Santa Clarita Housing Market Report - January 2025
Welcome to our first monthly market report of 2025! As we enter the new year, the Santa Clarita Valley real estate market shows interesting trends that both buyers and sellers should understand.
Market Overview
The Santa Clarita housing market is entering 2025 with cautious optimism. After a turbulent 2024 marked by interest rate fluctuations, we're seeing signs of stabilization that could benefit both buyers and sellers.
Key Statistics (January 2025)
- Median Home Price: $825,000 (up 3.2% from December 2024)
- Active Listings: 412 homes (down 8% from last month)
- Average Days on Market: 32 days (up from 28 in December)
- Months of Inventory: 2.1 months (still a seller's market)
- Sold-to-List Price Ratio: 98.7% (homes selling near asking)
Neighborhood Breakdown
Valencia
- Median Price: $950,000
- Active Listings: 143 homes
- Trend: Valencia continues to be the most sought-after area, particularly for families seeking top-rated schools.
Stevenson Ranch
- Median Price: $1,125,000
- Active Listings: 38 homes
- Trend: Limited inventory in this premium community is keeping prices elevated.
Newhall
- Median Price: $725,000
- Active Listings: 67 homes
- Trend: Newhall offers the best value for buyers, with walkable downtown amenities.
Saugus
- Median Price: $795,000
- Active Listings: 89 homes
- Trend: Strong family market with excellent schools and parks.
Canyon Country
- Median Price: $715,000
- Active Listings: 52 homes
- Trend: Growing popularity among first-time buyers and young families.
Castaic
- Median Price: $700,000
- Active Listings: 23 homes
- Trend: Lake access and newer developments attracting buyers.
What's Driving the Market?
1. Interest Rates Stabilizing
After peaking in late 2024, interest rates have settled in the 6.5-7.0% range for 30-year fixed mortgages. While still elevated compared to 2020-2021, this stability is helping buyers plan with confidence.
2. CalHFA Dream For All Returns
The CalHFA Dream For All program is expected to reopen in early 2026 with a new lottery system. First-generation homebuyers are preparing now to be ready when registration opens.
3. New Construction Activity
Several major developments are underway:
- Valencia: 250 new homes planned in North Valencia
- Castaic: Lake View Terrace adding 180 units
- Stevenson Ranch: 75 luxury homes breaking ground Q2 2025
4. Low Inventory Persists
With only 2.1 months of inventory, Santa Clarita remains firmly in seller's market territory. A balanced market typically has 4-6 months of inventory.
Buyer's Market Analysis
What This Means for Buyers
Opportunities:
- More time to view homes (32 days on market)
- Less frequent bidding wars than 2023
- Sellers more willing to negotiate on repairs/concessions
Challenges:
- Still limited inventory overall
- Need strong pre-approval to compete
- Premium neighborhoods still see multiple offers
Best Strategies for January 2025 Buyers
- Get Pre-Approved Early: Work with a CalHFA-approved lender if eligible for down payment assistance
- Be Ready to Move Fast: Even with slower market, good homes still go quickly
- Focus on Value: Newhall, Canyon Country, and Castaic offer the most affordability
- Consider New Construction: Builders are offering incentives to move inventory
- Don't Wait for Perfect: Interest rates unlikely to drop significantly in Q1 2025
Price Predictions for 2025
Based on current trends, we predict:
- Overall appreciation: 3-5% for the year
- Inventory levels: Expect slight increase in spring
- Interest rates: Range between 6.0-7.5% throughout the year
- First-time buyer activity: Increase when CalHFA reopens
Conclusion
The Santa Clarita market is entering 2025 in a position of stability. While it remains a seller's market due to low inventory, buyers have more breathing room than they did in 2022-2023.
For buyers preparing to purchase this year:
- Start your pre-approval process now
- Research CalHFA and down payment assistance programs
- Tour neighborhoods to understand value differences
- Work with a local expert who knows Santa Clarita
Ready to start your home search? Contact us for a free consultation and personalized market analysis.
This report is based on MLS data, public records, and market analysis. Individual results may vary. For personalized guidance, consult with a licensed real estate professional.