Latest / Connor with Honor: AI, Real Estate and Real Life / Santa Clarita real estate podcast for the top tips about the market as we near the election and holidays

Transcript

Santa Clarita real estate podcast for the top tips about the market as we near the election and holidays · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good day, everybody.
• 0:00
  SPEAKER_00: The 303rd day of 2024.
• 0:03
  SPEAKER_00: It is the 10th, 29th of the 10th month of October 2024.
• 0:08
  SPEAKER_00: I'm Connor with Honor.
• 0:09
  SPEAKER_00: We're going to talk about your Santa Clarita real estate news.
• 0:11
  SPEAKER_00: Also, I'm going to get into the market snapshot and also seven tips talking about what's happening within the market.
• 0:18
  SPEAKER_00: So I will do that now.
• 0:19
  SPEAKER_00: If you go to Santa ClaritaOpenhouses.com at the top, you'll see my blog, plus every single listing listed for sale.
• 0:26
  SPEAKER_00: You'll have all access there, and there is no cost, there is no registration requirement.
• 0:31
  SPEAKER_00: You're going to get an irritating pop-up that says, please tell me who you are, but you don't have to do that.
• 0:38
  SPEAKER_00: Let's move into this.
• 0:38
  SPEAKER_00: So we have the total inventory today, 551 active listings.
• 0:43
  SPEAKER_00: That's all single family residences, condominiums, and townhomes, all residential, detached, and attached residences.
• 0:51
  SPEAKER_00: Coming soon properties nine.
• 0:53
  SPEAKER_00: I did put up a coming soon link.
• 0:55
  SPEAKER_00: If you go to Santa Clarita Open Houses forward slash coming soon, no spaces, you'll be able to get the coming soon listings if you'd like.
• 1:03
  SPEAKER_00: And this is going to include all the residential real estate within whatever parameters you set forth, you tell me.
• 1:10
  SPEAKER_00: With that, though, there's really not so many that it would be overwhelming.
• 1:14
  SPEAKER_00: So if you said, Connor, I want all the coming soon listings for all the Santa Cruita Valley cities, you might get an email of five or seven per day.
• 1:23
  SPEAKER_00: It's going to depend on how many are actually released.
• 1:25
  SPEAKER_00: But the nine coming soon listings are a seven-day history, so you can kind of get them to the market is.
• 1:30
  SPEAKER_00: And of course, as we're getting into the election time and also the holiday season, things in real estate tend to slow down a little bit as they do most years previous.
• 1:40
  SPEAKER_00: Alright, so coming soon listings nine, we have 62 new listings that have hit the market.
• 1:45
  SPEAKER_00: These actually are interesting to do your research on.
• 1:50
  SPEAKER_00: If you look at those current prices and this next field price changes, we've had 90 listings in the last seven days with price adjustments.
• 1:58
  SPEAKER_00: If you go to the Greater Antelope Valley board, which I'm a full member of there as well, looking at those price changes, they're even more dramatic and even more than that.
• 2:07
  SPEAKER_00: So we can see typically as a real estate market starts to shift just a little, this isn't potentially going to place this entire market back into the buyer's hands.
• 2:16
  SPEAKER_00: We still have very much a seller's market because the supply and demand and limited inventory, that's a very common, common thing to look at.
• 2:23
  SPEAKER_00: Also, we do have the interest rates, and yes, historically they're great, but in the recent past, not so good for people.
• 2:32
  SPEAKER_00: So people are having difficulty wrapping their mind around that.
• 2:35
  SPEAKER_00: But we should see that Fed rate potentially change.
• 2:38
  SPEAKER_00: It's going to depend on who we have in office, and of course, how those changes are going to be uh strategized after that.
• 2:45
  SPEAKER_00: Uh, so we have the 90 listings that have adjusted their prices.
• 2:48
  SPEAKER_00: This does indicate the market is quite flexible.
