Latest / Connor with Honor: AI, Real Estate and Real Life / AI's Growing Impact on Valencia Real Estate: How Technology is Shaping the Market: Human-Initiated
Transcript
- 0:00the 2 hundred and sixty ninth day of 2024 good day everybody September 25th this is your Santa Clarita real estate update I'm gonna cover a few items here that I put together for today's show also I did delve into the Valencia single family residence statistics for 180 days just looking at those trends price per square foot days on market time frames and from all indicators that market is still very reflective of the rest of Santa Clarita very much in a very high sellers market that's currently where we are we're still just over 500 active listings for sale all across the Santa Cruta Valley that doesn't just include single family residences but also condominiums and town homes but today pulling down the dad on the last 7 days here and I posted everything up at my blog at Santa Clarita openhouses.com just go to the main homepage and you'll see this here and then you click on my blog at the top and then the article up upper left is gonna be the latest I do these typically every single day updating my clients on the market so right now in Santa Crita Valley we currently have a total of 528 active residential listings this is everything folks this is gonna be single family residences condominiums and town homes with the changes in real estate with the contracts and the way that the commissions are are now being reflected online or I should say not being reflected online that really hasn't seemed to change the market much we're noticing as in some circumstances the sellers aren't offering much they have in the pt but it's going to depend on that particular seller and how much value they actually believe in another agent bringing an offer for their property or offering a commission to other agents that could potentially have real estate buyers interested in purchasing the sellers residence it's gonna be up for sale these are things that they look at now and they're asking themselves the question well is a buyer's agent really necessary for now we still have a historical record that gives an indication in any kind of change and commission rate in the past sold properties I don't know how long that data is going to be available but it does indicate that the commission does impact apparently offers an offer time frame but in addition to that the commission's pretty much been somewhat standard now to have that not reflected on the online channel that is something else a variable that's really changing starting to modify the market in a way some of the sellers are now saying well I'll pay you we'll wait until they contact us see what kind of offer they sent and then we'll talk about it after that point it's just gonna depend on how the agent is gonna handle that particular scenario and even more importantly what the seller is wanting to do what I find works the best is you give the seller the information including whatever you can dig up as far as data goes factually verified data and you show that to the seller and you say this is historically how it seems to have worked in your particular neighborhood they can do their own research then and talk to the neighbors but in essence you'll have all that data that's able to be verified very easily and then looking at that so they can make their decision it's going to end up working out great I do know that the advent the way artificial intelligence is moving there's probably gonna be less human even less human we see currently I remember back in the beginning of the real estate market that I when I got in the le 90s 1998 when I became licensed at that time people were transitioning from going from presenting an offer in person to using a FAX machine and at the very beginning when I got in the FAX machine was relatively new technology a few offices had them and not everybody but I remember at that time agents were very skeptical of actually faxing an offer to another agent their traditional way it was done is the agent would package the offer and hand carry it over and find the actual listing agent somewhere I remember meeting listing agents at restaurants and different businesses even their office of course but I've actually the market was so at one point that we were actually doing offers on the hood of a car and submitting them at the property I remember that hot market back before the advent of all the technology that seems to have made things a little bit easier but I will say that easier doesn't always mean better in the way that right now and if you've sold or bought real estate recently you'll know this it's very simple to get things signed and it's coming via a system online that allows you to provide your digital signature well that's a lot of power through a computer I understand that it works and it's verified maybe it's even more verified than a human signature but there are interesting questions that get asked um after people are signing because they're not really digesting what they're signing something gets sent and I always try to send it to my clients two ways I'd like to send it to him in just regular PDF format with no signatures necessary it's not on the system that has them sign the document on the system that has you sign the document of course it gives you a chance to read it even download a copy and these sorts of things but that being the case it still doesn't tend to be done people don't seem to print it out and look at it or even read it and go through it they seem to click and sign and I find this out later when they're asking me questions about what they've signed after I've already taken the document and had it submitted thank god nothing has occurred where they say oh my gosh I didn't know that let's do this because documents whatever is presented it's all very important but there are some that carry a little bit more weight with them I'll give you an example of that a removal of contingencies that's a pretty heavy document probably heavier than maybe even signing the one that says who's working for who or signing the document that talks about the market