April 6, 2025 • 33 mins
The question on everyone's mind is: What's the best time to buy a home in today’s landscape? With so many options available, are condominiums and townhouses the smarter choice over traditional single-family homes? Let’s explore the reasons driving this shift in preference.
Moreover, how can we tackle the issue of housing affordability in Southern California? It’s time to get creative with our strategies! We can enrich this discussion with insights from real estate expert Andy Riesmeyer, who has a wealth of knowledge to share. Plus, let’s not forget to learn from the cautionary tales of homebuyers who have navigated the complexities of purchasing property. Their experiences can provide us with valuable lessons and help us avoid potential pitfalls.
Moreover, how can we tackle the issue of housing affordability in Southern California? It’s time to get creative with our strategies! We can enrich this discussion with insights from real estate expert Andy Riesmeyer, who has a wealth of knowledge to share. Plus, let’s not forget to learn from the cautionary tales of homebuyers who have navigated the complexities of purchasing property. Their experiences can provide us with valuable lessons and help us avoid potential pitfalls.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You're listening to KFI AM six forty.
Speaker 2 (00:03):
I'm be here two to four next Sunday on the
thirteenth doing an audition for a Southern California real estate show.
I really I want to say, I appreciate everybody. We've
got so many people using the talkback I always as
soon as they rolled this out and I saw it
on the app, I was like, this is a brilliant
idea that is so great in this kind of a format.
(00:25):
I'm sure it works awesome in the FM format two,
but I just think it's so it's so fun to
hear from you guys, and everybody keeps saying the same thing.
They think this is a great idea for a show.
So I do want to give credit where credit is due.
All of the credit for the idea of this topic
goes to Michelle Cube and Oscar Ramirez. For those of
(00:45):
you longtime KFI people, Michelle Cube used to be the
producer for the Bill Handle Show. She's now kind of
in charge of all things producer ing here at KFI,
and a lot of my radio career early on, I
really truly owe to her, the one who gave me
the shot on the Handle Show. We did a podcast together,
and she was nice enough to even text producer Richie
(01:06):
and say that the show's going great. It really means
the world to me, means the work here I do.
Speaker 3 (01:11):
I call her Cube. I love her.
Speaker 2 (01:13):
She's a big fan of Magic Mike and also Robin.
I love any kind of house themed bumper music that's fun.
That was my favorite thing as a board off, trying
to find any kind of song, just a goofily, like
a dad joke off tying into whatever it is that's
being talked about. So I want to hit some of
the talkbacks that we got. The first one is I'm
just going to call him the weatherman from key West.
(01:33):
He is currently driving from key West across Texas. He
said that the reason why people stay in California is
because of the weather, because he's crossed most of Texas
and it's been ninety degrees the whole time. And listen,
I've never lived in another state. I've traveled a lot
as a comedian. And don't get me wrong, humidity is
no joke. Humidity in me do not get along. But
(01:57):
I mean a million dollars plus, like I mean realistically,
like I said earlier, your suppose your housing payment. Traditionally,
what most financial people will recommend, thirty percent of your
monthly income should go towards housing, so a third almost
across the board. The clients that I help buy houses
in southern California are somewhere between forty and fifty percent
(02:17):
what they call DTI debt to income and so it's
their ratio, so it's it's more than half in some cases,
some in very rare cases, it gets all the way
up to fifty five percent. There are some lenders who
can handle that DTI, the debt to income ratio, and
so we also, I believe had one from Angela who
said that she's been working at U haul and she's
(02:39):
noticed that a lot of people are leaving California. I
want to talk about that. That's what I have prepared,
but I also want to hear from the Dean. Romy
Can you help me hear.
Speaker 3 (02:45):
From the Dean? Please?
Speaker 4 (02:47):
Hi, Justin, This is Ny Deane calling from Wildemar on
Riverside County, thrilled to hear you're hosting your own show
about real estate, and I hope this will become a
regular program on Sunday afternoons. Just in the half hour
of listening. I find it very informative. You're doing an
awesome job. I think more people need this type of
educational information about real estate. I personally find it can
be very confusing and convoluted. Yes, I do know many
(03:07):
people that moved or left southern California due to unaffordability
and politics.
Speaker 2 (03:13):
That's it. That's why I'm glad you. I'm glad you
used that talkback feature. I believe I've not only heard
it from the mouths of clients that I've helped leave California,
but it really is politics. So before I get into this,
I just want to say I'm not trying to convince
you of being on one side of the aisle or
the other. To me, that's irrelevant, right, But when they
serve so The La Times did a story about this
(03:34):
very subject in April of twenty twenty four, and they
said the same thing. They said it was taxes and
high cost of living was the predominant answer. KTLA did
a story in January of this year where they quoted
a survey that said twenty nine percent of people left
California for family reasons. I just want to say that again,
twenty nine percent of people left California for family reasons.
Speaker 3 (03:56):
Let's just talk about what you think that might mean.
Speaker 2 (03:59):
Twenty one percent left for a job and nearly twelve
percent for retirement. Just ten percent cited cost of living
as the primary reason. I mean the family reasons. It
could be that drunk uncle still a Thanksgiving.
Speaker 3 (04:12):
Yes. Talking politics, well, that's what it is.
Speaker 2 (04:14):
I think in my experience, there are people who probably
lean a little bit more conservative and they want out.
They want out, they're tired of the policies that and
they feel like it's just it's bad all around. And
what's interesting too, when you start looking into the census data,
So in twenty twenty two to twenty twenty three, we
actually lost about seven hundred thousand people, but the population
(04:35):
grew from twenty twenty three to twenty twenty four by
a quarter of a million people. So there's still more
people coming to California. I don't think it's a big
move or big change, but when you look at so
we're going to leave southern California, just talk real estate
in general. The people are leaving blue states to go
to red states. And from what I'm seeing, the reason
is is that traditionally red states are a little bit
(04:58):
more rural, they have more land that they can build
houses on. And so you get these Californians that are
coming in there and they're probably raising property values. We
saw that a lot anybody who retired during the pandemic.
Speaker 3 (05:11):
I helped a family.
Speaker 2 (05:12):
Of multiple people sell multiple homes and they were all
relocating to Boise, Idaho or Quarterlane, Idaho.
Speaker 3 (05:18):
That was the place to go.
Speaker 2 (05:20):
Right now, what I'm hearing like Nashville has had a
humongous search in real estate prices, and I think a
lot of it is people moving from New York or
California and they raise those prices because they have the money.
The kind of silver lining, if it could be said
out loud of the pandemic, right, I know, it was
also a horrible tragedy, but what we learned is that
(05:41):
people could work remotely, and now people want to work
remotely and so they can have that California job and
get close to that California income and live elsewhere. I
think we're really going to start seeing employers have more
of a cultural shift where they're going to pay based
on where you live, and maybe that makes it more
affordable for businesses.
Speaker 3 (05:58):
But across the board.
Speaker 2 (05:59):
What you see is that Really, what it boils down
to is people are leaving blue states and they're going
to red states. And my theory is is because if
you lean a little bit more conservative, you're probably of
the mind. And I'm gonna lean on my dad. I'm
gonna use my dad as an example. My dad was
a very conservative person, especially financially. I would say he
was socially liberal, which was probably how I line politically,
(06:20):
if that even matters to anybody. But he always said
that the reason why he liked people that were more
Republican is because he felt like they were more inclined
to be self reliant and they would want to take
care of things themselves. I think that's why they kind
of like being in rural areas, right, They like being
kind of on their own. And I think that really
what if we could find some kind of a sweet
spot is where we can find people who are conservative
(06:43):
for fiscal benefits, right, but they're also liberal for social benefits.
But I think that's really hard because if you are
consider yourself to be very progressive, you have to be tolerant, right,
you have to be welcoming of all kinds of people.
That's kind of part you don't really have that hard line.
And I'm not saying conservatives aren't toleran people. It's not
my point. My point is is that inherently the people
(07:04):
that lean more liberal and are progressive, they want to
accept all things. They want everybody to feel good, and
that gets expensive. Just in general. There's a sign right
now if you head out to Phoenix that as you
enter Phoenix that says, we welcome all Californians. Just don't
try to make Arizona California. They don't want us to
bring our politics. So you have to find a way
to change that. You have to find a way to
(07:27):
have it. Just I wish I knew the solution, but
I mean, I'm already thinking about it myself. When my
kids get out of high school, there's a strong chance
that I'm going to relocate to probably a red state.
And it's because I just don't know that my kids
could get out of school, even if they're like after college,
how can they get out of college with all the
debt that comes with it and get a regular job
(07:47):
and afford to buy a house in southern California. It's
just not going to happen. So my answer to the
question is exactly what Nadine said. I think it's because
of politics, and U haul agrees with me. They're seeing
more people taking one way trips out of California than
coming back into it. All right, what are we going
to do when we come back? I want to talk
about when is a good time to buy? That's what
we're going to talk about. Hit that talkback feature. Let
(08:09):
me hear your real estate horror story, whatever you got.
Speaker 1 (08:12):
You're listening to KFI AM six forty on demand.
Speaker 2 (08:16):
This is justin Worsha. We're talking southern California real estate.
