- Inventory is super low
- Mortgage interest rates are also low
- Buyer drive has slowed
- Relocation agents are making their money
- Short sales are being seen
These are the top 5 topics for Santa Clarita real estate news.
I have been doing the intel reporting and news for the Santa Clarita real estate venue for the past many years.
Furthermore, I have been a Realtor since 1998.
Blogs back then were about traveling, pets and personal.
Today, the top Blogs are intel about products and services.
The top Santa Clarita blogs are about real estate and those home buyers and home sellers who are concerned or interested in the current housing market.
Running. the latest numbers for Valentines Day - FEB 14, 2020 - this is where the Santa Clarita Valley is currently:
356 total residences for sale in the Santa Clarita Valley cities as of 0813hrs 2/14/2020.
Breaking this down - we had 333 on the 12th of February 2020. This is not a reason to panic with 23 additional homes for sale - the breakdown being condos, town-homes and single-family homes - detached and attached.
This is how the market moves - it swells a bit then reduces. However, we are entering the time of year where we will start building inventory as we get closer to the summer.
That is very typical and the trends have shown from year to year this happens in stable real estate markets.
I will keep you appraised of our Daily Santa Clarita inventory so you are able to go to our Santa Clarita real estate blog and see those numbers.
Low inventory in the Santa Clarita Valley
As compared to what you may ask. Typical real estate trends cover the absorption rate of homes that are listed for sale. Low inventory is seen when the buyer activity is high enough to reduce the available numbers of homes that are for sale.
If inventory starts building and homes are not selling fast enough to keep the numbers stable, you have a market shift.
That type of shift, inventory building, would kick off a buyer's housing market.
While inventory stays low and while homes are not creating a surplus of inventory, we are in a seller's market.
There are other market types where the market is not moving very much one way or another. This is where the Santa Clarita Valley is currently and that is very typical of the time between Christmas and the first couple of months of each year.
Not very many real estate records are broken. Except - (there it is), except during the end of 2011 and 2012. That was the last low point in the Santa Clarita housing market. The lowest spot in the past many years.
Mortgage rates - super low
We have been having clients get promised in the 3's related to interest rates. There is also rumor on the street that interest rates may dip lower.
I'm not sure how that would work, but that's the rumor.
My mom and dad had a 16% interest rate back in the day when they bought their home. Of course, homes were not at today's prices, but it was what it was.
I am a fan of a 30 year fixed. There are reasons why a person may pick up a loan for a home that has an adjustable-rate mortgage. That is something that needs to be researched and decided on carefully.
When we have home buyers sit down and attend my introduction meeting in my offices, I explain to them about the financing aspect of real estate. If a home buyer can make their payment without overtimes and without considering future increases in pay, while still being able to save some coin - they are in a good spot.
If a home buyer is dependent on overtime and future pay increases, they are putting themselves in a pickle related to financing real estate. This would be a good place for some sage advice from a financial planner/advisor.
Don't get teased related to interest rates. You are bound to find someone who did it better. Who caught the big fish without any proof. Who was able to get a super low-interest rate and who has a referral for you. Be careful who you give your social security number and Date of Birth in order for them to run your credit. You should hold out for a lender or mortgage professional who you trust.
If you don't know any lenders or mortgage professionals, which most don't, then I have recommendations that I speak about in my meetings in my offices. I only work with the best lenders in that profession. I want people who are going to be there for my clients without being selfish.
I only refer lenders who are local and who have a proven track record with my clients of being communicative, honest, and having the innate ability to get it done as they have promised.
I'm not a fan of people who over promise and under deliver and my clients aren't either.
A slowing buyer drive in Santa Clarita
This is something that various online channels are using as reasons for home sellers to panic. This is not a reason for the Santa Clarita home seller to panic. It's time for them to realize we just happen to be at that time of year.
The time of year between Christmas and Q1 2020. Statistically, this current trend where home buyers are not super active is typical.
I wrote a Santa Clarita housing update article with graphs showing the very same trend. Here is one of the graphics I used last week:
Look at the ends - those are the months of January Quarter 1 (Q1) of each year. The graphic was compiled by your'ss truly and is two years of Sold Home Data for residential listings for the Santa Clarita Valley cities. The center of the graph is also January Q1. Real estate slows down, typically during the last quarter and the first quarter of most years.
As with the REO agents, the agents which were used by the banks and financial institutions when the last housing market tanked, relocation agents have referred clients.
They pay a hefty "referral fee" to those companies who select them to represent people who are corporate relocatees.
Human Relations Departments also utilize these relocation companies to move staff from various places to and from Southern California.
The issue is when an agent is getting "fed" referrals, they are typically not as user-friendly.
When business is guaranteed some don't care about client care and keeping a top level of trust-building.
When your HR department says you have to use "so and so", most don't have any other choice.
It's sad but true. What I have found is when I build relationships with clients before they find out they have to use the agent referred to them by their corporate relocation contact, my clients fight for me.
What ends up happening most times is I have to fill out various forms and paperwork which ensure that I pay the relocation entity part of my commission in the way of a referral.
I'd much rather that money goes to my client than some corporate entity that just so happens to have an in with some business!
Unfortunately, this how the relocation business works. Most relocation realtors I run into are very comfortable. While I am always making sure that I am always keeping my clients informed, updated, well taken care of and protected.
Know, if you are relocating as part of your employment package, you can have it your way and use the agent you select. That is if that agent is willing to kick back the referral fee to the relocation agency.
I live in Zip Code 91355. That is Valencia California which is the city smack dab in the middle of Santa Clarita CA. I walk to Valencia Park, I walk to Whole Foods, Golds Gym, the Mall and Ralphs. I have raised two kids out here from birth and worked for the City of Los Angeles at the Los Angeles Police Department as a Police Officer. I'm local and I know the Santa Clarita Valley very well.
If you are part of a relocation package - look me up when you are ready to be relocated by your company. The sooner upon you being notified the better so I can work my magic.
Short Sales coming occasionally
The last time I came across a short sale, aka short pay, was back in 2013ish. Most had finished by that time. There were many a time that those did not actually work out.
Those that did not work out can partially be blamed on the agent not being knowledgeable enough.
In some cases, those who wanted them sold short - changed their minds and became disinterested after they had moved out.
Also, they required full financial disclosure from the person(s) short selling. Some people did not want to do that, maybe because they were not in the way of a hardship, they just wanted to sell short because of how far upside down they were.
FF to today - our housing prices have exceeded the top of the last real estate cycle. Not by a lot, but 3-8% in the Santa Clarita Valley.
If you try to get those numbers for "specialty" cities, like Beverly Hills, don't bother. Those markets are hard to score because of the exclusivity.
As a result of the last foreclosure market where the majority of the homes that were for sale were Real Estate Owned - Foreclosures, short sales became prevalent.
Currently, we have 4 short sales for sale in the Santa Clarita Valley.
In a healthy Santa Clarita market, the "number people" tell us that the numbers that you'll see related to distressed homes are about 1% to the total available housing inventory.
Search all Southern California Foreclosures - Scroll Down to see inventory
In the end, you are only as good as your chose real estate representative. Contact me when you are ready for me to take your real estate needs by the horns and lead you to victory over them.
I'm Connor with HONOR and I'm blessed to have you reading my Santa Clarita Blog!