• 2:51
  SPEAKER_00: We look at the back on market properties 18, that's a lower number than we usually see in the Sneven Day snapshot.
• 2:57
  SPEAKER_00: Typically, we're 20 to 30.
• 2:58
  SPEAKER_00: 18 is also a good number.
• 3:00
  SPEAKER_00: These are properties that have been in escrow and then they've fallen out under contract and pending properties.
• 3:05
  SPEAKER_00: That's 33.
• 3:06
  SPEAKER_00: These are properties that have just newly gone into escrow within the last seven days.
• 3:10
  SPEAKER_00: And if we look at that Sneven Day snapshot, we have 45 properties that have actually closed escrow, 14 canceled, and seven expired.
• 3:18
  SPEAKER_00: Question number one is now a good time to buy.
• 3:20
  SPEAKER_00: We have these listings that are 90 that I gave you that number of.
• 3:24
  SPEAKER_00: They are going and experiencing price changes.
• 3:26
  SPEAKER_00: In addition, we have 18 properties that have come back on the market for sale.
• 3:30
  SPEAKER_00: Those properties that were in escrow but came back on, usually there is another offer that that agent's potentially going to call on, the agents that wrote those backup offers that we've talked about in the past.
• 3:43
  SPEAKER_00: Those are usually the first that the agent goes to to make sure those buyers are prepared.
• 3:48
  SPEAKER_00: But as far as now is a good time to buy, you really need to look at your entire financial picture to answer that question.
• 3:54
  SPEAKER_00: Interest rates are going to ebb and flow.
• 3:56
  SPEAKER_00: I don't believe this market's going to come in in any kind of a form of a crash that we saw back in 2007, at least anytime soon.
• 4:04
  SPEAKER_00: And that's because you can look at the lending arm of real estate and to get a loan, if you've tried to get pre-approved, it is quite a process, and they also check throughout the escrow process to make sure you haven't lost your ability and to make sure that whatever numbers have been supplied, they've been verified.
• 4:21
  SPEAKER_00: I don't see a weak point in that.
• 4:23
  SPEAKER_00: I also don't see a weak point in interest rates breaking or coming down a lot, but we should have some relaxation hopefully next year.
• 4:32
  SPEAKER_00: Number two, what's the seller, what's the advantage for sellers right now?
• 4:35
  SPEAKER_00: Even though we're seeing these price adjustments, we're also seeing high levels of pinning and under contract listings.
• 4:41
  SPEAKER_00: So these houses, when they're priced correctly, they do go rather quickly.
• 4:45
  SPEAKER_00: In Valencia and Stevenson Ranch, for example, within three to four weeks, properties are actually in escrow, then after that they close whatever the chosen escrow time frame would be.
• 4:56
  SPEAKER_00: If the escrow time frame is left to the lender, usually that's anywhere from 30 to 45 days, depending on loan type.
• 5:02
  SPEAKER_00: How do the amount of new listings actually affect buyers?
• 5:06
  SPEAKER_00: We've had 62 new listings released in the last week.
• 5:09
  SPEAKER_00: It does give the buyers quite a few more choices, but when the buyers are looking at properties, they're also doing their online research.
• 5:16
  SPEAKER_00: And if you happen to have a house that's listed for sale in an area that the local or the actual syndication sites aren't capturing the data on, or they don't have a good historical view, their algorithm isn't going to produce a price.
• 5:29
  SPEAKER_00: So when you're looking at your property, it might be priced at X amount of dollars, but a person that's interested in buying it looking online is going to see nothing as far as price goes.
• 5:39
  SPEAKER_00: And you can run into this when you're looking at the syndication sites, trying to find out maybe what a good offering strategy would be.
• 5:45
  SPEAKER_00: The important thing in that dynamic is a buyer needs to rely on their agent to show them the data, not just say you should offer this, but actually verify and back up that data for the buyer so they can make the right decision.
• 5:59
  SPEAKER_00: Back on market listings, where's that opportunity for buyers?
