Why is my home not selling? It's a question more homeowners are asking as the real estate market continues to shift. Homes are sitting on the market longer, buyers are negotiating harder, and many sellers are no longer receiving their full asking price.

Here in Santa Clarita, we're seeing buyers become more selective. Higher mortgage rates have made affordability a challenge, and many buyers are asking for price reductions, closing cost credits, or help buying down their interest rates.

But here's the thing: Homes are still selling!

If your home has been sitting on the market without an offer, it usually comes down to three things: price, condition, or marketing.

Let's break them down.

1. Your Home Is Priced Too High

This is probably the biggest reason homes sit on the market.

I know sellers want to get the most money possible for their homes. And they should! But the market ultimately determines what buyers are willing to pay.

A home can be beautiful, updated, and in a fantastic neighborhood, but if it's priced too high compared to similar properties, buyers may simply move on.

Signs Your Home May Be Overpriced

• You're getting very few showings.

• Similar homes nearby are selling while yours isn't.

• Buyers are touring your home but aren't making offers.

• Your home has been listed for weeks without serious interest.

Here's what sellers need to understand: Pricing your home higher to leave room for negotiations can sometimes backfire.

The longer your home sits, the more buyers begin to wonder what's wrong with it.

A strategic price adjustment can attract fresh attention and bring buyers back through the door.

The goal isn't to give your home away. It's to price it competitively so buyers recognize its value.

2. The Condition of Your Home Is Turning Buyers Away

Today's buyers are more payment-conscious than ever.

With higher interest rates, property taxes, insurance, and other expenses, many buyers don't have a large budget left over for renovations.

That means homes needing updates may struggle to compete with properties that are move-in ready.

Common Things That Turn Buyers Away

• Outdated kitchens and bathrooms

• Worn carpet or flooring

• Unfinished repairs

• Cluttered or overly personalized spaces

• Poor curb appeal

• Unpleasant odors or visible maintenance issues

Now, this doesn't mean you need to spend $50,000 remodeling your home before selling!

Sometimes simple improvements can make a big difference.

Fresh paint, professional cleaning, landscaping, decluttering, and light staging can completely change how buyers experience a property.

Should You Renovate Before Selling?

Not necessarily.

Before spending money on renovations, it's important to understand what buyers in your neighborhood actually expect.

Some improvements may help your home sell faster, while others may not provide a worthwhile return.

At Home661, we help sellers identify which updates are worth considering and which ones they can skip.

3. Your Home Isn't Being Marketed Properly

Let's say your home is priced correctly and looks fantastic, but you're still not getting much activity.

It's time to look at the marketing.

Putting a home on the MLS and waiting for buyers isn't always enough.

Today's buyers are searching online, scrolling through social media, watching property videos, and comparing homes before ever scheduling a showing.

Your home needs to stand out.

What Does Good Real Estate Marketing Look Like?

An effective marketing strategy may include:

• Professional real estate photography

• High-quality video tours and social media reels

• Strategic online advertising

• Professional staging and home preparation

• Open houses and private showings

• Email marketing to potential buyers and local agents

• Follow-up with interested buyers and agents

• Reviewing online activity and adjusting the strategy when needed

At Home661, we believe every home deserves a customized marketing plan.

The goal is to get your property in front of the right buyers, generate interest, and turn that interest into offers.

If your home isn't getting enough exposure, even the right price may not produce the results you're hoping for.

Sellers: Be Prepared to Negotiate in Today's Market

One of the biggest changes we're experiencing in the Santa Clarita real estate market is the amount of negotiating happening between buyers and sellers.

Buyers are making lower offers, requesting closing cost credits, and asking sellers to help reduce their monthly mortgage payments.

And sellers? Many are still hoping to receive full asking price without offering concessions.

That's where we're seeing deals get stuck.

Should Sellers Expect to Pay Closing Costs?

In today's market, sellers should absolutely be prepared for the possibility of contributing toward a buyer's closing costs.

This doesn't mean every seller will have to, but it's becoming an important negotiating tool.

For example, a buyer may love your home but struggle with the monthly payment. Instead of lowering the price significantly, offering a closing cost credit toward a mortgage rate buydown could help make the purchase more affordable.

The best strategy depends on the offer, loan terms, and your bottom line.

The important thing is to focus on your net proceeds, not just the purchase price.

Sometimes accepting a slightly lower offer or providing a credit can be better than sitting on the market for another 60 days and reducing your asking price later.

How Long Should a Home Sit on the Market Before Reducing the Price?

There's no one-size-fits-all answer.

According to Home661's September 2026 Santa Clarita Valley Market Snapshot, homes spent an average of 43 days on the market.

However, that doesn't mean you should automatically wait 43 days before making adjustments.

If your home has been listed for two or three weeks with very little activity, it's worth reviewing the pricing, showing feedback, competition, and marketing performance.

On the other hand, if you're getting consistent showings and positive feedback, your strategy may simply need more time.

The key is paying attention to what the market is telling you.

Frequently Asked Questions About Selling a Home in Santa Clarita

Why is my house getting showings but no offers?

If buyers are touring your home but not making offers, the issue may be price, condition, or how your property compares to competing listings. Buyer feedback can help identify the problem.

Should I lower my asking price if my home isn't selling?

Possibly. If similar homes are selling and yours isn't, a price adjustment may help attract more buyers. Review recent comparable sales and current competition before deciding.

Do sellers have to pay buyer closing costs in California?

No. Sellers are not automatically required to pay a buyer's closing costs. However, buyers may request credits as part of their offer, and sellers can negotiate those terms.

Can better marketing help sell my home faster?

Yes. Professional photography, video, online exposure, and targeted marketing can help generate more interest. However, marketing alone cannot always overcome an unrealistic asking price or significant property condition issues.

Final Thoughts: Your Home Can Still Sell in Today's Market

The Santa Clarita housing market is changing, but that doesn't mean it's a bad time to sell.

Homes are still moving, and sellers still have opportunities to walk away with substantial equity.

The difference is that today's market requires a little more strategy, realistic expectations, and flexibility.

If your home has been sitting on the market, ask yourself these three questions:

1. Is my home priced correctly?

2. Does my home's condition meet buyer expectations?

3. Am I getting the marketing exposure my property deserves?

If one of these areas isn't working, it may be time to make a change.

Did you know there are some weird real estate facts that might surprise you? From living near a Starbucks or Costco to feng shui and even the numbers in your home address, these unexpected details can influence how buyers feel about a property. Let's explore three fun facts about owning a home!

1. Living Near a Costco or Starbucks Could Be a Good Thing 

Who knew your morning coffee run or Costco shopping trip could have anything to do with real estate?

Homes located near popular retailers like Starbucks and Costco can be desirable because buyers love convenience.

There's even something called the "Starbucks Effect." Historical real estate studies have found that homes near Starbucks locations experienced stronger price appreciation in certain markets.

Costco can also be a neighborhood attraction because of its shopping convenience and the surrounding retail amenities.

But here's the catch: Living near these stores doesn't automatically increase your home's value. These businesses often choose locations in already-growing, desirable communities.

