Since the prices of single family detached homes have sailed high out of reach for most southern California potential buyers, other strategies are getting a look:
- Continuing to rent.
- Buying a home they know they’ll outgrow
- Moving out of state
- Buying a Town Home
Town homes have their pluses and minuses.
Obviously the lower cost is the biggest pro, along with lower maintenance costs. Cons? HOA rules, neighbors usually painfully close, and potential long-term repairs that you can’t eliminate your chances of being stuck with.
Still, owning a home of ANY type right now provides a better financial future, and gets you into the long-term game. Perhaps in 5 years with careful planning and saving, a dream home will be in the offing. For now? BUY. Here’s why:
In the last 2 years, prices have gone up $50,000 in Santa Clarita alone. More in the SFV. Equity of $50,000 in 2 years? THAT is how you quickly save up for the home you REALLY want. If you wait, it will only get tougher for the next 3 years.
Active listings in Santa Clarita are down a whopping 46% in just the last 2 years. There are fewer and fewer town homes available each month! That pushes priices NORTH.
Prices per square foot (shown below)
are about the only statistic that shows predictability in the real estate market. Both the SCV and SFV have gone up about 7.5% in price per square foot in each of the last 3 years. You can count on that for your calculations of what your property will be worth in 5 years.
That last graphic above shows the plummeting value of days on the market. Homes are going into escrow within 20 days when priced correctly. There are NO homes in this price range that sit on the market gathering dust when priced correctly. That’s just the way it is in SoCal. The takeaway? Move sooner rather than later. The stats are staring you in the face: better to get in the game SOMEHOW..