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Shocking Shifts in Santa Clarita! Why Home Prices are Dropping NOW! · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Hey, good day, everybody.
• 0:01
  SPEAKER_00: I am Connor with Honor, Connor McIver.
• 0:03
  SPEAKER_00: Today is going to be April 20th, 2024.
• 0:06
  SPEAKER_00: This is your Santa Clarita update.
• 0:08
  SPEAKER_00: I'm going to give some numbers and statistics, statistics coming in here in the next several minutes.
• 0:14
  SPEAKER_00: I'm going to talk about those price reductions and give you actual percentages, talking about the market activity from the snapshot of the past seven days over the last several weeks here in Santa Clarita real estate.
• 0:26
  SPEAKER_00: Still a very strong seller's market, without a doubt.
• 0:29
  SPEAKER_00: I know a lot of buyers are out there struggling, positioning for advantage, trying to get their best offer accepted, but still are getting beaten out by other people willing to pay more.
• 0:39
  SPEAKER_00: That's still the case in our market because of our lacking inventory and still very solid buyer drive.
• 0:45
  SPEAKER_00: It's not going to take a lot more inventory for that to at least slow down.
• 0:50
  SPEAKER_00: But currently, the way listings are coming out into the market, we're seeing very little time from the time they're listed for sale to the time they actually get swept up and put into escrow with an agreed-upon offer with a solid buyer.
• 1:04
  SPEAKER_00: That being the case, let's move into the daily real estate activity and give you the intel as to what's happening here in the last seven days that we'll talk about those statistics.
• 1:14
  SPEAKER_00: So currently we have 367 active units on the market for sale.
• 1:18
  SPEAKER_00: That's going to be throughout all the Santa Cruita Valley cities, including Santa Cruita globally, of course, Castella, Canyon Country New Hall, Saugas, Stevenson Rancho Valencia.
• 1:28
  SPEAKER_00: It's going to span single-family residences, condominiums, and townhomes.
• 1:33
  SPEAKER_00: And just in case, for those of you that might not be clear, typically condominiums are the apartment-style box residences, usually on the same level, usually shared walls, shared floors, and shared ceilings.
• 1:48
  SPEAKER_00: On the other side of that, we have townhomes typically multi-level.
• 1:53
  SPEAKER_00: So usually there could be an entrance and maybe an entrance, some kind of a living space, and then upstairs more living spaces, or maybe the kitchen, depending on how they're configured.
• 2:02
  SPEAKER_00: But townhomes usually multiple story.
• 2:04
  SPEAKER_00: And then single family residences, there's attached and detached.
• 2:09
  SPEAKER_00: The attached single family residences, at least as far as we have here in Santa Clarita, typically are attached by a wall.
• 2:15
  SPEAKER_00: Usually that's the garage wall.
• 2:18
  SPEAKER_00: So none of the residence is actually attached.
• 2:20
  SPEAKER_00: So your bedroom wall isn't somebody else's bedroom wall, but that does exist.
• 2:24
  SPEAKER_00: There are quite a few of those as well out here.
• 2:26
  SPEAKER_00: I guess the best ones are those that don't have that issue.
• 2:29
  SPEAKER_00: But again, something to consider and think about.
• 2:31
  SPEAKER_00: And of course, attached are going to be priced accordingly because they're attached and detached priced accordingly as well.
• 2:38
  SPEAKER_00: Usually the attached that we see mostly out here also have their own front yard and own backyard.
• 2:44
  SPEAKER_00: So they are separate entities and there's fences running down as well.
• 2:48
  SPEAKER_00: So there's not a lot of super pleasure face-to-face contact with the neighbor.
• 2:54
  SPEAKER_00: But again, you're sharing part of your property.
• 2:55
  SPEAKER_00: So if a problem happens in that residence, it could overflow into yours.
• 3:00
  SPEAKER_00: And I suppose it's the same case with a larger single-family residence that's separate from the neighbor.