Fun fact: When buyers search for homes in Santa Clarita, proximity to shopping, restaurants, and everyday conveniences can be a major selling point!

2. Feng Shui Can Influence How Buyers Feel About a Home 

Ever walked into a house and immediately felt like something was just right?

That could be what feng shui enthusiasts call good energy!

Feng shui is a traditional Chinese practice focused on creating harmony between people and their surroundings.

In real estate, some buyers pay close attention to a home's layout, entrance, natural light, and even which direction the front door faces.

Some common feng shui preferences include:

• A welcoming, clutter-free front entrance

• Plenty of natural light

• Furniture arranged to create an easy flow

• A balanced and peaceful living environment

While feng shui doesn't scientifically determine property values, it can influence personal preferences and purchasing decisions.

Fun fact: Some homebuyers consider the direction a house faces before they even schedule a showing!

3. Your House Number Might Be Lucky (or Unlucky!) 

Believe it or not, the numbers in your home address can matter to certain buyers.

In some cultures, specific numbers are associated with good fortune, prosperity, or bad luck.

For example:

Number 8: Considered lucky in many Chinese cultural traditions because its pronunciation is associated with prosperity and wealth.

Number 4: Sometimes avoided in certain East Asian cultures because its pronunciation resembles the word for death.

Number 13: Often considered unlucky in Western superstitions.

Number 7: Associated with good luck in many Western traditions.

Does that mean a home with an unlucky number is worth less?

Not necessarily!

Most buyers prioritize location, condition, price, and affordability. However, cultural traditions and personal beliefs can sometimes influence which homes people prefer.

Fun fact: Some buyers specifically search for homes with lucky numbers in the address!

Do These Weird Real Estate Facts Actually Affect Home Values?

The answer is: Sometimes!

Location and neighborhood amenities can have a measurable relationship with property values. Feng shui and house-number preferences are more subjective, but they may influence how individual buyers feel about a home.

When selling a property, understanding what makes your home appealing to different buyers can be helpful.

And when buying, it's always interesting to discover the little details that make a house feel like the perfect fit.

The Santa Clarita real estate market continues to show resilience as we move into the final months of 2026. Despite recent increases in mortgage interest rates, home prices across Santa Clarita Valley remain relatively steady. While we're seeing fewer active listings, fewer pending sales, and some price reductions, homes are still selling.

So, is Santa Clarita becoming a buyer's market? Let's take a closer look at the September 2026 housing market numbers and what they mean for homeowners, buyers, and sellers.

Santa Clarita Housing Market Statistics – September 2026

According to our September 2026 market snapshot, here's where the local residential real estate market stands:

These numbers tell an interesting story. While sales activity has slowed, home values are holding up better than many buyers and sellers might expect.

Santa Clarita Home Prices Remain Relatively Stable

One of the biggest takeaways from September is that home prices in Santa Clarita are holding relatively steady despite higher interest rates.

The overall median sale price is $770,000, down 4% compared to September 2025. However, single-family homes have maintained a median sale price of $850,000, unchanged year over year.

This is encouraging news for homeowners who may be concerned about declining property values.

Although we may continue to experience some price reductions as sellers adjust to current market conditions, we're not seeing a dramatic drop in home values across the Santa Clarita Valley.

It's important to remember that a price reduction on an individual listing doesn't necessarily mean the entire housing market is declining. Pricing, condition, location, and buyer demand all play a role.

Santa Clarita Condo Prices Continue to Decline

While single-family home prices remain stable, the condominium market is experiencing slightly more pressure.

The median condo sale price in Santa Clarita is now $540,000, down 1% year over year.

For buyers looking to enter the housing market, condos and townhomes may present opportunities, especially when sellers are willing to negotiate on price or closing costs.

However, buyers should also consider HOA fees, insurance, and total monthly housing expenses before purchasing.

For condo sellers, competitive pricing is especially important. Buyers have become more payment-conscious, and overpriced properties may struggle to attract offers.

Are Higher Mortgage Rates Affecting the Santa Clarita Housing Market?

Yes, higher mortgage rates are affecting buyer affordability and purchasing decisions.

As interest rates increase, monthly mortgage payments become more expensive. This can cause buyers to lower their budgets, request seller concessions, or take longer to make a decision.

We're seeing this play out in the local market.

Pending sales dropped 45% year over year, indicating a significant slowdown in homes going under contract during September.

However, higher mortgage rates have not translated into equally large home price declines.

While some sellers are reducing their asking prices, overall home values remain relatively stable.

This shows that Santa Clarita continues to have underlying housing demand, even as affordability challenges impact the pace of sales.

How Long Does It Take to Sell a Home in Santa Clarita?

The average days on market in September 2026 was 43 days, two days fewer than the same period last year.

This is an important statistic.

Despite slower sales activity and affordability concerns, homes are still moving. Buyers are simply becoming more selective about what they're willing to pay.

A well-priced home in good condition can still attract serious interest.

However, sellers should be prepared for a longer marketing period than they may have experienced during the extremely competitive housing market of previous years.

Professional photography, strategic pricing, strong online marketing, and proper home preparation continue to make a difference.

Is Santa Clarita Becoming a Buyer's Market?

Santa Clarita appears to be moving toward a more balanced market, with some conditions increasingly favoring buyers.

September ended with approximately four months of housing inventory.

Generally speaking:

• Less than four months of inventory tends to favor sellers.

• Around four to six months often indicates a more balanced market.

• More than six months can indicate a buyer's market.

While we haven't reached a strong buyer's market, buyers are gaining negotiating power.

Interestingly, active listings declined 9% year over year, and new listings dropped 15%. This means fewer homes are available, even as buyer activity slows.

With pending sales also declining significantly, we're seeing a market where both buyers and sellers are moving more cautiously.

What Does This Mean for Santa Clarita Home Sellers?

If you're thinking about selling your home in Valencia, Saugus, Canyon Country, Newhall, Stevenson Ranch, or Castaic, there is still opportunity in today's market.

Home values remain relatively strong, especially for single-family properties.

However, pricing your home correctly from the beginning is more important than ever.

Buyers are paying close attention to monthly payments, property condition, and comparable sales. Sellers who price too aggressively may find themselves making multiple price reductions before securing an offer.

The good news? Homes are still selling, and many homeowners have built substantial equity over the years.

A realistic pricing strategy and effective marketing plan can help position your property competitively.

What Does This Mean for Santa Clarita Home Buyers?

For buyers, the shifting market may create opportunities that weren't available during the highly competitive years.

With fewer pending sales and sellers becoming more flexible, buyers may have room to negotiate:

• Lower purchase prices

• Seller-paid closing costs

• Mortgage rate buydowns

• Repairs or other concessions

Although mortgage rates have increased, negotiating a better purchase price or securing closing cost assistance may help offset some of those higher borrowing costs.

The key is understanding your total monthly payment and working with a knowledgeable local real estate professional.

Santa Clarita Real Estate Market Forecast: What to Expect Next

As we head toward the end of 2026, I expect Santa Clarita's housing market to continue adjusting.

We may see additional price reductions on homes that are overpriced or have been sitting on the market for an extended period.

However, based on September's numbers, there is no indication of a widespread collapse in local home values.