If you're just tuning in. I want to hear some
horror stories. I have a couple that I want to share,
But what if yours is better than mine? So even
if you're sitting there right now going I don't know
if it's a horror story, but this was tough. Hit
that microphone button right at the top of the app,
record a little message and send it to us. And again,
thank you to everybody, Kathleen, Na Dean, our weather guy, Angela,
everybody who's been using that talkback. It really does make
(08:39):
the show not only easier, but I would argue it
makes it better. So if you have a question even
that you would like to ask me and get my
take on my opinion, shoot us that. But I would
really love to hear some horror stories because that's how
we want to close out the show. So now what
I want to talk about, because it's something that all
comes out. It came up like four times today at
the open house. I had right before the show, is
when is a good time to buy? Should I wait?
(09:01):
Because I'm waiting for the recession. And when I first
got into real estate back in twenty eighteen is when
I started as a full time agent.
Speaker 3 (09:09):
Before then, I was just kind of dabbling.
Speaker 2 (09:10):
And when I started doing it, then it was well,
I'm going to wait for the interest rates to come
up because then the prices will go down.
Speaker 3 (09:18):
And then the interest rates came up.
Speaker 2 (09:20):
And now I'm sorry to laugh because I know it's hard,
but everybody keeps saying, well, now the prices the monthly
payment is so high, I'm waiting for the interest.
Speaker 3 (09:28):
Rates just to tick down.
Speaker 2 (09:29):
I literally had a very nice gentleman who I think
is actually going to be a new client, and he
said to me, he goes, I just want the rates
to tick down. For like three months, basically just in
time for him to get a house and then they
could go back up.
Speaker 3 (09:40):
He doesn't care after that because they have.
Speaker 2 (09:43):
People right now have like the lowest I've heard so
far is a one point six percent interest rate.
Speaker 3 (09:50):
That's insane.
Speaker 2 (09:52):
My interest rate we had my wife was a she
did home loans until recently, and we had our home
loan through the credit union that she used to work at.
We were getting an employee discount, and I was paying
point nine to eight percent for my mortgage for the
longest time, and now I think I'm paying like three
and a half on an adjustable rate, which is awesome.
(10:12):
And the problem with that too is that there's it's
changed the way that people sell homes. When I first
got into real estate, the average data said that the
out average people will sell or move their move every
seven to twelve years. Now the data is twenty to
thirty years. They've got this new term called an accidental landlord.
Although now we're in California, because we're very progressive, we're
(10:34):
supposed to.
Speaker 3 (10:35):
Say rental property owner.
Speaker 2 (10:36):
We don't call them lords because they are not of
noble blood, I guess.
Speaker 3 (10:41):
And.
Speaker 2 (10:43):
They call them accidental rental property owners or landlords because
their interest rate is so low that if they actually
leave the state of California, they just want to keep
the house and rent it out and they have no
idea really what they're doing. They don't they never intended
to be a real estate investor, and sure, in some cases,
I'm sure it goes well. I think that investing in
real estate can be if you're not easily stressed out,
(11:04):
it can be a very easy way to invest and
plan for your future. You just really have to have
a knowledge of basic arithmetic, and you can. You can
definitely pull it off. I'm not saying it's for everybody
because you can't account for the stress. So going back
to my point though, when's a good time to buy back?
In twenty right after I bought my house, I had
a lot of people who even worked in real estate
(11:24):
before I was a full time agent who were waiting
because there's just like I'm waiting for the right time.
Speaker 3 (11:29):
I'm waiting for the right time. I'm waiting for the
right time.
Speaker 2 (11:32):
And in multiple industries we have that thing they love
to say the cost of waiting, and so many people
are paying that. I have a new client that I
just started working with this last week and he's unfortunately,
he's like kicking himself because back in twenty fourteen, he
was just like I want to wait. He didn't want
to get parents help. That's another thing that's really tough
for a lot of these buyers. If some I'm forty six,
(11:53):
if I'm helping somebody that is at least five years
younger than me or more, almost across the board, they're
getting significant financial help from their parents for that down payment.
And if you have that option, and maybe your brain
is a little wired like mine is, and you're like,
I don't want to take help.
Speaker 3 (12:09):
I want to do this on my own.
Speaker 2 (12:11):
Take the help, man, Take the help, because it's just
going to get more expensive and you're gonna hate yourself later.
Speaker 3 (12:15):
You're gonna hate yourself later.
Speaker 2 (12:17):
I think buying a house is a lot like the
stock market and every book I've read, every financial planner
that I've talked to, it's like, it's hard to do
that day trader thing. The success rate is so low.
It's not like double Dutch. It's not that at all.
You just get in. You get in when you get in,
and then you buy and you write it out I
(12:37):
actually did, just to geek out about stuff. I did
some research and went all the way back to the eighties,
back when, like my thing, my dad's interest rate was
somewhere between like thirteen and sixteen percent on the house
he bought for us to live in nineteen eighty one, right,
And I compared housing prices on average in different areas
in Los Angeles and got like meetium prices and just
kind of geeked out to try to see what makes
more sense. And it definitely makes more sense to purchase
(13:01):
houses when there is a higher interest rate because the
prices are low. Where that doesn't apply though, is now
the prices are high, they're still going up.
Speaker 3 (13:10):
I looked at it.
Speaker 2 (13:10):
I was shocked by this eight point one percent appreciation
for the median house price in the La County eight
point one with seven and a quarter interest rates. Orange
County was even more shocking. Twenty one point seven twenty one.
That's like pandemic inflation numbers. The housing prices have increased
there in Orange County.
Speaker 3 (13:28):
It shouldn't be that way. That's not how it's supposed
to go.
Speaker 2 (13:32):
So what I tell clients is, oh, so, when I
looked at that data, it actually was more cost effective
for you to buy a house when the price was
lower and the interest rates were higher than when the
interest rates were lower and the prices were higher because
it was so competitive. Everybody had so much money in
twenty twenty one and twenty twenty like they were just
throwing money at houses because the interest rates were so low.
(13:53):
So what I tell people is, if your plan is
to be in that house for five to ten years
at least, then you should just get in where you
fit in find a place that you can afford. I'm
not telling you to bankrupt yourself. I do tell people
that you don't want to like if you don't want
to bank of yourself. But I get a lot of
clients who are worried about being house poor, and I
have a recommendation that I give that you take whatever
(14:15):
you're looking. You can go online and find calculators to
figure out and guestimate what your mortgage payment will be.
Speaker 3 (14:20):
Compare that.
Speaker 2 (14:20):
So, let's say your mortgage payment is going to be
seven thousand dollars and right now you're paying four thousand
dollars a month in rent. Start paying yourself three thousand
dollars a month and sticking it in a savings account.
That's a great way to save up for your down payment,
or if you're already getting a gift from family members,
you save that money and that could be your rehab costs,
or I always tell clients too that when you close
on the house and I'm there to give you your keys,
(14:41):
you should at least have ten thousand dollars liquid because
in most cases, the most expensive thing that could go
wrong in a house, in most cases, will cost you
less than ten grand.
Speaker 3 (14:49):
So to have that in savings, you're good. You're fine.
Speaker 2 (14:52):
So if you could do all of that and it's
going to take a major life event, like somebody's going
to have to lose a job or something like that
that's going to cause you to leave, then you should
definitely be looking to buy whatever you can afford. Right
But if there's a chance you're only going to be
around for maybe two to three years, then I would
suggest that you just continue to rent and wait until
(15:14):
you feel more confident. But if you're only waiting because
you're waiting for prices to come down, I still think
that's going to be a mistake. The I don't know
if I said this already but the California Association of
Realtors said that we are currently experiencing all of the
indicators that would that would show up if we were
in a real estate crash, except for the actual crash.
They projected that if there was going to be a
(15:36):
cost reset, it was going to be five to ten percent,
nothing like what we saw after eight Banks and everybody
have learned about the mistakes that they made in a way.
So I don't think you're going to see those big drops.
You're not going to see that price come down to
something affordable. Let's see, we're gonna before we get into
what I got two more. Yeah, all right, I think
when we're come back, we're going to talk about how
to make phones homes more affordable in southern California.
Speaker 1 (15:59):
You're listening to KFI A six forty on demand.
Speaker 2 (16:02):
I'm justin Worsham here talking southern California real estate. I
am here until four o'clock today and then on April thirteenth,
I'm gonna be back again two to four. So if
you're just catching us tuning in and you're like, hey,
I like the idea of some jack hole talking about
real estate, that sounds interesting to me. Then we'll see
you again next week two to four. Market Counter send
(16:24):
it a timer, set an alarm. I want to take
some time because I'm a narcissist. We got some great
comments on the talkback while before we heat praised upon me.
I do also want to add that it seems like
so far nobody has horror stories. We have yet to
get a horror story via the talkback, so that's fine.
I have some horror stories that I would love to share,
(16:44):
but kudos to you. But I'm just gonna put that
out there in case maybe you think that it's just
a negative experience. But it doesn't sound like a horror story.
I don't need somebody to be murdered or anything like that.
But anyway, Robin, let's play who do we have?
