Produced June 6, 2021 by Connor MacIvor for his real estate clientele and others interested
Below this text is a transcription of today's real estate radio show. The real estate market is assuredly deep in a seller's market. But inventory has been creeping up and I'd bet you dollars to donuts that these markets reset point is going to be additional inventory, not in the way of new homes being built, but with droves of "re-sales" hitting the market. The new home impact has yet to be seen due to the soonest move in's - slotted for September 2021, according to my builder friends.
If you want to buy a new construction home, make sure you hit me up first!
There are a couple of panic points for real estate owners in Southern California, especially the Santa Clarita Valley cities.
1 - Forbearance ends 6/30/2021
2 - LA County Rental Forebarance ends 6/30/2021
Listen to this radio show and every week you can go to SCV911.com to the weekly real estate show and keep yourselves up to date with regard to the Santa Clarita Valley cities. I'm Connor - here is the automated transcription of today's real estate radio show.
scv911 real estate experts in Santa Clarita Valley (00:00):
Good to everybody. I am Connor, Iver. This is your real estate email@example.com. We are here Sunday, June 6th. So this is going to be for the next week here in 2021. So Sunday, June 6th, when this is being recorded, we're going to talk about the real estate market. Have a couple of items that I believe are going to be of great importance for you buyers out there looking for real estate, incredibly frustrated you sellers on the other side may have some concerns coming up in the future as well. It's going to depend on the overall look of the economy, but also some of the things that are coming to an end. So we'll talk about that. I want to talk about the inventory right now. This is, of course, Santa Clarita home experts. I'm with exp Realty here in Santa Clarita valley. You can always check weekly shows at SCV nine one, one.com as CV nine one, one.com.
scv911 real estate experts in Santa Clarita Valley (00:49):
You'll be able to find all the information there, search for real estate as you can on other websites. But the thing is, is you want to definitely make sure your personal information is protected and safe and anything you look at on my website, whenever you give up any of your personal information is always kept in my strict IST of custody, guaranteed. So it doesn't go anywhere. I'm not about spamming people harassing people. That's why I built a website. So you could go look at the real estate update all on your own. You want to search for real estate, taking that next level. Don't forget to save your search. That's important. And then get in contact with me when you're ready. We'll be able to take it to the next step. So let's get into this right here in the last few months, Santa Clarita a real estate inventory has been very, very low.
scv911 real estate experts in Santa Clarita Valley (01:31):
It has been low for the last several years. We haven't seen a stellar market as far as buyers having any kind of an advantage for quite a while, but we are seeing some uptick in traffic as far as real estate listings go. So up to a couple of weeks ago, we didn't have any more than 160 570 listings on the market for sale. I did pull that data here just a few minutes ago, 241 listings on the market of those 23 are coming soon. So the coming soon, typically in Santa Clarita valley, if you aren't aware, usually means, especially in this constrictive type market, they're going to go onto the market Thursday or Friday of each week. They're going to have showings typically Friday, Saturday, Sunday, and Monday. Usually on Monday that evening, everything's put on hold. Those sellers are then communicated with given the multiple offers that have been received by the agents.
scv911 real estate experts in Santa Clarita Valley (02:24):
The agents then sit down and discuss with the sellers a countering strategy. So they're going to come to, I would go to my seller and I would say, listen, we have of these 22 offers, which right now in this market is not uncommon of these offers. These are gonna be your five best, your three best, or whatever it may be. And I believe looking at these offers, these are the ones we should counter. I will have already vetted the lenders. I would have already looked at the proof of funds for those down payment amounts, of course, the highest higher, the better. And if those particular buyers happen to take it upon themselves to remove, uh, their contingencies or some of them, including appraisal, they might come back and they might say, you know what? I want the property so bad. I'm willing to give up my right to have it appraised for the amount that I've offered.