Single-family prices remain stable, inventory is relatively limited, and homes are still selling in an average of 43 days.

The biggest challenge continues to be the gap between what buyers can comfortably afford and what sellers expect to receive.

As the market shifts, both sides may need to be more flexible to make transactions work.

Frequently Asked Questions About the Santa Clarita Real Estate Market

Are home prices dropping in Santa Clarita?

The overall median home sale price declined 4% year over year in September 2026. However, single-family home prices remained unchanged at $850,000, while condo prices declined 1%.

Is now a good time to buy a home in Santa Clarita?

It may be a good time for buyers who are financially prepared. Slower sales activity can create opportunities to negotiate purchase prices, closing costs, and seller concessions.

How many days does it take to sell a house in Santa Clarita?

In September 2026, the average time on market was 43 days, down two days compared to the previous year.

Is Santa Clarita a buyer's or seller's market?

With approximately four months of inventory, Santa Clarita is showing signs of a more balanced housing market. Buyers are gaining negotiating leverage, but limited inventory continues to support home prices.

With mortgage rates higher than many buyers became accustomed to over the last several years, affordability continues to be one of the biggest concerns for homebuyers.

The good news? A traditional 30-year fixed mortgage isn't the only financing option available.

Programs such as a 7-year adjustable-rate mortgage (ARM) and a 2-1 temporary interest rate buydown can potentially give buyers a lower initial mortgage payment and more flexibility — especially when a home builder or seller is contributing toward the financing.

But these are two very different loan programs, so it is important to understand exactly how each one works.

What Is a 7-Year ARM?

A 7-year ARM is an adjustable-rate mortgage that starts with an initial fixed-rate period.

For example, with a 7/6 ARM, your initial interest rate is fixed for the first seven years. During those seven years, your rate does not change.

After the seven-year fixed period ends, the interest rate becomes adjustable. With a 7/6 ARM, it can typically adjust every six months after that.

That does not mean your interest rate automatically shoots up after seven years.

Instead, the new rate is generally determined by a specified market index plus a margin established by the lender, subject to the adjustment caps contained in your loan.

Depending on market conditions at the time, the rate could potentially be higher or lower. The exact adjustment rules, rate caps, index and margin depend on the specific loan.

What Happens After the 7 Years?

This is one of the biggest questions I hear from buyers considering an ARM.

Your rate doesn't simply "jump to the current mortgage rate" on the first day of year eight.

Instead, your loan follows a formula outlined in your mortgage documents. Generally, the lender uses:

Index + Margin = Adjusted Interest Rate

The loan also has caps that limit how much the interest rate can change at the first adjustment, at subsequent adjustments and potentially over the life of the loan.

If you have a 7/6 ARM, your rate may then adjust every six months based on the terms of your loan.

This is why buyers considering an ARM should review not only the attractive introductory rate, but also the index, margin, adjustment frequency and rate caps.

Can You Refinance a 7-Year ARM Before It Adjusts?

Yes, assuming you qualify for refinancing at that time and the new loan makes financial sense.

You don't have to wait until the seven-year period is over to refinance.

For example, imagine you purchase a home with a 7-year ARM today. A few years from now, mortgage rates decline enough that refinancing into a fixed-rate mortgage makes sense.

You could potentially refinance the ARM into a new mortgage before the adjustable period ever begins.

Of course, refinancing is never guaranteed. Your future interest rate, credit, income, property value, equity and other lending requirements can all affect your ability to refinance.

That's why I recommend looking at an ARM as a loan you should be comfortable with based on its actual terms — not simply assuming you'll refinance later.

What Is a 2-1 Buydown?

A 2-1 temporary buydown works differently from an ARM.

With a 2-1 buydown, the underlying mortgage has a note rate established at closing, but funds contributed toward the buydown temporarily reduce the borrower's effective monthly payment during the first two years.

Here's a simple example using a 6.5% note rate:

Year 1: Payment is calculated as though the rate were 4.5%
Year 2: Payment is calculated as though the rate were 5.5%
Year 3 and beyond: Payment is based on the full 6.5% note rate

The key distinction is that the mortgage rate isn't adjusting with the market after year two if the underlying loan is a fixed-rate mortgage.

The temporary buydown simply ends.

That means if market mortgage rates are 7% when your third year begins, your loan doesn't automatically become 7%. Your payment moves to the payment associated with the note rate you agreed to when you purchased the home.

Can You Refinance During a 2-1 Buydown?

Potentially, yes.

If mortgage rates fall during the first or second year and you qualify for a refinance, you may decide to refinance rather than wait for the temporary buydown period to end.

Before doing so, you'll want to speak with your lender about the costs of refinancing and how any unused buydown funds would be handled under your particular agreement.

The goal isn't to refinance simply because you can. The numbers need to make sense.

Why Are 7-Year ARMs and 2-1 Buydowns Attractive in Today's Housing Market?

The biggest advantage is short-term affordability.

When mortgage rates are elevated, even a relatively small reduction in the interest rate can make a noticeable difference in a buyer's monthly principal and interest payment.

This can be particularly valuable when purchasing new construction, because some builders offer financing incentives through their affiliated or preferred lenders.

Instead of reducing the home's purchase price, a builder may contribute substantial funds toward financing incentives, closing costs or temporary/permanent rate buydowns.

Depending on the offer, reducing the mortgage payment can sometimes have a larger immediate impact on a buyer's monthly budget than a comparable reduction in purchase price.

However, every incentive should be evaluated based on the actual numbers. Buyers should compare the purchase price, loan costs, APR, monthly payments, future payment scenarios and available alternatives.

7-Year ARM vs. 2-1 Buydown: What's the Difference?

The easiest way to remember the difference is this:

A 7-year ARM: Your initial interest rate is fixed for seven years. After that, the rate can adjust periodically based on the loan terms and market index.

A 2-1 buydown: Your payment receives a temporary subsidy for two years. After the buydown ends, you pay based on the note rate established at closing. If the underlying mortgage is fixed-rate, it does not begin adjusting with the market.

Both strategies can lower the initial cost of homeownership, but they accomplish that goal differently.

What Should Buyers Ask Before Choosing an ARM or Buydown?

Before choosing either option, ask your lender:

• What is my actual note rate?
• How long is the introductory or buydown period?
• What will my principal and interest payment be each year?
• If this is an ARM, what are the index, margin and rate caps?
• How frequently can the ARM adjust after the initial period?
• What is the highest rate and payment allowed under the loan?
• Is there a prepayment penalty?
• What happens to unused buydown funds if I refinance or sell?
• What would the same home cost me using a traditional fixed-rate mortgage?

Understanding the answers to these questions makes it much easier to compare your options.

Are Adjustable-Rate Mortgages Bad?

Not necessarily. They're simply a different financial tool.

An ARM may make sense for certain buyers who want to take advantage of a lower introductory rate and understand the possibility of future adjustments.

For other buyers, the predictability of a fixed-rate mortgage may be more important.

The important thing is to understand the loan you're agreeing to and make sure you could handle the payment if rates eventually adjust higher.

Is a 2-1 Buydown Worth It?

