Latest / Connor with Honor: AI, Real Estate and Real Life / First Responder Real Estate Agent presents October 21, 2024 Los Angeles Update

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First Responder Real Estate Agent presents October 21, 2024 Los Angeles Update · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Looks like we're just over 450 active residential listings for all of the Santa Clarita Valley cities.
• 0:06
  SPEAKER_00: One of the things I will tell you is right now we're watching the market continue at a little bit of a slower pace because when the feds did their major rate reduction, it didn't have a lot of effect over the mortgage rates, yet it did affect the bank rate and the way that they borrow and trade money back and forth.
• 0:24
  SPEAKER_00: Good day, everybody.
• 0:25
  SPEAKER_00: Today is going to be, or today actually is, let me pull this up, the 295th day of 2024.
• 0:33
  SPEAKER_00: So that brings us to October 21st, Monday.
• 0:35
  SPEAKER_00: I'm gonna dive right into today's show and give you that seven-day market snapshot as we've been watching over the past several days.
• 0:43
  SPEAKER_00: Now, one of the things I will tell you from this seven-day snapshot, so in order to see longer trail information that get better data for those people that are looking to buy and sell real estate, I do have shows that encompass that as well.
• 0:56
  SPEAKER_00: But these are my short daily updates for you.
• 0:59
  SPEAKER_00: So right now we have 13 new homes ready to hit the market.
• 1:01
  SPEAKER_00: These are coming soon listings.
• 1:03
  SPEAKER_00: 66 properties this week did hit the market.
• 1:06
  SPEAKER_00: These are active new listings.
• 1:07
  SPEAKER_00: You can find all of that at www.santaclarita openhouses.com.
• 1:12
  SPEAKER_00: Ninety listings have their prices changed, which are price adjustments.
• 1:16
  SPEAKER_00: That is a big number for the active inventory that we have.
• 1:20
  SPEAKER_00: That's nearly a fifth of the properties have had price reductions in the past seven days.
• 1:26
  SPEAKER_00: Price changes, excuse me.
• 1:28
  SPEAKER_00: 80% of those changes are reductions in listing price.
• 1:32
  SPEAKER_00: This happens because potentially zealous sellers might be a little overzealous, or they're basing their estimates on a future estimate of value.
• 1:40
  SPEAKER_00: The banks used to do this when I was with Citibank and I was selling their foreclosure assets for them, helping them with the REO inventory that they took on back in the about 28, 29, 2010, and so on.
• 1:52
  SPEAKER_00: At that particular time, they liked that 90-day in the future estimate of value for every single listing that they were giving me to sell.
• 2:00
  SPEAKER_00: So I had to do the workup.
• 2:01
  SPEAKER_00: The broker price opinion came from me and also a couple other sources just to make sure that I'm not trying to bend or break or trying to manipulate the numbers so they were able to see other professionals giving them the information, then they would come back to me and they would validate any kind of a listing price I suggested.
• 2:18
  SPEAKER_00: Then they'd give me 30 days.
• 2:20
  SPEAKER_00: If in 30 days that particular property did not move or there were no contracts on it, we didn't get into escrow.
• 2:26
  SPEAKER_00: And even if we were and fell out, after 30 days, what they did is they'd mandate a price reduction.
• 2:32
  SPEAKER_00: But after that, of course, they start looking at the agent.
• 2:35
  SPEAKER_00: If in fact there is an error, maybe, and the property's taking longer to sell, and they weren't too slow about firing said agent and picking up someone else to do the job better.
• 2:46
  SPEAKER_00: So that does happen, and I believe that does translate over to the seller's end of it as well.
• 2:51
  SPEAKER_00: But we'll have to watch as the market continues to move.
• 2:53
  SPEAKER_00: Those 90 listings that have had price adjustments, that number is up quite a bit from our seven-day forecast.
• 2:59
  SPEAKER_00: Looking at these numbers as we see overall, back on market properties, 18 homes have been canceled.
• 3:05
  SPEAKER_00: Coming back for sale market, 37 homes have actually entered.
• 3:08
  SPEAKER_00: Escrow 54 have entered a deeper part type of escrow called pending status.
• 3:13
  SPEAKER_00: That gives us 91 homes that are currently in process to be sold.
• 3:18
  SPEAKER_00: You balance that against the replenishment of 66 new properties that entered the market this past week, and we do see that we are actually selling faster than we're able to replenish, but our overall numbers have increased.
• 3:32
  SPEAKER_00: That's just this week, folks.
• 3:34
  SPEAKER_00: For overall, those numbers actually do indicate that we're replenishing very close to the same rate, if not more.