• 6:02
  SPEAKER_00: It is a pain point.
• 6:03
  SPEAKER_00: Sellers don't like properties not making it all the way through escrow.
• 6:08
  SPEAKER_00: Sometimes there are maybe potential parties to blame.
• 6:11
  SPEAKER_00: Maybe there wasn't proper vetting of the buyer's lender, maybe there wasn't proper vetting by the buyer's lender of the buyer themselves, and maybe something was not done as it should have been.
• 6:24
  SPEAKER_00: However, there are a lot of actors in the real estate game.
• 6:28
  SPEAKER_00: With the other lenders, sometimes those pre-approval letters are given without actually running through numbers.
• 6:34
  SPEAKER_00: And then maybe the buyer realistically didn't know they had these obscene marks on their credit report.
• 6:40
  SPEAKER_00: And then when the lender runs their credit later on, after the seller has accepted the offer, which maybe they shouldn't have been so hasty, then they find out that the buyer has all of this garbage in their credit.
• 6:52
  SPEAKER_00: And maybe at no fault of their own, we do see ID theft, we do see those issues rearing their ugly head.
• 6:58
  SPEAKER_00: So these back on property, back on market properties could be a very good stepping stone for people looking at real estate.
• 7:06
  SPEAKER_00: But again, you want to look at those comps.
• 7:08
  SPEAKER_00: Back on market doesn't mean on sale or discounted or super cheap properties back on market realistically.
• 7:15
  SPEAKER_00: Means that property is still going to go out at fair market value as long as we're still in the seller's market area where we happen to be.
• 7:22
  SPEAKER_00: But they are good to look at, and maybe the property was overpriced in the first place.
• 7:27
  SPEAKER_00: So now maybe you can get a discount prior to some kind of public price reduction.
• 7:31
  SPEAKER_00: Talking about the price changes, we have seen those properties.
• 7:35
  SPEAKER_00: We've had 90 of those have their prices changed, and I say very carefully changed.
• 7:40
  SPEAKER_00: We do have 90% of that 90, so over 80 of those properties actually were reduced from listing price to listing numbers, you might ask.
• 7:50
  SPEAKER_00: Well, when you're in real estate, those price changes can also be used in a strategic form.
• 7:56
  SPEAKER_00: If you do reduce a price even a little bit, the syndication sites are going to pull that data and then publicize it online.
• 8:02
  SPEAKER_00: But also understand that most of the sites, just like mine, Santa ClaraOpenhouses.com, it does show a percentage as far as what the price reduction was, and we're seeing anywhere from one to three and a half to four percent.
• 8:15
  SPEAKER_00: Usually not more than that, but any price reduction is gonna make this listing climb to the top of the syndication sites again.
• 8:22
  SPEAKER_00: So now it's gonna be seen by the public and it could start to get more attention and maybe bring people to have a second look at it.
• 8:30
  SPEAKER_00: So a price change and price reduction overall doesn't really indicate a weakness in the market.
• 8:35
  SPEAKER_00: It could also indicate that sellers maybe are wanting to get more than their properties are worth currently, and actually more than the market will currently bear.
• 8:43
  SPEAKER_00: Pending sales and market demand, we do have the 36 listings that have been put into the pending status.
• 8:50
  SPEAKER_00: Some of those were already in escrow, but usually the pending status is done after the inspections, after the request for repair, after any kind of concessions or discounts that the other side or the buyer side versus the listing side or the sales side maybe they're asking for.
• 9:08
  SPEAKER_00: So sometimes those pendings or changes in that realm, because now they're pretty sure they're going to get to the finish line on those properties.
• 9:15
  SPEAKER_00: However, some of those have a tendency to fall out as well, especially if it's switched to pending prior to those final negotiations being completed between the buyer's agent and the seller's agent.
• 9:28
  SPEAKER_00: And again, when you're talking about pending sales and market demand, it's really kind of important if you think about it.
• 9:34
  SPEAKER_00: A lot of people want to go right to the listing agent and utilize their services.
