Latest / Connor with Honor: AI, Real Estate and Real Life / 3 New changes to the real estate market in Santa Clarita California that you need to know about before making any moves

Transcript

3 New changes to the real estate market in Santa Clarita California that you need to know about before making any moves · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good to everybody.
• 0:01
  SPEAKER_00: Connor with Honor, May 27th, 2022.
• 0:04
  SPEAKER_00: We're going to talk about uh the real real estate update here, get into the local inventory.
• 0:08
  SPEAKER_00: I want to talk also about three changes that have occurred to the market that you need to be aware of if you are thinking about buying or selling real estate, even if you're not, even if you're just a renter out there, maybe want something to discuss at dinner parties, uh something like that.
• 0:21
  SPEAKER_00: I think uh it's gonna be very, very helpful.
• 0:25
  SPEAKER_00: And maybe uh, you know, you have that uh just tragic, tragic situation over in Texas that was incredibly painful for a lot of people I know, including myself, uh, even though you're maybe several levels or states removed from that, just to have such a horrific situation happen, really, really tragic.
• 0:45
  SPEAKER_00: So please we'll acknowledge that definitely.
• 0:50
  SPEAKER_00: All right, so I did an update the other day on our YouTube channel, Connor with Honor.
• 0:55
  SPEAKER_00: You can also find more information videos and other such things online by going to ConnorWithHonor.com, and I'm gonna be revamping that site so it should be up and running relatively soon, and you'll be able to see punching in passwords.
• 1:10
  SPEAKER_00: You'll be able to see all the new information as far as real estate goes.
• 1:14
  SPEAKER_00: And then also I'm gonna get into closing costs, some of the other items that are incredibly important for both home buyers and home sellers, and then I always talk about how the market is continuing to change.
• 1:27
  SPEAKER_00: So this week the changes are still very prevalent where we had a lot of uh real estate inventory in the lacking realm, not a lot of inventory.
• 1:38
  SPEAKER_00: We had 120, 130 units for sale.
• 1:41
  SPEAKER_00: As of right now, and I'll give you that time and date of this recording, May 27th, 2022, 1019 hours, almost 1020 hours, uh, currently results from a daily inventory search, all active and coming soon real estate listings, and all the cities within Santa Cruz Valley.
• 2:00
  SPEAKER_00: So this is going to be Castac, Canyon Country, New Hall, Sangha, Stephen Sharanch, and Valencia.
• 2:05
  SPEAKER_00: We're running 342 active listings for sale.
• 2:09
  SPEAKER_00: Of those, 19 are coming soon.
• 2:12
  SPEAKER_00: Uh coming soon criteria came about with regard to the boards of realtors uh trying to be in competition with the inter uh the syndication websites.
• 2:22
  SPEAKER_00: Your Zillows, your truly is those types of websites out there.
• 2:25
  SPEAKER_00: And in fact, they have search pretty much down.
• 2:28
  SPEAKER_00: The only issue that you might want to be privy to or understand is your personal and private information might not be kept secure.
• 2:38
  SPEAKER_00: So be wary when you're going out of those systems looking for residential real estate.
• 2:43
  SPEAKER_00: Most agents should have some kind of a link that you'll be able to search through the real multiple listing service.
• 2:49
  SPEAKER_00: But in actuality, really where you find the listing isn't as big or as important as who you use to represent you after you find it or what you put into motion with this particular entity or individual if they're going to be your real estate agent and what work you're going to have them do for you.
• 3:07
  SPEAKER_00: One of the things I will tell you is when you're searching online, there are several systems in place on the syndication side and also several systems in place to search for houses within the Board of Realtors side.
• 3:20
  SPEAKER_00: All the real estate listings at the very beginning, the very nexus, become the property of the brokers.
• 3:25
  SPEAKER_00: The brokers have given agreements to other agents or other entities, if you will, excuse me.
• 3:32
  SPEAKER_00: But basically, we can, you know, we're going to give you our listings to advertise on your website.
• 3:37
  SPEAKER_00: So that was their workaround back in the day.
• 3:39
  SPEAKER_00: And the Board of Realtors, of course, as you can imagine, wasn't super happy with that, but it did happen.
• 3:44
  SPEAKER_00: And that's where we are currently.
• 3:46
  SPEAKER_00: Uh you hiring that consummate real estate professional, incredibly important.
• 3:51
  SPEAKER_00: Number one, uh, the changes that you need to know about, we do have at least uh 200% more active units on sale than we did even two months ago.
• 4:01
  SPEAKER_00: If we track back into March, uh late February, we had 130, 120.
