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Is the Santa Clarita Housing Market Cooling Down? Latest Numbers Revealed! · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Hey everybody, it's Connor with Honor.
• 0:01
  SPEAKER_00: We are here at uh Tuesday, day after President's Day, February 20th, 2024.
• 0:06
  SPEAKER_00: I'm going to give you your real estate update here for Tuesday.
• 0:09
  SPEAKER_00: We did talk about what was happening in the market yesterday, covering real estate inventory as I always do.
• 0:15
  SPEAKER_00: And that's really a critical point for both the sellers and the buyers of the world because they want to find out where the market is in case they're considering making some kind of a move.
• 0:25
  SPEAKER_00: And we do get a lot of calls from the tenant type folk out there that are renting properties or maybe still living with loved ones, talking about the real estate market and asking that question if now is a good time to jump in.
• 0:38
  SPEAKER_00: I'll cover that in just a moment, but let's talk about inventory.
• 0:41
  SPEAKER_00: As of right now, we are at, I'm filming this, 7.08 a.m.
• 0:46
  SPEAKER_00: Pacific Standard Time.
• 0:47
  SPEAKER_00: Santa Crita Valley is sitting at 284 residential units for sale.
• 0:51
  SPEAKER_00: This is going to include condominiums, townhomes, and single-family residences.
• 0:55
  SPEAKER_00: Of those, we have 10 of the coming soon variety.
• 0:58
  SPEAKER_00: These are going to be listings that you might not be seeing in the online systems and online channels.
• 1:03
  SPEAKER_00: The best way to get those is, of course, hit up your local agent and say, hey, listen, Jack.
• 1:08
  SPEAKER_00: Well, if his name's Jack, put me on a search and then give me a search with these criteria, and you'll then be able to see those coming soon listings.
• 1:16
  SPEAKER_00: But without doing that, unfortunately, a lot of the systems out there aren't going to be able to grab those.
• 1:20
  SPEAKER_00: That's kind of that border realtors thing.
• 1:22
  SPEAKER_00: But you'll be able to see those.
• 1:23
  SPEAKER_00: And right now, like I said, we have 10.
• 1:25
  SPEAKER_00: The advantage of seeing those prior to is maybe to make better decisions as to when they do become available to be seen.
• 1:32
  SPEAKER_00: In addition, for my clients, I have been fortunate in the way with my relationships out here, I've been able to make phone calls and actually get my clients in early.
• 1:40
  SPEAKER_00: Now, is that going to make the difference between you and somebody else?
• 1:43
  SPEAKER_00: Potentially not.
• 1:44
  SPEAKER_00: And the only reason why I say potentially not is because sellers, most sellers, want to engage everyone, give everybody an equal opportunity to look at their residents.
• 1:54
  SPEAKER_00: And a lot of times that showing before doesn't help a lot.
• 1:59
  SPEAKER_00: But at least you get kind of and maybe get that, maybe an edge over other people because you've had a chance to do maybe more investigations, and maybe there are questionable items that you've had a chance to work through so you can make your offer stronger at the forefront than other people that are going to be seeing the home the first time on the day it's actually released onto the live real estate market.
• 2:20
  SPEAKER_00: So after we talked about that, that 284 listings currently for sale, one of the things that I will also tell you is that does span the width of single-family residences, condominiums, and townhomes.
• 2:32
  SPEAKER_00: In the real estate news, as we've been monitoring interest rates is always a big topic, and people have talked about that, I think, since the beginning, uh, since they started charging uh points and interest for mortgage loans on residential real estate, which is way before my time.
• 2:50
  SPEAKER_00: But right now, with the interest rates, if you're a buyer out there looking at those, we're seeing them somewhere in the neighborhood of sixes and maybe low sevens.
• 3:00
  SPEAKER_00: I do see some high fives out there being quoted to people.
• 3:03
  SPEAKER_00: All this is dependent on the type of loan program and also what your credit and your financial ability score would happen to be.
• 3:10
  SPEAKER_00: So you have a couple things.
• 3:12
  SPEAKER_00: You have your credit score, which is your FICO score.
• 3:14
  SPEAKER_00: Crawl down that rabbit hole, see what that's all about.
• 3:17
  SPEAKER_00: That's very interesting to see how that actually came about and well, actually what it is.
• 3:23
  SPEAKER_00: But it is a credit score that's given to you from the private sector world.
• 3:27
  SPEAKER_00: So that's one of the things they look at.
• 3:29
  SPEAKER_00: And the other thing they look at is what's called debt-to-income ratio.
• 3:33
  SPEAKER_00: So if you make$80,000 a year and you have$65,000 a year going out to bills, car payments, and rent and all this other fancy stuff.
