This week our real estate update includes the latest real estate articles produced by yours truly this last week and a short recap related to the current Santa Clarita real estate inventory.
I spoke about foreclosures and bank owned real estate, which are not one in the same. There are differences and out home buyers know this well because it's part of our real estate briefing that we give everyone. During the bad real estate markets that are economically driven, foreclosures are plentiful. In a healthy real estate market, which we are currently experiencing in the Santa Clarita Valley Cities, less than 1% of the homes on the market for sale are distressed. This includes the short sales, short pays, foreclosures and real estate owned properties.
On this same Santa Clarita real estate article you can click on the photo to view all of the current real estate foreclosures and distressed homes for sale. If you want to see everything that exists in Southern California that is distressed, just remove the Santa Clarita Cities and you will see everything in the city you desire.
HPP - home protection plans. Aka home warranties. There are many companies that offer these and they usually selected by the buyer's agent. This is because typically home buyers don't know any home warranty companies or their representatives. Also, we deal with them so much when it comes to our housing and home clients, we are able to get things done due to us referring them business. Done easier, I should say. I always tell my clients to call me before the home warranty company so I can run interference. At least the first time something needs their attention.
Santa Clarita home sellers will also have access to a "sellers home warranty" which is offered by a few of the big HPP companies. It's cheap and covers some expensive stuff. However, the only rule is the home buyer must use the same company that the seller used for the seller's coverage. Typically a home seller pays for the home warranty for the home buyer. This is so they are not bothered after escrow closes if something breaks. Typically the HPP company is referred to the home buyer by their agent. You see the problem? What if the seller's home warranty company is different than the agent's recommendation? As I see it, as long as the home warranty is good, no problem. It's just that the agent who is referring business to a specific HPP company can get things "done" due to that pre-existing relationship.
Understanding, of course, the HPP company is one that wants the business after granting the home seller a less expensive plan they are using during escrow. To have the same HPP company after the deal closes also reduces they potential pay out amount that the home warranty company will be responsible for. This is due to them already having knowledge about the home due to the seller's coverage that was purchased. (I almost wrote more here than I did in the original article - Love it!)
During the past several weeks, the SCV cities have experienced an uptick in home listings entering the housing market. This is due to a couple of factors. 1 - the rumored increase of interest rates which will potentially be during the next meeting of the FED. 2 - these home sellers have hit critical mass and are willing to swallow a higher interest rate then they are currently paying.
In this Santa Clarita blog article, I did upload a research graphic showing the track record of housing inventory during the past 12 months. Which indicates a higher level of Santa Clarita real estate inventory than we have seen in the past year.
When more homes enter the market and when homes are not selling, the currently listed home sellers that have been on the market close to the 30-day point, typically start reducing their home sale prices. This is happening and we are watching. The discounts are not dramatic - but they are something that should be noticed.
Watch out for games when promised that you are going to get credits, grants, discounts, paid for closing costs, etc. Most of those entities that are offering these items are using them as a "hook" to get you to utilize their services in some manner. I will tell you I have this one on good authority it exists. However, you do have to qualify to get it. The qualification process is unknown to me, those requirements can be obtained by a lender that offers this program.
We have some of the top lenders in the Santa Clarita Valley. I'm happy to do the referral and make the proper intros. BE well, safe and all. I'm Connor MacIvor with REMAX and I'm glad to be at your service.
Please share this with those whom you know can use it. I write almost daily and have a mission to protect and serve my real estate clients needs.