Latest / Connor with Honor: AI, Real Estate and Real Life / Charmin toilet paper and real estate, be careful what you ask for - February 19, 2024 Santa Clarita real estate update

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Charmin toilet paper and real estate, be careful what you ask for - February 19, 2024 Santa Clarita real estate update · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Well, good day, everybody.
• 0:01
  SPEAKER_00: Here we are at February 19th, 2024.
• 0:04
  SPEAKER_00: I'm Connor with Honor.
• 0:05
  SPEAKER_00: We're going to talk about Santa Clarita's latest real estate news.
• 0:08
  SPEAKER_00: Also, I do have an upcoming show that I did film last week with one of the new home agents out here working at Toll Brothers.
• 0:16
  SPEAKER_00: He's going to give us some insight into the new housing community and talk a little bit about things that people have questions about, also regarding those deposits, monies put down, monies necessary to purchase new housing.
• 0:29
  SPEAKER_00: And then also I did talk to him about contingent properties where a seller has something they need to sell in order to purchase another home.
• 0:38
  SPEAKER_00: Now, usually when you're buying a new home, it's going to be market dependent on whether or not they will allow a contingent close, you selling one house and buying the new one, basically both of those depending on the performance of being able to sell the residence that the seller owns.
• 1:01
  SPEAKER_00: So now that's really not the case because the market, as I said, it's market driven.
• 1:07
  SPEAKER_00: The market is so fast, people are purchasing residences going in without any contingencies.
• 1:14
  SPEAKER_00: So new housing, at least where I was filming and most others, aren't allowing for the contingent transactions.
• 1:21
  SPEAKER_00: So there's going to be a two-step process.
• 1:23
  SPEAKER_00: Sell your home and then we wait until the new home is constructed.
• 1:28
  SPEAKER_00: More than likely, if they say maybe it's eight months out, for example, is something that I heard very recently from a different new home builder.
• 1:36
  SPEAKER_00: We can allow for that time, hopefully getting the buyer to accept those terms and maybe allowing the seller to rent back that property from the new buyer for that period until the closing of the new residence.
• 1:48
  SPEAKER_00: So things do happen, but the house does sell and close prior to, even if those funds are necessary, that's going to be something that the new home builder requires at least.
• 1:59
  SPEAKER_00: Now the market shifts a little bit in the future, then we'll find out that those things will change back to the way that they were when the market wasn't as fast-paced.
• 2:07
  SPEAKER_00: A couple things I did want to cover today's inventory here.
• 2:10
  SPEAKER_00: Right now we have 281 active listings on the market.
• 2:15
  SPEAKER_00: And of those active listings, that's going to include the cities of Canyon Country, Castac, Newhall, Sauga, Stevenson Ranch, and Valencia.
• 2:24
  SPEAKER_00: In all of those cities, we have 281 active listings.
• 2:28
  SPEAKER_00: Of the actives, we have nine that are coming soon.
• 2:32
  SPEAKER_00: And sometimes prices just jump out at me.
• 2:36
  SPEAKER_00: And one happened to jump out at me today.
• 2:39
  SPEAKER_00: A condominium.
• 2:41
  SPEAKER_00: This is condominiums are classified as single story apartment type living.
• 2:48
  SPEAKER_00: So you're going to have a basically a square box, and within your square rectangular box, you're going to have your bedrooms, your kitchen, the whole nine yards.
• 2:55
  SPEAKER_00: But usually that's going to be designated as one level, that's a condominium.
• 3:00
  SPEAKER_00: And typically, depending on the condominium, you're going to have maybe a parking area structure, maybe carports, but more than likely not garages where vehicles are able to be stored and protected in that regard.
• 3:14
  SPEAKER_00: With this particular community, there are carport and uh parking both on multiple levels.
• 3:22
  SPEAKER_00: So you have parking spaces assigned to the unit that people are buying.
• 3:26
  SPEAKER_00: One is on the market for$750,000,$1,500 square feet, carrying a$500 a month HOA.
