I’m proud to be one of your real estate sources for intel and to give you the overview of the local Santa Clarita and Los Angeles real estate markets.
When a person interested in real estate starts looking at numbers of new mortgages versus time of the year, they need to look closer at the specific market dynamics.
There are several items I look at before speaking with my real estate clients on our Housing Radio show or in person.
Days on Market – How is this time frame currently? Is it taking longer to sell homes? Maybe it’s taking less time to sell homes, overall.
Cancelled Escrows – When a home enters escrow, there are times in which they don’t make it to closing. Sometimes those escrows are cancelled and the homes re-enter the real estate market. I want to know why. Is it an issue of the home, whereby the market had no influence over the escrow being cancelled? OR was it because of the real estate market and potentially more “suitable” listings entering the “for sale” market?
Buyer Drive – How are the buyers buying? What types of loan programs are they using? Why types of buyers are they – Move Up, Relocation, Downsizing, empty nesters, some other class?
Looking at the overall market is really important. Breaking the market down into a local area is even more important. To paint all real estate market with the same brush is not a good idea.
We focus our efforts on the Santa Clarita Valley. This is where my family and I live and where we have raised (still raising) kids. Santa Clarita is our base of operation for our Real Estate business. I know it intimately.
Seasonal impact on the Santa Clarita real estate and housing market slowing would pertain to “traditional yearly factors”. Meaning, at this time of year, for the majority of years, a certain real estate event is able to be seen.
The current event which has been researched by those watching the new home mortgages being opened (originated) is that their numbers have slowed. And that “slowing” is a typical event this time of year.
That is True. That is what is currently happening within the re-sale world and with the new homes at the new home builder communities.
What’s changed in the market
While the interest rate impacted the market some, the majority of the current slowdown is the direct result of school registration opening and placement decisions needing to be completed.
How long does it take to buy a home?
If you are wanting to buy a home today and were to go out with our team or your realtor of choice, it’d take you approximately 45 days from start to finish. That would be the time frame if the escrow was one that wasn’t burdened with interruption. Interruption like changing rates, delayed responses to items requested or non performance by sellers or agents.
If you are using a conventional loan – 20% or more down, a lender maybe able to close that home in 30 days.
If you are going with a loan which is granted by the VA or FHA, or less than 20% down conventional, you will be at 45-60 days.
When schools go back in to session, you will see more of a slowdown. Days on market timeframes will increase through the Fall and Winter.
The real estate market will become hot again close to the end of the 1st quarter of 2018.
We are still in high demand. While the market maybe cooling off. My team and I are still in high demand. A fact for which I’m Blessed!
Please reach out to me when you are ready for our crash course on real estate. Even if you are not going to be purchasing for at least a Year from Now – it’s still a good idea to attend to know what you need to work on to put yourself into the best alignment possible.
This goes for those of you who don’t know if buying or selling is for them, but have gotten the itch. My crash course on real estate, held in my offices in Santa Clarita Valley or where you would like, takes 45 minutes. It’s awesome.