December 2024

This is a weird post to write, but I've had a wonderful ride with you all. As of 12/31/2024, I am officially retiring. I started my career helping people in and out of homes in the Summer of 2002. My Real Estate license with the state of California expires in the Summer of '26. I am thrilled not to have to take a bazillion hours of continuing education to extend it again!

I worked my tush off to help you all. Real Estate is very stressful, and although I don't regret a single moment of it, I'm ready to lead a more relaxed life. In our Tennessee Lake House.

Those tiny people are me and my Big Sis!

About 10 years ago, I started thinking about how my retirement was going to pan out. And, with much research, I realized that one of the most important things was to find a replacement for me. Someone that would care for each and every one of you and provide the same service that I always did. I met with several, and have been lucky enough to find two. You should know them by now.

     

My most awesome Realtor family!

Leslie Babikan and Jennifer Herring

Both of them have been working with me for a few years now. They've been the boots on the ground for our clients. And, every single one of my clients have adored them both. I am so happy and you are all so fortunate!

For me, what will I do now? Um, as little as possible. If you have real estate needs, reach out to any of us. If you call Leslie or Jennifer directly, let them know you are one of my peeps. They'll want to know 'our' story. Trust me, they like to know the background!

I plan to be painting more, puzzling a lot, reading bunches, and most of all? Relaxing. I'm overdue for that.  If you follow me on Facebook (I deleted X & Instagram from my phone), you'll know I colored my hair again. Not sure how long that will last. But, here's a recent picture of me when my eldest son was visiting last Summer and we took he and his wife out on our boat.

And, these were the most recent water color paintings I did. One was from real life. The other I was inspired from an artist I found on Instagram but can't recall their name.

Thank you for trusting me, and my 'family' recently as well. This last two decades have been wonderful helping you and your friends. I am hopeful that you will continue to trust me, by working with Leslie and/or Jennifer as they were both chosen for you.

Much Love Always. 😊

Mostly Pictures Today! 2025 Paint Color Predictions.

So, it's about time to talk about what the 2025 Colors are anticipated to be. I figured I'd show you with photos!

They've all been given fancy names by the paint company of course, but, until you get to the last one, they are all very, very bold. IMHO. I call them: Baby Poop Brown. Black. Dark Blue. Dark Brown. Burgundy. Salmon. Maybe Mustard. 

 

   

   

This one!!! 👇👇

I call this one Candy Cane Vomit.

"Forget Barbie hot pink! 2025 is all about embracing candy-colored accents. These bright tones feel electric in a room while also serving as a whimsical departure from the grays and midtones of years past. Wadden says, "We talked a lot about pops of colors over the last few seasons, unexpected red theory, Barbie pink, and think that playfulness is allowing people sort of the permission to take a little more risk with color."

Sherwin Williams's Paradox palette, a part of their 2025 Colormix® Forecast: Capsules, exudes this trend as it features delicious shades like Dragon Fruit, a juicy pink shade, and Euphoric Lilac, a mesmerizing purple."

This post is a reminder to ask us first, what color you should consider painting,

 when prepping your home for sale. 

Ask Us First! 

Market Minute Write-Up ~ California Association of Realtors

I try and share these with you about once a month. This one is from Monday of this week. FULL OF INFO!!!

October 21, 2024 – California home sales dropped to the lowest level in nine months but will likely improve, albeit slowly, as the market enters the final quarter of 2024. In the latest sale & price report, the number of opened escrows once again exceeded last year’s levels for the third consecutive month and point to an increase in home sales in October. The median home price in California continued growing for fifteen consecutive months, but at a more moderate pace, and is expected to continue moderating for the rest of year. With prices expected to soften and rates likely to normalize by the end of the year, the fourth quarter is a window of opportunity for homebuyers on the sideline to re-enter the market. In the broader U.S. market, housing starts dipped 0.5%, with single-family construction holding steady while multifamily development slowed. The economy remains solid with retail sales showing strong growth, despite concerns about consumers’ financial wellbeing and a slowing job market.

California home sales take another step back despite falling mortgage rates: Closed escrow sales in September for existing single-family homes in California dipped 3.4% month-over-month and reached an annualized rate of 253,010. This was the lowest sales level in nine months despite mortgage rates falling below 6.5% for the first time in over a year in August when most sales opened escrow. On a year-over-year basis, sales rose by 5.1% and nudged the year-to-date sales figure up 0.9% through the first nine months of the year. Meanwhile, statewide pending sales surpassed last year’s level for the third consecutive month, suggesting an increase in closed sales in the month ahead. The rebound in mortgage rates since early October, however, could slow sales’ growth pace and may result in softer-than-expected housing demand in the fourth quarter.

