While I may have laid out some details about the Santa Clarita real estate market in the New Year edition of my Insider Newsletter… that was more nuts and bolts with stats and background. Wondering what’s in store for us in the Santa Clarita real estate market? Well, buyers and sellers, each day, ask me to make my predictions, so I might as well lay them out here in one place. While I’m not “Carnac the Magnificent” as Johnny Carson sometimes was…. but I am a real estate agent that pays attention to the market conditions. Just like many of you who simply own real estate or aspire to.

Here are my predictions for the Santa Clarita real estate market, in 2014 (If I’m wrong, be nice… this is just my attempt at the Crystal Ball):

1) Low inventory below 700 homes persists through April due to buyer demand remaining strong in a low interest rate environment.

2) While I do see an increase in listings happening, from the low figure of approx 500 where we are at today (almost mid January), the demand will gobble up much of the new listings to hit the market.

3) Price increases / home value appreciation in Santa Clarita will continue due to the supply & demand problem until interest rates go above 5%.

4) I think Santa Clarita home values will increase in 2014 at the rate of approximately 5-10% on average.

5) The largest percentage of appreciation will take place in the first 7 months.

6) Appreciation will slow down if listing inventory blows past 700 homes for sale and gets closer to 1000. At that point we will be approaching a more balanced market where buyers have more choices and bidding wars won’t be as common as they are now.

7) Due to interest rates having a great chance at increasing in 2014 from their current levels, it’s very possible we will see a big pick-up in listing inventory as move-up sellers decide to list their home to buy a more suitable home (whether that’s increasing or decreasing home size needs). They will be driven to action due to increasing borrowing costs to buy a home they prefer to be in. That increase in inventory will probably be biggest in the $400,000 and below market as homeowners with entry-type level homes seek a larger space.

Agree?

Disagree?

This is fun to ponder…. share your thoughts on where the market is headed. Everyone knows. But no one really does. I hope I’m right though. ASK Robert! If I can help you with your needs in the Santa Clarita real estate market, then call on me @ 661-373-2374.