Latest / Connor with Honor: AI, Real Estate and Real Life / Inventory is up, so are interest rates, that's keeping the pressure down on home prices

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Inventory is up, so are interest rates, that's keeping the pressure down on home prices · Connor with Honor: AI, Real Estate and Real Life

• 0:02
  SPEAKER_00: Good day, everybody.
• 0:03
  SPEAKER_00: I'm Connor with Honor.
• 0:04
  SPEAKER_00: Today is the 29th of March 2024.
• 0:08
  SPEAKER_00: I'm going to cover the real estate inventory here in Santa Clarita Valley.
• 0:11
  SPEAKER_00: I'm going to talk about the current listings and what's happening within the last seven days.
• 0:16
  SPEAKER_00: I do these updates every day, so please tune in and you can see what's happening.
• 0:20
  SPEAKER_00: And I also cover the latest real estate news that's developed within the last 24-hour news cycle.
• 0:26
  SPEAKER_00: And then I also talk about those postings from the past week because there's lots of information out there that people are looking for to make better real estate decisions.
• 0:35
  SPEAKER_00: And as you very well know, the news cycle is bombarded with a lot of junk.
• 0:40
  SPEAKER_00: So just watch out for that.
• 0:41
  SPEAKER_00: So coming soon listings, I've been monitoring the market.
• 0:44
  SPEAKER_00: So in the past seven days, we've observed nine homes coming onto the market.
• 0:48
  SPEAKER_00: These are coming soon, and they signal fresh opportunities for those prospective buyers out there that are considering purchasing real estate.
• 0:56
  SPEAKER_00: The thing with the coming soon listing is you can, it's not supposed to be shown until it's actually active on the market.
• 1:03
  SPEAKER_00: There have been some rumors that that is a little bit different in some circles, but that's something you definitely want to reach out to your agent and discuss with them.
• 1:14
  SPEAKER_00: Some people think there's an advantage in seeing a property early.
• 1:18
  SPEAKER_00: In rare situations, that is true.
• 1:21
  SPEAKER_00: That would be in a particular circumstance where a home seller does not want to engage with very many people in the viewing of the residents.
• 1:30
  SPEAKER_00: They could put their house on the market and say, you know what, the first people in, the first people that write, they're going to get the house pretty much no matter what, because we don't want to be bothered with other people.
• 1:41
  SPEAKER_00: Those types of sellers should pull back because they're not giving the market or they're not giving themselves the full advantage of the real estate market to have multiple buyers come into their residence and compete for it.
• 1:54
  SPEAKER_00: If that seller is just dead set on selling to one party, there are a lot of online systems that just do that very, very well.
• 2:02
  SPEAKER_00: They keep the minimum and showing to a minimum a very low level.
• 2:06
  SPEAKER_00: I'm going to throw those words out there.
• 2:08
  SPEAKER_00: So they keep the showings at a very low level, or they say, you know what, we're going to buy your house from you.
• 2:14
  SPEAKER_00: That way you don't have to be burdened by all of the excessive showings and the phone calls and all these other things.
• 2:20
  SPEAKER_00: One of the things that I will tell you, those types of sellers aren't very common.
• 2:24
  SPEAKER_00: Most sellers want to get whatever they can when they sell their residence, whatever the value is, of course, into their best advantage, as the same thing that buyers want, but in some certain circumstances, which aren't very rare.
• 2:38
  SPEAKER_00: There are these companies out there that say we buy ugly houses or we will sell your house.
• 2:42
  SPEAKER_00: Basically, we'll buy your house directly from you.
• 2:45
  SPEAKER_00: We pay cash for your house.
• 2:46
  SPEAKER_00: We close in 14 days.
• 2:47
  SPEAKER_00: For those sellers that don't want to tie up with anybody or don't want to get the most money for their residence, because that's how those products are built, they save a lot of money on the marketing and advertising, and they basically are going to make money by trying to buy your house for undermarket value and then resell it in the next few weeks or months or years, depending on what their strategy is.
• 3:11
  SPEAKER_00: If it's a rent and hold and sell in the future strategy, or if it's actually a flip strategy to sell the residents currently, it's going to depend on the company that you're interviewing as a seller.