Slower price growth creates opportunity for homebuyers in Q424:  The statewide median home price in September continued to grow year-over-year for fifteen consecutive months, with an increase of 2.9%, which was the smallest gain since July 2023. On a month-to-month basis, prices dropped 2.3%, a dip larger than the historical seasonal decline observed in more than five decades. A smaller share of higher-priced homes in the mix of sales could be a contributing factor on the slower growth in the overall statewide median price. Housing inventory, on the other hand, has been improving steadily in recent months as the market enters the off-peak homebuying season which also might have applied downward pressure on home prices. With home prices expected to ease further in the coming months, the fourth quarter may present a good buying opportunity for those who have been on the sideline, especially since interest rates are expected to gradually move back toward their historical norms before the end of the year.

Mortgage rates surge to highest levels in three months: Mortgage rates have risen sharply since early October as hopes for a big rate cut by the Fed continues to fade after the release of a strong job report. The average 30-year fixed rate mortgage (FRM) on October 21, in fact, surged to the highest level since July, according to Mortgage News Daily. Rates have gone up from near 6% in mid-September to almost 7% for top-tier 30-year fixed loans. Today's sharp increase came without a clear explanation, as no significant economic report or event was released or took place that triggered the jump. While several theories have been proposed, including shifting election odds, options market dynamics, and concerns over U.S. deficits, none seem sufficient to explain the rapid rise. This marks one of the largest rate increases in recent months, particularly on a day without a major economic catalyst. Rate fluctuations could continue until after early November, as the upcoming jobs report, the presidential election, and the Federal Reserve's rate announcement are all key events that could create volatility in the market.

US housing starts ease on decline in multifamily construction:  In September, overall housing starts dipped 0.5%, reflecting a pullback from August's significant rise. Single-family construction, however, remained resilient with its second consecutive increase, primarily due to its three-month uptrend in permits. Lower mortgage rates, driven by the Federal Reserve's easing cycle that began in September, are expected to further boost single-family development despite ongoing financing challenges. In contrast, multifamily construction continues to struggle, with declines in both starts and permits as higher vacancies and reduced credit access weigh on new projects. Although some regions, like the South, show stronger activity in multifamily permits due to population growth, the broader trend for multifamily development remains weak. Builders remain optimistic about single-family housing, with the NAHB Housing Market Index rising in October, signaling improved expectations for the future.

Retail sales post solid gain, showcasing a resilient economy: U.S. retail sales exceeded expectations in September with a 0.4% overall increase, and posted a stronger-than-anticipated 0.7% increase after excluding sales at auto dealers and gas stations. Control group sales, which align with consumer spending in GDP calculations, also rose 0.7%, marking the largest increase in three months. Despite concerns about consumer financial health and potential labor market weakening, consumer spending remained resilient, as 10 of the 13 major retail categories saw increases. However, auto sales remained flat, and gas station sales declined, largely due to price fluctuations. Overall, consumer spending continues to support economic growth and will likely be reflected in the GDP number for Q3 to be released next week.

Santa Clarita Home Sales Activity - October 2024

Yep, I was out of town camping last week so I missed this blog post! But, here ya go!

First off, what a difference a year makes!

And, second, all communities including Acton to the East, Stevenson Ranch to the West, Newhall to the South, and Castaic to the North, are included in these numbers.

Coming Soon - 14

Active - 608

Pending/In Escrow - 331

Sold in the Last 30 Days - 219

And, sharing last years info for you here ...

October 2023

Coming Soon - was 12

Active - was 342

Pending/In Escrow - was 258

Sold in the Last 30 Days - was 209

So, in case you can't see BOLD fonts on your screen, we have almost double the amount of homes available for sale this year than we did at the same time last year. The other numbers are pretty similar. Just the number of Active.

One thing I've learned about Real Estate in the last 22 years? It's constantly changing. There are what we consider norms, but it still is an ever changing strategy to buy or sell a home. Ever Changing.

Need help, jingle. Wanna chat, holler. Have questions, you know how to find us!

The Flip Side to Lower Rates For Buyers

After months of sitting on the sidelines, many homebuyers who were priced out by high mortgage rates and affordability challenges finally have an opportunity to make their move. With rates trending down, today’s market is a sweet spot for buyers—and it’s one that may not last long.

So, if you’ve put your own move on the back burner, here’s why maybe you shouldn’t delay your plans any longer.

As you weigh your options and decide if you should buy now or wait, ask yourself this: What do you think everyone else is going to do?

The truth is, if mortgage rates continue to ease, as experts project, more buyers will jump back into the market. A survey from Bankrate shows over half of homeowners would be motivated to buy this year if rates drop below 6%.