Speaker 3 (16:59):
First? Do you see you got? Marsh up there? Who
do you got? Thank you?
Speaker 2 (17:02):
I appreciate it show today justin I'm a KFI listener
and I love listening to your real estate show today.
Speaker 3 (17:07):
Hope it becomes a permanent Sunday thing.
Speaker 2 (17:09):
Thanks so much.
Speaker 3 (17:11):
Thanks Marcia. Oh kind is that this is great? We
got another one from Ted. Let's keep these compliments comment
Let's say good afternoon, justin no question. Just want to
tell you man, great show, good debut. Hope things work
out for you, buddy.
Speaker 2 (17:24):
Everybody's so nice man that I've been lucky enough to
where when they did the Caterina's Club and we'd be
at the Anaheim White House when I was on the
morning show, got to meet a lot of the KFI
listeners and everybody has been they're just they're they're good peeps.
Speaker 3 (17:38):
Man, You're popular. Man.
Speaker 2 (17:41):
It's one day, right either, Like I said, isn't like
your past client's calling, right, I do like our group
text before the show. You know what's wrong with me, Andrew,
is that even if that was the case, I am
so incapable of being dishonest that I don't even think
I could say that out loud, like I'm actually my
I'm very lucky. I have shout out to the Burbank
League of Legend that's a networking group, and they are
(18:02):
in our little chat app giving me some praise as
well and listening.
Speaker 3 (18:06):
I appreciate all of you guys for taking the time.
Speaker 2 (18:08):
So so far we have avoided my mother and any
of my friends or past clients, which maybe is a disappointment.
Maybe I should be promoting this radio show more to
my clients so that they can also take this opportunity
to tell other people how great I am. Which, by
the way, if you're listening to this and you're like,
I would like to ask some questions of you offline.
You can find me on Instagram at home with Justin,
(18:29):
or you could just give me a Google. All you
have to do is type in Justin, JOSTI, N, and
then wor that's the beginning of my last name, Worsham,
like a redneck, says Worsham dishes. My favorite thing again
the narcissist in me about googling myself is one of
the first suggested things when you start to type in
my name is wife. Justin Worsham, wife, which means me
to believe that the internet is like this guy is
(18:51):
married and to who, cause I need to understand why
that would be a thing.
Speaker 3 (18:56):
All right, what are we talking about now?
Speaker 2 (18:57):
I want to talk about how do we make homes
more affordable in southern California.
Speaker 3 (19:01):
So, if you've been listening to.
Speaker 2 (19:02):
The whole show, I've alluded to a lot of this
earlier on in little bits and pieces, but I think
that it's worth revisiting because it is a humongous issue.
I think last time I checked, and actually, Richard, do
me a favor while we're talking about this, look up
and see what the affordability Housing Affordability Index for the
state of California. I'm gonna bet you a pop tart
that it is somewhere around fifteen percent. And I think
(19:25):
I'm spot on, but my gut says that I'm wrong
and it's twelve percent. But I'm going to stick to
my initial thought, first thought, best thought, fifteen percent. If
you don't mind looking at that and seeing what you
can't find on the web while I talk, I would.
Speaker 3 (19:36):
Appreciate jolly you check.
Speaker 2 (19:37):
But as long as it's a strawberry pop tart, you listen,
winner picks the pop tart. That's how I do. That's
how it's always house rules. That's how it works for me.
Richie's so much cooler than I am.
Speaker 3 (19:47):
So I talked earlier about the RHNA.
Speaker 2 (19:49):
So this is the Regional Housing Needs Assessment, and this
was established by SKAG, the Southern California Association of Governments.
I said earlier that this is essentially all of the
county leaderships in Southern California getting together and forming their
own un and they talk about issues regarding transportation and
housing and what they need to do to fix it.
So what they found is that in southern California, so
(20:11):
this is going to unfortunately include all of these counties,
that what we need to meet the housing need is
just under one point four million housing units. But further
research taught them that given the limitation of land that
they can develop on, that they can really at most
develop four hundred and fifty six thousand units. And this
(20:31):
is another part that they love to do. One hundred
and eighty four thousand of those must be considered affordable units.
So those are what we would call low income housing. Sorry,
justin real quick. Yeah, you read the question that you
want to really look Richie. It's like you don't want
this pop tart I do. I need you to find
the housing affordability index for the state of California. So
(20:54):
what we're looking for is what percentage of people can
afford the median house price in California. If you want
to get extra bonus points, look up La County for me,
because I think it's even lower. Okay, So all of
these housing units need to be built. I want to
talk about affordable housing because this is a great idea
for legislators to get up there and talk to you
about this is what they're doing to make California.
Speaker 3 (21:15):
Better for you.
Speaker 2 (21:16):
But I've actually tried to put a client in an
affordable unit and it is so bad.
Speaker 3 (21:21):
It is so next to impossible.
Speaker 2 (21:23):
In order for somebody to qualify for this particular unit,
they had to make between I'm not making this up,
between sixty and sixty five thousand dollars a year, and
they could not be self employed. In southern California, where
everybody for the most part works in some connection to
the to the entertainment industry. If you've got a regular
(21:45):
tech job or something, you could probably afford a house.
Speaker 3 (21:47):
Yes, richid, so I got the stats. Yeah, so pretty much.
Speaker 5 (21:50):
The median home price for forecast to climb to nine
hundred k and twenty twenty five yep, while house affordinance
is expected to stable at sixteen percent.
Speaker 2 (22:02):
Oh man, I think I owe you a Poptart Strawberry
Popdart come your way. Rich, He's sixteen percent. That's a
tick up. The lowest I saw it in the last
three years was twelve percent. But it started to tick
up when the when the interest rates went up, some
of the housing prices actually went down in other areas,
not Southern California unfortunately. So again to go back to
what I'm saying though here, is that we need to
be able to build units this affordability, these low income
(22:25):
housing units. It's not applicable because if you can't be
self employed, like the guy I was trying to help
was actually a comedy writer and he worked freelance, and
so automatically out of the gate, he's he's got nothing.
He had over a quarter of a million dollars saved
up for a down payment. But he then you have
to go petition to a local city council for you
to qualify, because my understanding is the municipalities are who
(22:45):
actually control these low income units, so they're the ones
who set the parameters. And it was a five thousand
dollars range in income. So and I'm just trying to
figure this out, like I guess it's only when you
apply right like so that the time that you go
in you have to make between sixty and sixty five
thousand dollars a year. If you make more or less,
how is that even a thing if you make less.
(23:06):
My guess is just like you need to be able
to afford to qualify for a place.
Speaker 3 (23:09):
And they want you to they want to know that
you make enough income.
Speaker 2 (23:12):
But I think if it should just be if you
can get a home loan for it to pay us
the price we're offering, then let's get you in there
regardless of what you make, because what if you're paying
all cash, it doesn't matter then, but you still you
want to put your cash towards something that's benefiting you.
Speaker 3 (23:24):
But we don't look at that.
Speaker 2 (23:25):
We don't look at somebody who's got four hundred thousand
dollars all cash to put into a house.
Speaker 3 (23:29):
And think, well, that person's independently wealthy. No, they're not.
Speaker 2 (23:32):
Now when it comes to housing in southern California, I mean,
you're lucky if that's that's like thirty percent down in
most cases.
Speaker 3 (23:39):
All Right, we're gonna come back and we're gonna talk
about horror stories.
Speaker 2 (23:44):
And it looks like it might just be me unless
anybody hits that talkback button. And if you have a question,
because we're going to do this again next week, if
there's something you'd like for me to cover, hit that talkback.
Hit me up on Instagram at home with Justin. Send
me a message.
Speaker 1 (23:55):
You're listening to KFI AM six forty on demand.
Speaker 3 (23:59):
I'm Justin.
Speaker 2 (24:00):
We're talking southern California real estate. Coming up next. Joining
me here in the studio is Andy Reeschmeyer from KTLA.
Thanks for being here. Hello, Hello, my friend, my new friend.
You're sounding great, by the way, Well, it makes us
very kind. Man.
Speaker 6 (24:13):
I was listening and I'm I'm totally locked in. Real
estate is such a terror already. To have somebody sort
of break it down in a way that makes sense
is so useful.
Speaker 3 (24:22):
Oh good, I'm glad that. I'm glad it's making sense.
That's my hope.
Speaker 2 (24:25):
My hope was I got some great advice from a
mentor who said, just keep it very simple and act
like you're this is I don't I'm not literally doing this,
but he's like, act like you're talking to a five
year old about whatever it is you're trying to talk about. Hey,
that makes it easier. Good life advice in general, in
any scenario except with your spouse. I don't reck with
your spouse. Andy. That has not yield the same success
for Moab. I am not married.
Speaker 3 (24:46):
Do you happen to Do you own your home as
I do own my home?
Speaker 6 (24:50):
And I bought a house. I bought my first house
in November. And I wish that I would have heard
a lot of what you have been talking about before
I got into it, But I was it wasn't that.
I mean, I don't think about escrow now, but every
single day during the process, it was like, how is
this the worst thing that I've ever been through in
my entire life?
Speaker 3 (25:10):
Yeah, the dean, I think it was Nadine.