• 3:22
  SPEAKER_00: Just understand what you want from that process and coming soon listings to bring us back to that full circle.
• 3:28
  SPEAKER_00: Those are listings that are able to be seen when they hit active.
• 3:31
  SPEAKER_00: But again, talk to your agent.
• 3:33
  SPEAKER_00: Maybe there is some way to do that ahead of time.
• 3:36
  SPEAKER_00: But to get an advantage by seeing it early, usually not, at least not in a buyer's market.
• 3:41
  SPEAKER_00: Something to consider.
• 3:42
  SPEAKER_00: So the new listings, we have 42 homes that were listed in the past seven days in Santa Crita Valley, Santa Clarita Valley Cities.
• 3:52
  SPEAKER_00: This is going to include the cities of Castac, Canyon Country, Newhall, Saugus, Stevenson Ranch, and Valencia.
• 4:00
  SPEAKER_00: So that's 42 new homes.
• 4:01
  SPEAKER_00: We have price adjustments yesterday.
• 4:03
  SPEAKER_00: For the past seven, we reported 50.
• 4:05
  SPEAKER_00: Now we have 47 price changes.
• 4:08
  SPEAKER_00: And when you look at those numbers, a majority of those are going to actually be reductions.
• 4:13
  SPEAKER_00: And I'll throw those up on the video here, and I'll just put them up basically where those property reductions are coming in so you can at least get an idea and see how that works.
• 4:25
  SPEAKER_00: And currently it does show price changes up and down, and we have those going from 490 to 480, 830 to 800, 115 to 114.9.
• 4:37
  SPEAKER_00: So very small price changes, but these are strategies in the residential real estate resale because whenever an agent goes into the system, the multiple listing service, and does any kind of modification, especially as it relates to price, it kicks that listing up again onto the internet and makes it more prevalent and front of eyeballs for people to see on the different syndication websites.
• 5:02
  SPEAKER_00: In addition to that, those people out there that might be getting real estate listings from the real estate agents, those particular people are going to be getting these this listing refreshed to them as well.
• 5:14
  SPEAKER_00: So there's, you know, I can't even give you a number on how many people are out there when they're working with their agents, how many listings they're getting.
• 5:22
  SPEAKER_00: But if the listing now fits in their criteria, then they're going to see it maybe for the first time.
• 5:28
  SPEAKER_00: And that's the one thing I talk to my buyers about.
• 5:31
  SPEAKER_00: Don't get too top-heavy with regard to what you're searching for in sales price.
• 5:36
  SPEAKER_00: Make sure that you honor how much you've been approved for.
• 5:40
  SPEAKER_00: And even if what you've been approved for seems like you're biting off too much to chew, then back that off a little bit and get something less expensive.
• 5:48
  SPEAKER_00: I know that's a very simple thing, but when you get involved in a real estate purchase process, you have everybody in your world telling you how great they did it, how they're experts on it, because they at least bought or sold one house.
• 5:59
  SPEAKER_00: So they're going to come tell you as a buyer, oh my gosh, I got to do it this way, do it that way.
• 6:03
  SPEAKER_00: They're going to tell you that they caught that big fish and they're going to give you how they did all of that.
• 6:08
  SPEAKER_00: I always tell my clients, you take all that information, you call me, and then you explain it to me.
• 6:14
  SPEAKER_00: And usually it's really not as accurate as they recall.
• 6:19
  SPEAKER_00: So that information that they're giving you as a prospective buyer or maybe a prospective seller is a little slanted or bent.
• 6:27
  SPEAKER_00: Not on purpose, probably, but you know, everybody wants to say that they saved the world.
• 6:32
  SPEAKER_00: Maybe the people that are in your periphery or your sphere of influence are that same way.
• 6:37
  SPEAKER_00: So when they tell you the story about how they did it, just verify that with an expert that's working for you and find out how that even works.
• 6:45
  SPEAKER_00: I'll give you an example real quick before I move on with the rest of the Santa Clarita real estate news.
• 6:50
  SPEAKER_00: I had a client tell me that the people that purchased a residence were actually able to buy it for$50,000 under fair market value.
