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Santa Clarita real estate update market slow-down from Connor with Honor Realty one Group - Success · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Hey everybody, Connor with Honor.
• 0:01
  SPEAKER_00: Connor McIver here, Realty One Success Group in Valencia, California.
• 0:05
  SPEAKER_00: I wanted to give you a quick real estate update talking about the market.
• 0:08
  SPEAKER_00: Today's going to be June 28th, 2022.
• 0:11
  SPEAKER_00: I'm of course your host, Connor McIver.
• 0:13
  SPEAKER_00: You can find me online, ConnorWithHonor.com.
• 0:17
  SPEAKER_00: I think I have uh most of the spellings, so you should be able to find me fairly easily.
• 0:22
  SPEAKER_00: Been selling real estate representing buyers and sellers since 1998, and I'm here to help you when you're ready.
• 0:28
  SPEAKER_00: My approach to real estate's more of an educational type because I want my buyers and sellers to both be prepared to uh for the journey that they're about to embark upon, and I want to be that best advisor and help them throughout that whole process.
• 0:45
  SPEAKER_00: So let's talk about real estate.
• 0:46
  SPEAKER_00: The market has changed a little bit lately.
• 0:48
  SPEAKER_00: Over the last few weeks, we've seen interest rates go up.
• 0:51
  SPEAKER_00: Interest rates go up to a point where there's still a great deal, but if you look at the short term, over the last few years, we had interest rates in the twos.
• 0:59
  SPEAKER_00: So people seeing fives and maybe even sixes, that's causing a little bit of panic.
• 1:04
  SPEAKER_00: Also, out there we're seeing changes to these different loan programs that exist.
• 1:09
  SPEAKER_00: One of the things that we're seeing come back is this adjustable rate mortgage.
• 1:13
  SPEAKER_00: People have that bad memory from back in 2007, even prior to that, where you had these stated income loans, basically people borrowing money without any kind of financial verification that they had the money to be able to borrow, uh to be able to actually get them the loan.
• 1:28
  SPEAKER_00: So we had those people signing up for these different loans, and one of the bigger loans that was sold back in the day was an adjustable rate mortgage that had this balloon payment attached to it.
• 1:38
  SPEAKER_00: So you were kind of stuck, and if real estate didn't continue to go up at the same pace, and it was going up$60,000,$70,000,$80,000 month to month to month prior to 2007.
• 1:50
  SPEAKER_00: Without that happening, you're gonna lose.
• 1:53
  SPEAKER_00: You're gonna lose all day long, and we saw the market collapse.
• 1:56
  SPEAKER_00: So then fast forward to now 2022.
• 1:59
  SPEAKER_00: Everybody the experts say 10 years are typically the foreclosure depression type cycle.
• 2:05
  SPEAKER_00: We haven't seen that as of yet.
• 2:07
  SPEAKER_00: But there are a lot of fail-safes that the banks and these financial institutions and the government have put over lending to make sure that hopefully that debacle doesn't occur again.
• 2:18
  SPEAKER_00: But time will tell if that's actually going to work.
• 2:21
  SPEAKER_00: But currently, as far as getting loans for properties, if you've done it recently, you know that it takes a lot to get the loan.
• 2:29
  SPEAKER_00: It takes a lot of verification and re-verification of assets, credit, employment, all of those different things.
• 2:37
  SPEAKER_00: So the market is secure in that realm.
• 2:39
  SPEAKER_00: But the unknown variables out there are going to be that interest rate, those changing, those getting higher or maybe reducing here in the next few months.
• 2:48
  SPEAKER_00: Also, inflation is very prevalent out there.
• 2:50
  SPEAKER_00: You can see gas prices are through the roof.
• 2:53
  SPEAKER_00: Thereby we're having uh real estate selling, but that market has also slowed down quite a bit where we don't get those multiple offers, at least on all the listings, and it's going to be price range dependent here in Santa Crita Valley.
• 3:06
  SPEAKER_00: So if you're looking at over nine,$900,000, the multiple offers that existed even a couple months ago aren't as prevalent today.
• 3:15
  SPEAKER_00: So we're seeing that market slow down a little bit.
• 3:17
  SPEAKER_00: If you look at real estate listings, we are actually seeing that we have almost 465 active real estate listings on the market.
• 3:27
  SPEAKER_00: Those particular listings are in two different varieties, both coming soon and active.
• 3:32
  SPEAKER_00: Of the coming soon variety, we have maybe 18.
• 3:35
  SPEAKER_00: But at the end of the day, you're going to find out that those listings are going to sell like the others.
• 3:39
  SPEAKER_00: It just could take a little bit more time.
• 3:41
  SPEAKER_00: Also, if you look at properties that are currently on the market, you'll see that a lot of those properties are getting longer on the market than they were even two or three months ago.
• 3:51
  SPEAKER_00: And if you look at open houses, you'll see they're not as busy as they once were.
• 3:55
  SPEAKER_00: So there is a little bit of a change in the market.
• 3:57
  SPEAKER_00: We do expect interest rates to stay about where they are, maybe mid-fives, maybe reduced just a little bit, depending on if this last bank rate hike, that's the bank rate, what the banks pay to borrow money or exchange money from bank to bank.
• 4:11
  SPEAKER_00: So that's the interest rate that changed, thereby hopefully trying to maybe solve inflation a little bit and then maybe give a little bit of relax to the regular interest rate that they're getting us back maybe in the high fours or early fives.
• 4:24
  SPEAKER_00: But without seeing this play out, we need another two or three weeks to kind of see how the market's going to adjust to it, and I will keep you posted.
• 4:31
  SPEAKER_00: If you're looking for real estate online or anywhere else, you can go to Connorwithhonor.com.
• 4:35
  SPEAKER_00: I'm currently building out that site, but it is functional.
• 4:38
  SPEAKER_00: And of course, if you want to do it right, reach out to me and I'll do the search for you.
• 4:43
  SPEAKER_00: I'm Connor with Honor.
• 4:44
  SPEAKER_00: I do appreciate you watching today's real estate update, June 28th, 2022.
• 4:49
  SPEAKER_00: We'll talk to you soon.
• 4:50
  SPEAKER_00: Have a fantastic rest of your week, and I am Connor with Honor, over and out.