A 2-1 buydown can be especially attractive when the seller or builder is paying for it.

It provides lower initial payments while a buyer settles into homeownership. That can free up cash during the first couple of years for moving expenses, furniture, improvements or simply adjusting to the expenses associated with owning a home.

But buyers should still budget based on the eventual full payment — not just the first-year payment.

Should You Choose a 7-Year ARM, 2-1 Buydown or Fixed-Rate Mortgage?

There isn't one mortgage program that works for every homebuyer.

The right financing strategy depends on your purchase price, down payment, income, credit, how long you expect to own the home, available builder or seller incentives, and your comfort level with future payment changes.

This is especially important when comparing new construction financing incentives with resale homes. A builder may offer substantial financing incentives that aren't available from an individual home seller, so comparing only the home's purchase price doesn't always tell the whole story.

Before making a decision, ask your lender to show you the numbers side-by-side.

Looking for a Home in Santa Clarita?

If you're considering buying a home, new construction or resale property in Santa Clarita, Valencia, Saugus, Stevenson Ranch, Canyon Country, Newhall or the surrounding areas, I can help you compare your options and understand the real estate side of the transaction.

Financing programs can change, and loan eligibility depends on the individual borrower. Always review the specific loan terms with a qualified mortgage professional before choosing a mortgage.

Jessica Ranuschio | Home661

The Santa Clarita real estate market continues to shift, but one of the biggest stories I'm seeing right now is the difference between single-family homes and condos.

According to the August 2026 Santa Clarita Valley residential market snapshot, the overall median sales price was $810,000, up 1% year over year.

But when we separate single-family homes from condos, the numbers tell a much more interesting story.

Santa Clarita Single-Family Home Prices Remain Strong

The median sales price for a single-family home in Santa Clarita was $865,000 in August 2026, down just 3% compared with the previous year.

Considering the higher inventory, longer market times and affordability challenges buyers are facing, Santa Clarita single-family home values have remained relatively resilient.

For homeowners thinking about selling, this is important. The market has changed, but that does not mean homes aren't selling.

194 residential properties closed during August, while the average days on market increased to 50 days, two days longer than the previous year.

Homes may take longer to sell, and buyers have more options than they did during the extremely competitive markets of previous years. That makes accurate pricing, condition and marketing increasingly important for Santa Clarita sellers.

Santa Clarita Condos Are Feeling More Pressure

The condo market is a different story.

The median condo sales price in Santa Clarita was $520,000 in August 2026, down 10% year over year.

As a Realtor who works extensively with condos and townhomes, I've seen firsthand how financing can affect these transactions.

One challenge affecting certain Santa Clarita condo complexes is non-warrantable condo financing.

What Is a Non-Warrantable Condo?

A non-warrantable condo is generally a condominium that does not meet certain eligibility requirements used by Fannie Mae or Freddie Mac for conventional financing.

There are several reasons a condominium project may be considered non-warrantable or otherwise present financing challenges. The issue can relate to factors involving the HOA, insurance, litigation, reserves, commercial space, ownership concentration or other project requirements.

This doesn't necessarily mean there is something wrong with the individual condo.

It means financing the property may be more complicated.

How Does a Non-Warrantable Condo Affect Buyers?

When a condo does not qualify for standard conventional financing, buyers may need to use a lender that offers non-warrantable condo loans or another financing option.

Depending on the lender and loan program, these loans may require a larger down payment, additional cash reserves, different underwriting requirements and potentially a higher interest rate than standard conventional financing.

For example, some non-warrantable condo loan programs may require a buyer to put at least 10% down, although requirements vary considerably by lender and property.

This can shrink the buyer pool.

A buyer who planned to put 3%, 5% or another lower down payment on a condo may discover that the particular complex requires a completely different financing strategy.

And when affordability is already a major concern for buyers, a larger down payment or higher mortgage rate can make the property less attractive.

Why Condo Financing Matters When Selling a Condo

If you're thinking about selling a condo in Santa Clarita, understanding your complex's financing situation is extremely important.

Before listing, I want to understand questions such as:

Is the complex currently warrantable? What financing options are buyers using? Are there HOA insurance concerns? What are the HOA reserves? Are there assessments? Have similar units recently had financing problems?

These issues can directly affect how many buyers are realistically able to purchase the property.

A condo may look perfectly priced based on previous comparable sales, but if the available financing has changed, those older comparable sales may not tell the entire story of today's market.

That's why condo sellers need to pay close attention to current competing inventory, recent closed sales, financing availability and days on market.

Could Santa Clarita Condos Be an Opportunity for Investors?

For investors, this market is worth watching.

The financing challenges affecting some condo complexes can create a disadvantage for traditional financed buyers—but cash investors don't face the same mortgage qualification hurdles.

With the Santa Clarita condo median sales price down 10% year over year in August, investors may find opportunities that weren't available when condo prices were higher and buyer competition was stronger.

That doesn't automatically make every condo a good investment.

Investors should still evaluate the purchase price, HOA dues, rental restrictions, insurance, special assessments, expected rent, vacancy, maintenance expenses and potential resale value.

But for a cash real estate investor searching for Santa Clarita investment properties, condos are one segment I would be paying close attention to right now.

Santa Clarita Housing Inventory Reaches 4.5 Months

Another major change is inventory.

Santa Clarita had 882 active residential listings in August, while the market reached approximately 4.5 months of inventory.

At the same time:

• 332 new listings came to market, down 3% year over year.
• 176 properties went pending, down 27% year over year.
• 194 properties closed, down 11% year over year.
• Average days on market reached 50 days.

The decline in pending sales is particularly important. Buyers have more choices and are taking their time.

For sellers, that means simply putting a property on the MLS and waiting may not be enough. Pricing strategy matters in the 2026 Santa Clarita housing market.

What Does the Santa Clarita Market Mean for Sellers?

If you're considering selling a home in Santa Clarita, don't assume the market is bad simply because inventory has increased.

Single-family home prices have remained relatively strong, but buyers have become more selective.

Sellers should pay attention to the newest comparable sales—not just what a neighbor sold for six months or a year ago.

For condo sellers, financing conditions within your specific complex can be especially important.

The longer a property sits without activity, the more important it becomes to evaluate the price, competition, condition and marketing strategy.

What Does the Market Mean for Santa Clarita Buyers?

For buyers, increased inventory can mean more choices and potentially more negotiating opportunities than during an extremely competitive seller's market.

Depending on the property and seller motivation, there may be opportunities to negotiate the purchase price, closing-cost credits or even a seller credit toward a mortgage rate buydown.

Condo buyers should speak with their lender early in the process to determine whether a specific complex qualifies for their financing.

Don't wait until you're already in escrow to start asking questions about condo eligibility.

Santa Clarita Real Estate Market FAQ

What is the median home price in Santa Clarita in 2026?

For August 2026, the overall Santa Clarita Valley residential median sales price was $810,000. The median price for single-family homes was $865,000, while the median condo sales price was $520,000.

Are Santa Clarita home prices going down?

It depends on the property type. In August 2026, the overall residential median sales price was up 1% year over year. However, single-family homes were down 3% year over year, while condos were down 10%.

