Latest / Connor with Honor: AI, Real Estate and Real Life / Biden's plan to solve the housing crisis, 4 million dollars to do a study?

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Biden's plan to solve the housing crisis, 4 million dollars to do a study? · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Connor with Honor.
• 0:01
  SPEAKER_00: Today's March 1st, 2024.
• 0:03
  SPEAKER_00: This is your Santa Clarita Real Estate Update.
• 0:06
  SPEAKER_00: We're going to throw Antelope Valley in here too, as I talked about yesterday.
• 0:09
  SPEAKER_00: I rejoined that multiple listing service, so I have the data.
• 0:13
  SPEAKER_00: Once I get clients in a particular area that my own local board doesn't cover, definitely expand the area.
• 0:20
  SPEAKER_00: Today we're going to talk about the Biden initiative.
• 0:22
  SPEAKER_00: $4 million is being put forward to try to attempt to solve the housing issue, meaning building more properties.
• 0:32
  SPEAKER_00: It looks like, according to the article, that it's not going to be less expensive to build, but they're entertaining manufactured homes.
• 0:37
  SPEAKER_00: We'll talk about that just a moment.
• 0:39
  SPEAKER_00: Let's get to the local inventory here in Santa Clara Valley.
• 0:42
  SPEAKER_00: In the last 24 hours, we have one listing that's been placed on the coming soon market.
• 0:47
  SPEAKER_00: We're actually very close to 300 units for sale.
• 0:50
  SPEAKER_00: We're at 297 as of this morning.
• 0:52
  SPEAKER_00: So we have 22 new listings.
• 0:54
  SPEAKER_00: Three properties have had their prices changed within the last 24 hours.
• 0:58
  SPEAKER_00: That's going to be an indication of the market stability in a way.
• 1:02
  SPEAKER_00: Three is not a lot, but yesterday we had double digits reducing their prices.
• 1:07
  SPEAKER_00: And in this case, we've had three reducing their prices.
• 1:10
  SPEAKER_00: Typically, if you venture back to the foreclosure markets, when the banks were running their real estate-owned properties, a lot of them were would get to the 30-day point if they weren't able to sell.
• 1:23
  SPEAKER_00: And that kind of brings me into what we're going to talk about with regard to the presidency and the initiatives they're putting forward.
• 1:29
  SPEAKER_00: But back in the day, the banks would then look at their properties after about 30 days and they would make a decision.
• 1:34
  SPEAKER_00: More than likely, if those properties haven't moved or been into escrow at all, they would typically fall back on the agent that they've hired to sell those listings and they would find out what's going on.
• 1:44
  SPEAKER_00: And typically, depending on the agent's wherewithal, maybe they're not doing their due diligence when it comes to advertising and marketing the property.
• 1:53
  SPEAKER_00: At that particular time, the bank decided, you know what, we're going to go ahead and reduce these prices and try to get the property moving.
• 1:59
  SPEAKER_00: So then they would either take their agent's word for it as far as what they believe the new value would be.
• 2:05
  SPEAKER_00: And it wasn't a massive percentage of discount, but it was enough to spear off the market.
• 2:10
  SPEAKER_00: That's why even today, if somebody takes an overpriced listing, usually to sell it, if it's so far out of the realm of possibility for most people mentally to purchase the property, usually it just takes a little reduction.
• 2:22
  SPEAKER_00: And then the sellers, the buying public sees, okay, they are more negotiable than maybe we thought they were at the forefront.
• 2:28
  SPEAKER_00: So we're going to go ahead and move forward and maybe make offers on the real estate.
• 2:32
  SPEAKER_00: So we see that happening.
• 2:33
  SPEAKER_00: And again, that's what had occurred in our market regarding the three properties that have had their prices reduced.
• 2:40
  SPEAKER_00: Now, looking out in the Antelope Valley, pulling on that data, I'll give you what's going on with regard to their what's known as the hot sheet and give uh the last 24 hours.
• 2:51
  SPEAKER_00: So here in Santa Clarita Valley, we've had 22 listings added.
• 2:55
  SPEAKER_00: Three properties, like I said, have their prices changed.
• 2:58
  SPEAKER_00: These are reductions in the list price.
• 3:00
  SPEAKER_00: Four properties have fallen back into being on the market for sale.
• 3:04
  SPEAKER_00: This is known as a bomber back on market.
• 3:07
  SPEAKER_00: What ends up happening in a lot of cases, it's really has nothing to do with the condition of the seller's property.
• 3:15
  SPEAKER_00: A lot of times the buyers have done something potentially to lose their ability to finance real estate.
• 3:21
  SPEAKER_00: Whenever you get ready to buy real estate, you want to make sure that after you've been fully approved, you don't change any of your credit profile.
