Latest / Connor with Honor: AI, Real Estate and Real Life / Absorption rate is nothing to be feared, unless you are a real estate seller in a Santa Clarita home buyers market
Transcript
- 0:00and good day Santa Clarita I hope everything has gone well through the night we are at another day we are at August 8th, 2024 I'm Connor Macivor this is going to be your daily real estate update for those of you interested if I could get the chair centered interested in Santa Clarita real estate and all of the facets there in basically we'll talk about where the market is currently what you can expect in the coming months and if there's anything you need to be watching out for so first and foremost if I had more ink in the printer I would be able to read this better currently we're at 496 active listings which is again four away from 500 I've been tracking this for a very long time because real estate inventory and the absorption rate of that inventory is what indicates the status of the current market at least whether it's in a sellers position or a buyers position we've been in a sellers position for many years now and that started with the bottom of the market back in 2011 and 2012 after the foreclosure inventory was eaten up the market returned to a bit of normalcy well even better than it was before because there were a lot more regulations and rules albeit we all don't like those regulations and rules but there were people back before the beginning of the last cycle that we're buying residential real estate based on numbers for employment and those verification processes weren't very solid they might have been mandatory but there weren't really fail safe so when you put in the human element you have people that are trying to line their own pockets at the detriment of other people and those other people probably weren't getting the right information about the question that we cover and every buyer briefing should you be buying real estate or not so that's something to look out for we will be posting that more information about that it's an upcoming video series regarding how to buy a house breaking it down by what to expect and then breaking it down by what type of financing you're going to be wanting to use covering what down payment would be necessary in each one of those circumstances because in some cases depending on who's living in the condo or town home complex and more likely condominiums there have to be that the numbers have to jive with the lender before they lend money on it and in addition certain loan programs will not finance condominiums and town homes depending on how their financials look and then the occupancy factor are there more owners that live there or more tenants basically isn't one of those places where a lot of people went in and bought up a whole bunch of units or over the years the ownership of the units has stayed stable but the people that own them don't live in them they rent them out so maybe by natural progression the complex having started being 100% owner occupied has changed to be a lot more 10 and occupied thereby that could cause an issue with particular types of financing these are things that are covered in a buyer broker briefing that I put together just so you're equipped with the right stuff so you can get out there and make better decisions it seems is people that don't know don't know on don't know the game don't know the rights so that's what I'm here for I'm here to protect and serve those rights the best I can so at least you go into real estate and you'll be able to build off of that and make the best decisions and those also give you other things to ask those people in your periphery that you might trust more than your selected real estate agent least you can ask their advice say listen my agents telling me this what do you think more than likely they're either going to validate or invalidate it and if it invalidated at least that gives you a position where you can go back and speak with your agent especially if it's something that haha makes you really sad you should go talk to them and say listen what you told me the other day doesn't make a lot of sense would you please clear it up in fact misinformed you or informed you of something in real estate that's going to assist them and their goal which would be to make more money off of somebody that might be unsuspecting at least at that time you'll know and you'll be able to make the right decisions new listings on the market 75 properties have entered the market here in Santa Clarita Valley this last week there are a couple new ones that popped on that's a 3 bedroom home at 7 62 the one on Plum Canyon Road that one popped up two bedroom condo at 3 in some cases financing is difficult so prices have dropped dramatically not financing excuse me insurance financing as well loans are difficult to be written on some particular complexes it just depends on where it's going to be located so as you get into real estate the agent you select select should be talking you about these different areas condominiums and town home complexes because usually they require less money per square foot so they're cheaper buy than a single family residence but they carry some other things with them and in addition to extra taxes in some cases so you as a real estate buyer need to have that money factored in before you purchase anything while the lender does a good job factoring all that stuff in you usually you're gonna need some guidance as to how far you need to go if you're qualified at $800,000 for example at $800,000 you should know exactly what it cost you every single month to live in what you're about to buy that includes your payment all of the utilities plus or minus a few dollars but you'll be able to at least live on the past owners record for utilities maybe they like that dry heat that we always talk about that the big joke comes out of maybe they like that maybe you're one of those colder people that need the air conditioner running more once you look at the numbers you can get an idea and then you're expert while they might not live in a condo and maybe they will maybe they do or maybe they have at least they can give you an idea what that looks like so if their electrical Bill is $30 a month in a particular place they're probably not using much electricity at all they're probably using a lot more candles and maybe not even refrigeration as far as keeping food cold if it's that low your agent your professional should say wow that's quite low I think yours is gonna be a little bit higher and give you those numbers so you make the proper decisions back on market we had 69 properties that have had their prices change this past week in Santa Clarita Valley knowing this that means that the market is is having some growing pains do have extra real estate listings on the market however those listings aren't lasting any longer due to the extra inventory extra we would need double this inventory to change the market we still have a high buyer drive interest rate that promise of being lowered in the future is something to also consider if in fact it does lower a substantial amount maybe a point or more especially the drops into the force here in the next couple months either August or September depending if that actually happens then you're gonna see real estate start moving very quickly in addition you're probably going to see a little bit of a swell of listing activity also so you're gonna see more listings coming onto the market in the Santa Clarita Valley giving buyers more choices but the competition rate amongst buyers is going to go through the roof sellers are gonna have their heyday but it's gonna be back where they're gonna have multiple offers on properties and that decision process if you're not settle with the right person is gonna be somewhat cumbersome there are better offers to be had when you have a lot that have come in on a property meaning of course some are gonna have better financing some are gonna offer you more money we're not gonna worry about any kind of inspection issues or some might even be so upfront they'll say if the house doesn't sell for what I'm willing to pay for which is over and above the price you've established I'm willing to pay that difference in real money that might work that looks great on paper but no and you would know this with your agents advice that particular loan programs will not allow somebody to go above and beyond a praise value when they inject their own money into the property sometimes it's going to depend it depends on the bank that they borrow the money from bank hedge fund investment group whomever the money is coming from for the mortgage whether or not they're going to allow them to increase the price themselves because they have extra cash in the bank or money or a gift injecting it into the property once the appraisal comes on low if in fact the seller isn't willing to renegotiate that particular price and in a seller's market not a lot of renegotiation goes on especially if the sellers confident they can get what they're asking for their property when the market morphs if interest rates drop into the forest or even low fives probably gonna see that type of market kick off again which is gonna be very stressful for real estate buyers and also real estate sellers will see the cancellations increase as a result but will also have more properties in escrow in that process of moving out I hope this daily real estate update helped when you're ready please reach out to me I'm trying to see if there's any other information here that I put together that is going to be a value today ladies and gentlemen boys and girls whoever's watching this at this particular time however you identify as I'm Connor with honor when you're ready let me know you can find us online at Santa Clarita openhouses com this has been your real estate update and we will talk to you soon I am Connor MacIvor over and out and breaking it down by property type knowing partially what you're getting into