• 3:42
  SPEAKER_00: Well, maybe car payments, credit cards, maybe not rent.
• 3:45
  SPEAKER_00: Rent would probably come back into your mortgage when you purchase real estate to allow you to become financeable.
• 3:50
  SPEAKER_00: But if you did have 65% just eaten up in bills of, you know, the very high debt-to-income ratio, and that's going to impact your ability to purchase real estate in a great way, versus somebody that doesn't have many bills at all, and they're making that$80,000 and maybe buying a lot of dinners and taking some trips to Disneyland, but nothing is being accumulated on credit cards.
• 4:12
  SPEAKER_00: So you don't have that high debt, and maybe you're driving a modest vehicle instead of the top-end Maserati or whatever else is out there and very, very expensive.
• 4:22
  SPEAKER_00: But you do see those folks, you know, with mom and dad, and they have those fantastic cars, and that's wonderful.
• 4:27
  SPEAKER_00: That's a different kind of a lifestyle, and probably, unless they make the income, probably not conducive to be able to being able to qualify and purchase real estate, just throw that into your brain bucket for a while and chew on it.
• 4:38
  SPEAKER_00: At the end of it, you need to come into this.
• 4:41
  SPEAKER_00: If you are looking to purchase real estate, you need to find out your whys.
• 4:45
  SPEAKER_00: And a lot of people say, well, it's just good to own real estate, and I get that, but you need to break it down financially to make sure if it's a step that you're ready to make.
• 4:54
  SPEAKER_00: Also, the affordability of the property isn't just that list price.
• 4:59
  SPEAKER_00: You're going to want to look at if there's extra taxes in the form of Melarus.
• 5:03
  SPEAKER_00: We have those in Santa Crita Valley and other areas here in Southern California.
• 5:08
  SPEAKER_00: Excuse me, basically, instead of paying a normal tax base in Los Angeles County, for example, where we're located, at 1.25% or thereabouts, up and down, depending on the area when the home's built.
• 5:20
  SPEAKER_00: But on top of that, there are these other taxes called Melarus, which basically pay for other infrastructure items.
• 5:27
  SPEAKER_00: You have your public safety, you have schools, you have potential lighting, street repair, street maintenance, those sorts of things.
• 5:34
  SPEAKER_00: And in some cases, that amount can be quite high.
• 5:38
  SPEAKER_00: In fact, I've seen it almost double in the form of property taxes.
• 5:43
  SPEAKER_00: That gets factored in into your ability to qualify for residential real estate.
• 5:48
  SPEAKER_00: Also, if it has a massive homeowners association fee every month, that homeowners association fee, well, massive or not, it's also including and it cuts away from your ability to pay for the entire property.
• 6:01
  SPEAKER_00: It actually pulls away from your ability to purchase uh the residence where it cuts into that financial ability.
• 6:08
  SPEAKER_00: So if you have a house without a homeowners association, that is going to give you a higher qualification amount than one that has it.
• 6:16
  SPEAKER_00: So maybe you qualify at$800,000 without a homeowners association, but it's got uh$100 a month, you might only qualify for a$750,000 residence with a$100 a month HOA.
• 6:29
  SPEAKER_00: And then if it has mellows and taxes, you might only qualify at$675,000 if you make if that makes sense, because you have these other fees coming out.
• 6:38
  SPEAKER_00: So the question comes in, and I get asked, and this is our tickle Tuesdays broadcast, excuse the frog in there, is now a good time to buy.
• 6:47
  SPEAKER_00: You have to sit down with you and those of you that you trust most, and I I preface that with trust most because sometimes people aren't happy about your happiness.
• 6:57
  SPEAKER_00: So get those people and get those out of your life.
• 6:59
  SPEAKER_00: Then find the ones that really do support you and really care about what you're looking to do, and then have that discussion with them.
• 7:05
  SPEAKER_00: Hopefully, there'll be advisors that have done what you're about to do and give you good advice and trying to, instead of trying to gloat or throw their ego around and show how fantastically smart they are and smarter than everybody else, but these are people that really want to help you.
• 7:20
  SPEAKER_00: So you sit down and you ask them what they think about the current market.
• 7:23
  SPEAKER_00: I'll tell you this, and this is what I know.
• 7:26
  SPEAKER_00: I've been selling real estate out here in Santa Clarita Valley since 1998.
• 7:30
  SPEAKER_00: Right now, the market is very tight.
• 7:32
  SPEAKER_00: Very few listings are on the market, creating what we've had for quite a while now, several years, it being a seller-dominated market.
• 7:40
  SPEAKER_00: Meaning there's very few listings, a very high buyer drive.
