Latest / Connor with Honor: AI, Real Estate and Real Life / Santa Clarita Real Estate Market Update: Is a Shift Coming?

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Santa Clarita Real Estate Market Update: Is a Shift Coming? · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: March 3rd, 2024.
• 0:01
  SPEAKER_00: Good morning, everybody.
• 0:02
  SPEAKER_00: I'm Connor with Honor Today Sunday.
• 0:04
  SPEAKER_00: We want to talk about a few things on the market.
• 0:06
  SPEAKER_00: First off, what's holding the market in its current position?
• 0:09
  SPEAKER_00: Why are we still so knee deep in a seller's real estate market?
• 0:13
  SPEAKER_00: And if that's going to try to fix itself, is it going to be by the lowering of interest rates?
• 0:17
  SPEAKER_00: I got a whole bunch of information on that.
• 0:19
  SPEAKER_00: So let's get into that here in just a moment.
• 0:21
  SPEAKER_00: But I want to what I want to do is throw up a couple maps and I'll be able to embed this into the video here.
• 0:27
  SPEAKER_00: So excuse my horrible editing skills, but we're going to put it out there.
• 0:31
  SPEAKER_00: I want to show you the inventory that's increased, both in the Santa Clarita Valley as far as real estate listings go, which we are now up at 310.
• 0:40
  SPEAKER_00: We were only at 270, 280 just a few days ago.
• 0:45
  SPEAKER_00: So we're watching as inventory increases, but the snippet that I'm looking at, the time frame, is very, very small because I do these real estate updates almost every single day and publish a video talking about the market and the most recent news trends as they impact local Santa Clara real estate.
• 1:02
  SPEAKER_00: I find a lot of things that people aren't really talking about.
• 1:07
  SPEAKER_00: But today is something that's quite prevalent on the market.
• 1:10
  SPEAKER_00: We're watching as real estate inventory is starting to build, albeit a very short time frame.
• 1:15
  SPEAKER_00: If we get into the next three or four months and double or maybe even triple our inventory, the market will then shift from being where we are currently as a seller's market into a buyer's market.
• 1:25
  SPEAKER_00: And usually when that happens, that means we have an overabundance of inventory in some way.
• 1:32
  SPEAKER_00: We could still carry a huge buyer drive and still have a seller's market, even with extra inventory.
• 1:41
  SPEAKER_00: We just have to have the dynamic.
• 1:43
  SPEAKER_00: The thing that would stop the market would be consumer confidence and people making a decision that maybe interest rates are so high to a point that they're not even going to make the effort to purchase real estate.
• 1:55
  SPEAKER_00: That would then bring even just the current inventory levels to a standstill and moving, thereby lowering those prices.
• 2:03
  SPEAKER_00: Now the Fed has promised, and we've maybe not the Fed, other sources close to the Fed.
• 2:08
  SPEAKER_00: Usually everybody that's commenting is not the Fed.
• 2:11
  SPEAKER_00: They're talking about interest rates coming down here over the next few months, potentially starting in June.
• 2:19
  SPEAKER_00: That could kick off a different kind of market than we're currently seeing.
• 2:25
  SPEAKER_00: There's still a lot of activity, still a lot of people trying to sell their houses.
• 2:30
  SPEAKER_00: Right now, just to give you some raw numbers this morning, running the Santa Cruz Valley numbers, those popped in this morning at 310 units for sale of those active properties.
• 2:41
  SPEAKER_00: 15 are of the coming soon variety.
• 2:44
  SPEAKER_00: So that's what's occurring here in Santa Cruita Valley.
• 2:48
  SPEAKER_00: Moving into the Antelope Valley, however, we have 12 new listings added in the last 24 hours to their inventory.
• 2:57
  SPEAKER_00: So they also are still putting properties onto the market for sale.
• 3:01
  SPEAKER_00: And in fact, that number is starting to increase as it does every year.
• 3:06
  SPEAKER_00: So it's not really an indication of a different market as far as inventory increasing.
• 3:11
  SPEAKER_00: It's increasing because it does this every year.
