Santa Clarita agent Connor T. MacIvor fame 08.2021 (00:00):
Good to everybody. Connor MacGyver here with exp Realty, Santa Clarita, home experts.com for all the news and information regarding local real estate. Here in Santa Clarita, please go to SCV nine one one.com S C V nine one one.com. I'll post all of these updates and you can see the ones we've done in the past. There's a connection point to our radio show as well, where I take basically these videos and I strip out the audio and I plug them at a different podcaster, uh, podcast networks, iTunes, for example, Stitcher radio iHeartRadio, those sorts of platforms. So people get all of the information about real estate here in Santa Clarita valley. Now, right now we're at August 9th, 2021. This is your weekly broadcast for real estate. Today. We're going to talk about real estate inventory what's going on in the market and potentially what's going to be coming up here in the future.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (00:49):
If I have that crystal ball that was never wrong. So I'll explain that to you. Also, currently in Santa Clarita valley, we do have a very tight seller's market, uh, meaning that there's not much inventory and a high buyer drive. So there's a lot of buyers out there looking for real estate. And in fact, when we list a property and I start getting the calls from the agents, you can hear the panic in their voices because a lot of them have been working with buyers for a very long time, showing them lots and lots of properties, writing lots and lots of offers. However, those offers aren't getting accepted for one reason or another two, probably have the biggest reasons offers aren't accepted on real estate today. It's not as high as the highest offer and potentially they didn't remove the appraisal contingency. So those are two things that really make a difference today, whether you should or should not remove it, appraisal contingency, that's totally going to be up to the buyer.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (01:51):
There are certain loan programs that won't allow it. So maybe a phone call to your lender to find out if that's possible for you to even do. And what that would actually mean is whatever the difference is between the appraised value and what you said you would pay because those numbers could be different. Whatever that amount is, you're going to inject cash into the transaction prior to the close of escrow, to make sure it finishes and you'll make a bet difference. Some buyers don't have the wherewithal to do that. Some buyers are unwilling to do that. Usually, people stop at appraised value, but with this market, there are buyers out there that are willing to go all the way. In. In fact, there are buyers that we've seen and actually remove all of their contingencies, right from the beginning, which is a really big deal.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (02:39):
Giving an example, what that looks like. Let's say they put down to be positive whenever you're purchasing real estate, that deposit is what, what the handshake used to be back in the day. So the deposit is basically yes, icon or MacGyver promise that this is the house I want to buy. And I give the show, the seller, a showing of proof that I'm very interested. So instead of a handshake, what I'll do is I'll say, listen, I'm going to deposit a sum of money into the escrow account prior to us, really even starting much of anything to let you know that I am serious. And this is after my offer spin was accepted. So I have a certain amount of time to do that after escrow opens or after the contracts are ratified and everything's executed. And then I inject that $10,000 in, well, backing up to the offer that I made.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (03:29):
For example, if I'm going to include myself as the buyer in the scenario that removed everything, I could put that all contingencies are hereby removed and I'll add that document to the offer. So basically if on day two, I discover something that makes me not want to buy the property. I will potentially forfeit that $10,000. If I contact the seller's agent through my agent and say, listen, I don't want to buy the property anymore. Whatever that may be, whatever that reason may be. So that's what removing all of those contingencies does. And that's a that's, that's a pretty hefty place to be. That's a big world to play in there. So you've got to be careful if you're going to start approaching real estate in that manner, but people do out of the shoot, they will do that. They know this is the house they want.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (04:21):
They don't want anything to interrupt it. So they will remove all of those contingencies out of the gate. It's not as common as people maybe just moving their appraisal contingency and taking timeframes and shrinking them down to maybe instead of 21 days to get a loan, maybe 15, maybe instead of 17 days to get their inspections done. Maybe 10, those sorts of things. We see that quite often, but that's the market that we're in. We have little inventory. In fact, I'll give you those numbers real quick, August 9th, 2021. So in the last seven days, this is the activity and this is going to include all the center, creative valley cities. We've had eight price changes. This is up from last week and the price changes. Um, you might wander up or down to increased and six down. So it looks like the market's starting to have some kind of an adjustment potentially.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (05:15):
