Latest / Connor with Honor: AI, Real Estate and Real Life / Down payment amounts in Santa Clarita real estate are on the rise and lacking inventory is to blame

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Down payment amounts in Santa Clarita real estate are on the rise and lacking inventory is to blame · Connor with Honor: AI, Real Estate and Real Life

0:00
SPEAKER_00: Hey everyone, it's the 264th day of the year.
0:03
SPEAKER_00: Today's September 20th, 2024.
0:06
SPEAKER_00: I'm Connor with Honor.
0:07
SPEAKER_00: This is your Santa Crita update.
0:10
SPEAKER_00: You can find all the latest market updates, of course, at www.santaclita openhouses.com where I keep track of everything you need to know buying and selling homes in the area.
0:19
SPEAKER_00: Here's your seven-day snapshot of the Santa Crita real estate market as of today, day two hundred and sixty-three of twenty twenty four.
0:26
SPEAKER_00: Let's dive into the numbers.
0:28
SPEAKER_00: Coming soon listings posted five, new listings 88.
0:31
SPEAKER_00: Price change is 76.
0:33
SPEAKER_00: That's up.
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SPEAKER_00: Back on market properties 22.
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SPEAKER_00: Active under properties, active under contract properties 42.
0:39
SPEAKER_00: 48 went pending.
0:41
SPEAKER_00: 46 closed this last week.
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SPEAKER_00: 12 canceled, 10 have been put off put on hold.
0:46
SPEAKER_00: 6 have been withdrawn from our market.
0:48
SPEAKER_00: That brings us to a total residential inventory of Santa Clarita to 535 active listings across single-family homes, condos, townhomes, and more.
0:58
SPEAKER_00: Now, you probably heard mortgage rates have dropped slightly with the average 30-year fixed rate sitting at 6.2%.
1:05
SPEAKER_00: This is the lowest we've seen since early 2023.
1:09
SPEAKER_00: And many buyers are sitting on the sidelines waiting for rates to fall below that magic 6% threshold.
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SPEAKER_00: But as KPMG's chief economist, Diane Swonk, pointed out recently, the market isn't reaching, reacting as quickly as it used to when rates dip.
1:27
SPEAKER_00: Why?
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SPEAKER_00: Well, the two major factors.
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SPEAKER_00: First, people are waiting, expecting rates to drop even further, particularly with the speculation that the Federal Reserve may continue making cuts.
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SPEAKER_00: However, keep in mind that the Fed's actions directly affect short-term rates, not necessarily mortgage rates, which are tied more closely to the 10-year Treasury yield.
1:48
SPEAKER_00: This is something that I talk about frequently.
1:50
SPEAKER_00: The Fed rate is great and usually indicates if it's a reduction or increase.
1:55
SPEAKER_00: The banks are having to spend more money to make money.
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SPEAKER_00: It's going to cost the people out there to make to spend more money as well.
2:03
SPEAKER_00: Second, and perhaps more importantly, affordability has become a significant issue.
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SPEAKER_00: It's not just about mortgage rates, rising home prices, or high insurance costs, and even rents, making it harder for people to afford a home.
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SPEAKER_00: This is especially true in areas like Santa Clarita, where home values continue to rise, adding pressure to buyers.
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SPEAKER_00: Swonkin other economists are also highlighting a long-standing problem.
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SPEAKER_00: There simply aren't enough homes being built.
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SPEAKER_00: We've been underbuilding for decades, and restrictive zoning laws are part of the issue.
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SPEAKER_00: It's created a supply shortage that is making it difficult for prices to come down.
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SPEAKER_00: And that's a real challenge for first-time buyers and younger generations looking to build wealth through homeownership.
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SPEAKER_00: According to Redfin, the median down payment across the United States has hit a record high of$67,500, which is about 18.6% of the average home purchase price.
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SPEAKER_00: This is up significantly from last year and highlights the ongoing affordability crunch.
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SPEAKER_00: In Santa Clarita, we're seeing down payments even higher, particularly for single-family homes in competitive areas like Valencia and Stevenson Ranch, where the price point is considerably higher.
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SPEAKER_00: If you're looking to buy in more affordable regions, options like FHA or VA loans may allow you to put down as little as 3%.
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SPEAKER_00: There are also certain conventional loans that allow that low-down payment as well.
3:27
SPEAKER_00: But make sure you explore these options with your lender.
3:31
SPEAKER_00: And I have a list of questions to ask and how to get verified sources from the lenders and make sure you know exactly what you're spending.
3:40
SPEAKER_00: So, what does this mean for you today?
3:42
SPEAKER_00: If you're looking to buy, I wouldn't wait too much longer for rates to drop further.
3:48
SPEAKER_00: The market's very competitive and wanting or waiting could mean you're missing out on a great property, especially with inventory tightening as the year progresses.
3:56
SPEAKER_00: If you're a seller, now's a good time to put your home on the market.
4:00
SPEAKER_00: Especially if you're looking to downsize or move to a more affordable area.
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SPEAKER_00: Buyers are motivated by the current rate drop, but they're also looking for value.
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SPEAKER_00: Pricing your home correctly and understanding that buyers are navigating rising costs can help ensure us to sell quick and of course for a good price.
4:19
SPEAKER_00: This is your Santa Clara Real Estate Update for Santa Clarita, day 264 of 2024.
4:24
SPEAKER_00: If you're thinking about buying or selling or just want to know more about the market, make sure to visit my website, www.santaclarita openhouses.com, or of course give me a call.
4:34
SPEAKER_00: I'm Connor with Honor, always here to serve and guide you through the Santa Clarita and Los Angeles real estate markets.
4:41
SPEAKER_00: I'll talk to you soon and I appreciate you watching.
4:44
SPEAKER_00: I'm Connor with Honor, over and out.