• 4:06
  SPEAKER_00: At 342 this morning, we've increased that uh at least twofold or threefold.
• 4:12
  SPEAKER_00: And we're seeing that these properties are starting to last a little bit longer as far as days on market timeframes.
• 4:19
  SPEAKER_00: So they're not selling as quickly as they were back beginning of the year, even last year.
• 4:24
  SPEAKER_00: Last year, during this same time, properties were literally flying off the shelves, multiple offers, and each of those offers was then strategically pitted against one another to try to get the seller the most money for the residential real estate.
• 4:39
  SPEAKER_00: And it did work in most cases.
• 4:41
  SPEAKER_00: There were a few people out there that started to kind of get wise to this, and what they started to do is they offered more than they were willing to pay right at the beginning.
• 4:51
  SPEAKER_00: They put out their offer, you know,$70,000,$80,000,$100,000 more with the idea in their mind that they're never going to pay that amount anyway, because what's going to end up happening is the appraiser's going to come back and say, hey, Jack, this house ain't worth that much money.
• 5:07
  SPEAKER_00: Then when that happens, it reopens negotiation.
• 5:10
  SPEAKER_00: The seller's taking time to have their house tied up, being an escrow with this particular buyer.
• 5:16
  SPEAKER_00: So a lot of times those sellers almost felt pressured into reducing uh their sales price on the house to match the appraisal.
• 5:24
  SPEAKER_00: Now, of course, it works a lot of different ways.
• 5:27
  SPEAKER_00: It could be that the seller says, no, I'm not going to do anything.
• 5:29
  SPEAKER_00: We're going to stick with the offer that was written in the amount it was.
• 5:33
  SPEAKER_00: It's up to the buyer to step forward with that money.
• 5:35
  SPEAKER_00: Or it's up to the buyer to maybe say, okay, well, we we can't go all the way, but we'll meet you halfway, and maybe the seller might meet halfway, and now we have a deal.
• 5:43
  SPEAKER_00: It's going to depend on everybody's motivation.
• 5:45
  SPEAKER_00: If you're clean out of the gate, typically things work out.
• 5:48
  SPEAKER_00: If you're approaching real estate trying to be mischievous or maybe mislead a little bit to get more of what you want, and with you know, not regarding other people's standing in it, well, you could have things start to backfire, so be careful with that.
• 6:04
  SPEAKER_00: If you have an agent telling you to bend the rules, break the rules, that's another red flag, and I would say that's something to watch out for as well.
• 6:11
  SPEAKER_00: Now, of course, there are ways to negotiate.
• 6:14
  SPEAKER_00: There's strategical strategic moves that have to be made, and a seasoned agent is going to know how to do that.
• 6:20
  SPEAKER_00: Just be wary of trying to mislead, misrepresent.
• 6:24
  SPEAKER_00: So number one is we do have that extra inventory.
• 6:27
  SPEAKER_00: Number two, we are seeing those time frames taking longer for residences to sell, uh, to sell.
• 6:32
  SPEAKER_00: Things aren't moving as quickly as possible, or as quickly as they had been.
• 6:36
  SPEAKER_00: They're still moving as quickly as they can with the current market, but with that extra inventory, it's getting buyers more to choose from.
• 6:44
  SPEAKER_00: And with that, number three is the interest rate increase.
• 6:47
  SPEAKER_00: That's the other reason why real estate has slowed down considerably.
• 6:51
  SPEAKER_00: Because of the increase in interest rates out there, buyers are now qualified at less of an amount, and the sellers could potentially be adjusting those housing prices to be more in line with what the buyers can qualify for.
• 7:06
  SPEAKER_00: They're not going to do it right away, though.
• 7:08
  SPEAKER_00: They're going to give it a little bit more time.
• 7:10
  SPEAKER_00: And if sellers are out there reducing their prices because the agents are telling them to do, be worried with that as well.
• 7:16
  SPEAKER_00: I am seeing a lot of price changes, but at the end of the day, this market still has to work itself out a little bit more, I think, before we jump the gun and start whacking$50,000,$60,000 off a sales price on a house, especially if it was priced well in the beginning.
• 7:32
  SPEAKER_00: I wouldn't panic.
• 7:33
  SPEAKER_00: That's not much of the case where you have buyers that are unwilling to write offers on residential real estate because the price is too high.
• 7:41
  SPEAKER_00: They do understand that the market is very much negotiable.
• 7:44
  SPEAKER_00: Just as long as they get those offers in on these properties, then the sellers are able to make those decisions whether they're going to counter a low offer or whether they're going to just push it away and not do anything.