We need a lot more than a week to be able to make that decision, but we'll see what the trends net week next week reflect seven new listings came on the market, seven listings closed. So we're at zero. As far as positive any listings, there are, uh, like I said, seven new listings. Um, these are active status listings, not coming soon listings. And the active listings that went into escrow, meaning they hadn't accepted contract on them were six pending properties that were switched from active in escrow or just over to pending. That was seven. And then of course, uh, seven properties closed escrow at one property was put on hold total on Santa Clarita Valley cities, guests at canyon country, new hall, saga Stevenson, Rancho Valencia, the core cities, uh, 304 total for the sale of those 26 are coming soon. And that would give us 273 active real estate listings.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (06:11):
And if you look back to a couple of shows ago, we were somewhere in the two twenties to thirties. So that is an increase, not a huge increase in order to take this market and push it back into a buyer's market, giving buyers more advantage. We need more competition. There's very little competition. In fact, sellers, most of our sellers that we're advising to sell their property today. If they contact us and want us to get a listed and ready to go, usually there's very little that they have to do as far as money-wise to prepare the property for sale. We just say basically Q-tip claim and declutter and depersonalize. Those are the three most important items for sellers in this market. Even if the home is data, just because there isn't anything to compare it to. There's no other competition out there on the market. Now, if there were five or six of the same type of residents, all in different kinds of repair, for example, maybe yours, you've done nothing to in 30 years, maybe the other four have had everything done to them over the past 30 years.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (07:15):
So everything's updated. It's either going to be you updating certain items to get more money out of it, or you taking the hit on the other side, all of those markets, though, can be worked on paper to see what it's worth. Is it worth it for you to put that time in listing that property? Now I promised you, as we get into this year, I was going to explain to you kind of some things that are coming up, kind of in that crystal ball approach. So let me do that. But before I jump into that, let me give you those online resources again. So if you're looking to get that real estate update, the real estate news it's SCV nine one, one.com. I'll take this video and other videos like it, and I'll put that on that page. So you'll have this data and you'll be able to watch it to find out where the market is.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (08:00):
I'm Connor MacGyver with exp Realty, our main site, which is also accessible at SCV nine one, one.com is of course, Santa Clarita, home experts.com. There you'll have your search engine. You'll be able to look for real estate. If you want to see the coming soon stuff, that's something that's going to be a little bit different. Email me, text me, or call me and give me your criteria. And I'll be able to set you up on that coming soon search. So at least you can be made aware of listings prior to them coming onto the market. Not all listings are put in that status. Some listings are not some just go live right away. It's going to depend on the listing agent and the sellers strategy as far as wanting to sell the residence. So these are things to see, and I can send those coming soon listings to you.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (08:46):
And then again, it could encompass up to 21 days prior to these properties, hitting the market for sale. Other avenues online, we have a lot of systems at Santa Clara, home experts.com. We have our blog, which basically we take every video. We do radio shows. We pull out the, uh, the text from it, have them transcribed, put that on there, and then also embed the show. And then you can search for houses, property, valuations, everything that you can do on the other syndication sites you can do on ours, ours, maybe a little safer because I'm it. I'm the one that sees your personal and private information. That's all go to other syndication sites, Zillow, Redfin. There's a lot, a lot out there. And that information is sold in some of those cases. So be wary. You don't want your personal information floating around online, and then you're followed everywhere.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (09:36):
You do one little search for real estate and all of a sudden Facebook, Instagram, tick-tock, they're all showing up with real estate ads just for you just built for you. Right? Funny. Alright, so here we go. It was the end of June, June was supposed to be the end of the forbearance and forbearance. If you don't recall, was the system that was put into place to assist people that were impacted by COVID forbearance was basically people contacting their mortgage or Fannie Mae or Freddie or one of their servicers and saying, Hey, listen, I can't make my payments because of COVID it's impacted my livelihood. So basically over the telephone, without any other showing of proof, whether true or not true, they went ahead and extended and said, you don't have to make a mortgage payment until further notice. So typically if you jumped on this in the beginning, you got a year that would have taken you to June 30th, and then now they've extended it to September 30th of this year.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (10:32):
So that's an additional three months. What that's going to mean to the real estate market could be a few things. It could be that a lot of those properties at the end of the time, still the property owners can't make the payment. Maybe they hadn't been saving. Maybe they still haven't recovered from