• 3:34
  SPEAKER_00: How's that pricing going?
• 3:36
  SPEAKER_00: We'll have to watch that and see what happens with it, but it is one of the coming soon listings.
• 3:40
  SPEAKER_00: You can find more about that at Connorwithhonor.com.
• 3:43
  SPEAKER_00: I'll have that listing punched up there.
• 3:45
  SPEAKER_00: And it's going to be a few days.
• 3:47
  SPEAKER_00: If you want to get it right now, you want to find out exactly what it is, I'm more than happy to send you the link.
• 3:52
  SPEAKER_00: But because it is coming soon, I have to send it directly to you.
• 3:55
  SPEAKER_00: So let me know if you'd like to check that out.
• 3:58
  SPEAKER_00: As far as real estate goes now, we do have an uptick in listings, although not very much.
• 4:03
  SPEAKER_00: We also have an increase of median list prices here in Santa Cruz Valley, and we can cover that through median sales price in January 2024 was$760,000.
• 4:16
  SPEAKER_00: According to Redfin, a 1.3% increase year over year.
• 4:20
  SPEAKER_00: One month isn't going to bring in a lot of real estate data.
• 4:24
  SPEAKER_00: We might see trends happening, but usually to be able to really identify that trend so I can talk to my sellers and my buyers more articulately and become more precise with the information I'm given, I need a longer period of time to really develop a market trend.
• 4:41
  SPEAKER_00: One month in January, I understand, maybe last year it wasn't as a fast-paced of a market.
• 4:47
  SPEAKER_00: We do have prices that did continue to increase in 2023, as they estimate that they will continue to increase in 2024, albeit not as quickly as they did last year.
• 5:00
  SPEAKER_00: So we'll keep our eye on that as well, and I'll keep reporting back here.
• 5:04
  SPEAKER_00: Also, looking online, I do run data on other real estate sites.
• 5:09
  SPEAKER_00: I see that one of the sites is pulling in 114 active listings in Santa Clarita, a slight decrease from January of 122.
• 5:18
  SPEAKER_00: What happens with this is looking at the actual MLS data, I'm showing 281, as we talked about, active listings in Santa Cruita Valley, and I stated nine of those are coming soon.
• 5:31
  SPEAKER_00: That is a lot different than what you're seeing on some of the real estate syndication websites.
• 5:36
  SPEAKER_00: So please watch out for that.
• 5:37
  SPEAKER_00: If you want the real data, you're gonna definitely want to contact your local agent and have them turn it out for you.
• 5:43
  SPEAKER_00: Now, a couple different things.
• 5:44
  SPEAKER_00: They have been talking about more interest rates, uh more interest rate hikes and potentially interest rate breaks.
• 5:51
  SPEAKER_00: We'll be following that market as well.
• 5:53
  SPEAKER_00: But currently the interest rate is somewhere around maybe high fives, mid-sixes, but that interest rate is going to depend on FICO scores and what kind of programs these different lenders have, if in fact you're looking to secure a loan for real estate.
• 6:10
  SPEAKER_00: I'm just suggesting that when you do look for a loan on real estate, make sure that you're getting all the information and make sure you know exactly what it's costing you to get that loan and how that's structured.
• 6:21
  SPEAKER_00: It's just like in real estate, when you want to sell something, and I go talk to my sellers, I sit down and you know exactly what you're paying all across the board, what your fees are.
• 6:32
  SPEAKER_00: Then you'll also know what your buyer's gonna have to pay, then you're also gonna know the other fees associated with selling that residence, that is prepared and given to my real estate sellers so they understand what's happening and what their obligations will be.
• 6:45
  SPEAKER_00: And then, even with that, if in fact they believe that maybe they can go and seek another agent's advice, I'm all for that.
• 6:54
  SPEAKER_00: Usually it comes down to if there is something different in those estimates, those those numbers aren't high enough to solicit any other kind of a reaction, but staying with Connor with honor because of the different value sets that I add within the real estate sales process.