With rates already in the low 6% range, we’re not terribly far off from hitting that threshold. The bottom line is, that when they drop into the 5s, the number of buyers in the market is going to go up – and that means more competition for you.

That increased demand will likely push home prices up, which could potentially take away from some of the benefits you’d gain from a slightly lower interest rate. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains:

“The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.”

So, while waiting to buy may seem like a smart move, it could backfire if rising prices outpace your savings from slightly lower rates.

Right now, you’ve got the chance to get ahead of all of that. Today’s market is a buyer sweet spot. Why? Because a lot of other buyers are waiting – which means not as many people are actively looking for homes. That means less competition for you.

At the same time, affordability has already improved quite a bit. Recent easing in mortgage rates has made homeownership more accessible. As Mike Simonsen, Founder of Altos Research, says:

“Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.”

And while the supply of homes for sale is still low, it’s also higher than it’s been in years. According to Ralph McLaughlin, Senior Economist at Realtor.com:

“The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”

This means you now have more options to choose from than you’ve had in quite a while.

With fewer buyers in the market, improving affordability, and more homes to choose from, you have the chance to find the right one before the competition heats up.

If you’re waiting for the perfect time to buy, it’s important to understand that timing the market is nearly impossible. The longer you wait, the higher the risk that market conditions will shift—and not necessarily in your favor. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“It’s one of those things where you should be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”

Don’t wait until you have to deal with more competition and higher prices – you already have the chance to buy a home while we’re in the sweet spot today. Connect with us to make sure you’re taking advantage of it.

Reach out to us today to see if this 'Sweet Spot' is your time!

Instant Reaction: Mortgage Rates NAR

Jessica Lautz

Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.

Content by Jessica Lautz

Facts: The average 30-year fixed mortgage rate from Freddie Mac fell to 6.08% this week from 6.09% last week. At 6.08%, with 20% down, a monthly mortgage payment is $1,935 on a home with a price of $400,000. With 10% down, the typical payment would be $2,177.

Positive: This is the lowest weekly average since September 2022. Interest rates are down 1.71% from October 2023. The savings on a $400,000 home would be $366 monthly and $4,392 annually. The mortgage interest rate one could receive this week is well below the historical average (dating to 1971) of 7.72%.

Negative: Mortgage rates are not likely to come down in a meaningful way for home buyers. While there could be minor reductions in mortgage interest rates, those waiting for further improvements in affordability could be priced out further as home prices continue to climb.

Just blogging & sharing info I think you'll find valuable.

Reach out to us for any questions, thoughts. needs

KeepYourWitz@SBCGlobal.net

(661) 313-5470

 

Laundry Rooms ~ Fancy Schmancy, or Work Horse?

So, I was perusing through Houzz looking at home stuff. Yeah, I like to do that. Our home in California has room for washer/dryer/sink and lots of cabinets. Our lake house home has that, plus a built-in ironing board and a long counter. With a linen closet and space for another folding table AND a chest freezer. Well, and TWO windows too.

As much as I'd love to 'decorate' both our laundry rooms, I just don't. If I'm selling a house, then heck yes, I'll even stage a laundry room!

I dig the sink in this and the open shelves, 

but you give up too much cabinet storage in this design.

The wallpaper on this one caught my eye. 

Wallpaper is making such a comeback!

My pups would totally sit in there 'helping' me do the laundry!

Dang, this is super fancy-schmancy!

Under cabinet lighting in a laundry room?

I LOVE this one. Absolutely love it. 

But, nope, wouldn't bother with cutsey-pie decor!

California house. 

Resting a basket of flowers heading out to stage someones house!

Lake House. 

Biggest laundry room I've had EVER!! 

But, see? No decor!

If you want even more ideas, enjoy the Houzz article below!

8 Exceptionally Pleasing Laundry Rooms

Market Minute Write-Up From C.A.R.

You'll be able to tell that these are not my words, very quickly. Well, if you have read my posts over the years you'll know.

From September 09, 2024 – The market has been relatively quiet in the lead-up to the Federal Reserve’s meeting on interest rates next week. Although recent economic data remains relatively strong, markets remain optimistic that the key policy rate will be cut by the Federal Open Market Committee. This has already begun to have a positive impact on the market as signs of homebuyer demand have perked up in recent weeks. However, prices continue to rise as well and that has helped to keep homebuyer sentiment restrained. The full benefit of lower rates will continue to play out in the coming months, but fortunately, the anticipated uptick in demand is also poised to be met with additional inventory, which is also slowly being unlocked as interest rates normalize.