Speaker 2 (25:13):
I'm sorry if I'm getting the name wrong, but she,
I think even commented that it's such a convoluted thing,
like it's it's surprising, it's such a bummer that this
isn't this in taxes? I feel like should be things
that are taught in school. Yes, I think they should
bring home economics classes back and actually teach the economics
of having check.
Speaker 6 (25:30):
Nobody knows how to write a check anymore. Those are dead.
I have a gardener now, Look at I'm so la.
I have a gardener now because I can't. I have
no ability to handle anything, you know, and bleeding money.
But I write a check every month to my gardener
and I'm like, I don't even know. I I don't
remember what I do in the memo, you know, because
it's just like we haven't done it for so long.
But I will say the thing that has been so
exciting about owning a house is that all of the
(25:53):
things that you don't think about when you rent are
just immediately available to you. Like the first day I
moved in, all the terrors. I had painters come over
to paint the exterior of the house. They ran over
a sprinkler head. Of course it is blusted a sprinkler head.
There's water spring everywhere. This is like I get the
keys the day I get the keys, the painters and
then they're like, we didn't do that, and I.
Speaker 3 (26:13):
Was like, come on to come.
Speaker 6 (26:15):
It was like we got yeah, okay, we have you know,
the Tahunga wash now that is in my backyard. Thank
you for that. And then you know, like there's nobody
to call now, it's all me, it's all you. You're
the guy to call. I'm the guy to call. Listen,
I'm here for you, Andy.
Speaker 2 (26:31):
Before we walk out of here, I'm going to give
you and this is this is a good tip to
give to everybody if you have a realtor in your life,
especially when that you care. One of the unknown benefits
of having a realtor is that they have they always
have a guy or a goal, right. I get called
all the time. I remind my clients. I'm like, hey,
just because we're done doesn't mean we're done. Like the
best one was my very first real estate client. She
(26:53):
did She was a single lady, and she was like,
I don't have a husband to run this stuff by.
So I told her, I go, I will be your
real estate husband. So anything to do with your house
something goes wrong, you call me. And so she got
a lot of guff from a lot of her friends,
who also eventually became clients of mine. But this year,
say like, buy your house like two years ago. Why
are you still bothering this guy? And it's one of
the things I love about the job. I really love it.
(27:13):
But before I run out of time and we give
it things over to you, Andy, I do want to
make sure I pay off these horror stories. I feel
free to jump in though in time you want the
biggest one that I have, and I hope that.
Speaker 3 (27:25):
Let me just double check my notes here.
Speaker 2 (27:26):
I want to make sure, I did so I had
the first time this happened to me, I was going
I was representing the buyer. It was a home in
North Hills. I walk up to the house and I
go to open the door for the inspections. And usually
I show up with the home inspector, and then other
inspectors show up, and then the buyers come at the end,
so it's just me and the home inspector. I opened
the door and I see like something had been knocked over,
(27:48):
like from the doorway. And I started to walk in.
And my home inspector is such a great guy. He's
become a great friend of mine, Mike Brooks. And he
reaches out and he grabs me by the shoulder. He's like,
I don't think you want to go in there?
Speaker 1 (27:59):
WHOA.
Speaker 3 (28:00):
I look and somebody had thrown a rag or no
in the vacant house. In the vacant house.
Speaker 2 (28:08):
Oh no, And my dumb instinct, I'm saying this because
there's another moment where I'm dumb in this regard. I'm
very good at helping people buy homes, but just maybe
my own safety, I'm not very smart.
Speaker 3 (28:18):
So I look around.
Speaker 2 (28:19):
I mean, literally, Eddie, there were blunts like grape blunts
that had been removed from the package. There were champagne bottles.
They had the time of their lives. So I called LAPD.
They came out and they cleared the house, which was
fun to watch. And then I did do a lot
of turning around corners holding guns, so clear. Yeah, I
really liked it. I'm like, it was cool. I wish
I could just I just want to be in them
(28:40):
and pay totally. Just be bosh all day. Just be bosh.
That's my modern life. Just be bosh. Can I blow
your mind right now?
Speaker 3 (28:48):
Blow it? Mike Brooks was my home inspeck. Really, Oh,
you got a good one. I got a good one.
You got a good one.
Speaker 6 (28:53):
You know who set me up with them? My wonderful realtor.
Oh do you want to say their name?
Speaker 3 (28:57):
Yeah, Bill Lustig from a compass. I don't know. Oh wait, no,
I think Bill just showed my listing. You can go
for the first time.
Speaker 6 (29:04):
I met him in twenty ten and I bought a
house with him fifteen years later.
Speaker 3 (29:09):
That's great.
Speaker 2 (29:09):
That's how long I love that For me to do that,
Mike's one of the best. Mike Brisident, super good, super thorough. Yeah,
he's really good. I can't believe that we have that's
the weirdest. This is something, man. I got one more
story and then we'll figure out what you're going to
talk about today. So this was a listing I had
out in Woodland Hills. If the clients happened to be
listening to this, they remember this, well, this one was
a rough one. So I go to Uh, I put
(29:31):
the house on the market. We have what's called like
a little blue lock box that we call a supra,
and that's one something that only real estates and appraisers correct, Yes, exactly,
and so they So anyway, I have to go put
it on because I'm already getting phone calls from agents
who want to sell, like show this place as soon
as I put it on the market. So I literally
show up in pajama pants, a T shirt and flip
flops because I just dropped my kids off for school.
(29:53):
I walk up to the house and the combo lockbox.
So a lot of times we put a combo lockbox
as a backup that has keys in it. Okay, something
goes wrong with the super you could still let the
agent show the house. And so this one I had
the combo there because we were having the house cleaned
up and staged. And so I go in there and
it's completely broken, like the block box is broken open.
And I was like, oh no, somebody broke into the house.
(30:14):
And I remember the story I just told you, and
I go they threw a party.
Speaker 3 (30:17):
Oh no.
Speaker 2 (30:18):
And I opened the door with the key I had
and I walk in but everything is pristine, and I
look to my left where the laundry closet was, and
hanging from the little biful door was like a very
large plastic style like what you'd get at like not
quite a trash bag.
Speaker 3 (30:33):
It felt like if you were going to like an
old navy, like you're buying a lot of clothes. Yeah. Yeah,
it's just hanging there. But it's empty. And I was
like what.
Speaker 2 (30:40):
And I start to walk down the hall and I
come around the corner and there's a bedroom on the
left and there is a woman that is wearing nothing
but a towel, sitting on a bed for staging. And
I looked at her and she looked back at me,
and there was a just We're just staring at each
other for what felt like four minutes, but it was
probably twenty seconds and she goes, I am so sorry.
Speaker 3 (31:00):
I am so sorry. She just starts saying I am
so sorry.
Speaker 2 (31:03):
And all I could come up with and mustard was
you can't be here right yeah, yeah, which is my
favorite part. Right now, right now, later we could do this,
but right now a good time for inappropriate.
Speaker 3 (31:12):
So I just go outside because I don't know what
to do.
Speaker 2 (31:14):
I don't want to put she obviously just sitting there
holding a towel like it wasn't even big enough to
really cover her, like if she stood up.
Speaker 3 (31:20):
This is to be getting to a different kind of story.
Speaker 2 (31:22):
Yes, So I was like, I step outside, I immediately
call the police. A guy walks out from behind the house,
which at first I thought was the neighbor, but then
I realized no, he jumped the fence from the backyard.
Obviously her lover, very chivalrous. He just left her there. Oh,
and so I called the police. More of the story
is is that if somebody breaks into your listing, uh,
maybe just call the cops first. Also fun fact from
(31:44):
the LAPD don't put for sale signs on your home
that they believe that they're just a beacon saying there's
nobody here. Right now, and make sure if you do
put one up there, if you really realtor really wants
to make sure they put do not disturb occupants. That's
about all you could do. But now, Andy, what are
you talking about?
Speaker 3 (31:59):
Coming?
Speaker 6 (32:00):
Why I follow that up? I mean, and the guy
who ran outside was not Chris Hansen.
Speaker 3 (32:04):
I wish I would have enjoyed some cookies and lemonade
so much. What happened to me?
Speaker 6 (32:08):
Well, we've got a lot to talk about just looking
back at some of the stories from Los Angeles this week.
We've got Easter eggs that are so expensive. Americans are
dying other things. I know, just the one day, you
wouldn't give up on Easter eggs or eggs from the
other We live in.
Speaker 3 (32:25):
A strange four eggs for Easter, so we're dying other things. Well,
we'll show you.
Speaker 6 (32:30):
And also California could be banning teens from riding in
the front seat. Could a ten year old have to
have a booster seat? If a new law is passed,
then we're gonna check it on the wiggle waggle Walk.
I know we have some KFI people and some KTLA
people who helped raise a lot of money for those
people who are impacted by the wildfires.
Speaker 3 (32:48):
And then gen Z. You know they hate millennials.
Speaker 2 (32:50):
Of course they hate us, I mean for some reason.
Speaker 6 (32:54):
Yeah, but they're they're reviving some trashy tattoos.
Speaker 3 (32:59):
Oh good for them, we tried to forget. I can't wait.