• 3:14
  SPEAKER_00: However, the difference is where interest rates are with the current property owners.
• 3:20
  SPEAKER_00: People out there that own real estate, a majority of them that have financed at least a year ago or more, they're sitting somewhere in the twos or the threes as far as interest rates go.
• 3:31
  SPEAKER_00: So a real estate buyer coming in is going to be faced with an interest rate in the sixes or sevens, at least in the current market.
• 3:38
  SPEAKER_00: The people that want to sell, that have those low interest rates, that's the battle.
• 3:43
  SPEAKER_00: Now, okay, great, we're going to sell where we're going to go.
• 3:46
  SPEAKER_00: So wherever they're going to go, inventory is probably tight on that end of it as well.
• 3:51
  SPEAKER_00: So it doesn't give them very many options.
• 3:54
  SPEAKER_00: And in the market that they're moving to, even if it's still staying in Southern California, wanting to do what a client told me recently, wanting to downsize because the kids are gone.
• 4:03
  SPEAKER_00: So it's him and his wife.
• 4:05
  SPEAKER_00: They really don't want to go anywhere.
• 4:07
  SPEAKER_00: They have all their kids and grandkids here, but the stairs are a little bit hard on their knees.
• 4:12
  SPEAKER_00: So they want to get to a single story home, which if you look in Santa Crita Valley, and depending on other areas, but Santa Crita, you have about one in three to one in five residences or single family residence, or excuse me, single-level residences.
• 4:27
  SPEAKER_00: So if you look at Santa Crita Valley as a whole, even at new builder sites, some of the new builders aren't even building anything that has less than two stories.
• 4:37
  SPEAKER_00: They're staying with a two-story model because that is a bigger seller.
• 4:41
  SPEAKER_00: But it does keep those single-story properties at a premium and it keeps them very active.
• 4:47
  SPEAKER_00: So the people that are looking for residential real estate, when they need a single story, folks, they need it.
• 4:53
  SPEAKER_00: So they're looking for that and that alone.
• 4:55
  SPEAKER_00: Two stories don't even work.
• 4:57
  SPEAKER_00: It's even difficult to bridge the gap in a home buyer where we have residences for sale that have an entire suite downstairs, basically a downstairs main bedroom with bathroom, maybe a kitchenette, even some of the new housing or building structures like this here, that's still not enough because when you purchase real estate or when you've lived in houses for a long time, as some of the folks that are coming to me that have been are getting close to retirement want to get that single story, can tell you, it's just not the same.
• 5:29
  SPEAKER_00: Yeah, of course, you got a two-story house, it's great, but usually it's not constructed in a way where the main focal point of living is that downstairs bedroom, if it has one.
• 5:41
  SPEAKER_00: Usually in all residences, even the new construction, that still have that fantastic big suite at the bottom, they still adorn the upstairs bedroom with a lot more personality and better placement and so on than even the downstairs.
• 5:57
  SPEAKER_00: So that's something that's holding people back, but that's the question, right?
• 6:01
  SPEAKER_00: If you're a homeowner, what do you do?
• 6:03
  SPEAKER_00: Do you sell, do you hold on to it, do you leverage it, and then maybe purchase something else?
• 6:09
  SPEAKER_00: It's gonna depend on your market as well.
• 6:11
  SPEAKER_00: If you're staying here locally, usually you are gonna be at a wash.
• 6:16
  SPEAKER_00: So really it doesn't matter when you sell or when you buy.
• 6:19
  SPEAKER_00: If you're staying in pretty much the same market, there's gonna be some allowances made, but really you're kind of gonna be even keel all across the board as a home seller.
• 6:28
  SPEAKER_00: But if you're leaving the state, let's say you're here in Southern California, very expensive market per capita, and you're moving to a less expensive market, let's say Rosemond, let's say even out of the state, let's say New Mexico, you're going to be running into a lot less expensive real estate.
• 6:45
  SPEAKER_00: So your dollar is going to go a lot further there, and the competition is probably going to be less.
• 6:51
  SPEAKER_00: So your dollar is going to go further, but again, that has to be a move you're willing to make.