• 6:58
  SPEAKER_00: And they told their client the way that they did it is their agent was able to send a personal letter to the homeowner that was currently listed for sale with another agent and convey to them how his clients were exceptionally desiring that particular residence.
• 7:16
  SPEAKER_00: They really, really liked it.
• 7:17
  SPEAKER_00: However, they couldn't afford to spend more than about$50,000 less, and that's what they're approved for, than the actual listing price.
• 7:24
  SPEAKER_00: And so the seller supposedly, according to the story, the seller reduced the price$50,000.
• 7:31
  SPEAKER_00: Come to find out, did some research, contacted the agent.
• 7:34
  SPEAKER_00: Again, it would have been inappropriate for me to send a letter to actually the seller who's represented by another agent.
• 7:40
  SPEAKER_00: So that didn't happen, come to find out.
• 7:42
  SPEAKER_00: Basically, what ended up happening is they just wrote an offer on the house at$50,000 less.
• 7:48
  SPEAKER_00: The house was already overpriced.
• 7:50
  SPEAKER_00: So the seller made the adjustment.
• 7:51
  SPEAKER_00: The seller needed to get to a property that they were trying to purchase in Idaho.
• 7:57
  SPEAKER_00: So they just said, you know what,$50,000, we can accept that loss.
• 8:00
  SPEAKER_00: We're not getting any activity.
• 8:02
  SPEAKER_00: And when you look at the comparables, as I did, the house was overpriced by at least$50,000.
• 8:09
  SPEAKER_00: So you hearing that story sounds fantastic, like, oh my gosh, I need one of those.
• 8:15
  SPEAKER_00: Unfortunately, it's not accurate and it doesn't really serve your purpose.
• 8:20
  SPEAKER_00: When you're looking for real estate, some of the best things that I advise my buyers is when we're looking, we want to look at stuff that potentially hasn't sold for whatever reason.
• 8:29
  SPEAKER_00: Because currently, if you put a property on the market, being it where we are in a seller's market, usually, if it's priced accordingly and correctly within the values, it doesn't take very long to sell.
• 8:40
  SPEAKER_00: In fact, we're looking at seven to ten days, usually on properties being put on the market for sale in Santa Clarita, if they're priced correctly, by the time they actually have an accepted offer and work back with counters, multiple offers, or whatever, finally getting into escrow.
• 8:55
  SPEAKER_00: So it doesn't take that long.
• 8:57
  SPEAKER_00: Just make sure that you're getting good advice.
• 8:59
  SPEAKER_00: And if you hear something that sounds too good to be true, you know, it usually is.
• 9:03
  SPEAKER_00: All right, so the price adjustments, we talked about that 47 so far, so that's our adjustment within the week.
• 9:08
  SPEAKER_00: Back on market properties, 11 properties in the last seven days have come back on the market.
• 9:13
  SPEAKER_00: I did a show on that a few days ago.
• 9:15
  SPEAKER_00: There are listings that actually have their escrow's canceled and pop back onto the market.
• 9:20
  SPEAKER_00: When that ends up happening, the people that were in line for the property are the ones that maybe wrote previous offers.
• 9:28
  SPEAKER_00: One of the things I try to do for my buyers, and you can talk to your agent about this if it's not me, make sure that they keep abreast of these properties that you're writing offers on with them and being rejected because some of those properties actually come back around and it actually works out.
• 9:44
  SPEAKER_00: We had a couple buyers recently that that happened with.
• 9:47
  SPEAKER_00: We went in very strong at the beginning.
• 9:50
  SPEAKER_00: We were beaten out.
• 9:51
  SPEAKER_00: Somebody wrote higher, a higher number.
• 9:54
  SPEAKER_00: When it came back around, though, I received a phone call and said, you know what, those current buyers that were in escrow with us, they canceled because of a financial reason within their credit score.
• 10:05
  SPEAKER_00: So they had an issue where they couldn't proceed in the purchase of the residence.