• 3:06
  SPEAKER_00: They have stuff that happens at their house that could impact your house.
• 3:09
  SPEAKER_00: But things to consider when you're purchasing real estate, but that's the total.
• 3:13
  SPEAKER_00: 51 changes, price changes, and mostly reductions here in the past seven days as well.
• 3:18
  SPEAKER_00: 84 new listings, 25 back on market properties.
• 3:22
  SPEAKER_00: These are properties that didn't make it through the escrow process.
• 3:25
  SPEAKER_00: So there was something that had occurred on the interior of the listing or the interior of the sale, the transaction part of it.
• 3:32
  SPEAKER_00: Maybe the seller didn't do something the buyer wanted and the buyer didn't want to perceive that being the case.
• 3:37
  SPEAKER_00: It could be on the other side that the buyer had some kind of an issue or calamity that they had to then change their purchasing decision and not purchase at this time.
• 3:48
  SPEAKER_00: But these are properties that have come back on the market.
• 3:51
  SPEAKER_00: If you're a buyer and not monitoring that channel, that's dangerous.
• 3:55
  SPEAKER_00: You should be watching these properties that come back on the market.
• 3:58
  SPEAKER_00: In addition, because we have somewhere between 25 and 30% of the real estate listings not actually make it all the way to closing, that might be something you might want to look at too.
• 4:08
  SPEAKER_00: Because if you're writing an offer on a property and there's multiple offers in play and that offer doesn't make it through, and you've gone to all the trouble to writing an offer because you really like it, make sure that your agent does that follow-up like I do for my buyers.
• 4:23
  SPEAKER_00: And also my sellers, I keep those the list of those people that wrote the offer.
• 4:27
  SPEAKER_00: Just in case there's a problem, I can notify my buyers or sellers, whichever it applies to, that this particular property is back on the market for sale.
• 4:37
  SPEAKER_00: And please come back to it and revisit it if your buyers are still there.
• 4:42
  SPEAKER_00: You wouldn't believe it, but especially in this market, because the listings are so tight, there's not a lot of inventory.
• 4:49
  SPEAKER_00: Usually that first phone call to that first best next buyer for that property usually is ready to step forward.
• 4:57
  SPEAKER_00: All right, so we have uh 39 properties under contract, 49 properties pending, 58 properties closed this last week in Santa Cruz Valley, six expired, seven canceled, nine went on hold, and two withdrew.
• 5:09
  SPEAKER_00: Here's the statistics I was excited to talk about.
• 5:11
  SPEAKER_00: So I had I ran to some numbers through.
• 5:13
  SPEAKER_00: So we have percentage of listings with price changes, and I I factor this in.
• 5:19
  SPEAKER_00: So I did price changes over total listings times 100.
• 5:22
  SPEAKER_00: So I get the fraction, and then I come out with the percentage.
• 5:25
  SPEAKER_00: So nearly 14% of all listings have had their prices adjusted.
• 5:29
  SPEAKER_00: And this does indicate that sellers are reacting to market feedback, and then the suggestion came in softening in buyer demand or overpricing.
• 5:39
  SPEAKER_00: Now in this market, it's not a softening of buyer demand at all, it's overpricing.
• 5:43
  SPEAKER_00: The sellers are giving too much weight to their residences at this time.
• 5:48
  SPEAKER_00: And at one time in the market, not less than a year ago, it was so hot it didn't matter.
• 5:55
  SPEAKER_00: The market has started to level out.
• 5:56
  SPEAKER_00: We still are increasing.
• 5:58
  SPEAKER_00: There's still a high buyer demand, and selling now is still awesome, but not as awesome because buyers are a little more educated, I think.
• 6:08
  SPEAKER_00: It seems like they're not moving forward as carelessly, if that could be a word, as maybe some had in the past.