• 3:40
  SPEAKER_00: And those price reductions indicate that our market is in a little bit of a struggle.
• 3:44
  SPEAKER_00: You track back a few months ago, and we didn't see that many price changes or price decreases in the market, and properties were selling a tad bit faster.
• 3:54
  SPEAKER_00: Currently, properties do sell rather quickly in the Santa Cruz Valley cities, anywhere from 30 to 40 days, days on market time frame on average, but that includes the span of all the properties.
• 4:04
  SPEAKER_00: Once you narrow that down, let's say into single family residences in Bridgeport, for example, Valencia, those properties are selling quite a bit faster than 30 days on the market, depending, of course, if they're priced correctly.
• 4:17
  SPEAKER_00: Now, looking at these, we don't know what those final sales prices are going to be on those properties in escrow.
• 4:24
  SPEAKER_00: A lot of people that live in neighborhoods, they'll see a sign go up and they'll give me a buzz and they'll say, Hey, Connor, we saw a sign go up across the street.
• 4:31
  SPEAKER_00: They stuck uh they hammered in an escrow sign on it saying properties in escrow or maybe property sold.
• 4:37
  SPEAKER_00: The agents do that in order to hopefully have the people in the neighborhood say, Oh my gosh, well, if they sold that one, they can definitely sell mine.
• 4:46
  SPEAKER_00: There really is no ramifications for that sign going up, you know, on that real estate sign saying an escrow.
• 4:53
  SPEAKER_00: Also, we do not know if in fact or what that number ends up being until the sale closes, that's for sure.
• 5:00
  SPEAKER_00: Now, you might be able to call the agent and kind of bup a little bit and give them, hopefully, they can give you some information, but realistically, until it's done, we really don't know because some concessions, some credits, some repair credits, if you will, as a buyer goes through escrow, those really don't get applied until close to the end, because that's usually when that negotiation comes it comes to play.
• 5:25
  SPEAKER_00: If we started the negotiation process early in escrow, a seller really wouldn't be interested in maybe stepping forward and taking care of some of the requests the buyers have.
• 5:35
  SPEAKER_00: The longer it seems to go in the escrow period, then the seller's more invested, and of course the buyer's more invested.
• 5:42
  SPEAKER_00: Usually they're both of parties, if they're emotional seller, emotional buyer, that's a very interesting situation.
• 5:49
  SPEAKER_00: But let's say they're not super emotional, usually they pretty much come to a great agreement and then they're able to move on and close the transaction.
• 5:58
  SPEAKER_00: In some cases, later on, buyers go in and they'll demand a lot more money than something's actually worth, or the harm that whatever they've discovered in the property will actually cause.
• 6:08
  SPEAKER_00: But they do this because maybe the market was hot, like it is now.
• 6:12
  SPEAKER_00: Maybe they wrote an offer higher than the listing price to compete with the other offers, and maybe they have some little regret and they're like, well, we might be able to get a little bit more credit if we go for the seller.
• 6:23
  SPEAKER_00: Now, I don't believe that's ethical, and I think that if that's the strategy, in the long run, that doesn't really survive.
• 6:31
  SPEAKER_00: But again, buyers will still do that, and it's going to take a strong agent for the seller to come back to the buyer's agent and enter that negotiation realm and say, listen, if the buyer wants$1,000 to replace one singular outlet in the kitchen, that seems like a lot of money.
• 6:47
  SPEAKER_00: Maybe$100 if we have to call the electrician, he has to bring out the product.
• 6:51
  SPEAKER_00: Maybe that will suffice.
• 6:53
  SPEAKER_00: $1,000 seems like a much money for one outlet.
• 6:56
  SPEAKER_00: And believe it or not, if you've sold anything or maybe bought anything as far as real estate goes, you will see that that does happen and it does create a lot of emotional problems for both parties, especially the ones receiving that kind of a request.
• 7:11
  SPEAKER_00: It almost looks like they're trying to force their hand and take advantage of the lengthy time they've been in the escrow process, thinking that maybe they'll be concerned about saying, no, we're not going to fix it.
• 7:22
  SPEAKER_00: The buyer calls that bluff and says, maybe it's not a buff, bluff.
• 7:25
  SPEAKER_00: Buyer calls that and says, you know what, I'm not going to continue.
• 7:28
  SPEAKER_00: Escrow's cancel, the property goes back on the market.
• 7:31
  SPEAKER_00: That's a concern for the seller because as we come on a second time, sometimes it's not as good as the first.
• 7:38
  SPEAKER_00: That whole first impression thing.
• 7:39
  SPEAKER_00: We do see those numbers seem to fall a little bit.
