Despite the Federal Reserve raising their interest rates, home loan prices are at an almost record low.

2016 is off to a pretty good start, real estate-wise. Single family home prices rose $38,000 on average last year, and we’re already off to a brisk start in January.

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It’s a great time for both home buyers and sellers in the Santa Clarita Valley.

2015 is barely a month and a half old, and yet the real estate community is abuzz with a lot of positive signs as we speed through February.

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Housing prices remain steady, although we’re seeing some signs of the end of the “summer rush.”

August showed a steady pace in the Santa Clarita real estate market, with new information released by the Southland Regional Association of Realtors.

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Loan rates have not been affected despite more stimulus cuts by the Federal Reserve.

30 year fixed-rate mortgage loan rates closed only .01 percent higher than the 52 week low on Friday, August 15th, holding at 4.09%. This is a .05% drop from the previous day.

Some financial analysts were concerned that rates would begin to rise on the heels of the most recent cuts to the federal stimulus practice of Quantitative Easing (QE), which has dropped to $25 billion per month, down from its high of $85 billion at the beginning of this year.

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Cut in federal mortgage securities has opposite effect of predicted rising rates.

November 2008: The stock market was dropping like a stone. Mortgage defaults began to skyrocket. Some major financial corporations either toppled, or were at least teetering. Things weren’t looking good.

As part of the federal stimulus package known as TARP (Troubled Asset Relief Program), the Federal Reserve authorized an $85 billion monthly stimulus that would back Mortgage-Backed Securities (MBS). This monthly expense was put in place to ease troubled financiers and investors that they could still count on the mortgage market for a guaranteed return.

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Is this a sign of a shift in the Santa Clarita real estate market?

The Southland Regional Association of Realtors released their statistics for the month of May, revealing that single family home prices made no gains over April. Santa Clarita Real Estate UpdateCurrently single family homes are holding at a median price of $485,000 in the Santa Clarita Valley.

Condominium prices in the SCV did bounce upward nearly 6 percent last month, settling in at $281,000. Condos have had a bumpy ride in the past year or so, with a few ups and downs along the way. They had topped out briefly at $295,000 in November 2013 before taking a dip at the beginning of this year, but overall their median equity has increased by over 12 percent since January.


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Year-Over-Year averages for the Santa Clarita Valley show a trend toward a stable real estate market.

Some people don’t necessarily find statistics a fun subject, however they can provide some incredible insight to where we’ve come market-wise, and where we may be going.


For example, taking a look at statistics provided by Southland Regional Association of Realtors from March of 2014 and comparing them to what was going on in March of 2013, we find some interesting facts that can be useful to both buyers and sellers:

Available homes for sale inventory has risen 47%

Total active listings in March of 2013 reached 403, while there were 752 available homes for sale a year later. However, this can hardly be considered an inventory glut. We’re still very short of available properties for sale. This number indicates roughly about 45-60 days worth of inventory, whereas a completely balanced market will have a 4-6 month supply on hand.

“Days on Market” has dropped 21%

“Days on Market” refers to the number of days a sale property is actively on the market before an offer is accepted and escrow is opened. March of 2013 had an average “DOM” of 86, while March of 2014 saw an average of 68.

This means that while inventory is on the rise, buyers are snatching homes up on average faster than they were this time last year when there was less inventory, and interest rates were almost a whole percentage point lower.

Short sales have dropped by 82%

This is incredibly significant as more homeowners see positive equity in their property value. As we all know, real estate values dropped significantly in the wake of the Great Recession between 2007-2011, and many homeowners were forced into foreclosure, or were spared through the short sale process. To see such a significant drop in the number of short sales can give confidence of a rebounding real estate market to both buyers and sellers alike.

Median single family home prices have risen 14%

We had to go back to February for this number, as that’s the latest statistic we have. February 2013 saw median single family home values reach $379,000, while a year later they peaked at $439,500. This is not only great news for homeowners, but it shows a trend toward continued growth in values. If you purchased your home a year ago, you’ve experienced a decent amount of leverage for your investment.

So what’s next for the Santa Clarita real estate market?

We have answers to your specific real estate questions and solutions for your specific real estate needs. Our experienced agents can help you plan your future and help you reach all of your real estate goals.

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The love triangle between stocks, bonds, and interest rates can make for strange bedfellows.

Mortgage rates dropped this week on good news from both the stock and bond market. Bulls and Bears represent the volatility of the stock market

As industry professionals, we tend to throw these phrases around without considering whether anyone really understands what we’re talking about. In all honesty, what does this have to do with whether you can afford a home or not?

Well, we’ll take this opportunity to explain why news from the financial marketplace can affect your home purchasing power. First, let’s get a few definitions out of the way:


Basically, a “stock” is an ownership share of a corporation. This mea...

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New statistics show a growing number of homeowners are no longer upside down on their mortgages.

Good news for homeowners, especially those looking to sell. Statistics recently released by the Federal Reserve and CoreLogic show that over 4 million homeowners once again saw positive equity in their property values last year. This is a big sigh of relief, especially for those struggling to hold onto their homes.

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Thinking Outside The Box When It Comes To Financing Your Home Can Save You Money

Defying predictions by financial experts that they’d rise to well over five percent, home mortgage rates are still amazingly low. As of this article date, conventional fixed Mortgage optionsrate mortgages are at just under 4 and a half percent for qualified buyers. A conventional mortgage is typically one that lasts 30 years at a set interest rate.

This is great news for those looking to purchase a home. But did you know that rates are actually even cheaper if you consider other options? What follows are alternatives to conventional mortgages, along with their current interest rate (As of March 12, 2014).


15 Year Fixed Rate Mortgages/3.48%

This is a great alternative for home buyers looking to save money on their interest rate, while paying off their mortgage in half the time it takes for a conventional home loan. A 15 year fixed rate mortgage allows the borrower to pay down principle more quickly as well, which helps to increase the equity in their property. If there is a downside, it’s that the monthly loan payment will be higher since you’ll be paying it off twice as fast.

FHA 30 Year Fixed Rate Mortgage/4%

Those who qualify under an FHA (Federal Housing Administration) loan may obtain a rate that’s a half percent lower than a conventional mortgage. Qualifications for FHA loans may also be less stringent than a conventional mortgage, although the maximum loan rate for a single family home is $625,000.

Jumbo Fixed Rate Mortgage/4.31%

If you need a home loan up to $729, 750 (In Los Angeles County. Other areas may vary), a jumbo loan is the way to go. At these rates, you most certainly have increased buying power.

5/1 year Adjustable Rate Mortgage/3.25%

By far the best loan rate available, the “Hybrid ARM”, as it’s occasionally referred to, is a loan with a lower fixed rate for 5 years, which will convert to a standard market rate at the end of its term. This helps borrowers to better manage their cash flow in the early years of owning their home, but there is a risk of a considerably higher mortgage rate after five years, even with an interest rate cap. Many borrowers consider this option if they are only going to be remaining in the home for five years or less, or are planning on refinancing to a fixed rate conventional loan prior to the end of its term.

We have answers to all of your real estate questions. Contact Montemayor & Associates for a no obligation consultation today.

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