Jobs data shows labor shortage shrinking: Two separate reports released last week show that the labor markets remain relatively healthy, but that the labor shortage that has driven much of the remaining inflation has eased. Headline job growth in the Commerce Department’s latest release came in at 142,000, which is slightly slower than during the first half of 2024, but remains in positive territory. At the same time, the report on job openings showed that there are fewer unfilled positions. In May of 2022, there were roughly 6.2 million more open positions than there was unemployed labor supply that was looking for a job. Last month, the shortage dipped to just 510,000 and was the first time the U.S. economy has been less than 1 million workers short since the economy reopened in earnest back in 2021. This should help inflation to keep trending toward the Fed’s 2% target as we approach the end of the year.

Interest rates continue their slide: As all eyes turn to the Federal Reserve’s Open Market Committee meeting next week, bond prices have risen in anticipation of a rate cut and mortgage rates have benefited from a strong treasury market in recent weeks. Last week, Freddie Mac’s average 30-year fixed-rate mortgage rate held steady at 6.35% and today’s daily quotes were down slightly more, averaging 6.27%. This represents a more than 100-basis point improvement in rates from a few months ago, though most of the benefit of the upcoming rate cut may already be priced into today’s mortgage rates. Notably, average rates for VA and FHA loans have already dipped below 6%, which should also help to generate additional housing inventory as the so-called lock-in effect diminishes somewhat.

Mortgage applications and pending sales: Although the level of mortgage applications and pending sales are still relatively low, compared with the decade-high levels reached back when rates were 3%, they are holding up much better to the seasonal slowdown than has been the case over the past two years. In fact, as rates came down in July and August, pending sales began to re-accelerate with preliminary analysis showing another double-digit gain in pending sales last month. In addition, September mortgage purchase applications are threatening to exceed the prior year figures for the first time since May 2021. Regionally, most parts of the state are within the margin of error, but the Central Valley slightly outperformed the Bay Area and the Far North in terms of housing demand last month, with Southern California and the Central Coast landing in the middle of the pack.

Construction activity continues to lose momentum: U.S. construction spending remain soft, with the total outlays dropping 0.3% in July. The decline was worse than consensus expectations, as economists had predicted a monthly decrease of 0.1%. Residential construction declined on a month-to-month basis for the first time in four months after revision on prior months’ data, with the latest drop attributed primarily to the weakness in single-family construction. In July, spending on new single-family dipped 1.9% from June, while new multifamily was essentially flat from the prior month. On a year-over-year basis though, new single-family remained sharply higher than a year ago by 7.7%. New multifamily dipped from 12 months ago by 6.7%. The pullback in overall construction spending was due again to elevated interest rates, despite the fact that rates started trending back down in early July. Lower interest rates should help revive builder sentiment in coming months, but housing permits from recent reports suggest that building activity will remain weak in the short term.

Homebuying sentiment stalls despite an increase in mortgage rate optimism: The Home Purchase Sentiment Index released by Fannie Mae inched up in August as consumers felt more positive about the mortgage rate environment. The share of consumers who believed that mortgage rates will go down over the next 12 months increased sharply by 10 percentage points from July’s 29% to August’s 39%. Meanwhile, those who expected home prices to decrease over the next 12 months increased moderately from 21% in July to 25% in August. Despite an improvement in the optimism in future direction of mortgage rates, the share who said that it is a good time to buy remained unchanged at 17% last month. With rates moderating to the lowest level since April 2023 and home prices expected to come down as the market transitions into the off season, homebuyers’ optimism will hopefully improve in coming months. Those who said that it is a good time to sell also remained flat at 65% in August. The stall in home selling confidence could be attributed partly to seasonal factors, but homebuyers staying on the sideline might also be a contributing factor. 

So, what do you think about all of this info? Do you agree? Disagree? Have any thoughts to share?

It's That Time Again!

I try to keep you informed of all things Real Estate related. Was actually going to blog about the NAR Settlement again. Talked with Leslie for an hour and a half yesterday and that was a large part of the conversation. Seems so unfair to Buyers. So many are scraping to buy a home, particularly now, and this just hits hard. 

At any rate, it's that time of the month to blog about home sales in boiling hot😡Santa Clarita Valley and it's surrounding neighborhoods. Acton to the East, Stevenson Ranch to the West, Castaic North, Newhall South.

As of right now we have:

15 in the Coming Soon grouping - exactly the same as last month.

571 Active - that's 20 more than last month.

In Escrow we have 301 - 30 less than last month.

Sold in the last 30 days? 266, actually 25 more than last month.

Interest rates have dropped down, thankfully, market time is definitely a bit longer. Insurance problems are hampering, but getting worked through. 

We are here to help in any way possible. We are happy just to chat, consult, discuss. Whatever your needs are. Last week Leslie went out to talk to a prospective Seller, they have lots of work to do. Week before that Jennifer did the same, lots for the Sellers to discuss. Yesterday, I chatted with a past client about a landslide from a neighbor. See? We are happy to talk about all kinds of things.

