 transactions were standard sales involving traditional buyers and sellers.
Santa Clarita Real Estate Prices are Rising. Here is Why
Given the growth expected as explained above and the possibility of jobs creation in lieu thereof, the demand in real estate is tremendous in Santa Clarita Valley. What one of the potentials drags on SCV growth is the shortage of housing/commercial/industrial spaces. Santa Clarita is the tightest real estate market in Los Angeles County with the County’s lowest vacancy rates for apartments, commercial space, and industrial space. The prices are on the rising trend because of the scarcity of real estate properties. According to a recent SRAR report, Santa Clarita Valley has been seen with the increase in real estate inventory by 30-35%, i.e., the inventory is almost doubled from last year, a resale price is on the rising trend and therefore now is the suitable time to buy the houses. Therefore, whosoever invests in real estate is likely to fetch valuable gains in the future. In Santa Clarita Valley, the Real Estate Industry for home sellers is strong.
July 2018 Real Estate Market Analysis
July reported 542 residential Active listings . Here are the few Statistics of SINGLE FAMILY HOMES and CONDOMINIUMS in the Santa Clarita Valley in July 2018 :
New Single-Family Listings Reported in July 2018
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New Single Family Homes Listed in Santa Clarita Valley - 547 New Listings
Average list price of Single Family Homes in Santa Clarita Valley - $692,000
Median list price of Single Family Homes in Santa Clarita Valley - $599,900
Residential Prop. Escrow Opened - 408 Listings
Residential Prop. Escrow Closed - 387 Listings
New Condominium Listings Reported in July 2018
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New Condominium Listed in Santa Clarita Valley- 152 New Condos Listed
Average list price of Condos in Santa Clarita Valley - $462,400
Median list price of Condos in Santa Clarita Valley - $429,000