Latest / Connor with Honor: AI, Real Estate and Real Life / What happens when Santa Clarita real estate interest rates rise is there an impact on home sellers and buyers?

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What happens when Santa Clarita real estate interest rates rise is there an impact on home sellers and buyers? · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: What happens when interest rates go up?
• 0:03
  SPEAKER_00: An entire point.
• 0:05
  SPEAKER_00: We're going to talk about that in today's Connor with Honor Real Estate Consultant Show here for Santa Cruta Real Estate.
• 0:12
  SPEAKER_00: I am Connor McIver, Connor with Honor, aka of course Connor with Honor.
• 0:16
  SPEAKER_00: I've been representing buyers and sellers since 1998, and I do have the longest running complete podcast and videos, video uh shows here in the Santa Crita Valley with regard to real estate, and I represent both buyers and sellers, and I try to help everybody.
• 0:32
  SPEAKER_00: More of a consulting thing than a high-pressure sales event.
• 0:38
  SPEAKER_00: When you're buying or selling real estate, there's a lot at risk.
• 0:42
  SPEAKER_00: There's a lot of money that's involved in both sides of it.
• 0:46
  SPEAKER_00: And I will tell you that it's incredibly important for you to hire smart and also do your due diligence as far as hiring that right agent is concerned.
• 0:57
  SPEAKER_00: Now, when you're ready, just Google Connor with Honor, you'll see me pop up in different areas, different venues, and I'm more than happy to be of great help to you and yours.
• 1:07
  SPEAKER_00: Today we're going to talk about interest rates.
• 1:09
  SPEAKER_00: Santa Crita Valley is still having low inventory.
• 1:12
  SPEAKER_00: If you're looking to purchase residential real estate, I wouldn't let that stop you.
• 1:15
  SPEAKER_00: You definitely can get in on some fantastic deals still, although in a lot of cases there's going to be some high competition.
• 1:24
  SPEAKER_00: So it's really going to come down to you and what you're willing to spend at this particular time, above and beyond what the listing price is.
• 1:32
  SPEAKER_00: In some cases, I've seen this even more prevalent lately in the San Fernando Valley.
• 1:37
  SPEAKER_00: Properties are going in the million-dollar range, they're going 200,000, 250,000 more than list price just because of the real estate inventory and the high buyer competition that happens to be out there.
• 1:50
  SPEAKER_00: So there are a lot of buyers.
• 1:51
  SPEAKER_00: This is considered a seller's real estate market and has been a seller's market for several years now.
• 1:57
  SPEAKER_00: I believe last year was going to be, I believed last year was going to be something incredible for the record books.
• 2:06
  SPEAKER_00: This year might actually pan out to be somewhat similar.
• 2:10
  SPEAKER_00: And I tell you that because with the low inventory we still have, we still have COVID that's prevalent.
• 2:16
  SPEAKER_00: We now have a new version of the COVID that's also turning things down.
• 2:22
  SPEAKER_00: But we're also seeing where it looks like a lot of restrictions are going to start to be lifted, even though uh per the media and everybody else, it seems like COVID's worse than it's ever been.
• 2:33
  SPEAKER_00: We'll have to see how that plays out this year.
• 2:35
  SPEAKER_00: But I do know that I've read several sources there, and I've also talked to a lot of the local lenders that I work with.
• 2:42
  SPEAKER_00: Some are a lot better than others, folks.
• 2:44
  SPEAKER_00: So if you want guidance in that regard with regard to lending, refinancing on a local level, somebody's got a real office you can walk into and complain if they do something wrong, which is incredibly valuable.
• 2:57
  SPEAKER_00: I'll tell you reach out to me.
• 2:59
  SPEAKER_00: Now, these interest rates we're watching as they're continuing to climb.
• 3:04
  SPEAKER_00: We are up in the threes now.
• 3:06
  SPEAKER_00: Some of the rumor is we're going to be in the fours here in the next couple months by summer, maybe a little bit after.
• 3:12
  SPEAKER_00: We're February 11th, 2022 now.
• 3:14
  SPEAKER_00: That is something to be a little bit concerned about, especially if you're considering selling real estate.