Have a wonderful weekend!

Those Darn Mortgage Rates ~ What Rate Is Going To Motivate You?

You won’t find anyone who’s going to argue that mortgage rates have had a big impact on housing affordability over the past couple of years. Heck yeah, they sure have! But there is some hope on the horizon. Rates have actually started to come down. You should know this already though. Recently they hit the lowest point we’ve seen in 2024, according to Freddie Mac (see graph below):

And if you’re thinking about buying a home, that may leave you wondering: how much lower are they going to go? Here’s some information that can help you know what to expect.

Expert Projections for Mortgage Rates

Experts say the overall downward trend should continue as long as inflation and the economy keeps cooling. But as new reports come out on those key indicators, there’s going to be some volatility here and there. Oh goody, more volatility.

What you need to remember is it’s not wise to let those blips distract you from the larger trend. Rates are still down roughly a full percentage point from the recent peak compared to May. That is HUGE.

And the general consensus is that rates in the low 6s are possible in the months ahead, it just depends on what happens with the economy and what the Federal Reserve decides to do moving forward. They have changed their plan several times already, but hey, who's counting?!?

Most experts are already starting to revise their 2024 mortgage rate forecasts to be more optimistic that lower rates are ahead. For example, Realtor.com says:

“Mortgage rates have been revised slightly lower as signals from the economy suggest that it will be appropriate for the Fed to begin to cut its Federal Funds rate in 2024. Our yearly mortgage rate average forecast is down to 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.”

Know Your Number for Mortgage Rates

So, what does this mean for you and your plans to move? If you’ve been holding out, just waiting for rates to come down, know that it’s already happening. You're gonna have to decide, based on the expert projections and your own budget, when you’ll be willing to jump back in. As Sam Khater, Chief Economist at Freddie Mac, says:

“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”

As a next step, ask yourself this: what number do I want to see rates hit before I’m ready to move? Do you have a realistic number in mind?

Maybe it’s 6.25%. Maybe it’s 6.0%. Or maybe it’s once they hit 5.99%. The exact percentage where you feel comfortable kicking off your search again is personal. Once you have that number in mind, you don’t need to follow rates yourself and wait for it to become a reality.

Instead, you need to connect with a local lender. They’ll help you stay up to date on what’s happening and have a conversation about when to make your move. And once rates hit your target, they’ll be the first to let you know.

Swear, final words here:

If you’ve put your moving plans on hold because of higher than wished for interest rates rates, think about the number you want to see rates hit that would make you re-enter the market. Think about it hard, be ready to jump when they get there!

Need Lender Referrals? We've got several that we know and trust. Just ask.

What Do Sandwiches Have to Do With Real Estate?

Are you a part of the Sandwich Generation? According to Realtor.com, that’s a name for the roughly one in six Americans who take care of their children and their parents or grandparents at the same time.

If that sounds familiar to you, juggling all the responsibilities involved certainly must have its challenges. But it turns out there’s one pretty significant benefit: it can actually make it a bit easier for you to buy a home.

How Can It Help You Buy a Home?

Realtor.com asked members of the Sandwich Generation if they agree or disagree that taking care of children and parents at the same time is helping them afford a home. A third of respondents said their situation made it easier to buy.

Here are a few ways their caretaking situation might be helping those 33% buy a home:

Sharing Expenses: If you live in a multi-generational household, you can pool your resources and split the costs. Your parents might contribute to the mortgage or help with other bills. This can make a big difference, especially in today’s housing market. It may help you afford a larger home than you could on your own.

Built-In Childcare: Having grandparents in the home could also save you money on childcare. They can help watch your kids while you’re at work, which means you can save on daycare costs too.

Beyond just the financial reasons, buying a multi-generational home has other advantages. The Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) highlights some of the most popular, including:

Easier To Care for Aging Parents: It’s more convenient to take care of someone when you live with them. Also, your elderly parents may very well be happier and healthier, thanks to more social interaction and a feeling of connectedness.

Spending More Time Together: Once you live together, you get to spend more time and create even more lasting memories with your loved ones.

The Mortgage Reports sums it up this way:

“Buying a house with your parents can be a great way to ease caregiving, support young children, or simply bring loved ones closer together. And considering the steep rise in home prices over the last few years, it can make homeownership a lot more affordable.”

How a Real Estate Agent Can Help

If you’re in the Sandwich Generation and thinking about buying a multi-generational home, working with a local real estate agent is essential. Finding a home that works for so many people can be tricky. An agent will use their expertise to help you find one that meets the needs of, and has enough space for, everyone who’s going to live there.

