We have been working in the real estate business since 1998. Representing real estate buyers and sellers for homes and residences in the Santa Clarita Valley and within the other Southern California Cities.
During that time we have seen that representation without a research component is where most agents fail their clients. Without market research and watching the various dynamics of any housing market, the agents will ultimately fail their clients.
As was said to me by a tactics instructor, “I’d rather be lucky than good…” Personally, In real estate I would rather be good than lucky. That is why we are constantly working hard to ensure our clients are well protected and covered in the best possible ways when they are preparing to buy or sell Santa Clarita real estate.
How is the current Santa Clarita market?
Inventory is seriously lacking in the Santa Clarita Valley. We have seen this trend for the past couple of years. However, the lacking inventory and the high home buyer drive does a seller good 🙂
We also see that home buyer affordability is suffering due to the increasing mortgage interest rates. Some buyers who were buying in the $500,000.00 range are now approved for $450,000.00 due to the .5% interest rate increase. Those real estate buyers in the other price ranges are experiencing similar effects from the Mortgage Rates increasing.
Tip: If you are a current home buyer and have been approved but have not spoken with your chosen real estate lender lately. Call them and make sure they freshen up your approval. Most likely you will still be approved, but your “purchase power” may have been constricted.
Some conjecture in the real estate news circles is that during 2017 we will still home prices rise, but at a slower pace than we observed in 2016. This remains to be seen. The impact from the increasing interest rates due to a strong Stock Market, will have to play out. If real estate buyers recoil due to the increasing interest rates, home prices will not increase, they will be reduced.
With higher interest rates there will be more “creative” lending programs. There are a lot of “rules” when it comes to lending and real estate. A lot of new rules were implemented as a result of the last fall of the real estate market which kicked off in early 2007. If buyers are not able to buy with the current lending programs, there will be new lending programs created out of necessity.
Of course, a home buyer will still have to qualify. Income, tax returns, employment, debt to income, all of those items and others will have to be property vetted by the real estate lender. Where the lending programs will change will be in the “terms” column. Maybe more adjustable rate mortgages entering the lending world. Maybe other loan programs which call on multiple loans to assist with down payments and Property Mortgage Insurance(PMI) costs.
Tip: if you are going to get a “new” loan program. A loan program other than a 30 year fixed, make sure the lender explains it all to you, completely. While there are still a lot of restrictions on the banks which loan and lend money to real estate buyers, it’s not “straight jacket” tight.
Our calls have increased by those who are in the Millennial Group. I should say “texts” and “emails” have increased to me by those in this group. Some inquiries are also via video chat and face-time. In the Santa Clarita Valley this group will be fierce wanting to buy or rent real estate. That’s why it’s important to continue to the “full disclosure” real estate business model which we have. This group is not shy about “double checking” what they are told via other sources, besides the agent they have hired.
Tip: If you are looking up information online, make sure you track down the source of the information. If the person writing is not an experienced representative of real estate buyers and sellers, and a Realtor, you are getting bad information. There is something to be said about direct experience and having been tried by fire. Also the quality of representative whom wrote the article or post is important. Double check any info with your hired agent, just to make sure you are not being misled. You will know by their reaction whether or not they are being truthful or misleading you. Remember, if it sounds too good to be true, it probably is.
We are indeed excited to be of great assistance with your Santa Clarita real estate needs during 2017 and beyond. Make sure you tune into our real estate radio show. When I complete a Santa Clarita and Real Estate market video on youtube, I typically take the audio and upload that to our HousingRadio.com channel on Soundcloud so our real estate clients and others can have the most accurate and up to date real estate news and information. I’m Connor with HONOR and I’m glad to be at your service.