Speaker 6 (33:01):
You walked so they could run and be embarrassed later.
That's all coming up. Thanks Andy, Thank you so much again.
I will be back two to four next Sunday. If
you want hit me up at home with Justin on Instagram.
If you have questions or topics you'd like for me
to cover, you can google me Justin jus t in
WR and then you'll see that worship pop up and
then you can find a way to send me an email.
Speaker 3 (33:21):
Literally, my contact info is everywhere.
Speaker 1 (33:23):
KFI AM six forty on demand
You're listening to KFI AM six forty.
Speaker 2 (00:03):
I'm be here two to four next Sunday on the
thirteenth doing an audition for a Southern California real estate show.
I really I want to say, I appreciate everybody. We've
got so many people using the talkback I always as
soon as they rolled this out and I saw it
on the app, I was like, this is a brilliant
idea that is so great in this kind of a format.
(00:25):
I'm sure it works awesome in the FM format two,
but I just think it's so it's so fun to
hear from you guys, and everybody keeps saying the same thing.
They think this is a great idea for a show.
So I do want to give credit where credit is due.
All of the credit for the idea of this topic
goes to Michelle Cube and Oscar Ramirez. For those of
(00:45):
you longtime KFI people, Michelle Cube used to be the
producer for the Bill Handle Show. She's now kind of
in charge of all things producer ing here at KFI,
and a lot of my radio career early on, I
really truly owe to her, the one who gave me
the shot on the Handle Show. We did a podcast together,
and she was nice enough to even text producer Richie
(01:06):
and say that the show's going great. It really means
the world to me, means the work here I do.
Speaker 3 (01:11):
I call her Cube. I love her.
Speaker 2 (01:13):
She's a big fan of Magic Mike and also Robin.
I love any kind of house themed bumper music that's fun.
That was my favorite thing as a board off, trying
to find any kind of song, just a goofily, like
a dad joke off tying into whatever it is that's
being talked about. So I want to hit some of
the talkbacks that we got. The first one is I'm
just going to call him the weatherman from key West.
(01:33):
He is currently driving from key West across Texas. He
said that the reason why people stay in California is
because of the weather, because he's crossed most of Texas
and it's been ninety degrees the whole time. And listen,
I've never lived in another state. I've traveled a lot
as a comedian. And don't get me wrong, humidity is
no joke. Humidity in me do not get along. But
(01:57):
I mean a million dollars plus, like I mean realistically,
like I said earlier, your suppose your housing payment. Traditionally,
what most financial people will recommend, thirty percent of your
monthly income should go towards housing, so a third almost
across the board. The clients that I help buy houses
in southern California are somewhere between forty and fifty percent
(02:17):
what they call DTI debt to income and so it's
their ratio, so it's it's more than half in some cases,
some in very rare cases, it gets all the way
up to fifty five percent. There are some lenders who
can handle that DTI, the debt to income ratio, and
so we also, I believe had one from Angela who
said that she's been working at U haul and she's
(02:39):
noticed that a lot of people are leaving California. I
want to talk about that. That's what I have prepared,
but I also want to hear from the Dean. Romy
Can you help me hear.
Speaker 3 (02:45):
From the Dean? Please?
Speaker 4 (02:47):
Hi, Justin, This is Ny Deane calling from Wildemar on
Riverside County, thrilled to hear you're hosting your own show
about real estate, and I hope this will become a
regular program on Sunday afternoons. Just in the half hour
of listening. I find it very informative. You're doing an
awesome job. I think more people need this type of
educational information about real estate. I personally find it can
be very confusing and convoluted. Yes, I do know many
(03:07):
people that moved or left southern California due to unaffordability
and politics.
Speaker 2 (03:13):
That's it. That's why I'm glad you. I'm glad you
used that talkback feature. I believe I've not only heard
it from the mouths of clients that I've helped leave California,
but it really is politics. So before I get into this,
I just want to say I'm not trying to convince
you of being on one side of the aisle or
the other. To me, that's irrelevant, right, But when they
serve so The La Times did a story about this
(03:34):
very subject in April of twenty twenty four, and they
said the same thing. They said it was taxes and
high cost of living was the predominant answer. KTLA did
a story in January of this year where they quoted
a survey that said twenty nine percent of people left
California for family reasons. I just want to say that again,
twenty nine percent of people left California for family reasons.
Speaker 3 (03:56):
Let's just talk about what you think that might mean.
Speaker 2 (03:59):
Twenty one percent left for a job and nearly twelve
percent for retirement. Just ten percent cited cost of living
as the primary reason. I mean the family reasons. It
could be that drunk uncle still a Thanksgiving.
Speaker 3 (04:12):
Yes. Talking politics, well, that's what it is.
Speaker 2 (04:14):
I think in my experience, there are people who probably
lean a little bit more conservative and they want out.
They want out, they're tired of the policies that and
they feel like it's just it's bad all around. And
what's interesting too, when you start looking into the census data,
So in twenty twenty two to twenty twenty three, we
actually lost about seven hundred thousand people, but the population
(04:35):
grew from twenty twenty three to twenty twenty four by
a quarter of a million people. So there's still more
people coming to California. I don't think it's a big
move or big change, but when you look at so
we're going to leave southern California, just talk real estate
in general. The people are leaving blue states to go
to red states. And from what I'm seeing, the reason
is is that traditionally red states are a little bit
(04:58):
more rural, they have more land that they can build
houses on. And so you get these Californians that are
coming in there and they're probably raising property values. We
saw that a lot anybody who retired during the pandemic.
Speaker 3 (05:11):
I helped a family.
Speaker 2 (05:12):
Of multiple people sell multiple homes and they were all
relocating to Boise, Idaho or Quarterlane, Idaho.
Speaker 3 (05:18):
That was the place to go.
Speaker 2 (05:20):
Right now, what I'm hearing like Nashville has had a
humongous search in real estate prices, and I think a
lot of it is people moving from New York or
California and they raise those prices because they have the money.
The kind of silver lining, if it could be said
out loud of the pandemic, right, I know, it was
also a horrible tragedy, but what we learned is that
(05:41):
people could work remotely, and now people want to work
remotely and so they can have that California job and
get close to that California income and live elsewhere. I
think we're really going to start seeing employers have more
of a cultural shift where they're going to pay based
on where you live, and maybe that makes it more
affordable for businesses.
Speaker 3 (05:58):
But across the board.
Speaker 2 (05:59):
What you see is that Really, what it boils down
to is people are leaving blue states and they're going
to red states. And my theory is is because if
you lean a little bit more conservative, you're probably of
the mind. And I'm gonna lean on my dad. I'm
gonna use my dad as an example. My dad was
a very conservative person, especially financially. I would say he
was socially liberal, which was probably how I line politically,
(06:20):
if that even matters to anybody. But he always said
that the reason why he liked people that were more
Republican is because he felt like they were more inclined
to be self reliant and they would want to take
care of things themselves. I think that's why they kind
of like being in rural areas, right, They like being
kind of on their own. And I think that really
what if we could find some kind of a sweet
spot is where we can find people who are conservative
(06:43):
for fiscal benefits, right, but they're also liberal for social benefits.
But I think that's really hard because if you are
consider yourself to be very progressive, you have to be tolerant, right,
you have to be welcoming of all kinds of people.
That's kind of part you don't really have that hard line.
And I'm not saying conservatives aren't toleran people. It's not
my point. My point is is that inherently the people
(07:04):
that lean more liberal and are progressive, they want to
accept all things. They want everybody to feel good, and
that gets expensive. Just in general. There's a sign right
now if you head out to Phoenix that as you
enter Phoenix that says, we welcome all Californians. Just don't
try to make Arizona California. They don't want us to
bring our politics. So you have to find a way
to change that. You have to find a way to
(07:27):
have it. Just I wish I knew the solution, but
I mean, I'm already thinking about it myself. When my
kids get out of high school, there's a strong chance
that I'm going to relocate to probably a red state.
And it's because I just don't know that my kids
could get out of school, even if they're like after college,
how can they get out of college with all the
debt that comes with it and get a regular job
(07:47):
and afford to buy a house in southern California. It's
just not going to happen. So my answer to the
question is exactly what Nadine said. I think it's because
of politics, and U haul agrees with me. They're seeing
more people taking one way trips out of California than
coming back into it. All right, what are we going
to do when we come back? I want to talk
about when is a good time to buy? That's what
we're going to talk about. Hit that talkback feature. Let
(08:09):
me hear your real estate horror story, whatever you got.
Speaker 1 (08:12):
You're listening to KFI AM six forty on demand.
Speaker 2 (08:16):
This is justin Worsha. We're talking southern California real estate.
If you're just tuning in. I want to hear some
horror stories. I have a couple that I want to share,
But what if yours is better than mine? So even
if you're sitting there right now going I don't know
if it's a horror story, but this was tough. Hit
that microphone button right at the top of the app,
record a little message and send it to us. And again,
thank you to everybody, Kathleen, Na Dean, our weather guy, Angela,
everybody who's been using that talkback. It really does make
(08:39):
the show not only easier, but I would argue it
makes it better. So if you have a question even
that you would like to ask me and get my
take on my opinion, shoot us that. But I would
really love to hear some horror stories because that's how
we want to close out the show. So now what
I want to talk about, because it's something that all
comes out. It came up like four times today at
the open house. I had right before the show, is
when is a good time to buy? Should I wait?