• 10:09
  SPEAKER_00: So what ended up happening is I got the phone call because even when I'm writing offers for my clients on residential real estate, and if my clients don't get the property for whatever reason, you know, higher price, better financing, whatever it may be that the seller saw in the offer that they finally did accept.
• 10:29
  SPEAKER_00: Whatever that reason is, whenever my buyers uh come back to me and they're disappointed, of course I am too, I never take any of that out on the seller's agent.
• 10:38
  SPEAKER_00: I don't berate them, I don't make fun of them, don't call them names.
• 10:42
  SPEAKER_00: I am very respectable and very honoring because I really understand the way this works, and I try not to ever let my emotions get carried away with me.
• 10:52
  SPEAKER_00: I also work with my buyers and sellers to try to keep them emotionally grounded so they don't take this in any other way than it should be taken as a business transaction.
• 11:05
  SPEAKER_00: Real estate is already emotional enough itself.
• 11:08
  SPEAKER_00: I have sellers that have been in their houses 30 and 40 and 50 years.
• 11:12
  SPEAKER_00: They're selling to move on to a different chapter in their life or even an entirely different new book.
• 11:17
  SPEAKER_00: There's a lot of stress and anxiety involved in that move.
• 11:22
  SPEAKER_00: You, as a real estate buyer and seller, need to hire somebody that understands that process and gives it to you as it should be given, the truth and the truth alone, so you can make your best decisions.
• 11:34
  SPEAKER_00: I've never been scared to tell somebody everything that I know about an area, about a residence, about something I've discovered, because at the end of the day, more than likely, they could be finding out this stuff without me.
• 11:48
  SPEAKER_00: And if they do find out something that I didn't disclose in the future, well, there's a problem.
• 11:53
  SPEAKER_00: Not only an ethical problem, but there could be a legal problem as well.
• 11:57
  SPEAKER_00: That shouldn't be the reason, however, an agent keeps the truth, the agent could keep the truth with their clients because, well, it's the right thing.
• 12:06
  SPEAKER_00: All right, so let's finish this.
• 12:08
  SPEAKER_00: We do have the back on market properties.
• 12:10
  SPEAKER_00: Those are 11.
• 12:10
  SPEAKER_00: So these were in escrow.
• 12:12
  SPEAKER_00: They canceled escrow, came back on.
• 12:13
  SPEAKER_00: If you're looking for real estate as a buyer, that's something to watch for.
• 12:17
  SPEAKER_00: If you're a real estate seller considering selling in a particular neighborhood, that's something to see as well.
• 12:23
  SPEAKER_00: What is not selling and why are escrow's canceling?
• 12:27
  SPEAKER_00: Is it dependent or a buyer reason because they lost their ability to finance?
• 12:32
  SPEAKER_00: Or did the property cancel because of some other discovery about the residence itself, about the neighborhood, about lots of different things could be the reason.
• 12:43
  SPEAKER_00: But if it has to do with the neighborhood or the area that the house is in, i.e., maybe in the area there's liquefaction, maybe in the area there are some intrinsic issues within that particular community, that could be a reason.
• 12:58
  SPEAKER_00: That's really good to know for those other sellers or potential sellers in the neighborhood that they're going to potentially have to face the same issues, having some kind of disclosure put together with regard to that.
• 13:09
  SPEAKER_00: Just watch out.
• 13:10
  SPEAKER_00: Hire smart.
• 13:11
  SPEAKER_00: Active under contract properties, these are 28 homes have actually gone into the escrow process.
• 13:17
  SPEAKER_00: Pending sales, we see 46 of those switch from active under contract into pending, so they're getting close to close.
• 13:24
  SPEAKER_00: And we do have 60 homes that actually finished and closed escrow these past seven days and all of the Santa Clarita Valley cities.
• 13:33
  SPEAKER_00: I do appreciate you watching.
• 13:34
  SPEAKER_00: This has been your real estate update.
• 13:36
  SPEAKER_00: Today is March 28th, 2024.
• 13:39
  SPEAKER_00: I am Connor with Honor, and it is always my pleasure.
• 13:43
  SPEAKER_00: Until next time, ladies and gentlemen, well, and everybody else.
• 13:46
  SPEAKER_00: We'll talk to you soon, be well.