This is why buyers and sellers should look at their specific property type and neighborhood rather than relying solely on an overall Santa Clarita statistic.

How long does it take to sell a home in Santa Clarita?

The average residential property spent 50 days on market in August 2026, approximately two days longer than the same period the previous year.

Individual results vary based on neighborhood, price, property type, condition and competition.

Is Santa Clarita a buyer's or seller's market in 2026?

Santa Clarita had approximately 4.5 months of residential inventory in August 2026. Rather than relying solely on a broad buyer's-market or seller's-market label, it's important to look at the individual market segment.

A single-family home in one Santa Clarita neighborhood can face very different conditions from a condo in another community.

Why are some Santa Clarita condos difficult to finance?

Certain condo complexes may not meet conventional project eligibility requirements, which can limit the financing available to buyers.

Depending on the situation, buyers may need non-warrantable condo financing, which can have different down-payment, reserve, underwriting and interest-rate requirements.

Can you buy a non-warrantable condo with cash?

Yes. A cash buyer does not need mortgage approval to purchase the property.

However, cash investors should still perform due diligence on the HOA, insurance, financials, reserves, assessments, rental restrictions and other factors that could affect the investment or future resale.

Are Santa Clarita condos a good investment right now?

Santa Clarita's median condo sales price was $520,000 in August 2026, down 10% year over year. That price movement may create opportunities for some investors, particularly cash buyers who are not affected by mortgage eligibility requirements.

Whether an individual condo is a good investment depends on the purchase price, expected rent, HOA expenses, assessments, rental restrictions and the investor's financial goals.

Buying or Selling in Santa Clarita?

The August numbers reinforce something I tell my clients constantly: there isn't just one Santa Clarita real estate market.

Single-family homes are behaving differently from condos. Individual neighborhoods are behaving differently from one another. And even two condo complexes across the street from each other can have very different financing requirements.

If you're thinking about buying a home in Santa Clarita, selling a Santa Clarita home, purchasing a condo or investing in Santa Clarita real estate, understanding your specific segment of the market matters more than simply looking at one headline number.

Jessica Ranuschio | Broker/Owner, Home661
DRE #01987956

Market statistics are based on the August 2026 Southland Regional Association of REALTORS® Santa Clarita Valley residential market snapshot. Loan requirements vary by lender, loan program, borrower and condominium project. Buyers should confirm current financing requirements with a qualified mortgage lender.

If you're buying a home, you've probably heard a Realtor or lender say, “Let's ask the seller for a rate buydown.”

But what does a mortgage rate buydown actually mean?

Simply put, a mortgage rate buydown is a way to reduce the interest rate or initial monthly payment on your home loan by paying money upfront. In some real estate transactions, we can negotiate for the seller to provide a credit that can be applied toward eligible closing costs, including the cost of buying down the buyer's mortgage rate when permitted by the loan program.

This can be a powerful negotiating tool because instead of only focusing on getting the seller to lower the purchase price, we can look at whether using some of that negotiating power toward the buyer's interest rate could make a bigger difference in the monthly payment.

How Does a Mortgage Rate Buydown Work?

Let's use a simple example.

Imagine mortgage rates are around 6.5% when you're ready to purchase a home.

Instead of automatically accepting the 6.5% rate, we can sit down with your lender and ask:

“What would it cost to get this buyer's interest rate down to 5.5%?”

Your lender will calculate the cost based on your specific loan, loan amount, credit profile, mortgage program and current rate pricing.

For example, if the lender determines that it would cost $15,000 to obtain the lower rate, we may structure the offer to request a $15,000 seller credit toward the buyer's allowable closing costs, with the lender determining how much can actually be applied toward discount points for the rate buydown.

If negotiated successfully and permitted under the buyer's loan program, that seller credit can help cover the upfront cost associated with obtaining the lower mortgage rate.

The result can be a lower monthly principal-and-interest payment for the buyer.

Important: Going from 6.5% to 5.5% is only an example. There is no set formula saying a certain dollar amount will reduce a mortgage rate by a certain percentage. Mortgage pricing changes constantly, so your lender must calculate the actual cost.

What Are Mortgage Discount Points?

A permanent mortgage rate buydown commonly involves paying discount points.

Discount points are upfront fees paid to the lender in exchange for a lower mortgage interest rate.

One discount point equals 1% of the loan amount.

For example:

On a $700,000 loan, one point equals $7,000.

That does not mean paying $7,000 will automatically lower your interest rate by 1%. The amount that each point reduces the rate depends on the lender, loan program and current mortgage market.

This is why I always recommend having the lender run the actual numbers before deciding how much seller credit we should request.

Why Would We Ask for a Seller Credit Instead of a Lower Price?

This is where rate buydowns can become particularly interesting during negotiations.

Many buyers automatically think:

“I want $20,000 off the price.”

But lowering the purchase price by $20,000 doesn't necessarily lower the monthly mortgage payment as much as buyers expect.

Depending on the loan and current mortgage pricing, using some or all of that negotiating power toward allowable closing costs and a rate buydown could potentially create a larger reduction in the buyer's monthly payment.

For example, instead of simply writing an offer $20,000 below asking price, we might compare:

Option A: Negotiate a lower purchase price.

Option B: Negotiate a seller credit and use eligible funds toward reducing the interest rate.

Then we have the lender calculate the monthly payment and upfront costs under both scenarios.

The numbers tell us which structure makes more sense for that particular buyer.

How Much Can a Rate Buydown Lower Your Monthly Payment?

It depends on the loan amount and the difference between the interest rates.

On larger mortgages, even a relatively small change in the interest rate can make a noticeable difference in the monthly principal-and-interest payment.

This is why buyers shouldn't only ask:

“What's the price of the house?”

They should also ask:

“What will my actual monthly payment be?”

Purchase price, down payment, interest rate, property taxes, HOA dues, Mello-Roos or special assessments, homeowners insurance and mortgage insurance can all affect the total monthly housing expense.

When I'm helping a buyer compare homes, I want them looking at the whole financial picture, not just the list price.

What Is a Permanent Rate Buydown?

A permanent rate buydown lowers the interest rate for the life of that particular mortgage.

For example, if a buyer qualifies for a 30-year fixed mortgage and uses discount points to obtain a lower fixed rate, that lower interest rate applies according to the terms of the loan rather than automatically increasing after one or two years.

This is different from a temporary rate buydown.

What Is a 2-1 Rate Buydown?

A 2-1 buydown is a common type of temporary mortgage buydown.

Instead of permanently changing the note rate, funds are used to subsidize a portion of the buyer's mortgage payments during the first two years.

A simplified example could look like this if the note rate were 6.5%:

Year 1: Payments are calculated as though the rate were 4.5%
Year 2: Payments are calculated as though the rate were 5.5%
Year 3 and beyond: Payments are based on the full 6.5% note rate

This can provide significant payment relief during the first couple of years of homeownership.

However, buyers need to understand that the payment will increase according to the predetermined schedule. Depending on the loan program, borrowers may also have to qualify based on the full note rate rather than the temporarily reduced payment.

Temporary vs. Permanent Rate Buydown

These two strategies solve different problems.