• 7:56
  SPEAKER_00: Most times in this market, though, when you have those days on market time frames approaching a month and two months and three months, the sellers become somewhat more negotiable and more realistic because they understand their house isn't selling, so that strategy, besides reworking the MLS and redoing some of the items online to get the property pushed up in the internet search results, is going to be to attack that price and reduce it somewhat.
• 8:23
  SPEAKER_00: So then all the syndication sites grab the listing again, all the data, and put it out there on the market.
• 8:29
  SPEAKER_00: So everybody sees it as fresh and new with that listing price change.
• 8:33
  SPEAKER_00: I'm Connor with Honor.
• 8:35
  SPEAKER_00: When you're ready, reach out.
• 8:36
  SPEAKER_00: Of course, it's Friday, May 27th, 2022.
• 8:39
  SPEAKER_00: It is now 1026 hours in the AM, and I look forward to being your realtor when you're ready.
• 8:48
  SPEAKER_00: You can find me out at hashtag CWH.
• 8:50
  SPEAKER_00: I am Connor with Honor.
• 8:52
  SPEAKER_00: Have a fantastic weekend.
• 8:53
  SPEAKER_00: I know we're at Memorial Day, and be safe out there, please.
• 8:58
  SPEAKER_00: And here's a tip from the ex-cop and me or retired cop and me.
• 9:03
  SPEAKER_00: Whenever you go somewhere, whenever you're going to the mall, you're going to go out to dinner, you're going to go spend time at families, houses, residences, if you're going to travel, don't be in such a gosh-awful hurry to get out of your car.
• 9:16
  SPEAKER_00: Don't be in such a hurry to get into your car.
• 9:20
  SPEAKER_00: Give it just a moment.
• 9:21
  SPEAKER_00: Look around a little bit.
• 9:23
  SPEAKER_00: Absorb your surroundings.
• 9:25
  SPEAKER_00: Is there a car that you've never seen before?
• 9:27
  SPEAKER_00: Is it unnaturally quiet?
• 9:30
  SPEAKER_00: How do people's faces look?
• 9:32
  SPEAKER_00: Is everybody a little nervous or angst?
• 9:34
  SPEAKER_00: Or is everybody relaxed and laughing?
• 9:37
  SPEAKER_00: You'll notice these things when you walk into places.
• 9:40
  SPEAKER_00: I walked into a place that was being staged for a robbery by a bunch of uh location personnel for an acting gig.
• 9:50
  SPEAKER_00: And I walked into this particular magazine store that people know here in Santa Clara Valley, thinking everything was fine, to buy a magazine.
• 9:59
  SPEAKER_00: So I go in there, not one of those bad magazines, by the way, just throwing that out there.
• 10:04
  SPEAKER_00: So I go in to buy this magazine, and of course I'm, you know, armed and uh, but I'm off duty, right?
• 10:10
  SPEAKER_00: And um they're about to s have a robbery staged in this business on camera, and I saw none of this.
• 10:18
  SPEAKER_00: Everything seemed to be somewhat hidden.
• 10:20
  SPEAKER_00: So I didn't notice when I walked in, and as they were about to call action, a friend I was with said, Hold on, hold on, you guys gotta stop.
• 10:29
  SPEAKER_00: My friend over here is a cop.
• 10:31
  SPEAKER_00: And it would have ended up horribly, folks.
• 10:35
  SPEAKER_00: Not good at all.
• 10:36
  SPEAKER_00: So if just take a moment, absorb your surroundings, don't be so fast to get out of your car and ask yourself the questions.
• 10:43
  SPEAKER_00: Is there anything out here that's odd?
• 10:45
  SPEAKER_00: Is there something strange?
• 10:46
  SPEAKER_00: Am I feeling a certain way?
• 10:49
  SPEAKER_00: How do these people look?
• 10:51
  SPEAKER_00: What's going on?
• 10:53
  SPEAKER_00: How do I feel?
• 10:54
  SPEAKER_00: How what's the vibe?
• 10:56
  SPEAKER_00: Are there any cars I don't recognize?
• 10:58
  SPEAKER_00: Are there trucks or vans I don't recognize?
• 11:00
  SPEAKER_00: Things like that.
• 11:01
  SPEAKER_00: It's really, really important.
• 11:03
  SPEAKER_00: That's your tip of the day.
• 11:04
  SPEAKER_00: Everybody have a great, fantastic, wonderful, and healthy, wealthy, and wise weekend.
• 11:09
  SPEAKER_00: I am Connor with honor.
• 11:10
  SPEAKER_00: Thanks for listening.
• 11:11
  SPEAKER_00: We'll talk to you soon.