• 3:29
  SPEAKER_00: If you start to go out there and pay off credit cards, believe it or not, paying off a credit card, even if it has a lower balance, could create an issue for you.
• 3:39
  SPEAKER_00: Whereas it could cause your FICO score to maybe get less.
• 3:42
  SPEAKER_00: And now all of a sudden you're maybe more of a credit risk, less of a credit risk, whatever FICO believes you are, your scores might reduce as a result of you trying to do something to help yourself, trying to take the initiative and maybe pay off a credit card, thinking, you know what, this is going to help me finance more property or more real estate.
• 4:04
  SPEAKER_00: Ask your lender before you go out there and start messing around with your current financial ability, even if it includes paying something off.
• 4:12
  SPEAKER_00: And if they come back and say, you know, Connor, no problem.
• 4:15
  SPEAKER_00: You can pay it off all day long, be happy with that.
• 4:17
  SPEAKER_00: Make sure you follow it up in writing with them.
• 4:20
  SPEAKER_00: Say, hey, uh, I appreciate your help on this, Jack.
• 4:23
  SPEAKER_00: Would you mind sending me an email just confirming that I understood what you said, which is basically by paying off my Sears card, it's not going to cause any issues with me trying to get a home loan here in the next couple months because I'm actively looking to buy real estate.
• 4:38
  SPEAKER_00: Something like that.
• 4:40
  SPEAKER_00: Let's talk about the market.
• 4:41
  SPEAKER_00: So let's look at Antelope Value real quick.
• 4:43
  SPEAKER_00: So for us, we've had those properties go back on the market.
• 4:47
  SPEAKER_00: I actually had a property, this exact thing happened with my real estate buyers.
• 4:52
  SPEAKER_00: We go in, love the property, write the offer, offer doesn't get accepted.
• 4:56
  SPEAKER_00: The sellers accept another offer after they've countered multiple offers.
• 5:00
  SPEAKER_00: What ended up happening, the buyers didn't get it.
• 5:03
  SPEAKER_00: We continue to look for real estate, but you know, they had their heart set.
• 5:06
  SPEAKER_00: Well, I get a phone call because of my relationship with the other agent as far as professionally, of course.
• 5:11
  SPEAKER_00: They do call me up and say, hey, Connor, the buyer's backed out because of an issue with the buyer's ability to finance.
• 5:18
  SPEAKER_00: So I said, great.
• 5:19
  SPEAKER_00: I call my clients.
• 5:20
  SPEAKER_00: They said they're in.
• 5:21
  SPEAKER_00: I said, listen, how does this, are we actually the ones that are going to be selected by the seller?
• 5:26
  SPEAKER_00: Are you going back on the market to try to advertise to everybody?
• 5:29
  SPEAKER_00: She said, no, your due diligence, being first in, writing that offer, a good solid offer.
• 5:34
  SPEAKER_00: All we would ask is it get rewritten again.
• 5:37
  SPEAKER_00: Same terms as you agreed to before, and we'll then open escrow.
• 5:40
  SPEAKER_00: Fantastic.
• 5:41
  SPEAKER_00: Clients are very happy.
• 5:43
  SPEAKER_00: These are properties that you see.
• 5:45
  SPEAKER_00: Don't lose hope.
• 5:46
  SPEAKER_00: We have 30 to 35% of the real estate listings currently in Santa Clarita Valley, also Antelope Valley, those higher numbers showing that they come onto the market after being in escrow.
• 5:58
  SPEAKER_00: They cancel, so they come back out there.
• 6:01
  SPEAKER_00: You might get another swing at that pinata, folks, and maybe be able to get that listing you're looking for.
• 6:06
  SPEAKER_00: So we have those seven properties have entered into escrow.
• 6:10
  SPEAKER_00: Five more have entered into escrow in pending form, which basically means they're not showing up any longer as being any kind of available for sale, not even for backup offers, which a lot of agents select those fields.
• 6:23
  SPEAKER_00: 12 properties have closed escrow in Santa Clita Valley, Santa Clarita Valley, in the last 24 hours.
• 6:29
  SPEAKER_00: Six have expired, not selling within the contractual time frames.
• 6:32
  SPEAKER_00: None have canceled, three have been put on hold.
• 6:35
  SPEAKER_00: Mentioned that yesterday.
• 6:36
  SPEAKER_00: What ends up happening when you're seeing properties that just vanish offline?
• 6:40
  SPEAKER_00: Typically, the agent is trying to get a breather, figure out what's going on because maybe they've gotten so many offers.
• 6:46
  SPEAKER_00: They just want to stop that steady stream coming in so they can have a moment to talk to their sellers.
• 6:51
  SPEAKER_00: Be wary.
• 6:53
  SPEAKER_00: That's probably not the best case scenario for a seller.
