Connor Macivor: 00:00 Good everybody, please don't forget today's September 11th of what had happened in the past. We always have to retain those memories in order to improve and also, of course, to be very self-aware, so a moment of silence would be very appropriate today when you have that moment. Thank you so much for tuning in. That says Santa Clarita, home experts.com Santa Clarita, home experts.com we do have the longest-running real estate radio show here in Santa Clarita Valley. I am Connor t Mac [inaudible] or Mac Ivo are glad to be of assistance and I appreciate you listening to our real estate radio show as we updated every week or try our best to new events here in the real estate market, pertain to a massive slow down on the buyer side. In addition to that, sellers as well. A lot of people are holding back and not putting their properties on the market and come to find out from the research that I've been doing, speaking with a lot of those people that we're going to press the trigger and get that property on the market.
Connor Macivor: 01:08 Now they're not and it's because of interest rates. Right now they're getting down in the threes, uh, some high twos as far as percentage points go, which is phenomenal, great interest rates, but instead of it kicking off the market, making sellers want to sell, basically, sellers pulled back a little bit and said, you know what? School started back. A lot of the sellers have school-age dependent children. Instead of us trying to mess up anything or move, we're going to go ahead and do a refinance. So that's where the market currently is. A lot of the lenders out there, they're overwhelmed with the refinances that are going on. That includes here in Santa Clarita Valley and Greater Los Angeles cities. There are just so many that even when buyers are out there wanting to buy real estate, their method is happening a little bit slower because of the refinances that are going on with all these different lender offices.
Connor Macivor: 02:04 People asked, they say, you know what? What's the best way to approach the refinance ing of a house or condo or townhome? Well, a couple of different methods, right? Every lender out there would want to get your business bottom line period. So the people that you see at Oh dark 30 on television talking about their lending and lending business and mortgage business. Of course, they would want to get your business. Then you have your local lenders, they would want to get your business and also your bank. So the bank that you happen to be attached with maybe savings accounts checking account, one that doesn't have anything to do with your mortgage. Of course, they want to get your business to and then the people that are attached to your mortgage, the actual bank that is holding the note that you write those checks to every month to make your payment.
Connor Macivor: 02:53 They also, they, they would love to be involved too. What's the cheapest? Well, you know what? I would say surf around just a little bit and make sure whatever any of those entities that I mentioned are promising you cause some of them will have a tendency to tease you a little bit. Hey, you know we're going to give you this deal. This is going to be the the the interest rate that's we're going to give, you're not going to be able to get it matched anywhere. If they're promising that and they've already looked at all your numbers, that's also very important. If they're promising that over the phone there is small print written somewhere and you'll see it either in email correspondence or the bottom of a text message or within some kind of a link. They can't promise that until they figure out where you are credit-wise.
Connor Macivor: 03:40 So if you are a person that has great credit, kept up with all their payments, you have an outstanding fico story of good employment, everything's just pristine and beautiful, then you are going to be able to get that best interest rate possible and for those people that are in that category, definitely shop around. On the other side of it, if you don't happen to have that kind of credit, you also want to shop around. But also it's incredibly important to get everything in writing that they're promising you. If they're promising you a 3% percent interest rate before they've run your numbers, be a little weary. Again, after they get all your documentation, they're going to ask for tax returns. They're gonna ask for paycheck stubs. In some cases, if you're going through the bank that already has the note on the property, they might not be asking for those items because they kind of already have them.
Connor Macivor: 04:31 And it depends on when you originally financed the residence as well. But at the end of the day, if in fact you go and you're asking and they see, you know what, we want to see these particular items to back you up financially in order to get this refinance done. Understand that that's part of the process. Also, understand this during the time of refinancing is happening, this is the same with purchasing a residence. Any credit inquiry could damage you, it could create issues for you if somebody makes a credit inquiry on your credit, especially auto dealerships and potentially multiple mortgage brokers when you're out there surfing around trying to get your very best deal. So I would say be wary whenever you're putting your name out there, social security number, so on and so forth. Be a little, you know, throw some caution to the wind. Just don't give it out to every buddy that you talk to that you think is going to be a fantastic deal.
Connor Macivor: 05:33 In addition, a lot of credit age, the mortgage brokers, they can actually use other credit reports that are initiated by other lenders in the business. So if you were to find someone that was willing to give you a full copy of your credit report, you might be in such a position where you could say, listen, I already talked to this bank over here. They gave me a full copy of my credit report and I would like to give that to you. And thereby you use that to be able to validate whatever interest rates you're promising to give me. And that might work in some cases, but at the very beginning when you start this process, you're to want to put a file together that has all the necessary documentation that the lenders are wanting and save that on your desktop. So if you are going to go out there and start speaking with other people, just be, we're either gonna run that credit once they run that credit, but a lot of times that's gonna injure your Fico Score.