• 7:42
  SPEAKER_00: That second time properties go into escrow.
• 7:44
  SPEAKER_00: So it's not as robust, it's not as eye-catching and not as popping of a situation to have the property move into escrow quickly as they do the first time with all that emotional baggage because that property is currently brand new on the market for sale.
• 7:59
  SPEAKER_00: Based on this inventory and what's going on in the real estate market, I did do a breakdown per city showing the real estate listing.
• 8:08
  SPEAKER_00: So right now, if we do active residential, we'll go ahead and start at the top.
• 8:13
  SPEAKER_00: We'll go ahead and do Castac.
• 8:14
  SPEAKER_00: So right now, active residential properties in Castac, California.
• 8:19
  SPEAKER_00: Active is gonna be we're close.
• 8:22
  SPEAKER_00: I market.
• 8:23
  SPEAKER_00: Let's start with Canyon Country because that's the first number I put up here.
• 8:26
  SPEAKER_00: So currently in Canyon Country, 124 active listings on the market.
• 8:31
  SPEAKER_00: And in Castac, 53 active listings in Castac.
• 8:36
  SPEAKER_00: This is all residential.
• 8:38
  SPEAKER_00: We're gonna do New Hall right now.
• 8:40
  SPEAKER_00: Newhall has 51.
• 8:42
  SPEAKER_00: Saugus, California, currently active listings, 84.
• 8:48
  SPEAKER_00: Let's do Stevenson Ranch.
• 8:50
  SPEAKER_00: And we have 32 in Stevenson Ranch.
• 8:53
  SPEAKER_00: And that gives us that grand total we talked about.
• 8:56
  SPEAKER_00: Let me pull that up real quick.
• 8:58
  SPEAKER_00: All total 546 active residential listings all across the Santa Cruz Valley cities.
• 9:03
  SPEAKER_00: Just a quick tip.
• 9:05
  SPEAKER_00: If you are interested in how the real estate market is, reach out to me.
• 9:10
  SPEAKER_00: I'll be more than happy to answer those questions and help you.
• 9:13
  SPEAKER_00: I did do a video regarding why how might be a time to consider purchasing real estate and what things to look at, in addition, what may now might not be a good time to buy real estate, and I did that on the seller side as well.
• 9:26
  SPEAKER_00: When you're ready, go to Santa ClaritaOpenhouses.com.
• 9:29
  SPEAKER_00: You can communicate with me through there, and of course, you can pick up the phone or text or call me as well.
• 9:34
  SPEAKER_00: I hope everybody's fantastic.
• 9:35
  SPEAKER_00: Thank you for watching today's market update.
• 9:37
  SPEAKER_00: We will be back tomorrow.
• 9:38
  SPEAKER_00: Welcome to this week.
• 9:40
  SPEAKER_00: We're very close to the election cycle.
• 9:42
  SPEAKER_00: I did do one video real quick on the Tesla houses, those$15,000 and$30,000 residences, and did a pretty long blog post regarding some of the process involved in purchasing a piece of land, buying an inexpensive home, and having it moved and placed on the land, what all is entailed there.
• 10:02
  SPEAKER_00: Also, some of the utility concerns, where you're going to get power, where you're going to get sewer, water.
• 10:06
  SPEAKER_00: And then, of course, once you have those established, prior to that, you have pre-construction concerns, environmental concerns.
• 10:14
  SPEAKER_00: There's a lot of regulation.
• 10:16
  SPEAKER_00: It's not simple where you go in and just pop up a tent and you got it.
• 10:20
  SPEAKER_00: Now there's a lot of infrastructure, probably not the greatest word.
• 10:25
  SPEAKER_00: There's a lot of restrictions in place.
• 10:27
  SPEAKER_00: Hopefully, think about the election time.
• 10:29
  SPEAKER_00: Maybe that will change depending on who is in control of the government.
• 10:33
  SPEAKER_00: If we have less regulation over placement of residential real estate, I believe those costs will come down.
• 10:40
  SPEAKER_00: We are in California, and I hope that that our governmental authorities might adjust those so we get lower regulation.
• 10:50
  SPEAKER_00: I'm not talking about killing the environment, but lower regulation, so it's not as difficult as it is currently to try to buy that Tesla home or any other type of home, put it on a piece of land you've purchased.
• 11:02
  SPEAKER_00: There's a lot of bureaucracy in that mechanism.
• 11:06
  SPEAKER_00: That done.
• 11:07
  SPEAKER_00: I'm Connor with Honor.
• 11:08
  SPEAKER_00: We'll see you on the next one over and out.