COVID that being the case, those properties could potentially be sold by the bank and a foreclosure type process sold to the banks. Another bank may be in some kind of a strategy, a bulk sale, for example, if there's enough of them. So there's a lot of things that could happen with those properties. There was a letter written from what I understand by Fannie and Freddie basically telling their service, there's no foreclose do your best to work it out with folks because they don't want to put this market into a tailspin.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (11:14):
Like what happened back in oh six and oh seven? The big critical difference is we have a lot of money in this market. There wasn't a hundred percent financing leading up to today. We had a COVID virus leading up to today and we had a lot of people not putting their houses on the market-leading up to today because of COVID. So the market is naturally lacking in listings. If COVID wouldn't have existed, it looked like last year, at least up into March, we were getting more and more listings on the market. And we were probably going to break a thousand throughout the year. And that would have probably made more of an even market where we wouldn't have seen these price hikes that we're seeing back to the ending because of the equity in the mall market. I don't see a big foreclosure issue coming up if any.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (12:00):
Uh, what I do see though is where the market's going to start to falter just a little, not huge numbers, but reduce is potentially going to be BXS numbers of listings that people have been waiting to put on the market, but having most of those people reified. So they're kind of sitting pretty right now, but eventually, they're going to get to critical mass. And they're going to say, you know what? I really need to sell. And they're going to put those properties on the market, not wanting to miss where the market is. Currently. Multiple offers people offering 80, 90, a hundred thousand dollars more than actual appraised value. And they're willing to pay that cash out of pocket. That's a tough market to mirror. As we get into the future interest rates could go up a little bit. They're talking maybe next year. So this year we're probably pretty safe with regard to that.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (12:46):
The thing that they can't control though, is going to be that excess of inventory. If in fact, that does happen and you know how that works, one person neighborhood goes up for sale, and then everybody else has all my gosh. We don't want to miss the boat. We better sell ours too. Now you have five or six properties that are all competing with one another in this market. Currently, it's going to take a lot of that scenario to transpire in order to have maybe the market start to develop longer days on market, because there are plenty of buyers out there. I think that's ending September is going to be the rental moratorium on COVID. So the renters that are out there renting properties, that haven't made a payment to their landlords for a while. They're going to have to start again. So some of the rumor is a lot of the people that couldn't even during this time may have to actually foreclose on these properties because they've lost their wherewithal to be able to keep the property.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (13:40):
Now that doesn't answer the question, whether or not there's enough equity in it, because this is an equity-rich market. So we'll have to see how that plays out, but whatever you hear online on the news, wherever your sources for real estate information, grain of salt, don't get too deep into anything because nobody really knows what's going to happen the best guess is that inventory is going to be the one that's going to drive prices down, but it's going to be minimal also interest rates. That's probably not
going to happen until 2022, and it's not going to be a massive amount, some huge hike. It's going to go nice and slow and easy. I'm Connor MacGyver. This has been your weekly real estate update exp Realty here in Santa Clarita, California, when you're ready or if you know, somebody just have them reach out to me, I'll be able to get everything set up, explain to them the process of selling a house best ways, best practices, and also best ways to save money and on the buyer end of it.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (14:32):
We represent buyers as well. So I will help you purchase either new housing, resale housing, or whatever it may be. Here's a tip whenever you want. I go out to new housing whenever you sign in, make sure that they know your references, buy a real estate agent, make sure that they know if you're going to be using me. That is Connor MacGyver is the agent that you're selecting to represent you. And then more than likely, they're going to say, we'll put Conner's name down as your representative or they'll say, well, Connor has to contact us. And I will. This is changed from the days where we could all go together and look at new housing. We can still do that in some parts, but as far as five points, some of the other areas out here you're unable to. In fact, the buyer has to actually app with the builder's lender before getting access.
Santa Clarita agent Connor T. MacIvor fame 08.2021 (15:18):
That would be the time I would go with you after we're granted access. After you actually went ahead and apt with the builder's lender food for thought I'm Connor. I can explain much more about all aspects of real estate. I've been doing this since 1998, formerly of law enforcement LAPD, but I'm here to help whenever you're ready. I want to protect and serve your real estate needs. Thanks for watching please tune in next week, we're going to have more of a show and we'll talk about more of the real estate market, which is definitely my passion. Everybody has a great week Connor MacGyver over now.