(09:01):
Because I'm waiting for the recession. And when I first
got into real estate back in twenty eighteen is when
I started as a full time agent.
Speaker 3 (09:09):
Before then, I was just kind of dabbling.
Speaker 2 (09:10):
And when I started doing it, then it was well,
I'm going to wait for the interest rates to come
up because then the prices will go down.
Speaker 3 (09:18):
And then the interest rates came up.
Speaker 2 (09:20):
And now I'm sorry to laugh because I know it's hard,
but everybody keeps saying, well, now the prices the monthly
payment is so high, I'm waiting for the interest.
Speaker 3 (09:28):
Rates just to tick down.
Speaker 2 (09:29):
I literally had a very nice gentleman who I think
is actually going to be a new client, and he
said to me, he goes, I just want the rates
to tick down. For like three months, basically just in
time for him to get a house and then they
could go back up.
Speaker 3 (09:40):
He doesn't care after that because they have.
Speaker 2 (09:43):
People right now have like the lowest I've heard so
far is a one point six percent interest rate.
Speaker 3 (09:50):
That's insane.
Speaker 2 (09:52):
My interest rate we had my wife was a she
did home loans until recently, and we had our home
loan through the credit union that she used to work at.
We were getting an employee discount, and I was paying
point nine to eight percent for my mortgage for the
longest time, and now I think I'm paying like three
and a half on an adjustable rate, which is awesome.
(10:12):
And the problem with that too is that there's it's
changed the way that people sell homes. When I first
got into real estate, the average data said that the
out average people will sell or move their move every
seven to twelve years. Now the data is twenty to
thirty years. They've got this new term called an accidental landlord.
Although now we're in California, because we're very progressive, we're
(10:34):
supposed to.
Speaker 3 (10:35):
Say rental property owner.
Speaker 2 (10:36):
We don't call them lords because they are not of
noble blood, I guess.
Speaker 3 (10:41):
And.
Speaker 2 (10:43):
They call them accidental rental property owners or landlords because
their interest rate is so low that if they actually
leave the state of California, they just want to keep
the house and rent it out and they have no
idea really what they're doing. They don't they never intended
to be a real estate investor, and sure, in some cases,
I'm sure it goes well. I think that investing in
real estate can be if you're not easily stressed out,
(11:04):
it can be a very easy way to invest and
plan for your future. You just really have to have
a knowledge of basic arithmetic, and you can. You can
definitely pull it off. I'm not saying it's for everybody
because you can't account for the stress. So going back
to my point though, when's a good time to buy back?
In twenty right after I bought my house, I had
a lot of people who even worked in real estate
(11:24):
before I was a full time agent who were waiting
because there's just like I'm waiting for the right time.
Speaker 3 (11:29):
I'm waiting for the right time. I'm waiting for the
right time.
Speaker 2 (11:32):
And in multiple industries we have that thing they love
to say the cost of waiting, and so many people
are paying that. I have a new client that I
just started working with this last week and he's unfortunately,
he's like kicking himself because back in twenty fourteen, he
was just like I want to wait. He didn't want
to get parents help. That's another thing that's really tough
for a lot of these buyers. If some I'm forty six,
(11:53):
if I'm helping somebody that is at least five years
younger than me or more, almost across the board, they're
getting significant financial help from their parents for that down payment.
And if you have that option, and maybe your brain
is a little wired like mine is, and you're like,
I don't want to take help.
Speaker 3 (12:09):
I want to do this on my own.
Speaker 2 (12:11):
Take the help, man, Take the help, because it's just
going to get more expensive and you're gonna hate yourself later.
Speaker 3 (12:15):
You're gonna hate yourself later.
Speaker 2 (12:17):
I think buying a house is a lot like the
stock market and every book I've read, every financial planner
that I've talked to, it's like, it's hard to do
that day trader thing. The success rate is so low.
It's not like double Dutch. It's not that at all.
You just get in. You get in when you get in,
and then you buy and you write it out I
(12:37):
actually did, just to geek out about stuff. I did
some research and went all the way back to the eighties,
back when, like my thing, my dad's interest rate was
somewhere between like thirteen and sixteen percent on the house
he bought for us to live in nineteen eighty one, right,
And I compared housing prices on average in different areas
in Los Angeles and got like meetium prices and just
kind of geeked out to try to see what makes
more sense. And it definitely makes more sense to purchase
(13:01):
houses when there is a higher interest rate because the
prices are low. Where that doesn't apply though, is now
the prices are high, they're still going up.
Speaker 3 (13:10):
I looked at it.
Speaker 2 (13:10):
I was shocked by this eight point one percent appreciation
for the median house price in the La County eight
point one with seven and a quarter interest rates. Orange
County was even more shocking. Twenty one point seven twenty one.
That's like pandemic inflation numbers. The housing prices have increased
there in Orange County.
Speaker 3 (13:28):
It shouldn't be that way. That's not how it's supposed
to go.
Speaker 2 (13:32):
So what I tell clients is, oh, so, when I
looked at that data, it actually was more cost effective
for you to buy a house when the price was
lower and the interest rates were higher than when the
interest rates were lower and the prices were higher because
it was so competitive. Everybody had so much money in
twenty twenty one and twenty twenty like they were just
throwing money at houses because the interest rates were so low.
(13:53):
So what I tell people is, if your plan is
to be in that house for five to ten years
at least, then you should just get in where you
fit in find a place that you can afford. I'm
not telling you to bankrupt yourself. I do tell people
that you don't want to like if you don't want
to bank of yourself. But I get a lot of
clients who are worried about being house poor, and I
have a recommendation that I give that you take whatever
(14:15):
you're looking. You can go online and find calculators to
figure out and guestimate what your mortgage payment will be.
Speaker 3 (14:20):
Compare that.
Speaker 2 (14:20):
So, let's say your mortgage payment is going to be
seven thousand dollars and right now you're paying four thousand
dollars a month in rent. Start paying yourself three thousand
dollars a month and sticking it in a savings account.
That's a great way to save up for your down payment,
or if you're already getting a gift from family members,
you save that money and that could be your rehab costs,
or I always tell clients too that when you close
on the house and I'm there to give you your keys,
(14:41):
you should at least have ten thousand dollars liquid because
in most cases, the most expensive thing that could go
wrong in a house, in most cases, will cost you
less than ten grand.
Speaker 3 (14:49):
So to have that in savings, you're good. You're fine.
Speaker 2 (14:52):
So if you could do all of that and it's
going to take a major life event, like somebody's going
to have to lose a job or something like that
that's going to cause you to leave, then you should
definitely be looking to buy whatever you can afford. Right
But if there's a chance you're only going to be
around for maybe two to three years, then I would
suggest that you just continue to rent and wait until
(15:14):
you feel more confident. But if you're only waiting because
you're waiting for prices to come down, I still think
that's going to be a mistake. The I don't know
if I said this already but the California Association of
Realtors said that we are currently experiencing all of the
indicators that would that would show up if we were
in a real estate crash, except for the actual crash.
They projected that if there was going to be a
(15:36):
cost reset, it was going to be five to ten percent,
nothing like what we saw after eight Banks and everybody
have learned about the mistakes that they made in a way.
So I don't think you're going to see those big drops.
You're not going to see that price come down to
something affordable. Let's see, we're gonna before we get into
what I got two more. Yeah, all right, I think
when we're come back, we're going to talk about how
to make phones homes more affordable in southern California.
Speaker 1 (15:59):
You're listening to KFI A six forty on demand.
Speaker 2 (16:02):
I'm justin Worsham here talking southern California real estate. I
am here until four o'clock today and then on April thirteenth,
I'm gonna be back again two to four. So if
you're just catching us tuning in and you're like, hey,
I like the idea of some jack hole talking about
real estate, that sounds interesting to me. Then we'll see
you again next week two to four. Market Counter send
(16:24):
it a timer, set an alarm. I want to take
some time because I'm a narcissist. We got some great
comments on the talkback while before we heat praised upon me.
I do also want to add that it seems like
so far nobody has horror stories. We have yet to
get a horror story via the talkback, so that's fine.
I have some horror stories that I would love to share,
(16:44):
but kudos to you. But I'm just gonna put that
out there in case maybe you think that it's just
a negative experience. But it doesn't sound like a horror story.
I don't need somebody to be murdered or anything like that.
But anyway, Robin, let's play who do we have?
Speaker 3 (16:59):
First? Do you see you got? Marsh up there? Who
do you got? Thank you?
Speaker 2 (17:02):
I appreciate it show today justin I'm a KFI listener
and I love listening to your real estate show today.
Speaker 3 (17:07):
Hope it becomes a permanent Sunday thing.
Speaker 2 (17:09):
Thanks so much.
Speaker 3 (17:11):
Thanks Marcia. Oh kind is that this is great? We
got another one from Ted. Let's keep these compliments comment
Let's say good afternoon, justin no question. Just want to
tell you man, great show, good debut. Hope things work
out for you, buddy.