• 7:12
  SPEAKER_00: Those are things I do talk with my sellers about.
• 7:14
  SPEAKER_00: However, I'm all for fair competition.
• 7:17
  SPEAKER_00: So let's talk about it and have that conversation.
• 7:19
  SPEAKER_00: And you do owe it to yourself to maybe procure a second opinion.
• 7:24
  SPEAKER_00: Maybe ask somebody in your family, hey, what do you think?
• 7:26
  SPEAKER_00: You know, do you know anybody?
• 7:28
  SPEAKER_00: And then see what happens after that.
• 7:30
  SPEAKER_00: Most of my clientele come from past clients and referrals.
• 7:33
  SPEAKER_00: That is a perfect place to have those clients coming from.
• 7:36
  SPEAKER_00: Internet leads are incredibly expensive, and a lot of times people get irritated because people are bugging them.
• 7:42
  SPEAKER_00: Once you go onto these real estate syndication websites, you're asking for more information about a property.
• 7:47
  SPEAKER_00: Most often you're not even dealing with the person representing the seller, you're dealing with somebody that's paying to get your leads and your personal information so they can follow up with you.
• 7:57
  SPEAKER_00: Find out who you're dealing with.
• 7:59
  SPEAKER_00: In the world of real estate, one of the biggest suggestions I have for people is make sure that you consider at least give thought to having your own real estate agent.
• 8:09
  SPEAKER_00: Some people say it's more advantageous to go directly to the seller's agent because they're already representing the seller.
• 8:16
  SPEAKER_00: In that particular circumstance, they're under contract with a seller, not under contract with you as a potential home buyer.
• 8:23
  SPEAKER_00: Home buyers realistically should have their own person on their side 100% that doesn't have that contractual obligation with the seller or at least that relationship established, because that agent's probably going to know the seller's bottom line.
• 8:38
  SPEAKER_00: Your agent probably is going to know your bottom line too, or the maximum you'll pay and the allowances you will, well, allow for.
• 8:45
  SPEAKER_00: We want to make sure that, in fact, you are well protected through the process and you have your own advocate on your side to be able to fight for you.
• 8:52
  SPEAKER_00: And it is very difficult in some circumstances when the buyer wants certain things repaired and that agent has that relationship with a seller, maybe they're not going to go and be as they won't have enough fight of the dog in them to go represent you.
• 9:08
  SPEAKER_00: That makes sense.
• 9:09
  SPEAKER_00: Alright, so let's move into some other real estate news.
• 9:11
  SPEAKER_00: Watching the Fed rate hikes, people are saying, you know, it's better to marry your home, not your mortgage, when people are talking about higher interest rates.
• 9:19
  SPEAKER_00: Those super low rates that we saw a few years ago, in fact, last year and a half, two years, down at the twos and the threes, that's where a lot of people are locked in, and that's what's holding back the inventory from coming onto the market because they're wearing something that we refer to as golden handcuffs.
• 9:36
  SPEAKER_00: They have that great low interest rate mortgage, and it's very difficult for them to sacrifice that to pay a higher mortgage, even when they do really feel like they either need to downsize or upsize them, but they're growing out of their house.
• 9:48
  SPEAKER_00: Maybe all the kids have left.
• 9:50
  SPEAKER_00: I'm starting to kind of run into that lately from a lot of my past clients.
• 9:53
  SPEAKER_00: They have that empty nest syndrome and they don't want the two-story anymore.
• 9:56
  SPEAKER_00: They want a one-story because the knees are screaming every time they climb those stairs.
• 10:01
  SPEAKER_00: I get that.
• 10:01
  SPEAKER_00: So, one of the things to watch out for is looking at that interest rate and then balancing what that comfort zone is, but talking about marrying your home and not the interest rate.
• 10:12
  SPEAKER_00: When interest rates drop, it could make sense to do a refinance at that time.