• 6:57
  SPEAKER_00: To best represent your seller, you should be open to get offers all day long, 24 hours a day, seven days a week, until the property goes into escrow.
• 7:06
  SPEAKER_00: But then after that, other offers that can be received are those that are going to offer backup offer position.
• 7:13
  SPEAKER_00: What if the offers that you looked at, all of them are not available if the property happens to go back on the market because of some issue that could have been caused because of something discovered in the residence that the buyer couldn't deal with?
• 7:28
  SPEAKER_00: Or on the other side of it, which is more than likely, buyers actually canceling because they had some kind of a financial problem that has uh hit them deep, so they can't move forward with purchasing real estate.
• 7:41
  SPEAKER_00: So we have six have expired, haven't sold within contractual time frames.
• 7:45
  SPEAKER_00: Those three went on hold.
• 7:46
  SPEAKER_00: Now, a great random value is a little bit different.
• 7:48
  SPEAKER_00: We have 32 new listings.
• 7:49
  SPEAKER_00: Two of those properties or two of the properties that have been on the market actually did not uh sell.
• 7:58
  SPEAKER_00: We have two of those that um gone under contract.
• 8:01
  SPEAKER_00: Nothing has been canceled except for two, excuse me, two have been canceled.
• 8:05
  SPEAKER_00: 17 properties have closed.
• 8:07
  SPEAKER_00: Again, I'm just a brand new member to this one again.
• 8:10
  SPEAKER_00: So looking at this data, kind of it's not falling in line as it usually is.
• 8:15
  SPEAKER_00: Uh withdrawn property seven, no hold extensions, people that have asked for extensions on property seven, and then of course, back on market properties, back on market properties five.
• 8:25
  SPEAKER_00: These are properties that weren't escrow.
• 8:27
  SPEAKER_00: Now they're no longer in escrow.
• 8:29
  SPEAKER_00: They've come back on the market.
• 8:30
  SPEAKER_00: Twelve properties in the Antelope Valley have experienced price changes.
• 8:34
  SPEAKER_00: Now, this is a very big board, folks.
• 8:36
  SPEAKER_00: The Greater Antelope Valley board is going to include all of Palmdale, all of Lancaster.
• 8:40
  SPEAKER_00: Then you got your Little Rock, you got your Rosamond, you got a lot of different areas out there south of that desert.
• 8:46
  SPEAKER_00: And we're seeing as those properties are also moving, just like the properties here in Santa Clara Valley, but here's a rule of thumb for you.
• 8:53
  SPEAKER_00: The closer we get to Los Angeles, it seems, the more expensive properties go and the faster they move, the further away from Los Angeles, the slower properties seem to move and the less competition that exists.
• 9:06
  SPEAKER_00: But again, it's very dependent on infrastructure of the area.
• 9:10
  SPEAKER_00: What is the community designed for?
• 9:11
  SPEAKER_00: Is it primarily a suburb where there's not much there as far as work and infrastructure, or is it a bustling community that allows for maybe heavy to medium industrial properties, commercial properties, and also enough infrastructure to support a lot of other types of jobs?
• 9:28
  SPEAKER_00: Do they have new building and those sorts of things going on?
• 9:31
  SPEAKER_00: All right, let's talk about the Biden initiative.
• 9:33
  SPEAKER_00: They're trying to get more housing out there on the market for sale.
• 9:37
  SPEAKER_00: Here's caution to the wind.
• 9:39
  SPEAKER_00: They need to be careful of overbuilding.
• 9:42
  SPEAKER_00: Now they're only injecting only with all the wars going on, all the money we seem to be throwing around, like it's uh not costing us anything.
• 9:49
  SPEAKER_00: And I understand people have to defend themselves.
• 9:51
  SPEAKER_00: I get that too.
• 9:52
  SPEAKER_00: But within real estate, the Biden administration is throwing$4 million at the problem for research.
• 9:57
  SPEAKER_00: And they want to see that that research is going to prove if they're able to provide better building or maybe more streamlined building.
• 10:07
  SPEAKER_00: Because right now, if you wanted to go, let's say, buy a lot in Castic in Valverde, you probably pay, I don't know,$15,000,$20,000,$25,000.
• 10:15
  SPEAKER_00: Good luck in constructing or building on that property.
• 10:19
  SPEAKER_00: But the government says they want to try to help out.
• 10:21
  SPEAKER_00: So they're trying to streamline the process of purchasing real estate and building houses as far as regulations go.
• 10:28
  SPEAKER_00: They are also talking about manufactured homes.
• 10:30
  SPEAKER_00: Now, manufactured homes, of course, are built somewhere else and then they're trucked in.
• 10:35
  SPEAKER_00: And it depends on who builds them and how many different pieces and how big they are.