scv911 real estate experts in Santa Clarita Valley (03:12):
In fact, I'm actually willing to inject more into this particular property than what the appraised value is. And I'll go all the way up to the amount I offered. If I have to put that in, in cash, we have a lot of buyers doing that on the other side of its coin, is it prudent? Well, it's, uh, it could put the buyers in a sticky spot, but you have to weigh the pros and the cons. And definitely, if you're my client, I would have a lot to tell you about that. In addition, I would have a lot to tell you about also removing any kind of contingencies or shortening those timeframes. There are places to do it. You can get away with shrinking them potentially in some areas, but if you give them up completely, these are things that need to be discussed. If in fact, you are going to be writing offers with me as your real estate agent Connor MacGyver.
scv911 real estate experts in Santa Clarita Valley (04:04):
We're going to have to talk about this because it could get you as a buyer into trouble. And ultimately you could forfeit the deposit you put down on the property. So you have to be careful. That's thousands of dollars. And in some cases, in some real estate listings, the agents are demanding that the buyer put down 3% and that's a lot. So you have to be careful, $800,000, three times eight 24. So you got $24,000 in deposit tied up in escrow. If you give up a lot of your contingencies or all of them, just trying to make the seller impressed with your offer, maybe you have offered the highest if you happen to pull out for any reason because you don't have any contingencies anymore, you could lose that deposit. Now, of course, getting the deposit isn't as easy as that for the seller.
scv911 real estate experts in Santa Clarita Valley (04:53):
But again, after all of a sudden do, if you did in fact, give it away because you waive these contingencies and you're legally bound to give it up, that's, what's going to end up happening. So get good advice out there with the agents that you're working with. So the real estate market is constrictive in this regard with very few listings on the market and a high buyer drive. Uh, the lower interest rates are also adding to that. We do have COVID that seems to kind of be coming to an end, that's impacting the market itself and we're seeing more listings. So now that 241 figure that I talked about being up from the hundred and sixties only, you know, two or three weeks ago, we see that number actually checking in. And it could be that if this number does increase and maybe double or triples, that amount, that we could actually see a relaxation in prices and the seller needle start to go, or the needle of real estate sales starting to move from the seller advantage closer to the buyer advantage.
scv911 real estate experts in Santa Clarita Valley (05:52):
This is probably going to happen at some point in the future. I don't see the market collapsing in on itself because there is a lot of equity here. In fact, the equity in the real estate market is very, very high. We have a lot of people going out there purchasing real estate, as you can see injecting a lot of money into it, and also either buying cash outright or having a lot of down payment. Those types of buyers typically will not foreclose. They usually hold onto real estate back in the last cycle back at 2006, 2007. The problem was that people were using a lot of hundred percent financing. So even if they could afford the payment and didn't want to foreclose, some of those loans were being called. If they happen to maybe have an 80 20, maybe that 20% down loan for that money, that they didn't have saved, that they were using a loan to buy the house.
scv911 real estate experts in Santa Clarita Valley (06:42):
Maybe it came due in a year or two or three or five. That being the case, if it came due and there wasn't the equity contained in their residents because property prices had come down since the height of that
market due to the foreclosures and those other issues, they're stuck. They can inject the cash to pay that off so they can continue with their payment. But a lot of those primary loans were also adjustable interest rates. Those also started to go up. So we have kind of the perfect storm back then, where you had the big subprime lender fail. After that, it was like a house of cards. Everything came down. This market isn't reflective of that. This market has its own issues. Now we're saying that buyers are going way above what they believe properties are priced for. Whenever I go out and look with a real estate buyer and they find something that they like, we look at it together.
scv911 real estate experts in Santa Clarita Valley (07:35):
My next step is to give them comparable value. Then from there, come up with a strategy, the best strategy to find out where we're going to be in our offer. How high are we willing to go? Because that seems to be what's winning. There's also another strategy looking at making that offer the best it can be. And that's where we talk about timeframes and changing things. Maybe lowering the number of days for different contingencies, like the inspection consented CN, maybe loan contingency. But again, that has to be vetted. If you're a real estate agent is going to change anything for a home buyer that has to do with the loan. Well, the real estate agent does need to talk with that buyer's lender and make sure that the lender blesses that. So the buyer doesn't get into trouble later. And when they remove this loan contingency instead of 21 days and 10 days, maybe the lender's not ready.
