City OKs Master Plan For Canyon Country Community Center

Santa Clarita City Council official approved Tuesday a master plan for a new Canyon Country Community Center.

The master plan calls for a slightly less than 7-acre patch to offer east side residents a “tot lot,” a special events court, the center, an open-play area and a pedestrian bridge, in addition to several other features.

The process to develop the current spot started in September 2014, when City Council authorized the purchase of three parcels comprising of 6.5 acres located in Canyon Country, northeast of the intersection of Soledad Canyon Road and Sierra Highway, according to city officials.

The master plan calls for a slightly less than 7-acre patch to offer east side residents a “tot lot,” a special events court, the center, an open-play area and a pedestrian bridge, in addition to several other features.

The process to develop the current spot started in September 2014, when City Council authorized the purchase of three parcels comprising of 6.5 acres located in Canyon Country, northeast of the intersection of Soledad Canyon Road and Sierra Highway, according to city officials.

The preliminary plan provided for the location of a proposed 20,000 square foot community center building with parking and passive recreational amenities. The initial parcel of land has proved difficult to develop as intended because of its shape, and city officials are currently negotiating with county officials to purchase an adjacent piece of land.

The Canyon Country Community Center Conceptual Master Plan was presented to the Parks, Recreation, and Community Services Commission on May 5.

“The newly proposed Canyon Country Community Center provides a great asset for our community as well as an opportunity to improve a major section of Sierra Highway,” said Alan Ferdman, chair of the Canyon Country Advisory Committee. “What a super project, our community services will be much improved and appreciated.”

The commissioners, all of whom participated in one or more of the outreach events, voiced their support of the project, with some commissioners voicing support for the addition of a half-court basketball court somewhere on the site.

Other commissioner comments and concerns relative to an emphasis on safety and other design issues were taken by staff for consideration during the design phase of the project.

Home Builders' Sentiment Rises as Prices Hit New Record:

After sitting tight for four straight months, confidence among U.S. home builders improved in June. A monthly survey of builder sentiment from the National Association of Home Builders (NAHB) rose two points to 60. Anything above 50 is considered "positive" sentiment.

"Builders in many markets across the nation are reporting higher traffic and more committed buyers at their job sites," said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Illinois. "However, our members are also relating ongoing concerns regarding the shortage of buildable lots and labor and noting pockets of softness in scattered markets."

June's reading is the highest since January of this year but the same as June of 2015. Of the index's three components, all posted gains. Current sales conditions rose one point to 64, sales expectations in the next six months increased five points to 70. Buyer traffic rose three points to 47, but it is still the only component in negative territory.

"Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016," said NAHB chief economist Robert Dietz.

Home builders have benefited from very short supply of existing homes for sale nationwide, but their costs continue to rise, and they are passing those on to buyers in the form of higher prices. Sales of newly built homes jumped dramatically in April, as did prices. The median price of a newly built home hit $321,100, up 9.7 percent year-over-year to the highest level on record. 

First Time Home Builders Concerned about Credit:

Too many young consumers, however, are concerned their credit scores won't make the cut when it comes to financing a home today, and they may be right.

"We're still seeing credit remain relatively tight," Jonathan Corr, CEO of mortgage processor Ellie Mae, said in a release.

About a third of future first-time homebuyers say their credit score might hurt their ability to buy a home and that 45 percent said they have delayed a home purchase in order to improve their credit, according to a new survey by Experian. One in 5 said they were likely to opt out of the mortgage process or buying a home all together for the next five to 10 years.

"Your credit profile is one of the factors that can have a substantial impact on securing a home loan because it is used by lenders as an indicator of your financial health," said Rod Griffin, director of public education at Experian. "It is important to take steps early in the homebuying process to allow time to make changes and have those changes be reflected on your credit score."

Nearly three-quarters of those surveyed said they are working to improve their credit, paying down debt, making sure bills are paid on time and even taking steps to protect their credit from identity theft and fraud. Still, just 30 percent of homebuyers in March were first-time buyers, well below the historical average. 

The Best Month and Day to List is?

Spring has officially sprung, but the spring housing market started about a month ago, according to most real estate agents. With the supply of homes for sale not even close to demand, competition has been fierce, and that is changing the rules of the real estate road. Yes, it's a seller's market, but not all homes sell quickly, especially if they're not priced right and if the timing isn't right.

When is the best time to sell? That depends on whom you ask.