• 10:39
  SPEAKER_00: But then they get on site and they get them put together.
• 10:42
  SPEAKER_00: Financing for manufactured homes hasn't always been spectacular.
• 10:46
  SPEAKER_00: In fact, there's a lot of questions they have: how's the foundation, how it's attached, and again, how the construction's put together.
• 10:54
  SPEAKER_00: Some of the manufactured homes I've been in are fantastic.
• 10:57
  SPEAKER_00: We do have a couple different areas out here in Santa Carita Valley.
• 11:00
  SPEAKER_00: We have Canyon View Estates over there in Canyon Country off of Camp Plenty, kind of up on the side of the mountain.
• 11:06
  SPEAKER_00: You can see it.
• 11:07
  SPEAKER_00: It's got a boatload of solar panels sticking up on the side of this mountain up there.
• 11:11
  SPEAKER_00: Can't miss it if you're looking to the north as you're driving down Solidad Canyon before White's Canyon.
• 11:17
  SPEAKER_00: You'll see it up there.
• 11:18
  SPEAKER_00: So there's that section.
• 11:20
  SPEAKER_00: Then we also have Stonegate and Castac.
• 11:22
  SPEAKER_00: Again, manufactured homes, but getting loans on some of these properties are difficult.
• 11:27
  SPEAKER_00: And because some of them are on leased land.
• 11:30
  SPEAKER_00: Canneview Estates happens to have a 99-year leasehold estate on the land.
• 11:34
  SPEAKER_00: So it's like renting a mobile home because you have the land lease portion of your payment plus the improvement, which is the manufactured home.
• 11:41
  SPEAKER_00: Now the manufactured homes are running into the fours and$500,000.
• 11:45
  SPEAKER_00: But again, you get a single family residence as, of course, it's manufactured, but for that price.
• 11:51
  SPEAKER_00: But on top of that, you're having$1,000 to$1,500,$1,800, maybe$2,000 in some cases to pay for that land lease.
• 11:59
  SPEAKER_00: And that's every month, folks.
• 12:01
  SPEAKER_00: So that's like your homeowners association dues in a way, but that's applied to the land lease.
• 12:06
  SPEAKER_00: And then whatever else, maybe for a pool, maybe for a rec room, maybe for keeping the area green, paying for security, some kind of roving patrol, whatever it may be.
• 12:15
  SPEAKER_00: That's part of that lease for the land.
• 12:19
  SPEAKER_00: So they're trying to maybe make more lenders see manufactured housing as a good bet for them, extending that to the general public.
• 12:27
  SPEAKER_00: What we need to be careful, folks, of is having overbuilding happen.
• 12:33
  SPEAKER_00: Back, we haven't seen a lot of building because we just came through a foreclosure cycle.
• 12:37
  SPEAKER_00: I say just, that was quite a while ago back in 07.
• 12:41
  SPEAKER_00: But when we started to see that fall of the market, we started to watch as inventory was starting to get eat up back in the end of 2011, beginning of 2012, at least in Santa Crita, Greater Antelope Valley, Los Angeles, that was the bottom of the real estate market.
• 12:59
  SPEAKER_00: That would have been a best opportunity to purchase something because today you would have almost doubled your value, and in some cases more than double the value of the property that you're holding on to.
• 13:09
  SPEAKER_00: If in fact you would have bought at the end of 2011 or the beginning of 2012.
• 13:14
  SPEAKER_00: The way the market is currently is we're lacking inventory.
• 13:18
  SPEAKER_00: The danger is, and I'll say this again, I'm sure I'll say it on another show in the future: overbuilding.
• 13:24
  SPEAKER_00: If we build too much inventory because of the greed involved, we could be putting ourselves in a hurt locker and cause real estate to decline bigly in the next several years.
• 13:36
  SPEAKER_00: Right now, we don't see any possibility of that, at least in the short-term view.
• 13:43
  SPEAKER_00: Longer-term view could be a different story.
• 13:45
  SPEAKER_00: So let's just be weary.
• 13:47
  SPEAKER_00: I know people need places to live, people need affordable housing, people need to be able to feel comfortable and have their own abode that they can relax in and be comfortable in and basically build their life in.
• 13:59
  SPEAKER_00: I'm Connor with Honor.
• 14:00
  SPEAKER_00: Thank you so much for watching.
• 14:01
  SPEAKER_00: When you're ready, reach out to me.
• 14:03
  SPEAKER_00: This has been your Real Estate Santa Clarita update.
• 14:06
  SPEAKER_00: This is Friday, folks.
• 14:07
  SPEAKER_00: We are March 1st, 2024.
• 14:09
  SPEAKER_00: I'm Connor with Honor.
• 14:11
  SPEAKER_00: Over and out.