Not that the FED was responsible a few days ago with increasing mortgage interest rates. They weren’t and they did not. Rates are still under 5%.
They are not speaking about the lacking of equity in the current homes owned by their owners. In fact, there is a bunch of equity due to the lack of 100% financing, which stopped after the fall of the last real estate cycle. For a person to buy a home, they are going to need to come in with some funds, or a gift.
There is no talk of the price reductions in the local market, except that “prices are reducing in vast numbers”. They are not speaking of those price reductions as listings that were overpriced in the first place and needed to be adjusted due to them not being shown.
Not much is being said about the local housing market and new additions to local real estate inventory being the reason why competition is higher. In fact, in the past 6 weeks – we have seen over 200 new additions to real estate inventory – the average amount. We had less than 500 units for sale and today we have 684 active real estate listings for sale in the Santa Clarita Valley cities.
The high buyer drive, those buyers that are needing the mortgage interest tax deduction. Those home buyers who are doing the math find it makes more sense than renting when the local rental markets are flourishing and those homeowners are making a killing.
A Bubble you say? No, no bubble here. Interest rates are way too low. The economy is awesome. Inflation will increase, but we have had inflation before. The world is not coming to an end.
Furthermore, there is a lot of talk about properties just sitting and not selling. That is not entirely accurate at face value. It’s now taking longer for homes to sell because of buyers having more to select from. The buyers have more to select from because there is more inventory on the market for sale. When it took hours during the first two quarters of 2018 for homes that were priced right to sell, now it’s taking days to weeks. The market is not going to fold because of this.
Look at all the Santa Clarita Open houses being held!
Competition is good and healthy. There are more reasons as to why our market should be labeled Robust and not “pending doom” than imagining reasons why we are headed for a financial cliff.
My process – revealed
Of course, I have an interest in the real estate market. You may opine that my interest is 100% money related. If people aren’t buying homes then I’m unable to make a living, you may think.
That is not entirely true. I decided before I got into the real estate business to only deal straight and fair with people. I also found out quickly that no matter the market, there are people wanting to take some action with regard to real estate that will need my help.
I am very good at finding those people in any real estate market. Therefore, I don’t have to BS anyone in reference to them “having” to Buy Now or Sell Now.
I’ll be here for you when you are ready to embark on your personal Santa Clarita real estate journey. I’m Connor MacIvor and I have been representing home buyers and sellers since 1998. The reason that we became Realtors was that we were taken by the agent that represented Paris and I. I vowed to never let it happen to anyone that was working with her and I. I also was a cop for the LAPD and have “protect and serve” at the center of my being.