scv911 real estate experts in Santa Clarita Valley (08:26):
Now, the buyer's in breach of contract and there could be, again, an issue come up. There's a lot of things to talk about with regard to real estate in this particular market. At the end of June, we're going to see the forbearance start to come to an end. I believe a lot of those people have four and a half million. I believe I heard recently. Those are the people that are in Fort barons, that many mortgages, that being the case, those first payments are going to come due. July one. A lot of those people are, if they signed up at the very beginning of the forbearance rules, not having to make a payment because of COVID-related issues, they could have not made a payment for 18 months. So you have that dynamic. If that gets blown out of proportion, it could cause a lot of sellers to flood the market with real estate listings that they've been wanting to sell prior to COVID even starting, but they held off because refinancing numbers were low.
scv911 real estate experts in Santa Clarita Valley (09:18):
Let's go ahead and refinance. That's relaxed a little bit. We can take a breather. Well, now the time for breathing is over. If the media makes a big deal out of this, it could be. Or if it actually turns out to be something other than what I'm seeing, it could be that the properties start to hit enter this real estate market from sellers, because what do they want? Well, they want to get the highest price for their property and they definitely don't want to best the market. If you're a buyer, I say, stand fast, relax, take your time. And only buy right now. If you have to, if you're a real estate seller working with me, I would say the sooner you get your property on the market, the better we don't know what's going to happen. One final thing that we've talked about within my group here at exp, there are some issues coming up with the rentals in LA county, there was a moratorium on rentals.
scv911 real estate experts in Santa Clarita Valley (10:07):
If a renter couldn't make their payment, the F the owner of the property, the landlord was unable to foreclose. They stopped all of that. Well, that's going to be also ending here at the end of June, from what I understand. So that could also create another financial obstacle for a lot of folks that haven't
made their mortgage payment, or excuse me, their rental payment, maybe the landlords have also gone to their banks with those particular properties and gotten some kind of a forbearance enacted. So they didn't have to make a payment, but I don't know the rules and regulations, how many properties they were able to include or exclude from that particular drill. We'll have to find out and see where that gets us here. At the end of June, we're going to see a lot of, uh, the renters now having to step forward with their payments, the regular payments what's going to be done with that other money, with regard to the regular forbearance for mortgages, it's probably going to be put in an escrow account, or maybe modified in some way and put at the end of the loan, maybe, uh, it'll be required on demand.
scv911 real estate experts in Santa Clarita Valley (11:08):
If they happen to sell that property, then out of the proceeds, that amount of money, whatever was held and not paid over the last year, year and a half for these folks, it'll be paid at that time with the renters out there. I don't think they're going to have it so easy. And I believe landlords are probably going to be calling that a mountain Dew or taking other action. So we'll have to see how that plays out, but that could also cause a ripple in the market where these things are coming from. I believe it's going to be coming from extra inventory, entering the market for sale people, wanting to get that highest price, but are delayed and may be delayed because they're not seeing something that they want to purchase on the market for sale. We have a lot of that, but by the time something comes on the market for sale, if a seller is already for sale that wants to sell to buy something else, they're pretty much dead in the water because you have a lot of people that are selling and renting or selling properties and holding off, and then finding that right property, writing that offer and getting it accepted because they can take their time.
scv911 real estate experts in Santa Clarita Valley (12:07):
They don't have to rush, and they're also not contingent on having their home sell. They're also able to compete with more people. I hope this update helped. I am Connor MacGyver. SCV nine one one.com nine one. One comes from a history of law enforcement vacation. No, and Santa Clarita Valley or Southern California valleys. We are here for all of the states of California. We're headquartered in Santa Clarita, the greater Los Angeles area. If you need me, please reach out to me. You'll find all my contact information that SCV nine one, one.com. I'm with the XP Realty. It's always a pleasure. And we look forward to speaking with you next week. If anything comes up, meanwhile, it's going to be posted right here. So just look below the video for any additional texts or maybe additional videos of new developments in the real estate market. When you're ready, please contact me. If you know anybody else out there ready to buy or sell or wanting to, or just kicking the tires, let them, let them call. I'm here to talk to you. Some things.
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