• 10:18
  SPEAKER_00: Understanding, of course, the loan that you're securing, make sure that it will allow for that.
• 10:23
  SPEAKER_00: There are some loans that are protective and they have a minimum amount of time before a refinance can be conducted.
• 10:29
  SPEAKER_00: So make sure you understand the small print and then reach out to your lender.
• 10:32
  SPEAKER_00: Hey, is this loan you're getting me?
• 10:34
  SPEAKER_00: Am I able to do a refinance rather simply in the next six months if the Fed happens to drop rates or the bond market happens to indicate that rates need to be dropped and rates come down to even lower than they are, or low enough to make it worth it for me to refinance?
• 10:51
  SPEAKER_00: Which brings me refinancing and valuations of properties.
• 10:55
  SPEAKER_00: If you're looking to find out your home's value, there's a lot of online systems out there.
• 10:59
  SPEAKER_00: Please be careful because anytime you put your property address into the system, you're more than likely going to be tagged and you will have your personal information sold.
• 11:11
  SPEAKER_00: Even if you just put in an address, there's a back way, or well, maybe not a back way, it's not a secret thing.
• 11:18
  SPEAKER_00: But there is data out there to find out who you are and then what you've been doing online, and then using that information against you.
• 11:27
  SPEAKER_00: So be weary.
• 11:28
  SPEAKER_00: You probably know this.
• 11:29
  SPEAKER_00: There's a lot of information floating around out there.
• 11:32
  SPEAKER_00: It's not a secret squirrel world out there anymore.
• 11:35
  SPEAKER_00: Everything seems to be listening, all of our devices and everything else.
• 11:39
  SPEAKER_00: Just watch out for that.
• 11:40
  SPEAKER_00: I know whenever I talk about Charmin toilet paper, I not that I sit around and talk about Charmin all day long, but when I talk about something kind of obscure, something unusual, I start to see it in my social media feeds.
• 11:52
  SPEAKER_00: It's a miracle.
• 11:53
  SPEAKER_00: So there's that.
• 11:54
  SPEAKER_00: Watch out for yourselves, keep yourselves safe.
• 11:57
  SPEAKER_00: At the end of the day, it comes down to finding out where your home is valued and then finding out what the market were bare.
• 12:04
  SPEAKER_00: Here's a tip: whenever people, and I'm referencing the condominium I spoke of, and maybe a three-bedroom condominium with a$500 a month HOA will sell out at three-quarters of a million dollars.
• 12:15
  SPEAKER_00: If it does, great.
• 12:17
  SPEAKER_00: But if it doesn't, and maybe it's too high priced, what will end up happening is that property is not going to sell very quickly.
• 12:24
  SPEAKER_00: We do have a reduction in the days on market time frames for home sellers out there.
• 12:28
  SPEAKER_00: That means that the properties aren't on the market very long before they actually get the offer that the seller is going to agree with, maybe via a countering process, but finally those buyers went out and they have this property.
• 12:42
  SPEAKER_00: Those properties typically take about 30 days to close after that.
• 12:47
  SPEAKER_00: But it depends on the loan.
• 12:49
  SPEAKER_00: It could be there could be special circumstances the seller requires.
• 12:53
  SPEAKER_00: Maybe they can't close for 45 days or 60 days.
• 12:57
  SPEAKER_00: Maybe the buyer's loan type or their lender isn't going to allow them to be able to close in the 30 days, which is kind of common for escrows.
• 13:06
  SPEAKER_00: But that being the case, we do have a lowering of the days on market, so it's not taking properties very long to sell.
• 13:13
  SPEAKER_00: In fact, we see a reduction in those time frames, but we just came out of the holidays as well.
• 13:17
  SPEAKER_00: So that real news will have to be dependent maybe on March, April, May.
• 13:22
  SPEAKER_00: We'll find out where that market happens to be at that time.
• 13:25
  SPEAKER_00: I don't see it getting easier for real estate buyers.
