HOUSING MARKET COOLS FOR SEASON.

Byline: Daily News

SANTA CLARITA - Seasonal forces and rising interest rates caused housing sales in Santa Clarita to slow a bit, but the median price held steady at just under the $600,000 mark.

Escrow closed in October on 280 single-family homes and 121 condominiums, declines from October 2004 as well as from last month's numbers, according to the monthly report by the Southland Regional Association of Realtors.

The market typically slumps after the busy summer season and consequentially the inventory of homes on the market is building. Realtors have complained that there have not been enough houses on the market to meet the rising demands from buyers.

Mike Davis, president of the association's Santa Clarita Division, said he sees no signs the bubble that has driven housing prices in the area to record highs will burst.

``I see nothing on the horizon but good things for the local housing market, especially after the first of the new year,'' Davis said in a statement. ``We have a strong local economy, companies are coming here, jobs are being created, gas prices are coming down and the real estate activity is moving toward a more stable, normal market.''

The median price of a house last month was $594,500, 17.8 percent higher than the previous October and just $500 more than last month. Condos sold for a median $395,000 compared to $379,900 in September and up 24.2 percent from October 2004.

Jim Davis, the association's executive vice president, said he expects the records sales pace evident since 2001 to continue in 2006.

``I fully expect the market to be aggressive again next year,'' Davis said.

``Over the last four years, we've seen the strongest real estate market in history. It was bound to cool off sooner or later, but this slight seasonal decline in no way suggests that the Santa Clarita market is headed toward a recession.''