A permanent rate buydown may make sense when a buyer wants to secure a lower interest rate for as long as they keep that mortgage.

A temporary rate buydown may make sense when a buyer wants a lower payment during the first few years of homeownership.

The better structure depends on the buyer's finances, available seller credit, loan program, current mortgage pricing and how long the buyer expects to keep the mortgage.

Your lender should show you both options when available so you can compare them side by side.

What Happens If Mortgage Rates Drop Later?

This is an important question.

Buying down your interest rate today doesn't prevent you from potentially refinancing later if mortgage rates decrease and you qualify for a refinance.

However, refinancing is not free and future mortgage rates are never guaranteed.

That's also why buyers should consider how much they are spending upfront for a permanent rate buydown. If you pay a significant amount for discount points and refinance shortly afterward, you may not have held the original mortgage long enough for the monthly savings to outweigh the upfront cost.

Your lender can help calculate the break-even point.

What Is the Break-Even Point on a Rate Buydown?

The break-even point tells you approximately how long it takes for the monthly savings from a permanent rate buydown to recover the upfront cost.

Here's a simplified example:

If buying down your rate costs $10,000 and saves you $250 per month in principal and interest:

$10,000 ÷ $250 = 40 months

Your approximate break-even point would be 40 months, or about 3 years and 4 months.

If you're likely to sell or refinance before reaching that point, paying for the permanent buydown yourself may be less attractive.

However, the analysis can look different when the buydown is being funded through a negotiated seller credit that you otherwise would not receive.

Can Every Buyer Ask for a Seller Rate Buydown?

You can negotiate for seller concessions, but whether the seller agrees is another question.

The amount of seller contribution that can actually be used also depends on the loan program, down payment, occupancy, property type and applicable lending guidelines.

That's why the Realtor and lender should work together before the offer is written.

I want to know:

• How much seller credit can this buyer receive?
• How much of the credit can be used toward discount points?
• What would different interest-rate options cost?
• How would each option change the monthly payment?
• Are there other closing costs that should be covered first?
• Would a temporary or permanent buydown make more sense?

Then we can structure the offer around actual numbers instead of guessing.

Frequently Asked Questions About Mortgage Rate Buydowns

What does buying down an interest rate mean?

Buying down a mortgage interest rate generally means paying an upfront cost to obtain a lower interest rate or using funds to temporarily subsidize the mortgage payment. A permanent buydown typically involves discount points, while a temporary buydown reduces the effective payment for a specified initial period.

Can a seller pay for a mortgage rate buydown?

Yes, seller contributions can potentially be used toward eligible mortgage costs, including discount points or certain temporary buydown structures, subject to the specific loan program and contribution limits. Your lender should confirm how much seller credit is allowed before you write the offer.

Is a seller credit free money?

No. A seller credit is part of the overall real estate negotiation.

A seller may agree to contribute toward a buyer's eligible closing costs rather than accepting a lower purchase price, making repairs or agreeing to another concession. The amount and structure are negotiated as part of the transaction.

Does one discount point lower my rate by 1%?

No.

One discount point costs 1% of the loan amount, but it does not automatically reduce the interest rate by one percentage point.

How much your rate decreases depends on current mortgage pricing, your lender, loan type and other factors.

Is a rate buydown the same as getting a lower purchase price?

No. A purchase-price reduction lowers the amount you're paying for the property. A rate buydown addresses the financing cost or initial payment.

Depending on the numbers, one strategy may have a greater impact on your monthly payment than the other. This should be calculated for the specific transaction.

Is a 2-1 buydown permanent?

No. A 2-1 buydown is temporary.

The payment subsidy applies during the first two years. After that, the borrower makes payments based on the full note rate for the remaining loan term, assuming the loan hasn't been refinanced or paid off.

Can I refinance after using a rate buydown?

Potentially, yes. A rate buydown does not by itself prevent a future refinance. Refinancing depends on future interest rates, property value, credit, income, equity and lending requirements, and it generally comes with costs.

Is buying down a mortgage rate worth it?

It depends.

For a permanent buydown, consider the upfront cost, monthly savings, break-even point and how long you expect to keep the mortgage.

If you're negotiating with a seller who is willing to provide a credit, it can also be worth comparing a rate buydown with a price reduction or other concessions.

The best way to make that decision is to have your lender calculate multiple scenarios using the same purchase price and loan amount.

Buying a Home in Santa Clarita? Ask About a Rate Buydown

When I'm negotiating for a buyer, I'm not only looking at how much we can get off the purchase price. I'm looking at how we can structure the entire deal to benefit that buyer.

Sometimes that means negotiating the price.

Sometimes it means asking for closing costs.

Sometimes it means negotiating a seller credit toward a mortgage rate buydown.

And sometimes it means a combination of all three.

If you're considering buying a home in Santa Clarita, Valencia, Saugus, Canyon Country, Newhall, Stevenson Ranch or the surrounding Los Angeles area, we can sit down with your lender and compare the numbers before writing an offer.

Understanding your options can help you make an informed decision based not only on the price of the home, but also on what that home may actually cost you each month.

Jessica Ranuschio | Broker/Owner, Home661
DRE #01987956

Mortgage programs, rates, seller-contribution limits and qualification requirements vary. Examples in this article are for educational purposes only. Consult your mortgage lender for loan-specific rates, costs and qualification requirements.

Capital Gains When Selling a Home: Could the Tax Exemption Double?

If you have owned your home for many years and watched its value increase, selling can come with a question many homeowners don't think about until they are ready to move: Will I have to pay capital gains tax when I sell my home?

This is becoming especially important for homeowners in high-value areas like Santa Clarita and Southern California, where many longtime homeowners have seen substantial appreciation.

There is also a proposal in Congress that could significantly increase the capital gains exclusion available when selling a primary residence. If passed, it could be a major benefit for longtime homeowners considering a move.

What Are Capital Gains When Selling a Home?

In simple terms, a capital gain is the profit you make when you sell an asset for more than your adjusted cost basis.

For a home, this isn't necessarily as simple as subtracting the original purchase price from the sales price. Your adjusted basis can include certain capital improvements you have made to the property, while selling expenses and other factors may also affect the calculation.

For example, if you purchased a home many years ago for $400,000 and eventually sold it for $1,000,000, that does not automatically mean you have $600,000 of taxable capital gain. Your CPA or tax professional can help determine your actual adjusted basis, eligible expenses and taxable gain.

What Is the Current Capital Gains Exclusion on a Primary Residence?

Under current federal tax law, qualifying homeowners may be able to exclude up to:

$250,000 in capital gains for a single filer

$500,000 in capital gains for a married couple filing jointly

Generally, to qualify for the full primary residence exclusion, you must have owned the home and used it as your primary residence for at least two of the five years before the sale. Additional rules and exceptions can apply, so every homeowner's situation should be reviewed individually.

This exclusion can be extremely valuable, but there is one major problem: the limits have not kept pace with how much home values have increased over the years.

A Proposed Bill Could Double the Home Sale Capital Gains Exclusion

Lawmakers have proposed increasing the federal home-sale capital gains exclusion to:

$500,000 for single filers

$1,000,000 for married couples filing jointly

The proposals would effectively double today's limits and would also provide for future inflation adjustments.

