Latest / Connor with Honor: AI, Real Estate and Real Life / Today’s Canyon Country real estate update (December 6, 2024) zeros in on the shifting market

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Today’s Canyon Country real estate update (December 6, 2024) zeros in on the shifting market · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good day, how's everybody?
• 0:01
  SPEAKER_00: We're at December 6, 2024.
• 0:03
  SPEAKER_00: This is your Canyon Country specific update.
• 0:05
  SPEAKER_00: I'm Connor with Honor.
• 0:07
  SPEAKER_00: This is going to be for the 6th of December, as I just stated.
• 0:10
  SPEAKER_00: So let's talk about what's going on in Canyon Country, but let me give you the full overview of the Santa Cruita Valley cities, and I post these every single day, depending on cities.
• 0:20
  SPEAKER_00: If you and see New Hall was yesterday before that, Saugus, before that, Stevenson Ranch, before that, Valencia, and so on.
• 0:27
  SPEAKER_00: So every day I do a real estate update for Santa Cruita Valley Cities.
• 0:31
  SPEAKER_00: In addition, just let me throw this out there, my book is available.
• 0:35
  SPEAKER_00: So please check that out.
• 0:37
  SPEAKER_00: I did write uh over a hundred pages about what goes on, how to buy Santa Cruita real estate, and how that actually works.
• 0:44
  SPEAKER_00: It's on Amazon.
• 0:46
  SPEAKER_00: So if you'd check that out, I would very much appreciate it.
• 0:49
  SPEAKER_00: But let's go ahead and see what's happening with inventory here in Canyon Country and the market.
• 0:54
  SPEAKER_00: But first, let's talk about all the Santa Crita Valley cities.
• 0:57
  SPEAKER_00: Right now, we do a seven-day market snapshot.
• 0:59
  SPEAKER_00: This is going to include every city out in Santa Clarita.
• 1:01
  SPEAKER_00: So you're going to have Cannon Country, Kestec, New Hall Saga, Stevenson Ranch, Valencia, and Acton Aqua Dulce.
• 1:07
  SPEAKER_00: Acton do that update on Sundays.
• 1:09
  SPEAKER_00: But every day we do talk about all of the cities as part of the Santa Crita Valley, just to kind of get the now we get into Christmas, the big quandary that some of the sellers are in, you know, should have often next year.
• 1:21
  SPEAKER_00: And that is definitely a strategy, but the unknown factors seem to overweigh maybe selling now.
• 1:27
  SPEAKER_00: And the reason I say that is this.
• 1:28
  SPEAKER_00: If you list next year, then you're going to have more competition.
• 1:32
  SPEAKER_00: And especially with the way it seems California is being positioned in the political world, it seems like this might become a refuge for a lot of people from other countries.
• 1:42
  SPEAKER_00: And that could kind of spear off sell and move.
• 1:45
  SPEAKER_00: That's something to consider.
• 1:47
  SPEAKER_00: But also every year, no matter what, it seems like the March, April time, it's a much faster time for real estate to move, including higher competition.
• 1:56
  SPEAKER_00: If somebody wants to buy now during the holidays, they're very serious.
• 1:59
  SPEAKER_00: The same thing with sellers on the market currently.
• 2:02
  SPEAKER_00: If you're not getting offers or any bites on your property at this time, I would suggest that the price point just isn't to that level where buyers are going to start to show even more interest.
• 2:13
  SPEAKER_00: And then potentially you'll find that buyer that wants to make a move on your residence.
• 2:18
  SPEAKER_00: This happens day in and day out in Santa Clarita Valley.
• 2:21
  SPEAKER_00: And I was fine this morning.
• 2:23
  SPEAKER_00: It's interesting.
• 2:25
  SPEAKER_00: I don't know if anybody can ever really quantify as to why it happens.
• 2:29
  SPEAKER_00: I don't know if that buyer would have come through because buyers aren't shy to make offers at less than listing price.
• 2:35
  SPEAKER_00: But maybe the listing price adjustment, more in line with the current market conditions, is going to be the reason why this buyer sees the house, or maybe they would have seen it anyway.
• 2:45
  SPEAKER_00: But it's really hard to tell.
• 2:47
  SPEAKER_00: Being that being said, with higher competition, we're also going to see more properties going back on the market.
• 2:53
  SPEAKER_00: And what ends up happening, and this was another part of the explanation, that buyers get into escrow on a house, then a neighbor lists and might have more of an urgency to sell the house where they might not need to wait for multiple offers.