• 7:44
  SPEAKER_00: So the buyers are going into properties, approaching sellers, writing offers in multiple offer situations where you have other buyers that want the same residence, condominium, or townhome, they all try to compete against each other.
• 7:58
  SPEAKER_00: That is keeping the market very, very full as far as value goes.
• 8:03
  SPEAKER_00: So we see property prices increasing, and they have been for the last few years.
• 8:08
  SPEAKER_00: However, we do see that slowing down just a little bit because of interest rates.
• 8:13
  SPEAKER_00: If interest rates are to come down just a little bit more, maybe into the fives, a solid fives for almost everybody trying to get financing, what that's going to do is that's really going to kick the market off and create an even higher buyer demand.
• 8:26
  SPEAKER_00: And we're not going to see the market replenished with a lot of listings because those sellers out there that are holding on to real estate are holding on because they have a very low interest rate.
• 8:36
  SPEAKER_00: They're sitting at twos and threes where they financed a while back.
• 8:40
  SPEAKER_00: The issue is, is they are wearing something called golden handcuffs, and they're not going to want to depart from that mortgage rate.
• 8:48
  SPEAKER_00: Some options for buyers, and I've seen this done, and I'm watching as this trend continues where you have people that have a particularly low mortgage, but that mortgage is transferable.
• 9:00
  SPEAKER_00: So as a real estate buyer, part of the thing for a seller looking for properties, you could potentially find something where somebody has an assumable rate, meaning you get their two or three percent super low interest rate in purchasing the house from them.
• 9:16
  SPEAKER_00: Now there will be other costs associated, it's going to depend on how much equity they have.
• 9:20
  SPEAKER_00: And then if you're going to be able to financially assume that loan, but there are loan types that allow that to happen, something to ask your agent about.
• 9:29
  SPEAKER_00: And if you don't have one, I'm Connor with Honor, reach out to me and I'll help you through that process.
• 9:34
  SPEAKER_00: It's not pie in the sky, but it is difficult and it's rare and it's not super plentiful out there as far as those types of mortgages, and even the research is a little daunting.
• 9:46
  SPEAKER_00: But if you have somebody on your side, that's definitely a conversation to strike up.
• 9:50
  SPEAKER_00: So is the is this a good time to purchase?
• 9:53
  SPEAKER_00: Well, if in fact you look at your financials and if you are approaching real estate and you're looking also at that mortgage interest deduction, ask your CPA or your tax professional about that.
• 10:06
  SPEAKER_00: How's that going to impact your monthly payments?
• 10:09
  SPEAKER_00: And then look at it.
• 10:10
  SPEAKER_00: You can rent a property.
• 10:11
  SPEAKER_00: If you're staying somewhere for free, that's a whole nother world.
• 10:14
  SPEAKER_00: But if you're actually paying rent, look at what you're paying, and you might be surprised at the end of a year how much less it would be to actually have a mortgage on a residence because you're able to claim that mortgage interest deduction off of your taxes.
• 10:27
  SPEAKER_00: That's a good place to start.
• 10:29
  SPEAKER_00: And then, of course, like I said, you ask those experts around you that have done this before, the moms, the dads, and if you have horrible parents that you never liked, ask maybe brothers and sisters if you have none of them.
• 10:40
  SPEAKER_00: You know what?
• 10:40
  SPEAKER_00: Give me a call, I'll help you through the whole process.
• 10:43
  SPEAKER_00: I sell real estate and represent buyers and sellers, more from an educational standpoint because I've been doing this so long.
• 10:50
  SPEAKER_00: I've seen a lot of mistakes made, and I'm guilty.
• 10:53
  SPEAKER_00: I've made a lot of them as well.
• 10:55
  SPEAKER_00: Having a trial by fire in the business doesn't hurt, it actually helps.
• 10:59
  SPEAKER_00: So I will explain all of the situations possible and get you to a good place as far as whether you should, shouldn't, and then we'll take it the next steps from there.
• 11:09
  SPEAKER_00: This has been your real estate update.
• 11:10
  SPEAKER_00: We are at Tuesday, of course, day after President's Day.
• 11:13
  SPEAKER_00: I'm Connor with Honor.
• 11:14
  SPEAKER_00: When you're ready, reach out.
• 11:15
  SPEAKER_00: You can visit me online at ConnorWithHonor.com and I'll be here for you.
• 11:20
  SPEAKER_00: I'll be back tomorrow.
• 11:20
  SPEAKER_00: We'll talk about our foreclosures hump day Wednesday broadcast tomorrow, and I hope it meets you well.
• 11:26
  SPEAKER_00: I'm on YouTube, of course, home muscle, and we'll talk to you soon overnight.