Good Day everyone - I am Connor MacIvor with The Santa Clarita home experts at Re/MAX Gateway.
During this week - as we had Monday not fall on the first - I had uploaded a massive real estate radio show that is pushing 25 minutes and has all of the information you will need to make the best real estate decisions.
During the show, I did talk about the current housing market inventory in the Santa Clarita Valley and how that was reflective of the rest of Southern California, which is very low in nature.
However - while most other areas may be the same, the Platinum Triangle is never the same as the rest of the real estate market.
Just in case you are not familiar the Platinum triangle refers to the cities of Bel-Air, Beverly Hills, and Holmby Hills.
What I did was talk about the real estate inventory and how that is going to keep the home prices static. Some people are worried that the real estate market is going to dump money as it did back in the crash of 2006/2007.
I reassure you all this is not that kind of issue.
This is a Virus and to be completely frank, it has not been seen before and the final impact is unknown.
However, we have a few things going for us to keep real estate static.
There is no "hidden inventory" that has been waiting in the wings to be listed for sale.
That came about in 2006 and 2007 when the banks held onto foreclosures and did not release them except when it was at the optimum advantage to do so.
There is no distressed inventory looming to be released to flood the housing market forcing prices down.
This has been a refinance market for the past several months. With record low-interest rates homeowners have been putting their plans on hold to sell and chose to refinance instead.
Most people that refinance don't sell soon after. Most hold in place. They may see if they can swing a home as an investment property. They also may see if it makes sense for them to rent out their current home and to buy another.
To sell a home that has recently been refinanced, it's not very common. Plus some of those who have refinanced have prepayment penalties that they would have to attend to and that does not make financial sense to sell at this time.
Something else that is exciting about this current market is all secure loans that are out there on homes. There was no of the funny business conducted in getting people approved for a home loan.
Most of the home buyers needed to buy with something in the form of a down payment. In some cases, the home buyers needed more than 20% down. In others, they may have been a Veteran of the United States Military and were able to buy a home with zero down. However, to have some of those fancy 100% financing models with adjustable interest rates and balloon payments due in a few years - those are absent from the lending industry.
The low housing inventory has us in a sellers housing market. Where the home seller is able to call most of the shots. Most home sellers, even during this difficult time, if they are priced right are able to mandate multiple offers on the homes we are selling for them.
When those multiple offers start coming in we know that the price is right and that the seller is going to get even more parts of the deal agreed upon to make it to their advantage.
Buyers don't fret. Don't think all is lost. There are some great deals that you can get to your advantage when you are negotiating with a multiple offer scenario. Remember, my experience has led me to know that it's not always the highest priced offer that gets picket. I have other ways of making sellers happy with my buyer's offer and those ways are not offering price-oriented.
The COVID19 release date approacheth
People are a stir now. They are tired of staying home and according to all the memes, hopefully, this will be over soon or something bad may happen in certain circumstances.
The issue is going to be with those who have been laid off from their jobs. Those industries that are unable to have their employees working from home or remotely will have an issue.
Those industries that are unable to support their employees during this pandemic will have employees who are panicking.
There are others who are out in the workforce who may not be able to make their next mortgage payment.
Most of the financial institutions, and especially Fannie Mae and Freddie Mac have put mechanisms in place in order to give those of you some relief from making your mortgage payment during this time.
You have to call and call your mortgage holder soon.
If you have not already, as you are reading this, stop and pick up the phone.
We have one of those mortgages through a mainline bank who is not answering the phone. But we are still trying.
There is also an email address that is on the website where it talks about getting relief from making a mortgage payment, use those resources as well. Make the record at least.
Homes are still being listed for sale. Homes are still having offers written on them and being accepted by the home sellers. The way's in which the homes are vacated and viewed is what has changed.
A lot of the home showings, at least during the first phase which is normally an in-person viewing, is now being handled via facetime. I walk through the home with the prospective home buyers on my phone and we look at the home together.
They then direct me as to where to walk and what they want to see and I add my typical real estate expert banter and describe what I'm seeing that is good and that which is bad.
Total Active listings for sale currently in the Santa Clarita Valley cities is 334.
I have completed the research on Acton, Agua Dulce, Newhall, Canyon Country, Castaic, Stevenson Ranch, Saugus, and Valencia.
Here is where the current real estate market gets interesting.
I will now show you the listings that have closed in the past month, compared with the two months before and I will then show you the current "in process" inventory.
Also, remember, if you are driving around or if you have a home that has been listed for sale in your neighborhood and the agent put a "sold" sign on it, it has not completely sold.
For example - currently, in the Santa Clarita Valley we have 180 homes that are active under contract. You may be looking on websites that are not owned by the Santa Clarita home experts when you do you use those at your own risk. They show these 180 listings as being for sale and not under contract. This is the type of listing that a real estate agent may hang a "sold" sign on like the one above - except I am the expert :)
Another example - currently in the Santa Clarita Valley we have 229 homes, condos and town-homes that are in escrow under a contract that is in the pending status. Meaning they should not be advertised as being for sale, unfortunately, on some of the other websites, you will see them as active and available to be purchased. This is another listing that has a status where a sold sign may be applicable.
The way of the world is when a home finally sells. When that home records in the new home buyer's name as being theirs, the sign typically comes down within a day or two at the most.
The agents seem to think to install a sold banner on that sign when it's only coming down in a few hours is not doing them any good.
Personally, I don't put up sold banners, I have had too many clients say they deem them as misleading. So I don't want to ever have that appearance, so I don't do it.
As you can see by the number of homes that are currently in process, you may be able to find the home you wanted if it's under contract.
One of the things that I tell my clients is that I always look at their criteria and match that with the homes which are under contract.
I then call those agents and find out where they are in the escrow process. Have the inspections been completed? Are there going to be any perceived issues with what was discovered? What about the buyer loan, is it good to go or on shaky ground?
I then formulate a plan if I see that there may be some issues with having that home close escrow. I will get my buyers the home information, I will then send the virtual tour and any other related information to see if it is something they'd be interested in.
In a normal market, I'd then get them scheduled to see it in person. Now that we have this pandemic, those showings are handled a bit differently. So I make those steps happen in the best way possible.
Now my home buyer is poised in a good position if the buyer on the home that fits their criteria falls out of escrow.
Believe it or not, about 30% of the home listings fall out of escrow during their first go around. That number is a bit higher than typical due to the impact the coronavirus has had on the Santa Clarita real estate market.
I'm Connor and I will be here for you and yours when you are ready to have your Santa Clarita real estate won.
Please check out the top Santa Clarita Blog
I also syndicate a real estate radio show for the Santa Clarita Valley cities each week and sometimes twice.
I'll leave the light on for you and be safe and keep your distance. We are during this time for sure.