conditions maybe being such that your house could gain value or the house that you're buying could lose value there's actually a contract or a document that's within the real estate process that you have to sign as a buyer one of the things that we see is the way that the market continues to change and it seems that people are continuing to have a very good grasp on it just make sure whatever you sign whether it's online or offline you understand it and you read it but with technology I think that we're gonna have more of a separation between agents I would hope that instead artificial intelligence would more bring everybody together I can just envision a room on zoom where the offer was presented like back in the day we had the lender we had the other agent we had the buyers representative the buyers agent if there was something that needed to be explained or maybe there was some kind of a Mark on title that needed to be figured out how we're gonna handle it it was very it was very surreal very hospital esque very neutral very vanilla and that's great but I think there's a lot of clarity and actually having things maybe more of a personal way just like the three tenants we talked about I know that Mo go out talks about this and I hate to say the name like that it's the best I can do but Mo is very intelligent when it comes to this and there's three things if you wanna help yourself look into artificial intelligence see what's gonna happen because that's really the biggest step we've done as a world you might not be directly involved but we've just created something smarter than us something that's capable of even becoming more smart so that's number one No. 2 with that make sure you check it from a truth perspective because as with everything hallucinations or untruths seem to come out from time to time so we're gonna see that change a lot in the future with regard to everything including estimates of value for residences once these people learn how to bend this new technology around getting people different prices for their houses and then building that entire dynamic around somebody that might be asking a question on Facebook that could indicate they may be interested in listing their house and then at that point having everything activated within all their social media every time they turn on the TV even the commercials being designated in to have them do or contact a particular person that's paying to have that technology implemented but basically giving this person everything that they would normally do but offering it up to them on a plate so they really have a very easy decision to make make sure that you're being tricked and I know I say that a little tongue in cheek because I feel like every time I start talking about something like toilet paper all of a sudden I'm seeing sales on my social media for different types of toilet paper and I haven't even done a search I haven't bought it on Amazon nothing but you talk about it it starts to appear just be wary the best thing you can do is have that human contact here in the local area wherever you happen to be interested in selling or buying you're in Santa Cruta greater Los Angeles I'm Connor with honor please check out today's podcast and also the my blog article I did go the inventory very much a sellers market we're gonna see here coming up that I believe properties are still gonna continue to move we did have the big Fed meeting they did reduce the uh Fed the federal interest rate and the banks have then started to adjust a little bit accordingly somewhere around high fives low sixes is where that interest rate currently sense and of course that's gonna depend on your credit worthiness you were with all to finance and borrow money but again that's about where that rate is and it looks like that's going to continue to maybe creep down a little bit as we get closer to the election the end of the year but 2025 anybody's guess it looks real estates gonna still continue modest gains between now and then if the interest rate would have dropped down lower than five whatever makes it there even low fives the market will start to increase quite a bit in the buyer drive and maybe have more sellers willing to unhook those golden handcuffs and let go of that super low mortgage rate they're holding on to or maybe they'll be a mechanism put in place and this has been talked about where those mortgages would be made more assumable so that the people would have more of an opportunity to purchase real estate and that could probably carry a premium with it the banks would have to probably figure out and lenders would have to figure out how they would monetize that and how that would make sense I've heard rumors of that who knows if that's gonna happen there are certain mortgages that are assumeable so if you wanna go buy a house and it's held by a mortgage holder that has that particular type of mortgage be wary as to how that's how you're going to approach that and I would hope you would have somebody on your side that has done that before at least understands the process because then you're really gonna have to break it down and find out what this is going to cost you as a perspective home buyer able to assume that particular seller's mortgage now if they have that low 2% rate they've had that house for a while so there's probably a pretty good chunk of equity there that's going to have to be worked out do you get another loan what's that interest rate look like and then what's the difference because if the seller does owe less than the current market value and you're also buying it a low interest rate what is that rate going to cost you to buy it in at that point and is that gonna be a lender thing they'll probably monetize that somewhat as well I would guess but then it's the seller gonna be able to say hey you know I got a two point rate here you're buying my house maybe uh maybe that'll cost you 20 more I don't know how that would play out but that could be something that people ask for we'll see what happens folks I'm on it thank you so much for watching and we will talk to you soon I'm kind of with honor but we're not and how are you going to pay that