• 3:09
  SPEAKER_00: They take that first offer coming in even lower than the other house that it's directly in competition with.
• 3:16
  SPEAKER_00: If that happens, then it does cause a problem in the neighborhood where those prices start to readjust.
• 3:24
  SPEAKER_00: That's also the unknown factor that could happen next year.
• 3:27
  SPEAKER_00: But let's look at what's happening in overall Santa Cruz Valley.
• 3:30
  SPEAKER_00: Your agent will have some fantastic advice with regard to this.
• 3:33
  SPEAKER_00: So make sure that you listen when they're talking.
• 3:36
  SPEAKER_00: And also have them back it up with factual data.
• 3:40
  SPEAKER_00: They can show those trends in the real estate data by pulling those times of year and then looking at those days on market time frames, in addition, balancing those with the cancellations that come through.
• 3:52
  SPEAKER_00: Cancellations, not listing cancellations, but the back on market properties.
• 3:57
  SPEAKER_00: So right now, I'll give you an example.
• 3:58
  SPEAKER_00: We have 18 properties that have gone back on the market in the last seven days in all of Santa Cruz Valley.
• 4:04
  SPEAKER_00: So they were actually in escrow.
• 4:06
  SPEAKER_00: They were properties that were for all intents and purposes sold.
• 4:11
  SPEAKER_00: You might say, well, why would they fall out?
• 4:13
  SPEAKER_00: Well, they fall out for various reasons.
• 4:15
  SPEAKER_00: It could be that the buyers went to the seller and said, hey, you know, can you that we were we had discovered the inspection process.
• 4:22
  SPEAKER_00: And maybe the sellers say sure, and maybe they say no, we're not going to do anything because you assumed or you made your offer betting on as is.
• 4:32
  SPEAKER_00: Well, as is typically corresponds to things that are known and not unknown.
• 4:38
  SPEAKER_00: And whenever you have a home inspection go out and look at a proper home inspector look, they usually find some things.
• 4:44
  SPEAKER_00: And sometimes those things are very detrimental for a buyer buying the residence.
• 4:48
  SPEAKER_00: So that is a seller issue.
• 4:50
  SPEAKER_00: And even if the seller doesn't sell it, these are issues that the seller needs to take care of, or their house is going to become even worse in the way that it's uh in its function.
• 5:01
  SPEAKER_00: So that's something to consider.
• 5:02
  SPEAKER_00: But that number, this 18 here, is going to go up quite a bit as we see every spring.
• 5:08
  SPEAKER_00: So it's probably going to double or maybe triple.
• 5:10
  SPEAKER_00: Why?
• 5:11
  SPEAKER_00: Well, it could be that one of your neighbors lists their house and the buyers think that's a better house, better price point, and they jump on it and then they cancel the escrow.
• 5:19
  SPEAKER_00: Not talking about ethics and legalities.
• 5:22
  SPEAKER_00: It happens.
• 5:23
  SPEAKER_00: Is it rude?
• 5:25
  SPEAKER_00: At least it's rude, because you had these buyers in, by no fault of your own, they jump ship.
• 5:31
  SPEAKER_00: Are there ways to protect yourself as a seller from that happening?
• 5:35
  SPEAKER_00: Yes, but ultimately the buyer does have time, unless they waive it all, that they're going to be able to cancel the transaction and get their deposit back.
• 5:44
  SPEAKER_00: And that's all subject to all parties' approval, legal issues, and these sorts of things.
• 5:49
  SPEAKER_00: But yeah, they they have the out and jump into something else.
• 5:52
  SPEAKER_00: Do they have the right to do it prior to canceling on you?
• 5:56
  SPEAKER_00: Well, again, these are all things.
• 5:58
  SPEAKER_00: Can they be proven?
• 5:59
  SPEAKER_00: What kind of damage did you sustain?
• 6:01
  SPEAKER_00: There's a lot in the legal world, and I am not an attorney, but again, I do know that dynamic.
• 6:07
  SPEAKER_00: So now the market is pretty sure as far as if you get an offer, more than likely it's going to go through that process.
• 6:16
  SPEAKER_00: Also, the sellers that are selling are very serious.
• 6:19
  SPEAKER_00: When it comes to the holidays, the buyers that are buying also very serious.
• 6:23
  SPEAKER_00: Nobody wants to tie up their Christmas trying to sell real estate.
