Latest / Connor with Honor: AI, Real Estate and Real Life / Why Pricing Your Home Too High Could Be the Reason It’s Not Selling: Santa Clarita Real Estate Insights

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Why Pricing Your Home Too High Could Be the Reason It’s Not Selling: Santa Clarita Real Estate Insights · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Today's the 292nd day of the year.
• 0:02
  SPEAKER_00: It is October 18th, 2024, and we're at Friday.
• 0:05
  SPEAKER_00: Good day, everybody.
• 0:06
  SPEAKER_00: We're going to talk about the real estate update here in Santa Clarita Valley.
• 0:10
  SPEAKER_00: 13 coming soon listings, 77 are new, entered the market in the last seven days.
• 0:15
  SPEAKER_00: For all of those, you can go to Santa Clarita Openhouses.com.
• 0:19
  SPEAKER_00: We do have back on market properties 23.72 properties have experienced price changes.
• 0:26
  SPEAKER_00: So when you look at the price changes and those properties that have fallen out of escrow entered back onto the market, then the question comes in what's happening in the local market.
• 0:34
  SPEAKER_00: And I will give you this this Friday.
• 0:36
  SPEAKER_00: We have seen where the Fed did reduce interest rates back this last month.
• 0:40
  SPEAKER_00: And it wasn't the mortgage interest rate, that was the Fed funds rate.
• 0:44
  SPEAKER_00: That's the rate that banks trade money back and forth to each other.
• 0:47
  SPEAKER_00: Typically, when that rate changes, it does have an impact on mortgage rates.
• 0:52
  SPEAKER_00: So usually that's an indication that the market is trending in a particular pattern.
• 0:57
  SPEAKER_00: In this particular market, we thought that that mortgage interest rate, or the experts thought, that it would actually cause a much larger impact than it did.
• 1:06
  SPEAKER_00: So we're watching as interest rates have even creeped up a quarter point this last week, but all those interest rates, just so you know, there is a rate, but to qualify for different rates, you have to have particular financial ability.
• 1:21
  SPEAKER_00: It's going to include your credit report, how overextended or underextended you are, your credit history, and how much do you have in the way of bills and income and those sorts of things.
• 1:32
  SPEAKER_00: They put all that together and then they're able to make a determination as to what your interest rate will be.
• 1:39
  SPEAKER_00: Now it's not as close as buying a vehicle with the tier one, tier two, tier three credit.
• 1:44
  SPEAKER_00: Typically, with a home, a home give you that mortgage amount and you're looking for that interest rate.
• 1:51
  SPEAKER_00: Typically, if you're getting a higher rate, they'll give an explanation.
• 1:55
  SPEAKER_00: So if there's some reason that your rate is a little bit higher than somebody else's rate or whatever that market rate would be, usually there's an explanation to accompany that.
• 2:05
  SPEAKER_00: Just make sure you understand it.
• 2:06
  SPEAKER_00: Have the lender explain it to you.
• 2:08
  SPEAKER_00: And usually they will.
• 2:10
  SPEAKER_00: Usually that rate, but you probably are going to do your own diligence online and you're going to probably do some research at interest rates.
• 2:16
  SPEAKER_00: Don't be shy to reach out to your lender and ask them, hey, why is it that I'm looking online and I see this site saying that it's going to give me a 4.5% interest rate when you're giving me six and a quarter?
• 2:28
  SPEAKER_00: Can you explain that to me?
• 2:30
  SPEAKER_00: And lenders, lenders, good lenders, to you.
• 2:33
  SPEAKER_00: It's like when somebody comes to me and says, Well, you're asking for 3% for me to for you my house, there's this other agent that does it at 2% or even less.
• 2:43
  SPEAKER_00: And then I explain why that is, and then I'm able to very simply show where my value lies versus the other people in the industry.
• 2:51
  SPEAKER_00: And then of course I let the seller or buyer, whomever I'm talking to about cost and money, make their own determination whether or not I'm worth it or I'm not worth it.
• 3:02
  SPEAKER_00: So that's how that works out.
• 3:04
  SPEAKER_00: In this paying attention to these properties coming back on the market, and also price changes are going to be critical in the next coming months.
• 3:12
  SPEAKER_00: Now, when you see these price changes, don't get too wrapped up in it because in most cases it's not an indicator of the overall market reducing.
• 3:21
  SPEAKER_00: It's an indication that the sellers have been pricing their properties higher than the market currently will bear.
• 3:28
  SPEAKER_00: And a lot of times they go into the future and they say, well, wow, the properties have been increasing X amount of dollars per month.
• 3:35
  SPEAKER_00: Well, two or three months from now, it's going to be even higher.
• 3:37
  SPEAKER_00: So let's go ahead and price it there and let the cards fall where they may.
• 3:41
  SPEAKER_00: Be careful of that because typically you do not get that second chance to make a first impression, and that is applicable to real estate.
• 3:50
  SPEAKER_00: 552 total active listings in the Santa Clarita Valley cities.
• 3:55
  SPEAKER_00: So right now that is up from a few weeks ago.
• 3:59
  SPEAKER_00: We had just under 500.
• 4:01
  SPEAKER_00: Now we're at 552.
• 4:03
  SPEAKER_00: That number does adjust, but we are seeing an increasing amount of real estate listings on the market for sale, giving buyers maybe more choices.
• 4:12
  SPEAKER_00: But it's going to depend on your price range and what you're looking for in the way of amenities.
• 4:16
  SPEAKER_00: I'm Connor with Honor.
• 4:18
  SPEAKER_00: Please check out Santa ClaritaOpenhouses.com and we'll be back tomorrow with your next update.
• 4:23
  SPEAKER_00: Thank you for watching Over and Out.