• 13:28
  SPEAKER_00: I do see it potentially getting harder because real estate, as soon as it comes on the market, if it's priced right, it goes within just a few days.
• 13:36
  SPEAKER_00: And that's every city here in Santa Cruz Valley.
• 13:39
  SPEAKER_00: You have a property though that is priced higher than the value would indicate.
• 13:45
  SPEAKER_00: And this is on the different systems online and maybe what the agents are telling their clients, but you have that higher than market value.
• 13:53
  SPEAKER_00: It's going to have to be a super special property to be able to maintain that price and to get offers.
• 13:58
  SPEAKER_00: And a lot of times, and I can show you the proof those properties sit longer because they're overpriced and buyers aren't as excited to go in and try to undercut them and maybe offer them less money right off the bat because they believe it's not a possibility.
• 14:14
  SPEAKER_00: You have a real estate seller that either was informed their property price is this much, or the agent said you can be the boss, you price it how you want.
• 14:22
  SPEAKER_00: Just to get that listing, they put it on the market without having that educational conversation with the seller saying, Listen, I've been doing this since 98.
• 14:30
  SPEAKER_00: This is the strategy we should use.
• 14:32
  SPEAKER_00: However, let me know what your thoughts are on pricing, and we will take it from there.
• 14:37
  SPEAKER_00: But I show the comparable value with other properties that are very, very similar in design, in function, in size, and also very close proximity, if not in the same area, neighborhood.
• 14:52
  SPEAKER_00: I try to get it as close as possible.
• 14:55
  SPEAKER_00: So these are the ways that property needs to be evaluated.
• 14:58
  SPEAKER_00: And there are some dangers out there of overpricing real estate listings.
• 15:03
  SPEAKER_00: Online, there's a lot of news from the National Association of Realtors talk about a cooling real estate market.
• 15:08
  SPEAKER_00: We just came out of the holidays, so it's really too early to make that determination, especially in our local Los Angeles County, Los Angeles City, Santa Clarita Valley being a suburb, a standalone city as well, but also very, very close to Los Angeles.
• 15:23
  SPEAKER_00: Our southern border shares the northern border of Los Angeles.
• 15:27
  SPEAKER_00: So there's that.
• 15:28
  SPEAKER_00: If you are looking for new housing, make sure you go to Connorwithonor.com.
• 15:33
  SPEAKER_00: Up at the top you can click on new or go to Connorwithonor.com forward slash new, and you'll be able to do a new home search there on my system, and that will give you at least all the new housing and maybe show you.
• 15:45
  SPEAKER_00: Well, it will show you what current inventory.
• 15:48
  SPEAKER_00: It's not updated as fast as I would like.
• 15:50
  SPEAKER_00: It's really best to go on that new home tour when you're ready.
• 15:53
  SPEAKER_00: Please let me know if I can help you in any way.
• 15:55
  SPEAKER_00: This has been your Monday's market update for Santa Crita Valley and greater Los Angeles cities.
• 16:01
  SPEAKER_00: I have to tell you, it is a pleasure.
• 16:03
  SPEAKER_00: We it is raining again and everything is so green, it's amazing.
• 16:08
  SPEAKER_00: But you know, with rain comes problems, and those people, some people have bought houses when we haven't had a rain for a long time, and now all of a sudden we're finding that there are leaks in properties.
• 16:19
  SPEAKER_00: That's something to watch out for.
• 16:21
  SPEAKER_00: Making your home inspection very important, although they can't go up there and douse the roof with something out of a movie set which gives a lot of real thick, heavy rain to see if it's waterproof.
• 16:32
  SPEAKER_00: They can go up there and do their investigations.
• 16:35
  SPEAKER_00: And a good inspector will walk it, or a good inspector will at least drone it to see if there's any indications of issues with the roof to make sure that it is legit and watertight, if at all possible.
• 16:53
  SPEAKER_00: I'm Connor with Honor, over and out.