• 9:38
  SPEAKER_00: It's so hard to have them negotiate with their seller when you're they're representing you as the buyer.
• 9:45
  SPEAKER_00: And some agents have the intestinal fortitude to step forward and place it and explain to them this is the way this is what the buyer's asking for because they're representing the buyer and the seller as well.
• 9:57
  SPEAKER_00: Some agents don't have the intestinal fortitude to step up to the plate and make that pitch.
• 10:01
  SPEAKER_00: And a lot of times the sellers come back pretty venomently against that agent because they hire them to be on their side.
• 10:10
  SPEAKER_00: Now they sound like they're on the buyer's side.
• 10:13
  SPEAKER_00: These are some considerations to give before you go out deciding that you're gonna use the agent representing the seller.
• 10:19
  SPEAKER_00: Let's talk about finally some market dynamics.
• 10:22
  SPEAKER_00: Is there a reason for us to wait?
• 10:26
  SPEAKER_00: Is there an advantage?
• 10:27
  SPEAKER_00: That's gonna depend on your finances.
• 10:29
  SPEAKER_00: What could happen next year is we get more inventory, the interest rate goes down.
• 10:35
  SPEAKER_00: If that happens, if the interest rate gets into fours, and let's say you bought today and you're somewhere in the six, interest rates go up down in the fours in the future, you can refinance.
• 10:44
  SPEAKER_00: You haven't had a lot of time in that particular mortgage, so the cost is probably gonna be minimal, but that savings over 30 years is gonna be huge.
• 10:53
  SPEAKER_00: So that could happen, but in addition, it could be that we get more and more inventory rates come down and then buyers go dormant, which I don't believe is gonna be the case.
• 11:02
  SPEAKER_00: There are a lot of buyers that walk through our open houses that want to ask how the market is and whether they should step forward at this time.
• 11:10
  SPEAKER_00: And it's really a very personal decision, but I would bet that interest rates are probably gonna come down a little bit because of the low inventory not moving the market.
• 11:20
  SPEAKER_00: It's gonna take some kind of a relaxation in interest rates to start pushing the market forward so more buyers start to purchase.
• 11:26
  SPEAKER_00: To get caught up in that frenzy is going to be painful to say the least, because now you're competing with multiple buyers.
• 11:35
  SPEAKER_00: And in that type of market, and we've seen it many times here in Santa Clarita, that market breaks loose and people are willing to give up things, give up their rights, give up a lot of things as far as inspections and time frames and values of properties that could end up creating an issue for these folks.
• 11:55
  SPEAKER_00: So to get caught up in that market is really it's quite a pain point, but maybe you like that sort of stress.
• 12:01
  SPEAKER_00: And again, waiting could equate to that.
• 12:04
  SPEAKER_00: I don't believe it's going to equate to any other scenario, and that is, of course, if interest rates come down.
• 12:09
  SPEAKER_00: If you're looking at purchasing now while the market's a little slow, sellers are a little bit more negotiable, you might be able to buy a property for less than listing price and maybe even somewhat less than market value, but totally a personal decision.
• 12:23
  SPEAKER_00: But at least write it out, think about it, and formulate good decisions by hiring that good local agent.
• 12:29
  SPEAKER_00: I do appreciate you watching today.
• 12:31
  SPEAKER_00: I am Connor with Honor.
• 12:32
  SPEAKER_00: Thank you so much for tuning in.
• 12:34
  SPEAKER_00: You can check us out on the podcast.
• 12:36
  SPEAKER_00: You'll see that at Santa ClaritaOpenhouses.com and elsewhere online.
• 12:40
  SPEAKER_00: I write daily blog articles to keep my clients updated and those that are searching for real estate in a local venue, keeping them updated as well.
• 12:47
  SPEAKER_00: It's important you know what's happening in the market so you can make the best decisions.
• 12:52
  SPEAKER_00: I'm Connor with Honor, over and out.