• 6:27
  SPEAKER_00: So the sellers that are still on the market, they're ready.
• 6:29
  SPEAKER_00: And the buyers that are out here searching during the holiday season, they're very, very much committed.
• 6:35
  SPEAKER_00: Contract properties 32.
• 6:37
  SPEAKER_00: This is all Santa Crita Valley.
• 6:38
  SPEAKER_00: 32 properties went into escrow, 26 properties went pending, 45 closed, 11 expired, 12 canceled, 9 have been on hold.
• 6:46
  SPEAKER_00: Nothing's been pulled off the market as far as withdrawn goes.
• 6:49
  SPEAKER_00: So the Canyon Country specific average days on market right now for single-family residences is taking anywhere from 30 to 45 days.
• 6:57
  SPEAKER_00: Definitely well-priced, move-in-ready homes.
• 6:59
  SPEAKER_00: They get offers between one to two weeks.
• 7:01
  SPEAKER_00: That usually is indicative for most of the other Santa Cruz Valley cities.
• 7:05
  SPEAKER_00: That price point as you exit the gate is very important to make sure that you're adhering to what those market values are pretty close.
• 7:16
  SPEAKER_00: Usually in the springtime, those market values vary, and it seems like people get a little bit more overzealous with real estate pricing, even though there are no comps based on them.
• 7:26
  SPEAKER_00: And that's a hard letdown because if they get excited and they put their property on the market next spring at a number because there's so many buyers, such high competition, a lot of the buyers go in and they're writing higher than actual value numbers on these real estate listings.
• 7:42
  SPEAKER_00: When that appraiser comes in, they're not playing games.
• 7:45
  SPEAKER_00: That appraiser is going to come in and say, I'm sorry, we're not going to give you a loan on this residence, not at that level.
• 7:51
  SPEAKER_00: We'll give you this much, but we're not going to give you the full amount.
• 7:54
  SPEAKER_00: Then there's other strategies that come into play when the buyers have that offer's formula, that on the beginning, were they actually putting in there that they're willing to make up the difference in cash, no matter what that is?
• 8:05
  SPEAKER_00: Are they putting some other clause in there that allows them to only go up a certain percentage, or maybe even a certain percentage over the highest offer that the seller received in order to get their offer accepted?
• 8:16
  SPEAKER_00: These are all strategies that buyers can use, but in some cases, in those markets, at the end of the day, the buyer says, Oh my God, maybe I paid too much for this house, and maybe I need to reevaluate what I'm doing here.
• 8:29
  SPEAKER_00: And that creates a problem for the seller because you get this cancellation we talked about.
• 8:34
  SPEAKER_00: All right, so right now, with the buyers in the market currently, most of them have their financing in place.
• 8:40
  SPEAKER_00: They have their pre-approval.
• 8:42
  SPEAKER_00: Usually those pre-approval letters are going to be underwriter approvals, which is incredibly strong for buyers.
• 8:48
  SPEAKER_00: And that's something that sellers really like to see in this market.
• 8:52
  SPEAKER_00: There are some resources coming soon, of course.
• 8:54
  SPEAKER_00: If you want to see the coming soon listings, I put that link in here.
• 8:57
  SPEAKER_00: Want to read the blog, of course, I put that in here as well.
• 9:01
  SPEAKER_00: So please, when you're ready, reach out.
• 9:03
  SPEAKER_00: You can again check out the book at the homepage here of Santa Clarita Open Houses and of course read the blog article.
• 9:09
  SPEAKER_00: You want to see all the listings currently listed and the open houses that are scheduled this week, you'll be able to see those here in this coming weekend.
• 9:17
  SPEAKER_00: Um, if you see something this, usually those are open during the weekends.
• 9:21
  SPEAKER_00: If not, you'll see some kind of a little marker here that says call this particular number and that agent will be able to punch that code to get you in.
• 9:29
  SPEAKER_00: Enjoy the resource.
• 9:30
  SPEAKER_00: I'm Connor with Honor.
• 9:31
  SPEAKER_00: It's unlocked, of course, so you can come and search for real estate listings without having to give me any of your personal information.
• 9:37
  SPEAKER_00: But when you're ready to buy something or sell something, don't forget to include me in your interview process.
• 9:42
  SPEAKER_00: I would be, well, of course, honored.
• 9:44
  SPEAKER_00: Have a great day.
• 9:45
  SPEAKER_00: We will talk to you soon, and thanks for watching.