Santa Clarita Housing Activity January 2022

Well, happy 2022! And, yep, another year with COVID precautions to consider when selling your home.

But, with the following information about home sales in SCV, you may want to pay attention to this picture:

It is Spot (HaHa Dog Name) On!

I actually just met with upcoming sellers again yesterday and they were surprised at the value of their home and how quickly it would likely sell.

With these numbers, it's hard not to!

Currently in all of SCV, we have:

Coming Soon - 18

Active - 167

Under Contract/In Escrow - 310

Closed Escrow in the Last 30 days - 284

If you have questions or concerns about selling your home right now, please just reach out. Happy to chat. (661) 313-5470 or Lauren@KeepYourWitz.com.

Do You Agree With the Experts for Housing in 2022?

 Expert Insights on the 2022 Housing Market

As we move into 2022, both buyers and sellers are wondering, what’s next? Will there be more homes available to buy? Will prices keep climbing? How high will mortgage rates go? For the answer to those questions and more, we turn to the experts. Here’s a look at what they say we can expect in 2022.

Odeta Kushi, Deputy Chief Economist, First American:

“Consensus forecasts put rates at about 3.7% by the end of next year. So, that's still historically low, but certainly higher than they are today.”

Danielle Hale, Chief Economist, realtor.com:

“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”

George Ratiu, Manager of Economic Research, realtor.com:

“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”

Mark Fleming, Chief Economist, First American:

“Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What Does This Mean for Buyers?

Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor.

What Does This Mean for Sellers?

Make no mistake – this sellers’ market will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling your house while buyer demand is so high will truly put you in the driver’s seat. But don’t wait too long. With more listings projected to become available, your ideal window of opportunity to stand out from the crowd won’t last forever. Work with an agent who knows your local market and current inventory conditions to ensure you have the support you need to make an educated and informed decision about selling in the coming year.

Bottom Line

If you’re thinking of buying or selling, 2022 may be your year. Let’s connect to discuss your goals and the unique opportunities you have in today’s housing market. Lauren@KeepYourWitz.com / (661) 313-5470.

The Good Part Of Raising The Conforming Loan Amount

 Why It Just Became Much Easier To Buy a Home

Since the pandemic began, Americans have reevaluated the meaning of the word home. That’s led some renters to realize the many benefits of homeownership, including the feelings of security and stability and the financial benefits that come with rising home equity. At the same time, many current homeowners have decided their house no longer meets their needs, so they moved into homes with more space inside and out, including a home office for remote work.

However, not every purchaser has been able to fulfill their desire for a new home. Here are two obstacles some homebuyers are facing:

• The ability to save for a down payment
• The ability to qualify for a mortgage at the current lending standards

This past week, both of those challenges have been mitigated to some degree for many purchasers. The FHFA (which handles mortgages by Freddie Mac, Fannie Mae, and the Federal Housing Administration) is raising its loan limit for prospective purchasers in 2022. The term used to describe the maximum loan amount they will entertain is the Conforming Loan Limit.

What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?

Investopedia explains the difference in a recent post:

“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”

What Difference Does It Make to Me as a Home Buyer?

A Forbes article earlier this year explains the benefits of a conforming loan and why they exist:

“Since lenders can’t sell non-conforming loans to Fannie Mae or Freddie Mac to free up their cash, they’re a bit riskier for the lender. This is especially true for jumbo loans, which aren’t backed by any government guarantees. If you default on a jumbo loan, it’s a huge blow to the lender.

Thus, lenders generally charge higher interest rates to compensate, and they can have even more requirements. For example, lenders who give out jumbo loans often require that you make a down payment of at least 20% and show that you have at least six months’ worth of cash in reserve, if not more.”

What Happened Last Week?

The FHFA has significantly increased its Conforming Loan Limits for 2022. Sandra L. Thompson, FHFA Acting Director, explains in the press release that:

“Compared to previous years, the 2022 Conforming Loan Limits represent a significant increase due to the historic house price appreciation over the last year. While 95 percent of U.S. countie​s will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.”

This means that more homes now qualify for a conforming loan with lower down payment requirements and easier lending standards – the two challenges holding many buyers back over the last year.

The Federal Housing Administration (FHA) also increased its Conforming Loan Limits for 2022. That could also mean an easier path to homeownership for many prospective buyers. As the Forbes article explains:

“FHA loans can be very beneficial if you don’t have as much savings, or if your credit score could use some work.”

Bottom Line

Buying your first or your next home may have just gotten much easier (less stringent qualifying standards) and less expensive (possibly lower mortgage rate). Let’s connect to discuss how these changes may impact you.

~ Lauren Witz Greber (Licensed as Lauren Lefkowitz) ~ 

Witz Real Estate ~  Lauren@KeepYourWitz.com ~ (661) 313-5470 

Santa Clarita Valley Home Sales Activity - November 2021

Yes, of course, inventory is down right now. We just had Thanksgiving, Hanukkah is happening right now, Christmas is just a few short weeks away!

You may be surprised to read this but sales are still robust. Yep, I like that word! LOL

Reminder, I include Acton, Agua Dulce, Canyon Country, Saugus, Newhall, Valencia, Stevenson Ranch, Val Verde, & Castaic as SCV. So, the below numbers are with those areas included.