Speaker 2 (17:24):
Everybody's so nice man that I've been lucky enough to
where when they did the Caterina's Club and we'd be
at the Anaheim White House when I was on the
morning show, got to meet a lot of the KFI
listeners and everybody has been they're just they're they're good peeps.
Speaker 3 (17:38):
Man, You're popular. Man.
Speaker 2 (17:41):
It's one day, right either, Like I said, isn't like
your past client's calling, right, I do like our group
text before the show. You know what's wrong with me, Andrew,
is that even if that was the case, I am
so incapable of being dishonest that I don't even think
I could say that out loud, like I'm actually my
I'm very lucky. I have shout out to the Burbank
League of Legend that's a networking group, and they are
(18:02):
in our little chat app giving me some praise as
well and listening.
Speaker 3 (18:06):
I appreciate all of you guys for taking the time.
Speaker 2 (18:08):
So so far we have avoided my mother and any
of my friends or past clients, which maybe is a disappointment.
Maybe I should be promoting this radio show more to
my clients so that they can also take this opportunity
to tell other people how great I am. Which, by
the way, if you're listening to this and you're like,
I would like to ask some questions of you offline.
You can find me on Instagram at home with Justin,
(18:29):
or you could just give me a Google. All you
have to do is type in Justin, JOSTI, N, and
then wor that's the beginning of my last name, Worsham,
like a redneck, says Worsham dishes. My favorite thing again
the narcissist in me about googling myself is one of
the first suggested things when you start to type in
my name is wife. Justin Worsham, wife, which means me
to believe that the internet is like this guy is
(18:51):
married and to who, cause I need to understand why
that would be a thing.
Speaker 3 (18:56):
All right, what are we talking about now?
Speaker 2 (18:57):
I want to talk about how do we make homes
more affordable in southern California.
Speaker 3 (19:01):
So, if you've been listening to.
Speaker 2 (19:02):
The whole show, I've alluded to a lot of this
earlier on in little bits and pieces, but I think
that it's worth revisiting because it is a humongous issue.
I think last time I checked, and actually, Richard, do
me a favor while we're talking about this, look up
and see what the affordability Housing Affordability Index for the
state of California. I'm gonna bet you a pop tart
that it is somewhere around fifteen percent. And I think
(19:25):
I'm spot on, but my gut says that I'm wrong
and it's twelve percent. But I'm going to stick to
my initial thought, first thought, best thought, fifteen percent. If
you don't mind looking at that and seeing what you
can't find on the web while I talk, I would.
Speaker 3 (19:36):
Appreciate jolly you check.
Speaker 2 (19:37):
But as long as it's a strawberry pop tart, you listen,
winner picks the pop tart. That's how I do. That's
how it's always house rules. That's how it works for me.
Richie's so much cooler than I am.
Speaker 3 (19:47):
So I talked earlier about the RHNA.
Speaker 2 (19:49):
So this is the Regional Housing Needs Assessment, and this
was established by SKAG, the Southern California Association of Governments.
I said earlier that this is essentially all of the
county leaderships in Southern California getting together and forming their
own un and they talk about issues regarding transportation and
housing and what they need to do to fix it.
So what they found is that in southern California, so
(20:11):
this is going to unfortunately include all of these counties,
that what we need to meet the housing need is
just under one point four million housing units. But further
research taught them that given the limitation of land that
they can develop on, that they can really at most
develop four hundred and fifty six thousand units. And this
(20:31):
is another part that they love to do. One hundred
and eighty four thousand of those must be considered affordable units.
So those are what we would call low income housing. Sorry,
justin real quick. Yeah, you read the question that you
want to really look Richie. It's like you don't want
this pop tart I do. I need you to find
the housing affordability index for the state of California. So
(20:54):
what we're looking for is what percentage of people can
afford the median house price in California. If you want
to get extra bonus points, look up La County for me,
because I think it's even lower. Okay, So all of
these housing units need to be built. I want to
talk about affordable housing because this is a great idea
for legislators to get up there and talk to you
about this is what they're doing to make California.
Speaker 3 (21:15):
Better for you.
Speaker 2 (21:16):
But I've actually tried to put a client in an
affordable unit and it is so bad.
Speaker 3 (21:21):
It is so next to impossible.
Speaker 2 (21:23):
In order for somebody to qualify for this particular unit,
they had to make between I'm not making this up,
between sixty and sixty five thousand dollars a year, and
they could not be self employed. In southern California, where
everybody for the most part works in some connection to
the to the entertainment industry. If you've got a regular
(21:45):
tech job or something, you could probably afford a house.
Speaker 3 (21:47):
Yes, richid, so I got the stats. Yeah, so pretty much.
Speaker 5 (21:50):
The median home price for forecast to climb to nine
hundred k and twenty twenty five yep, while house affordinance
is expected to stable at sixteen percent.
Speaker 2 (22:02):
Oh man, I think I owe you a Poptart Strawberry
Popdart come your way. Rich, He's sixteen percent. That's a
tick up. The lowest I saw it in the last
three years was twelve percent. But it started to tick
up when the when the interest rates went up, some
of the housing prices actually went down in other areas,
not Southern California unfortunately. So again to go back to
what I'm saying though here, is that we need to
be able to build units this affordability, these low income
(22:25):
housing units. It's not applicable because if you can't be
self employed, like the guy I was trying to help
was actually a comedy writer and he worked freelance, and
so automatically out of the gate, he's he's got nothing.
He had over a quarter of a million dollars saved
up for a down payment. But he then you have
to go petition to a local city council for you
to qualify, because my understanding is the municipalities are who
(22:45):
actually control these low income units, so they're the ones
who set the parameters. And it was a five thousand
dollars range in income. So and I'm just trying to
figure this out, like I guess it's only when you
apply right like so that the time that you go
in you have to make between sixty and sixty five
thousand dollars a year. If you make more or less,
how is that even a thing if you make less.
(23:06):
My guess is just like you need to be able
to afford to qualify for a place.
Speaker 3 (23:09):
And they want you to they want to know that
you make enough income.
Speaker 2 (23:12):
But I think if it should just be if you
can get a home loan for it to pay us
the price we're offering, then let's get you in there
regardless of what you make, because what if you're paying
all cash, it doesn't matter then, but you still you
want to put your cash towards something that's benefiting you.
Speaker 3 (23:24):
But we don't look at that.
Speaker 2 (23:25):
We don't look at somebody who's got four hundred thousand
dollars all cash to put into a house.
Speaker 3 (23:29):
And think, well, that person's independently wealthy. No, they're not.
Speaker 2 (23:32):
Now when it comes to housing in southern California, I mean,
you're lucky if that's that's like thirty percent down in
most cases.
Speaker 3 (23:39):
All Right, we're gonna come back and we're gonna talk
about horror stories.
Speaker 2 (23:44):
And it looks like it might just be me unless
anybody hits that talkback button. And if you have a question,
because we're going to do this again next week, if
there's something you'd like for me to cover, hit that talkback.
Hit me up on Instagram at home with Justin. Send
me a message.
Speaker 1 (23:55):
You're listening to KFI AM six forty on demand.
Speaker 3 (23:59):
I'm Justin.
Speaker 2 (24:00):
We're talking southern California real estate. Coming up next. Joining
me here in the studio is Andy Reeschmeyer from KTLA.
Thanks for being here. Hello, Hello, my friend, my new friend.
You're sounding great, by the way, Well, it makes us
very kind. Man.
Speaker 6 (24:13):
I was listening and I'm I'm totally locked in. Real
estate is such a terror already. To have somebody sort
of break it down in a way that makes sense
is so useful.
Speaker 3 (24:22):
Oh good, I'm glad that. I'm glad it's making sense.
That's my hope.
Speaker 2 (24:25):
My hope was I got some great advice from a
mentor who said, just keep it very simple and act
like you're this is I don't I'm not literally doing this,
but he's like, act like you're talking to a five
year old about whatever it is you're trying to talk about. Hey,
that makes it easier. Good life advice in general, in
any scenario except with your spouse. I don't reck with
your spouse. Andy. That has not yield the same success
for Moab. I am not married.
Speaker 3 (24:46):
Do you happen to Do you own your home as
I do own my home?
Speaker 6 (24:50):
And I bought a house. I bought my first house
in November. And I wish that I would have heard
a lot of what you have been talking about before
I got into it, But I was it wasn't that.
I mean, I don't think about escrow now, but every
single day during the process, it was like, how is
this the worst thing that I've ever been through in
my entire life?
Speaker 3 (25:10):
Yeah, the dean, I think it was Nadine.
Speaker 2 (25:13):
I'm sorry if I'm getting the name wrong, but she,
I think even commented that it's such a convoluted thing,
like it's it's surprising, it's such a bummer that this
isn't this in taxes? I feel like should be things
that are taught in school. Yes, I think they should
bring home economics classes back and actually teach the economics
of having check.
Speaker 6 (25:30):
Nobody knows how to write a check anymore. Those are dead.
I have a gardener now, Look at I'm so la.
I have a gardener now because I can't. I have
no ability to handle anything, you know, and bleeding money.