Bottom Line

Being a part of the Sandwich Generation comes with its challenges – but it also might come with one truly great perk. If you’re looking to buy a home, your caregiving situation can actually make it a bit easier for you to afford a home. To learn more, give us a holler! We've got people sandwiching all over the place!

Sellers And Home Inspections

One of the real estate news info emails I subscribe to talked about doing work on a home prior to putting it on the market. The most important takeaway from that is ..... ASK YOUR REALTOR what is worth doing before listing.

We generally have to suggest a lot of staging. Including decluttering, moving furniture, landscape touches, cleaning, cleaning, and more cleaning.

But, a wise Seller hopefully also knows, and informs their agent, what systems in their home may need some attention. And, their agent will let them know if they should consider doing any repairs or service to those systems prior to going on market.

Some Highlights from the newsletter article:

"If you’re thinking about selling your house, it’s important to know what the home inspection is and what inspectors look for.

As supply is so obviously growing which will allow buyers  to regain some negotiation power, you may find you want to do some select repairs with a good return on investment before listing to get ahead of things a buyer may ask you to fix.

To decide what's worth tackling, you need expert advice. Reach out to a local real estate agent so you know what to prioritize."

It's definitely a touchy situation when we suggest what you should and shouldn't do. It's your call on what you do. But, depending upon the market, it can blow up an escrow if the home inspection finds a lot of items that could have been cleared up prior to listing. Hard choice to make, and, yes, it's hard for us to suggest. 

But, I truly believe the market is changing. And, the more negotiating power a buyer has, the more things a Seller is going to need to correct. Before going on market, or to keep the escrow together and get to the finish line.

Santa Clarita Home Sales Activity - August 8, 2024

Man, it's been soooo hot in SCV!!!

And, on to the home sales info as noted in the title above! As you know, I include all neighborhoods from Acton to the East, Stevenson Ranch to the West, Newhall the South, and Castaic North. We sell them all and outside of SCV of course as well.

Currently we have:

15 in the Coming Soon category / 552 Active for Sale 

331 In Escrow / 241 Sold in the Last 30 Days

But, check this out .... 

Well, if you can read the tiny print that is. If not, it's the price changes on listings in the last 24 hours. 16 did price changes, all but 3 were price adjusted (the latest lingo for a reduction) down. Yes, down.

So, times are a changing for sure. Will they likely move over to a buyers market? Price reductions, increase in inventory (we currently have 2 months of inventory), and now a 1/2 point average home loan interest rate reduction? 

We shall see. I'm expecting a more balanced market for sure as the interest rates go down. Well, we were supposed to see a rate reduction several times this year, finally got one. But, as inventory climbs, and getting home insurance continues to be a California problem, Sellers need to be really aware that just throwing up a sign is not going to necessarily be getting a home sold quickly nor for the price they want.

And, now, with the upcoming implementation of the NAR settlement? Oy, it's going to be a poop show for a bit. And, a lot of unscrupulous agents will mess it up for the good ones. So, stick with us, the SMART and HONEST ones. We'll take care of you, the way the rules read.

California Association of Realtors ~ Sharing the 'Market Minute'

Posted via my California Association of Realtors:

I've put a few things in italics that I think are worthy of italicizing 

July 29, 2024 – The economy expanded at a faster pace than expected in Q2, but the latest growth rate could be the highest we will see in the next few quarters. There are signs in recent months that suggest consumers are increasingly tapped out and could pull back further in coming months. An economic slowdown, however, is not necessarily bad news for the housing market. Mortgage rates, in fact, started this week at six-month lows, as the market has become more convinced that the Fed’s rate cuts will begin in September. Home sales should begin to bounce back and improve more consistently in Q3 and Q4.

US economy surprises with strong growth pace in second quarter: After dropping to the slowest growth pace in Q1 2024 since mid-2022, the U.S. economy bounced back with a stronger-than expected growth rate in the Q2 as consumer spending expanded at a faster clip and business investment continued to rise. Real growth domestic product (GDP) – a measure of economic output – increased at an annualized rate of 2.8% in Q2 2024, well above the 1.4% growth rate recorded in Q1 and exceeded the 2.0% expected by economists. Consumer spending remained the major driving force for the increase, with personal consumption expenditures rising 2.3% on an annualized basis. Business fixed investment also helped fuel the overall economic growth, as intellectual property spending increased 4.5% and equipment surged 11.6%. An increase in households’ income and an improvement in business leaders’ optimism on the economy, in general, were the contributing factors for the solid gain in the overall economic activity.  