"It's early May, and the reason is because inventory being so tight, a lot of homebuyers are having to put in multiple offers. That is extending the length of the homebuying season, such that a lot of times later on in the season people are more eager to buy the house because they have been frustrated with earlier offers, and they are paying a little bit more money," said Stan Humphries, chief economist at Zillow Group.

There are 9 percent fewer homes this buying season compared with a year ago, so listing in early May results in you selling your house about 18 days faster and for about 1 percent more than you would get otherwise, according to Zillow.

In other words, Zillow expects a buyer-desperation factor come May that will result in buyers paying more. Back in 2011 and 2012, when there was less buyer competition, March was best for sellers. Zillow then looked at the last two years, when competition was hotter and found May was better in 18 of the largest 25 metropolitan housing markets.

"In most markets right now we are seeing the conventional way of buying to have shifted really to staging for multiple offers, which is a huge shift from where we were just three-four years ago," Humphries said.

Yearly Existing Home Sales Continue to Increase:

The Existing Home Sales report (homes that have been previously occupied) is hot off the press.  The National Association of Realtors released the data this morning for the largest segment of our housing market. 

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, came in at an annual rate of 5.08 million in February which is 2.2 percent higher than a year ago. 

Job growth and low rates continue to fuel the housing market but a severe lack of inventory is making it difficult to move at a faster pace and was the primary reason that the month-over-month reading fell.

The median existing-home price for all housing types in February was $210,800, up 4.4 percent from February 2015 ($201,900). February's price increase marks the 48^th consecutive month of year-over-year gains.

Total housing inventory at the end of February increased 3.3 percent to 1.88 million existing homes available for sale, but is still 1.1 percent lower than a year ago (1.90 million). Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.0 months in January.

All-cash sales were 25 percent of transactions in February, down from 26 percent both in January and a year ago. Individual investors, who account for many cash sales, purchased 18 percent of homes in February (17 percent in January), matching the highest share since April 2014. Sixty-four percent of investors paid cash in February.

House Flipping Hits 10Y High:

Rising home prices are bringing more house flippers out of the woodwork. The number of active home flippers last year was the highest in nearly a decade, and it is only growing.

Nearly 180,000 family homes and condos were flipped in 2015, according to RealtyTrac. A flip is defined as a home that is bought and sold again within the same 12 months. Flips made up 5.5 percent of all sales last year, and that is the first increase in the flip share after four years of shrinking. Flipping increased in 75 percent of U.S. markets, and the profits are growing as well.

This serves an important role in a market with extremely tight inventories.  These homes are revitalized and added to the inventory pool.

Prices are rising fast, not because buyers can afford to pay more but because of extremely short supply of homes for sale, especially on the lower end of the market. Home prices in January were 6.9 percent higher than the January 2015, according to CoreLogic, a higher annual gain than in December. Home flipping can push prices even higher, especially in markets with the tightest inventory.

As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home flipping bandwagon," said Daren Blomquist, senior vice president at RealtyTrac. "Not only is the share of home flips on the rise again, but we also see the flipping trend trickling down to smaller investors who are completing fewer flips per year."

Flippers are watching home prices rise, and in turn seeing returns rise. Homes flipped in 2015 yielded an average gross profit of $55,000 nationwide, the highest for flips nationally since 2005, according to RealtyTrac. The return on investment was close to 46 percent, up from 44 percent in 2014 and up from 35 percent in 2005. 2005 was when flipping was rampant, thanks to super easy credit. Back then, over 8 percent of all sales were flips.

Homeowners are once again taking cash out:

Home values are rising and homeowners are taking advantage of that, finally tapping into that equity again in the form of cash-out mortgage refinances. They are doing so, however, by pulling the most conservative amounts in history.

Prior to the historic housing crash of the last decade, homeowners used their homes like ATMs, pulling out as much cash as the bank would allow, which at the time was essentially all of it and more. This led to millions of borrowers falling underwater on their home loans as home prices fell, and leading to 7.1 million homes so far ending up in foreclosure, according to Black Knight Financial Services.

Lending standards have tightened significantly since then, but borrowers are clearly much more risk averse. They are taking cash out again; 42 percent of mortgage refinances last fall involved borrowers taking cash out of their homes, not just lowering their interest rates. That is the highest share since 2008, according to Black Knight.

The average cash-out amount was over $60,000, but the average loan-to-value ratio after the refinance was 67 percent, the lowest level on record. Borrowers left 33 percent equity still in the home which is still a very healthy level.  

With rents rising, many are taking out cash to purchase rental properties or make some upgrades to their current homes as there is simply not enough quality inventory available.  So, many are not selling..they are staying put and improving instead.