• 3:19
  SPEAKER_00: As long as that balance is still in existence, as long as we have that high buyer drive and we're a little top-heavy in real estate, less than an adequate supply of listings, in fact, less than enough, uh, excuse me, less than a month in absorption rate.
• 3:35
  SPEAKER_00: And what that means in real estate lingo is basically if nothing changes, it's going to take less than a month to get rid of all real estate inventory at the current pace that it's selling.
• 3:49
  SPEAKER_00: And that's going to be indicative of the 130, 120, 130 uh active properties for sale.
• 3:55
  SPEAKER_00: You have somewhere around 700, 800, then we're a little bit closer to what's known as a normal market, at least with the way the properties are selling currently.
• 4:06
  SPEAKER_00: And we would wipe out that 130 listings that we currently have active on the market.
• 4:11
  SPEAKER_00: If nothing else was put on the market for sale, we'd whack that through in about a month, month and a half.
• 4:17
  SPEAKER_00: So that keeps that inventory incredibly low.
• 4:20
  SPEAKER_00: As long as that perfect storm remains, at least for the sellers anyway, as long as that remains, it's not going to make much of a difference with regard to interest rate hikes.
• 4:31
  SPEAKER_00: Although with buyers, it is going to change things for them, and the buyers are going to find out that they're now going to qualify for less money.
• 4:40
  SPEAKER_00: And if there's not enough buyers in those existing price ranges, folks, property prices are going to have to come down to adjust.
• 4:48
  SPEAKER_00: Now, if the market changes, and a lot of sellers see this as a panic point, and that we need to get out there and get that house selled, and they call me and we start to list these properties for sale, and it starts to become quite a few, then what's going to end up happening is you're going to have the high competition rate between the sellers, you're going to have heightened interest rate with the buyers, buyers are going to slow down, sellers are going to panic, and then the market's going to morph and maybe become more of a buyer's market, but we're going to need that inventory to back that up.
• 5:17
  SPEAKER_00: And right now we don't have that inventory.
• 5:19
  SPEAKER_00: We're going to need that buyer drive to relax a little bit.
• 5:22
  SPEAKER_00: We don't see that happening.
• 5:23
  SPEAKER_00: And we're going to need interest rates not to get too excited and go over four, but it looks like that's probably where it's going to be over the next few months.
• 5:31
  SPEAKER_00: Watch out for real estate.
• 5:33
  SPEAKER_00: Make sure you continue to keep tuned in.
• 5:35
  SPEAKER_00: That's my Facebook page.
• 5:37
  SPEAKER_00: You'll be able to check that out.
• 5:38
  SPEAKER_00: Today is February 11th, 2022, and that's where interest rates are going to impact the market here in the next few months.
• 5:45
  SPEAKER_00: Now, I told you we know some great lenders, and we do.
• 5:48
  SPEAKER_00: I have some fantastic people that will take great care of you, explain you the process, so you're not hanging yourself out and putting yourself in a bad position with regard to purchasing, financing, refinancing, or anything having to do with needing a loan with regard to real estate.
• 6:05
  SPEAKER_00: Thank you so much for listening today.
• 6:07
  SPEAKER_00: I will post this up on all of our channels.
• 6:09
  SPEAKER_00: Of course, you can go to Connorwithhonor.com.
• 6:12
  SPEAKER_00: That's that'll be rerouted on my YouTube channel.
• 6:14
  SPEAKER_00: You can check that out.
• 6:15
  SPEAKER_00: And I would appreciate that more than you know.
• 6:18
  SPEAKER_00: When you're ready, please reach out to me.
• 6:20
  SPEAKER_00: Of course, I am Connor McIver with Compass Real Estate here in Santa Crita Valley.
• 6:25
  SPEAKER_00: I look forward to speaking with you when you're ready.
• 6:27
  SPEAKER_00: And when you are ready, all you do is just give me a call, then I'll take care of it, and we will start the procedure of consulting, and I'll give you that education with regard to real estate.
• 6:38
  SPEAKER_00: We'll talk about what your game plan is, and I'll tell you how we can best achieve and accomplish your goals within real estate.
• 6:46
  SPEAKER_00: You be safe.
• 6:46
  SPEAKER_00: I'm Connor with Honor, over now.