June retail sales come in flat but avoid a decline expected by economists: While consumers spending stalled in June, the latest reading was actually better than the 0.3% decline expected by economists. Retail sales last month were unchanged from the prior month but increased 2.3% year-over-year. Softness in gas prices and the auto sector was the primary factor for the decline, but weaknesses in new home sales, building materials and home furnishing also contributed to the drop in retail spending. Retail businesses that are tied to the housing sector have been struggling but could see some improvement in coming months if rates begin to slow more consistently. Recent uptakes in revolving credit, however, suggest that households may have begun to exhaust their borrowing capacity and consumer spending could slow further in the third quarter if the jobs market continues to moderate.

New home sales hit 7-month low: Sales of newly constructed homes in the U.S. unexpected dropped for the second consecutive month in June by 0.6% month-over-month and 7.4% year-over-year to 617,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Sales of new single-family homes in June came in well below the consensus expectation of 640,000 and reached the largest level since November 2023. In recent months, new home sales lost their momentum built up earlier this year, as more existing homes became available and mortgage rates failed to come down more consistently in June. On the supply side, the number of for-sale properties climbed again for the third straight month with new home inventory rising to 476,000 units in June, an increase of 0.8% from the prior month and 11.2% from the same month in 2023. New home inventories rose to 9.3 months and continued to apply some downward pressure on new home prices as the median price slipped 0.1% from a year ago to $417,300.

Homes purchased by international buyers dropped to lowest level since 2009: Between April 2023 to March 2024, international buyers bought $42 billion worth of residential properties in the U.S., a decline of 21.2% from the same time from in the prior year, according to a new report from the National Association of Realtors®. The 54,300 existing homes sold to foreign buyers was a dip of 36% from the year before, and it was the lowest level recorded since NAR started tracking in 2009. Higher costs of borrowing, coupled with a strong U.S. dollar, made U.S. homes more expensive to foreign buyers and resulted in a pullback in the desire to home purchases in the states from international buyers. The median existing home sales price of $475,000 recorded in the latest report increased 19.8% from the prior year and was the highest ever recorded by NAR. Canada led all countries of origin in the share of international buyer purchases of total existing homes in the U.S. at 13%, followed by China (11%) and Mexico (11%). Florida remained the top destination for foreign buyers for the 16th consecutive year, accounting for 20% of all international purchases. Texas (13%) came in second and California (11%) came in third.

Profit margins for home sellers mostly unchanged: Returns on U.S. home sales remained steady in Q2 2024, with the profit margin of typical home sales increasing slightly by one percentage point to 55.8% from Q1 2024 but remaining down by one percentage point from Q2 2023, according to ATTOM. While the raw profits in dollar term went up to $130,000, the properties’ return did not move much because median values have been rising consistently at about the same percentage between the time when properties were purchased and the time when properties were sold. Profit margins were up for Q1 2024 to Q2 2024 in 94 of the 160 metropolitan statistical areas (MSA) around the U.S. but were down annually in 100 of those metros.

You may need to read it twice as it's a lot of info. 

But, I felt it was worth sharing in it's entirety.

Check The Equity In Your Home - You May Be Surprised!

Many homeowners looking to sell feel like they’re stuck between a rock and a hard place right now. Today’s mortgage rates are higher than the one they currently have on their home, and that’s making it harder to want to sell and make a move. Maybe you’re in the same boat?

But what if there was a way to offset these higher borrowing costs? There is. And the money you need probably already exists in your current home in the form of equity.

What Is Equity? I actually presume you all know what equity is, but here ya go....

Think of equity as a simple math equation. Freddie Mac explains:

“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”

Your equity grows as you pay down your loan over time and as home prices climb. And thanks to the rapid home price appreciation we saw in recent years, you probably have a whole lot more of it than you realize. We can tell you how much!

The latest from the Census and ATTOM shows more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below):

That means the majority of homeowners have a game-changing amount of equity right now. Game-A-Changing indeed!

How Your Equity Can Help Fuel Your Move

After you sell your house, that equity can help you move without worrying as much about today’s mortgage rates. As Danielle Hale, Chief Economist for Realtor.com says:

“A consideration today’s homeowners should review is what their home equity picture looks like. With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion. This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase.”

To give you some examples, here are a few ways you can use equity to buy your next home that you may not have thought about:

Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. 

Make a larger down payment: That equity can be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much at today’s rates. Win-Win!

The First Step: Determine How Much Equity You Have in Your Home

Want to find out how much equity you have? To do that, you’ll need two things:

The current mortgage balance on your home. The current value of your home.

You can probably find the mortgage balance on your monthly mortgage statement. To understand the current market value of your house, you can pay hundreds of dollars for an appraisal, or you can contact a local real estate agent who will be able to present to you, at no charge, a professional equity assessment report (PEAR). Yes, of course, we can do that!

Once you’ve connected with a trusted local agent and run the numbers, you’re one step closer to making a move you may not have thought was realistic – all thanks to your equity.