But I write a check every month to my gardener
and I'm like, I don't even know. I I don't
remember what I do in the memo, you know, because
it's just like we haven't done it for so long.
But I will say the thing that has been so
exciting about owning a house is that all of the
(25:53):
things that you don't think about when you rent are
just immediately available to you. Like the first day I
moved in, all the terrors. I had painters come over
to paint the exterior of the house. They ran over
a sprinkler head. Of course it is blusted a sprinkler head.
There's water spring everywhere. This is like I get the
keys the day I get the keys, the painters and
then they're like, we didn't do that, and I.
Speaker 3 (26:13):
Was like, come on to come.
Speaker 6 (26:15):
It was like we got yeah, okay, we have you know,
the Tahunga wash now that is in my backyard. Thank
you for that. And then you know, like there's nobody
to call now, it's all me, it's all you. You're
the guy to call. I'm the guy to call. Listen,
I'm here for you, Andy.
Speaker 2 (26:31):
Before we walk out of here, I'm going to give
you and this is this is a good tip to
give to everybody if you have a realtor in your life,
especially when that you care. One of the unknown benefits
of having a realtor is that they have they always
have a guy or a goal, right. I get called
all the time. I remind my clients. I'm like, hey,
just because we're done doesn't mean we're done. Like the
best one was my very first real estate client. She
(26:53):
did She was a single lady, and she was like,
I don't have a husband to run this stuff by.
So I told her, I go, I will be your
real estate husband. So anything to do with your house
something goes wrong, you call me. And so she got
a lot of guff from a lot of her friends,
who also eventually became clients of mine. But this year,
say like, buy your house like two years ago. Why
are you still bothering this guy? And it's one of
the things I love about the job. I really love it.
(27:13):
But before I run out of time and we give
it things over to you, Andy, I do want to
make sure I pay off these horror stories. I feel
free to jump in though in time you want the
biggest one that I have, and I hope that.
Speaker 3 (27:25):
Let me just double check my notes here.
Speaker 2 (27:26):
I want to make sure, I did so I had
the first time this happened to me, I was going
I was representing the buyer. It was a home in
North Hills. I walk up to the house and I
go to open the door for the inspections. And usually
I show up with the home inspector, and then other
inspectors show up, and then the buyers come at the end,
so it's just me and the home inspector. I opened
the door and I see like something had been knocked over,
(27:48):
like from the doorway. And I started to walk in.
And my home inspector is such a great guy. He's
become a great friend of mine, Mike Brooks. And he
reaches out and he grabs me by the shoulder. He's like,
I don't think you want to go in there?
Speaker 1 (27:59):
WHOA.
Speaker 3 (28:00):
I look and somebody had thrown a rag or no
in the vacant house. In the vacant house.
Speaker 2 (28:08):
Oh no, And my dumb instinct, I'm saying this because
there's another moment where I'm dumb in this regard. I'm
very good at helping people buy homes, but just maybe
my own safety, I'm not very smart.
Speaker 3 (28:18):
So I look around.
Speaker 2 (28:19):
I mean, literally, Eddie, there were blunts like grape blunts
that had been removed from the package. There were champagne bottles.
They had the time of their lives. So I called LAPD.
They came out and they cleared the house, which was
fun to watch. And then I did do a lot
of turning around corners holding guns, so clear. Yeah, I
really liked it. I'm like, it was cool. I wish
I could just I just want to be in them
(28:40):
and pay totally. Just be bosh all day. Just be bosh.
That's my modern life. Just be bosh. Can I blow
your mind right now?
Speaker 3 (28:48):
Blow it? Mike Brooks was my home inspeck. Really, Oh,
you got a good one. I got a good one.
You got a good one.
Speaker 6 (28:53):
You know who set me up with them? My wonderful realtor.
Oh do you want to say their name?
Speaker 3 (28:57):
Yeah, Bill Lustig from a compass. I don't know. Oh wait, no,
I think Bill just showed my listing. You can go
for the first time.
Speaker 6 (29:04):
I met him in twenty ten and I bought a
house with him fifteen years later.
Speaker 3 (29:09):
That's great.
Speaker 2 (29:09):
That's how long I love that For me to do that,
Mike's one of the best. Mike Brisident, super good, super thorough. Yeah,
he's really good. I can't believe that we have that's
the weirdest. This is something, man. I got one more
story and then we'll figure out what you're going to
talk about today. So this was a listing I had
out in Woodland Hills. If the clients happened to be
listening to this, they remember this, well, this one was
a rough one. So I go to Uh, I put
(29:31):
the house on the market. We have what's called like
a little blue lock box that we call a supra,
and that's one something that only real estates and appraisers correct, Yes, exactly,
and so they So anyway, I have to go put
it on because I'm already getting phone calls from agents
who want to sell, like show this place as soon
as I put it on the market. So I literally
show up in pajama pants, a T shirt and flip
flops because I just dropped my kids off for school.
(29:53):
I walk up to the house and the combo lockbox.
So a lot of times we put a combo lockbox
as a backup that has keys in it. Okay, something
goes wrong with the super you could still let the
agent show the house. And so this one I had
the combo there because we were having the house cleaned
up and staged. And so I go in there and
it's completely broken, like the block box is broken open.
And I was like, oh no, somebody broke into the house.
(30:14):
And I remember the story I just told you, and
I go they threw a party.
Speaker 3 (30:17):
Oh no.
Speaker 2 (30:18):
And I opened the door with the key I had
and I walk in but everything is pristine, and I
look to my left where the laundry closet was, and
hanging from the little biful door was like a very
large plastic style like what you'd get at like not
quite a trash bag.
Speaker 3 (30:33):
It felt like if you were going to like an
old navy, like you're buying a lot of clothes. Yeah. Yeah,
it's just hanging there. But it's empty. And I was
like what.
Speaker 2 (30:40):
And I start to walk down the hall and I
come around the corner and there's a bedroom on the
left and there is a woman that is wearing nothing
but a towel, sitting on a bed for staging. And
I looked at her and she looked back at me,
and there was a just We're just staring at each
other for what felt like four minutes, but it was
probably twenty seconds and she goes, I am so sorry.
Speaker 3 (31:00):
I am so sorry. She just starts saying I am
so sorry.
Speaker 2 (31:03):
And all I could come up with and mustard was
you can't be here right yeah, yeah, which is my
favorite part. Right now, right now, later we could do this,
but right now a good time for inappropriate.
Speaker 3 (31:12):
So I just go outside because I don't know what
to do.
Speaker 2 (31:14):
I don't want to put she obviously just sitting there
holding a towel like it wasn't even big enough to
really cover her, like if she stood up.
Speaker 3 (31:20):
This is to be getting to a different kind of story.
Speaker 2 (31:22):
Yes, So I was like, I step outside, I immediately
call the police. A guy walks out from behind the house,
which at first I thought was the neighbor, but then
I realized no, he jumped the fence from the backyard.
Obviously her lover, very chivalrous. He just left her there. Oh,
and so I called the police. More of the story
is is that if somebody breaks into your listing, uh,
maybe just call the cops first. Also fun fact from
(31:44):
the LAPD don't put for sale signs on your home
that they believe that they're just a beacon saying there's
nobody here. Right now, and make sure if you do
put one up there, if you really realtor really wants
to make sure they put do not disturb occupants. That's
about all you could do. But now, Andy, what are
you talking about?
Speaker 3 (31:59):
Coming?
Speaker 6 (32:00):
Why I follow that up? I mean, and the guy
who ran outside was not Chris Hansen.
Speaker 3 (32:04):
I wish I would have enjoyed some cookies and lemonade
so much. What happened to me?
Speaker 6 (32:08):
Well, we've got a lot to talk about just looking
back at some of the stories from Los Angeles this week.
We've got Easter eggs that are so expensive. Americans are
dying other things. I know, just the one day, you
wouldn't give up on Easter eggs or eggs from the
other We live in.
Speaker 3 (32:25):
A strange four eggs for Easter, so we're dying other things. Well,
we'll show you.
Speaker 6 (32:30):
And also California could be banning teens from riding in
the front seat. Could a ten year old have to
have a booster seat? If a new law is passed,
then we're gonna check it on the wiggle waggle Walk.
I know we have some KFI people and some KTLA
people who helped raise a lot of money for those
people who are impacted by the wildfires.
Speaker 3 (32:48):
And then gen Z. You know they hate millennials.
Speaker 2 (32:50):
Of course they hate us, I mean for some reason.
Speaker 6 (32:54):
Yeah, but they're they're reviving some trashy tattoos.
Speaker 3 (32:59):
Oh good for them, we tried to forget. I can't wait.
Speaker 6 (33:01):
You walked so they could run and be embarrassed later.
That's all coming up. Thanks Andy, Thank you so much again.
I will be back two to four next Sunday. If
you want hit me up at home with Justin on Instagram.
If you have questions or topics you'd like for me
to cover, you can google me Justin jus t in
WR and then you'll see that worship pop up and
then you can find a way to send me an email.
Speaker 3 (33:21):
Literally, my contact info is everywhere.
Speaker 1 (33:23):
KFI AM six forty on demand
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