As of 2026, however, this change has not become law. The current $250,000 and $500,000 limits still apply.

Why Increasing the Capital Gains Exclusion Could Help Homeowners

This could be particularly important in markets like Santa Clarita and Southern California.

I've seen this issue firsthand in real estate. Back in 2021, I worked with several longtime homeowners who had owned their properties for 10 years or more and experienced significant appreciation. Some had gains exceeding $500,000 and faced substantial tax consequences when they sold.

And that was several years ago.

Many homeowners who purchased their homes 10, 20 or 30 years ago paid a fraction of what those properties may be worth today. A homeowner may not consider themselves a real estate investor or think of their home as producing a huge "profit," but decades of appreciation can create a significant taxable gain when it comes time to sell.

Increasing the exclusion could allow more of that appreciation to remain with homeowners.

Could a Higher Exclusion Encourage More Homeowners to Sell?

Potentially, yes.

One concern I hear from longtime homeowners is, "If I sell, what will I owe in taxes?"

For some homeowners, the potential tax consequences can become another reason to stay in a property that may no longer fit their lifestyle.

A larger capital gains exclusion could make selling more financially attractive for some longtime owners. That could be particularly beneficial for older homeowners who want to downsize, move closer to family or transition into a different type of property.

It could also potentially help the housing market by removing one financial obstacle that may discourage some longtime homeowners from selling.

Keep Records of Your Home Improvements

One of the biggest mistakes homeowners can make is waiting until they are ready to sell before thinking about taxes.

Certain capital improvements may increase your home's adjusted cost basis, which can potentially reduce the amount of gain subject to tax.

That is why it can be important to maintain records and receipts for major improvements made throughout your ownership.

A remodeled kitchen, room addition, new roof or other qualifying capital improvement may affect your basis differently than routine repairs and maintenance. A qualified tax professional can determine which expenses qualify and how they should be documented.

Talk to Your CPA Before You List Your Home

As a Realtor, I can help determine your home's potential market value, estimated selling expenses and what you might expect to walk away with from the real estate transaction.

But capital gains and tax planning should be discussed with a qualified CPA or tax professional.

If you have significant equity in your home, I recommend having that conversation before you put your home on the market, not after you sell.

Your CPA can review your original purchase price, improvements, adjusted basis, expected selling expenses, filing status and other circumstances to help you understand the potential tax consequences of selling.

The goal is to know your numbers ahead of time so you can make an informed decision and keep as much of your equity as legally possible.

Thinking About Selling Your Santa Clarita Home?

If you have owned your home for many years and aren't sure what it is worth today, the first step is understanding your current equity.

I can provide a personalized home value and selling analysis so you have a clearer picture of your property's current market value and estimated proceeds. From there, I recommend working with your CPA or tax professional to determine how a sale could affect your individual tax situation.

Whether you're considering downsizing, moving out of California, buying another home or simply wondering whether now is the right time to sell, having the numbers in front of you can make the decision much easier.

Jessica Ranuschio | Home661
Santa Clarita Real Estate Broker
DRE #01987956

This article is for general informational purposes only and is not tax, accounting or legal advice. Tax laws and proposed legislation can change. Consult a qualified CPA, tax professional or attorney regarding your individual situation.

If you're thinking about moving to Santa Clarita, California, one of the first things to know is that Santa Clarita is made up of several different communities. Each area has its own history, homes, neighborhoods, and overall feel.

The four main communities within the City of Santa Clarita are Valencia, Saugus, Newhall, and Canyon Country. The surrounding Santa Clarita Valley also includes areas like Stevenson Ranch, Castaic, Agua Dulce, and Acton.

As a local Santa Clarita real estate agent, one of the biggest questions I get is: "Which part of Santa Clarita should I live in?"

Here's a simple breakdown.

Valencia, CA

Valencia is one of the most well-known areas of Santa Clarita. The master-planned community of Valencia began developing in the 1960s and has continued to grow over the years.

Today, Valencia is known for its planned neighborhoods, paseos, parks, shopping, restaurants, and easy access to the freeway. You'll find everything from older established neighborhoods to newer construction.

Valencia is also home to areas near Six Flags Magic Mountain, Valencia Town Center, College of the Canyons, and Henry Mayo Newhall Hospital.

If you're searching for homes for sale in Valencia, CA, you'll find condos, townhomes, single-family homes, gated communities, and newer developments.

Saugus, CA

Saugus has a much older history than many people realize. The community dates back to the late 1800s and was named after Saugus, Massachusetts, the birthplace of Henry Mayo Newhall.

Today, Saugus is primarily residential and is popular with buyers looking for established neighborhoods, parks, schools, and more space.

Depending on the neighborhood, buyers may also find they can get a little more for their money in Saugus compared with some parts of Valencia.

If you're looking for Saugus homes for sale, you'll find everything from older homes with larger lots to newer communities in the northern parts of Santa Clarita.

Canyon Country, CA

Canyon Country is located on the eastern side of Santa Clarita and became an established community in the 1960s.

One of the biggest benefits of living in Canyon Country is the variety of housing. There are condos and townhomes, traditional single-family neighborhoods, newer developments, and properties with larger lots.

Canyon Country can also offer buyers more house for their money compared with some other parts of Santa Clarita.

For buyers searching for affordable homes in Santa Clarita, Canyon Country is definitely an area worth exploring.

Newhall, CA

Newhall is where you'll find some of Santa Clarita's deepest history.

The area developed around the railroad in the 1800s and played an important role in California's early oil industry. Santa Clarita also has a long connection to Hollywood and Western films.

Today, Old Town Newhall is one of the area's main destinations, with restaurants, shops, entertainment, and community events.

Real estate in Newhall is very diverse. You'll find older neighborhoods, condos, townhomes, larger properties, and some unique homes you won't necessarily find in Santa Clarita's newer planned communities.

Stevenson Ranch, CA

Stevenson Ranch is technically outside the City of Santa Clarita, but most locals consider it part of the greater Santa Clarita Valley.

Development of Stevenson Ranch began in the late 1980s. The community is known for its hillside neighborhoods, newer homes, parks, shopping, and convenient access to the 5 Freeway.

If you commute toward Los Angeles or the San Fernando Valley, Stevenson Ranch real estate can be especially appealing because of its location.

Castaic, CA

Head north on the 5 Freeway and you'll reach Castaic.

Castaic has continued to grow while still offering a little more of an open feel than many parts of Santa Clarita. The area is well known for Castaic Lake, outdoor recreation, and its mix of established and newer neighborhoods.

Buyers looking for homes for sale in Castaic, CA can find single-family homes, newer developments, properties with larger lots, and communities with mountain views.

Agua Dulce and Acton, CA

If you're looking for land, horses, or a more rural lifestyle, head northeast toward Agua Dulce and Acton.

These communities feel very different from central Santa Clarita. You'll find larger properties, ranches, horse property, and more open land.

Acton has roots going back to the railroad and mining era of the late 1800s, while Agua Dulce is known for its rural setting and nearby Vasquez Rocks.