As of this moment:

Coming Soon: 13

Active: 217

In Escrow: 518

Closed in the Last 30 Days:

I have no idea what/who this little guy is, but the number on his hat worked for this post!

I've got 2 Sellers working on the list of things I suggested to get their home market ready. I've got a couple back-burner buyers.

Really looking forward, so bad to say this, for the holidays to be over so we can get back to selling homes for people! 

If you have questions about Real Estate, whether Selling or Buying, just give me a shout. 

Lauren@KeepYourWitz.com / (661) 313-5470

What to do With Your Home Equity

4 Ways Homeowners Can Use Their Equity

Your equity is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.

If you’re looking for the best ways to use your growing equity, here are four options:

1. Use Your Equity To Buy a Home That Fits Your Needs

If you’re finding you no longer have the space you need, it might be time to move into a larger home. Or, it’s possible you have too much space and would like something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.

2. Move to the Location of Your Dreams

If the size of your home isn’t a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and you’re dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than you’d like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.

3. Start a New Business

If you’re not ready to move into a new home, you can use your equity to invest in a new business venture. As the U.S. Small Business Administration Office of Advocacy says:

“There is an estimate of 31.7 million small business owners in the United States, many of them started their business with the equity they had in their home.”

While it’s not recommended that homeowners use their equity for unnecessary spending, leveraging your equity to start a business that you’re passionate about can potentially grow your nest egg further.

4. Fund an Education

Whether you have a loved one preparing to head off to college or you’re planning to go back to school yourself, the thought of paying for higher education can be daunting. In either situation, using a portion of your growing equity can help with those costs, so you can make an investment in someone’s future.

Bottom Line

Your equity can help you achieve your goals. If you’re unsure how much equity you have in your home, let’s connect today so you can start planning your next move.

Totally My Opinion Here... On The Zillow Mess.

So, by now, everyone and their brother has read about the Zillow fiasco. I've decided just to blog about that elephant in the room today!

Maybe you don't consider it a fiasco, but most Realtors are actually tickled pink that Zillow got egg on their face. I mean, the meme's going around are hilarious. The Realtor networking groups are making them up daily.

For me? I'd say it's about time they took a tumble. A very big, financially challenging, tumble.

As long as I've been a Realtor, and Zillow has been around, I've done battle (practically) with clients over those Zestimates. I've told clients time & time again, use them for their easy navigation, but look at other sites for reality, etc.

Recently Zillow became a brokerage. They got 'in-bed' with one particular company and they tried to do a bit of monopolizing the market. They also did some scandalous, completely against the association of Realtor code of ethics, things that I blogged or YouTubed about before. No need to repeat.

Recently I became involved in one of their iBuying fiascos. It was awful. And, later we found out that they paid way too much for the house. Not sure if they used their Zestimate, but they over paid by about 60k if I'm remembering correctly.

My eldest son even got wind of Zillow buying up properties for more than they were worth. What did I think of that he wondered. 

We agents all figured they were just trying to gain a market share. Say, look at us, we buy & sell sooooo many houses! Hah.

So, here we are now, they have stopped doing the iBuying, have admitted to a financial fiasco, and have let go of quite a large chunk of Zillow employees.

My take on this? Well, the only thing I love about Zillow is my profile on their site. It will keep track of my sales, allow my clients to post reviews, heck I've even got my Love-My-Peeps party video on there!

But, when a company tries too hard to be the best, without having the experience, expertise, and ethics, to truly be the best....you know what happens.

And, it happened. Happened as large as that elephant in the picture. Not sure what their recovery is going to be like, but for now.....let this serve as a reminder that not all realtors are created equal. And, needless to say, the bigger is certainly not always the better. IMHO.

~ Lauren Witz Greber ~ (Licensed as Lauren Lefkowitz) ~ Lauren@KeepYourWitz.com ~

Yep, They Still Do!

Sellers Have Incredible Leverage in Today’s Market

With mortgage rates climbing above 3% for the first time in months, serious buyers are more motivated than ever to find a home before the end of the year. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), puts it best, saying:

"Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year."

But the sense of urgency they feel is complicated by the lack of homes for sale in today’s market. According to the latest Existing Home Sales Report from NAR:

“From one year ago, the inventory of unsold homes decreased 13%. . . .”

What Does This Mean for Sellers Today?

With buyers eager to purchase but so few homes available, sellers who list their houses this fall have a tremendous advantage – also known as leverage – when negotiating with buyers. That’s because, in today’s market, buyers want three things:

• To be the winning bid on their dream home.
• To buy before rates rise
• To buy before prices go even higher.

Your Leverage Can Help You Negotiate Your Best Terms

These three buyer needs give homeowners a leg up when selling their house. You might already realize this leverage enables you to sell at a good price, but it also means you can negotiate the best terms to suit your needs.

And since buyer demand is still high, there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best perks for you.

If you have questions about what’s best for your situation, your trusted real estate advisor can help. They have the expertise and are skilled negotiators in all stages of the sales process.

Bottom Line

Today’s buyers are motivated to purchase a home this year, and that’s great news if you’re thinking of selling. Let’s connect today to discuss how much leverage you have as a seller in today’s market.