• 6:56
  SPEAKER_00: And then you need to look at all those numbers because you're going to have different property taxes.
• 7:00
  SPEAKER_00: There's going to be different things to pay on a local level that you might not have encountered in Southern California.
• 7:05
  SPEAKER_00: So, what I do whenever I have people that are wanting me to sell their houses here in Santa Crete or Greater Los Angeles, Antelope Valley, wherever it is in Southern California, and they want to relocate to another state, I'm instrumental in finding that agent that I know that I have a relationship with that'll be able to walk them through that other end of the process while adhering true to the current listing that we have taken from those sellers and that current property we're helping them sell.
• 7:34
  SPEAKER_00: Making everything coordinated and having those coordination points all fall into the correct procedure in the correct place when we get to that other house that they want to buy in the other state, utilizing that other agent that I referred them to.
• 7:48
  SPEAKER_00: So being able to line all this stuff up is great.
• 7:51
  SPEAKER_00: You just have to find that contact point within real estate.
• 7:54
  SPEAKER_00: Now, as far as what's happening in this current market, again, everybody's talking about interest rates.
• 8:00
  SPEAKER_00: The word that I'm hearing mostly is nothing's really going to happen before June.
• 8:05
  SPEAKER_00: Looking at the real estate inventory, we're sitting at 310 units just a few days ago in Santa Cruz Valley.
• 8:11
  SPEAKER_00: That was the high 200s.
• 8:13
  SPEAKER_00: I don't see that changing much.
• 8:15
  SPEAKER_00: I still see us getting more inventory.
• 8:16
  SPEAKER_00: However, the inventory that we're getting doesn't last very long because the home buyers are still out there purchasing in droves.
• 8:23
  SPEAKER_00: A lot of them are paying attention to some advice that's being given online saying that, you know what, don't marry the mortgage rate, marry the residents.
• 8:32
  SPEAKER_00: So if you're able to afford and purchase residential real estate at the current interest rate, that's fantastic.
• 8:38
  SPEAKER_00: Then what you do is you just position yourself so when they do have a rate drop in the future, then you make that adjustment and do what's called a refinance on your loan, which most times probably isn't going to cost you much of anything.
• 8:52
  SPEAKER_00: It's going to depend on the bank that you use.
• 8:55
  SPEAKER_00: A lot of people go out there and they're using the bank they're currently financed with, and that's really good, but it's not bad to get a second opinion when it comes time for you to try to get your rate lower because you purchase now, which is kind of smart, because now you're not going to face as much competition as you will when rates drop, even with higher inventory numbers, which we've completely expected to happen as it does every year at this time.
• 9:20
  SPEAKER_00: Interest rates are not, market or not.
• 9:23
  SPEAKER_00: Usually when people start moving in from the winter to the spring, into the summer, the moving decisions are kid-based.
• 9:33
  SPEAKER_00: So whether we're jockey for a position to get our kids to a better school, or maybe getting them out of private into a better location so we can have public school without having to worry, or maybe because of our kids, they've left and now we're going to downsize.
• 9:47
  SPEAKER_00: We want to get a residence that's single story.
• 9:50
  SPEAKER_00: All these decisions typically start around the springtime and, like I said, are kid dependent.
• 9:56
  SPEAKER_00: So we're watching as that market is starting to pick up as it normally does.
• 10:00
  SPEAKER_00: I'm Connor with Honor.
• 10:02
  SPEAKER_00: This is a long winded Sunday real estate broadcast.
• 10:05
  SPEAKER_00: Please watch for updates throughout the week.
• 10:07
  SPEAKER_00: I will keep you updated on my website, ConnorWithHonor.com.
• 10:10
  SPEAKER_00: And of course, you can find me on my YouTube channels.
• 10:13
  SPEAKER_00: I appreciate you watching this morning or afternoon or evening.
• 10:16
  SPEAKER_00: Have a fantastic day.
• 10:17
  SPEAKER_00: I'm Connor with Honor.
• 10:19
  SPEAKER_00: Over and out.