For buyers who want space while still being within reach of Santa Clarita and Los Angeles, Acton and Agua Dulce real estate may be worth considering.

What Is the Best Area to Live in Santa Clarita?

There really isn't one "best" neighborhood in Santa Clarita. It depends on what you're looking for.

Do you want a newer home? More space for your money? A larger yard? Easy freeway access? A condo or townhome? Horse property? An established neighborhood?

That's why knowing the different Santa Clarita neighborhoods and communities is so important before you start looking at homes.

I've lived and worked in the Santa Clarita Valley for years, and I know how different each area can feel—even when they're only a few miles apart.

If you're thinking about buying a home in Santa Clarita, Valencia, Saugus, Canyon Country, Newhall, Stevenson Ranch, Castaic, Acton, or Agua Dulce, reach out. I can help you narrow down which area makes the most sense for your lifestyle, budget, and goals.

If you own a home in California or plan to buy or sell real estate, there is some good news.

California REALTORS® recently came together to oppose AB 736, a bill involving real estate transfer taxes. After thousands of REALTORS® contacted state lawmakers, the bill was stopped from moving forward.

Why does this matter? Because higher transfer taxes could make it more expensive to buy and sell a home in California.

What Is a Real Estate Transfer Tax?

A real estate transfer tax is a tax charged when ownership of a property changes hands.

In simple terms, when a home is sold, the city or county may collect a tax based on the property's sale price or value.

Transfer taxes are different from your yearly property taxes. They are connected to the sale or transfer of real estate.

Depending on where the property is located, there may be county and city transfer taxes. This means the amount you pay can vary depending on the location of the home.

What Was California AB 736?

AB 736 was a California bill dealing with how much local governments could collect through real estate transfer taxes.

The amended bill proposed new limits on transfer taxes beginning in 2027. However, the California Association of REALTORS® raised concerns that putting higher transfer-tax limits into state law could encourage some cities and counties to increase their existing tax rates.

This was especially concerning in a state where buying and selling a home is already expensive.

Could AB 736 Have Increased the Cost of Selling a Home?

That was one of the biggest concerns.

AB 736 would not have automatically raised transfer taxes on every California homeowner. Instead, REALTORS® argued that the bill could have created an opportunity for some local governments to increase their transfer taxes.

For a homeowner selling a higher-priced property, even a small percentage increase could mean thousands of dollars in additional costs.

Those added costs could affect how much money a seller walks away with after closing.

California REALTORS® Took Action

When the California Association of REALTORS® asked its members to speak up, REALTORS® across the state responded quickly.

In just over 24 hours, California REALTORS® made more than 12,000 calls to state legislators asking them to oppose AB 736.

The message was simple: California housing is already expensive. Adding more costs to buying and selling real estate could make homeownership even harder.

The effort worked, and AB 736 was stopped from moving forward.

Why Stopping AB 736 Matters to California Homeowners

Buying or selling a home comes with many expenses.

Sellers may already have real estate commissions, escrow fees, title costs, repairs and other closing expenses. Buyers are dealing with down payments, closing costs, insurance, property taxes and mortgage rates.

Higher real estate transfer taxes could add another expense to an already costly transaction.

Stopping AB 736 helps protect California homeowners from the possibility of these additional transfer-tax increases under this proposal.

REALTOR® Advocacy Is About More Than Selling Homes

This is also a great example of what REALTORS® do behind the scenes.

Our job is not only to help people buy and sell homes. REALTORS® also advocate for homeownership, private property rights and California homeowners.

Many homeowners may never hear about a proposed real estate law until after it passes. REALTOR® organizations monitor legislation and speak up when proposed laws could affect buyers, sellers and property owners.

AB 736 is a good example of REALTOR® advocacy making a difference.

What California Homeowners Should Know Going Forward

AB 736 has been stopped, but real estate laws and taxes can change.

If you are thinking about buying or selling a home in Santa Clarita, Saugus, Valencia, Canyon Country, Newhall, Castaic or Stevenson Ranch, it is important to understand all of the costs involved before you make a move.

Real estate is about more than the purchase price. Taxes, closing costs, insurance, interest rates and local laws can all affect your bottom line.

As a local Santa Clarita REALTOR®, I will continue to keep you updated on California real estate laws and changes that could impact your home, your money and your next move.

If you've been wondering what's happening in the Santa Clarita Valley real estate market, here's your July update!

The market is still moving, but it's definitely different than this time last year. We're seeing fewer homes come on the market, fewer buyers making offers, and fewer homes closing. The good news? Home prices are still holding strong, and buyers have more choices than they did a year ago.

Whether you're thinking about buying, selling, or just keeping an eye on the market, here's what you need to know.

Home Prices Are Still Strong

The median sales price for all residential properties in Santa Clarita Valley was $790,000 in July. That's down 9% from last year.

Breaking it down further:

• Single-family homes: Median price of $860,000 (down 4% year over year)
• Condos and townhomes: Median price of $540,000 (down 11% year over year)

While prices have softened slightly, they're still much higher than they were just a few years ago. Well-priced homes that are clean and move-in ready continue to attract buyers.

Fewer Homes Are Hitting the Market

One of the biggest changes this month is the number of new listings.

• 341 new listings
• Down 10% from July 2025

Many homeowners are still choosing to stay put because of their low mortgage interest rates. That continues to limit the number of homes available for sale.

Buyer Activity Has Slowed

We're also seeing fewer buyers making offers compared to last year.

• 149 pending sales
• Down 39% year over year

Closed sales were also lower.

• 237 homes sold
• Down 13% year over year

Higher interest rates continue to affect affordability, causing some buyers to wait before making a move. However, buyers who are actively looking have less competition than they experienced during the last few years.

Homes Are Selling in About 44 Days

The average home sold in 44 days, which is the same as last year.

This tells us the market has found a steady pace. Homes that are priced correctly and marketed well are still selling. Homes that are overpriced are sitting longer and often need price reductions.

This is why pricing your home correctly from the beginning is more important than ever.

Inventory Is Giving Buyers More Options

Santa Clarita currently has 3.7 months of inventory.

A balanced market is generally considered around 4 to 6 months of inventory, so we're getting closer to a more balanced market instead of the extremely competitive seller's market we've seen in recent years.

For buyers, this means:

• More homes to choose from
• More time to make decisions
• Better negotiating opportunities

For sellers, it means preparation matters. Professional photos, smart pricing, and a strong marketing plan can make all the difference.

What This Means for Buyers and Sellers

If You're Buying

This is a great time to shop. There are more choices, less competition, and you may be able to negotiate repairs, closing costs, or even a better purchase price.

If You're Selling

Homes are still selling, but buyers are being more selective. The homes getting the most attention are the ones that are priced right from day one and presented well.

Every neighborhood is different, so don't rely on national headlines when making your decision.

My Thoughts on the July 2026 Market

Overall, I'd call this a healthy and balanced market.

We're no longer seeing the frenzy of multiple offers on every home, but we're also not seeing prices fall dramatically. Buyers have more breathing room, and sellers who prepare their homes properly are still having success.

Real estate is always local. One neighborhood can perform completely differently than another, which is why it's important to look at the data for your specific area before making a move.