Connor Macivor: 06:31 All of that can be fixed, but it's going to be up to the final lender to make that fix happen at the very beginning or the very end when you've made the choice and say, you know what, I like a Mr. Z, that particular lender, we're going to go with him. And then a lot of times they can do what's called a rapid rescore. So let's talk about real estate inventory here in Santa Clarita Valley. If you go to Santa Clarita, home experts.com you'll be able to pull all the data for the Santa Clarita Valley cities. That's going to be acting all the way through Valencia. So act in awkward, Say Canyon country, Castaic Newhall, Saugus, Stevenson Ranch and Valencia in those cities. Very little as far as units for sale, all total. And I'll give you that number here. Let me find the right button, sent a Clarita home experts.com and when you get to the site it's really easy to navigate.
Connor Macivor: 07:24 If you are on an iPhone or any other type of device, you will be able to pull that up immediately and you'll see Santa Clarita valley cities down at the bottom. What I did is I pulled all of those uh, here in Santa Clarita Valley, so you see it all the way from acton all the way through Valencia and you can see that number 545 active units for sale all across the STV cities. And again, that's incredibly low in comparison to where we've been in the past and this drop-off started above July. Interest rates, as I said, a very low, a lot of people are looking for this looming, bubbled up pop within the real estate market. They're concerned that if they buy now, they're going to be regretting that decision. [inaudible] it's one thing to buy low with high-interest rates. It's a different animal to buy high with low-interest rates.
Connor Macivor: 08:20 And then the other thing is when you look at the overall market, when people are asking me that question, if you can afford your payment without overtime and without all of the other things that seem to put people in a pickle, like they're expecting pay raises in the future, different percentages and now all of a sudden they have that mortgage and they're not getting the pay raise or maybe they get laid off or whatever. These are big pain points that throw the market in a tizzy when it happens in big numbers. When it happens on the small end, of course, individually it hurts people, those families, and those individuals involved the, with that kind of big life items like disease, divorce and death and job loss and so on. But the other side of the coin, when it only affects a few, it doesn't topple the market when it affects a lot of people.
Connor Macivor: 09:10 Like we saw back in 2007 then the fall of that the large subprime lender, new century bank. When we saw that happen, then it just started, uh, it was like a house of cards. There were a lot of loans out there. Those subprime loans aren't a thing. They're kind of making a comeback. But most of the loans that have been granted since the fall, the real estate market after the recovery had been very solid, requiring money down. So back in the days of 100% financing, and I always attribute the last fall of the cycle to a lot of that. A lot of people that had no,
Connor Macivor: 09:48 no way, they should have been buying $1 million worth of real estate and what they were multiple houses, but a lot of people were because they thought that the real estate market was going to continue to go up and up and up and up and up. So they just went out there and they bought one house and then they said, you know, we can get a hundred percent financing again. They bought another house, another house. So then you have a lot of these that were rented. The renters aren't there anymore. The sellers or the owners of that particular property may be having it managed by somebody else or maybe managing it themselves. Didn't foresee the market started to collapse that soon, didn't have the money in the bank to support that property for six months or a year or whatever their guide is. A year is nice to have a backup of a year in the bank.
Connor Macivor: 10:36 They including enough money to evict people that decide that they don't want to stay. That's a nice comfortable place to be in. Plus then if it only takes six months to get them out, then you have rehab money as well because more than likely in some cases, I would say more than likely, people are gonna maybe not take great care of your home when they decide not to continue to make you your rent payments or their rent payments so you can then correspondingly make those payments to your mortgage. Sometimes people are just mean and that happens, but we saw a lot of that in that last real estate cycle. It's not here, so that's not where the market's going to collapse. Some people say, well, there's going to be a deep depression in the economy. Well when usually when the stock market gets hit, hard real estate becomes more attractive to a lot of investors because it's best for the long term so people aren't trading paper commodities anymore and they're actually getting real tangible assets like real gold going out and buying actual gold bullion, silver, actual silver, platinum, and real estate homes, condos and townhomes because these are placeholders.
Connor Macivor: 11:46 You have a piece of something that you can hold on to I. E within real estate. So a lot of people make application whenever things get a little tight on the start market in. So again, I don't see that one causing the real estate market to cycle and reduce with the low limited inventory, it's keeping prices pretty high. We are seeing some small adjustments and various markets here in southern California, but not a lot. Even with a buyer drive, usually, a drop of five or $10,000 is spring off. Enough activity to get that property in escrow with a new buyer. I've caught him macgyver. This has been your real estate update. You can always find us by going to Santa Clarita, home experts.com Santa Clarita, home experts.com. Looking at the right-hand side, you'll see the radio player. Then of course, if you go to Santa Clarita, home experts.com forward slash radio you'll be able to see all of the shows that we have in archive and amongst others. I hope you're doing great. Thank you so much for taking the time to listen. I am Connor t macgyver local agent here in Santa Clarita Valley with re Max. Love to be of great assistance to you. Pick up the phone, give me a call and I will take care of you and yours and whomever from a to Z. I'm at (661) 400-1720. Have a fantastic day and we'll talk to you soon.