• 6:16
  SPEAKER_00: We are still seeing properties move quickly, but when we have multiple offers on properties, I'm not seeing people removing all of their contingencies out of the gate, saying they could care less what the house sell for sells for.
• 6:29
  SPEAKER_00: They're gonna buy it no matter what, period.
• 6:31
  SPEAKER_00: Case closed, we're done.
• 6:32
  SPEAKER_00: Thank you very much, Mr.
• 6:34
  SPEAKER_00: Seller.
• 6:34
  SPEAKER_00: We just have to walk through the steps and we're gonna be a happy new homeowner of your residence.
• 6:38
  SPEAKER_00: I don't see that.
• 6:40
  SPEAKER_00: I still see buyers in this market keeping their contingencies in place.
• 6:44
  SPEAKER_00: They might reduce the time frames a little bit, but realistically, they're still stepping forward with their best offer from out of the chute.
• 6:51
  SPEAKER_00: And if this seller asks for highest and best, they might increase it a little bit.
• 6:55
  SPEAKER_00: But most of the buyers that I've been working with and the ones that I've been seeing writing offers, a lot of them are staying their hand when the seller comes back with asking them for more.
• 7:05
  SPEAKER_00: And there are some buyers out there that are not, though.
• 7:08
  SPEAKER_00: So that's the competitive model.
• 7:09
  SPEAKER_00: Watch out, just make sure you're getting good advice.
• 7:11
  SPEAKER_00: And if you are going to start removing contingencies, you want to give some good, strong thought to that because if you decide you need to get out for whatever reason, you might have caught your ability to do so, cut your ability to do so.
• 7:25
  SPEAKER_00: All right, so that's um that's 14% of all listings have their prices rejusted.
• 7:29
  SPEAKER_00: New listings versus total market, that's 23% of the market consists of new listings from last week.
• 7:34
  SPEAKER_00: And that suggests a highly uh relatively high turnover and continuous influx of properties.
• 7:40
  SPEAKER_00: That's very true.
• 7:40
  SPEAKER_00: We do have quite a bit, a big turnover here in Santa Cruz Valley.
• 7:44
  SPEAKER_00: You can see that by the numbers of all those properties under contract last seven days, 58.
• 7:48
  SPEAKER_00: We've had 58 closings.
• 7:50
  SPEAKER_00: So that's good.
• 7:51
  SPEAKER_00: And that's just a week.
• 7:52
  SPEAKER_00: So you can see where this is coming down to.
• 7:54
  SPEAKER_00: All right, so um success, sales success rate, and then we have nearly 30% of the listings have successfully made it towards closure.
• 8:04
  SPEAKER_00: And this indicates buyers aren't giving up, they're actually moving through, and that's very common.
• 8:08
  SPEAKER_00: Withdrawn and canceled.
• 8:10
  SPEAKER_00: Again, not a big snapshot, but a very low number, just like foreclosures in this market, it's not a big number.
• 8:16
  SPEAKER_00: If we see distress property, it's anywhere between half and 1% of the total market properties.
• 8:22
  SPEAKER_00: In fact, I ran it a few days ago for some clients.
• 8:26
  SPEAKER_00: We have two properties that are actually in short sale, and that's it, of all the Santa Cruz Valley cities, and that is a distress sale, but subject to the lender approving the terms and the price and the buyer and even whether or not they're going to approve the sale to be sold for less than what the seller owes short sale.
• 8:45
  SPEAKER_00: I'm Connor with Honor.
• 8:46
  SPEAKER_00: Thank you for watching your Saturday real estate update.
• 8:48
  SPEAKER_00: I will be back on Monday.
• 8:50
  SPEAKER_00: If you need anything, meanwhile, working all weekend, you need some help, let us know.
• 8:54
  SPEAKER_00: It's more than a pleasure to have you watch my show.
• 8:57
  SPEAKER_00: Please share, and I will talk to you soon.
• 8:59
  SPEAKER_00: I am Connor with Honor, over and out.