Just give us a holler, we'll let you know the amount of equity in your home!

What Buyers Want Right Now ~ July 2024

Because Leslie, Jennifer, and I have our 'head in the game', we know what's selling quickly .... for the most part. And, it's houses that are either extremely desirable ... one of a kind .... or one that is gorgeous and move-in ready. Buyers are paying big bucks, with high interest rates right now. They want the best for paying top dollar.

So, here's a blog post that I copied and pasted from a company I get email campaigns daily. Not gonna kid you though, you'll spot my opinions mingled in their paragraphs! 😄

"If you’re thinking about selling your house, you should know there are buyers who are ready and able to pay today’s high prices. But they want a home that’s move-in ready. A recent press release from Redfin explains:

“Buyers are still out there and they’re willing to pay today’s high prices, but only if the house is in really good shape. They don’t want to spend extra money on paint or new appliances.” Boy oh boy, if I could tell you all the crap we had to do to our first Valencia home!

It makes sense when you think about it. They’re having to pay a lot of money for a house in today’s market. That means they may not be able to easily afford upgrades after they move in. So, if your home is outdated or needs some work, buyers might pass it by or offer a lower price than you were hoping for.

And there are a lot of homes that need upgrades right now. Millions are entering their prime remodel years, meaning they’re between 20 and 39 years old. Maybe yours is one of them. 

If your house falls into this category, it’s important to consider making selective updates to help it appeal to buyers, so it sells faster. But how do you know where to spend your time and money?

Why You Need a Real Estate Agent (raising hand here!)

By working with a local real estate agent to be strategic about the improvements you make, you can be sure you’re making a smart investment. Put simply, not all upgrades are worth the cost. As Bankrate says:

“Before you spend money on costly upgrades, be sure the changes you make will have a high return on investment. It doesn’t make sense to install new granite countertops, for example, if you only stand to break even on them, or even lose money.”

And, as that same Bankrate article goes on to say, that’s where a local real estate agent comes in:

“. . . a good real estate agent will know what local buyers expect and can help you decide what needs doing and what doesn’t.” You know a GREAT local 'family' of agents, right? 😉😉😉

Just in case you forgot who your 'family' is!

Your agent will know what buyers in your area are looking for and what they’re willing to pay for it. By working together, you can avoid spending money on upgrades that won’t pay off. Instead, they’ll fill you in on which changes will make your house more appealing and valuable.

Bottom Line

Selling a house right now requires more than just putting up a For Sale sign. You need to make sure it’s in good condition to attract buyers who are willing to pay today’s high prices.

The way to do that is by making smart improvements that will give you the best return on your investment. Work with a local real estate agent so you know what buyers are looking for and what your house needs before selling."

Smart article. Can you tell where I interjected? 

Thoughts Post Debate

Yeah, we all saw that debate. Yeah, a lot of you probably aren't satisfied with your partys' candidate. So, if you're wondering how the election may affect housing?

Some Highlights:

Are you wondering if the upcoming election will have an impact on the housing market? Here’s what history tells us you need to know if you’re considering a move.​

Data shows home sales slow in November but quickly bounce back and rise the following year. Prices usually keep climbing. And mortgage rates typically come down slightly.

Presidential elections have only a small and temporary impact on the housing market. If you have questions, connect with a real estate agent.

Connect with us now so we can help you navigate when you're ready!

Santa Clarita Home Sales Activity ~ July 5th, 2024

Hope you all had a wonderful Independence Day yesterday! Ours was peaceful, no fireworks at all. Dogs slept like babies!

Market is changing, a wee bit. Home sales have slowed, a wee bit. Prices aren't as inflated, a wee bit. Inventory has grown, yep, you got it, a wee bit.

Including Acton to the East, Stevenson Ranch to the West. Castaic to the North, and Newhall to the South, plus all the little hoods in between....

(Do You Know Where The Community Is From This Picture?)

ACTIVE Homes for Sale ~ 484

COMING Soon ~ 14

UNDER Contract ~ 309

SOLD in the last 30 days ~ 281

So, obviously, if you've been reading my posts for a few years now, inventory is up, but not normal. Closed sales are down, but, near normal. Nuff Said, right?!?

Funny stuff about Real Estate ... some clients will tell you everything that is going on in their world, so we'll understand their actions & reactions. Others, few though, just don't. And, that makes it harder to understand why their actions & reactions are what they are. Realtors are like counselors. If you don't tell us the absolute truth, we can't help you in the best way possible.

Food for Thought.

No matter which one of us you work with, 

definitely let us know what's going on in your world. 

We are your 'Real Estate Home Counselor', 

during one of the biggest events of your life.