May 18, 2025 • 36 mins
Michael brings the latest from Palm Springs where an explosion killed one person, possibly the suspect, and heavily damaged a fertility clinic in what federal investigators have called an act of terrorism. Then real estate agent Justin Worsham joins Michael to talk about the new report showing just how much somebody needs to make in order to buy the average house in Southern California. Spoiler alert: It's a lot.
Mark as Played
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 on demand.
Speaker 2 (00:04):
Happy Saturday.
Speaker 3 (00:05):
This is Michael Monks Reports on Michael Monks from KFI News.
We're with you for the next couple of hours. We're
gonna start by continuing our coverage of what went down
in Palm Springs today. We are sad to report that
there are four people injured. One person is dead. You
get the sense from what officials are saying that that person.
Speaker 2 (00:24):
Who is dead may have been a suspect.
Speaker 3 (00:27):
I guess that's speculation technically at this point, but I've
been to enough press conferences involving law enforcement to pick
up on these cues. And when they say that there's
no more threat, they're not actively looking for anyone. But
this was a criminal act. You can assume that the
one person dead is the person they suspect in this.
(00:49):
We will wait for them to confirm that, of course,
but that is the sense one gets. Here's what it
sounded like as it was going down on dispatch in
Palm's Rings courtesy of Broadcastify potinional.
Speaker 2 (01:07):
We have a black pilotrol.
Speaker 3 (01:08):
Coming up, So that was the initial calls that were
coming in to the police department. It continued here from
broadcastifying to be multiple buildings.
Speaker 4 (01:21):
Uh yeah, active fires, one.
Speaker 3 (01:27):
Vehicle, I forget, and the damage was extensive. A bomb
outside a fertility clinic in Palm Springs. What we know
about the damage to the building itself is that it
seems to have been confined to the office area, and
(01:48):
that the contents the important contents. Certainly what is important
to the would be families that are using this service.
That's all apparently okay, But the damage was so bad
that there is debris strewn hundreds of yards away. You
can hear from this witness explain, we heard.
Speaker 2 (02:10):
This loud noise. I shook all of our building.
Speaker 5 (02:13):
Our pagies were scared.
Speaker 2 (02:15):
We actually thought something had hit our building.
Speaker 3 (02:19):
I've been to Palm Springs, of course, I know a
lot of you have been to Palm Springs. It's just
one of the best places in southern California, a beautiful
little slice of desert life, just a couple of hours away.
If you live in central Los Angeles and there's still
there's still quite a scene going on right there because
of how significant this blast was. So we're gonna hear
(02:44):
from law enforcement momentarily, but I would like for ABC's
Rob McMillan to set the scene of what it all
looked like in the immediate aftermath.
Speaker 6 (02:56):
The blasts then sent a number of bits of debris
they forced through the building out onto the street. The
concussion so strong that it actually blew out the windows
at Desert Regional Medical Center, the third story windows across
the street from that blast liquor store looks like there's
an apartment complex. Several buildings around that fertility clinic also
(03:19):
have their windows shattered.
Speaker 3 (03:21):
This happened earlier today, a powerful explosion apparently originating in
a vehicle parked outside this fertility clinic, rocking Palms Springs today,
damaging the clinic, killing one person, shattering windows multiple other businesses.
There was an image that circulated online a witness that
showed what appeared to be at least part of a
(03:43):
body near the blast scene, and we all saw that
later covered with a white blanket. It was hard to
tell what body part that was, but some of the
speculation on line and you know, kind of looking at it,
it was a little torsoy, you know, it was like
(04:05):
the mid section of someone. Again, the only person who
died in this appears to be the person that is
suspected in this act and what does it mean to
be suspected in this act?
Speaker 2 (04:21):
Well, we're going to find out.
Speaker 3 (04:22):
FBI Assistant Director in charge for la Akiel Davis is
in Palm Springs. They had a press conference just a
couple of hours ago, and here's what he said.
Speaker 7 (04:33):
This explosion was significant, covering several blocks north, south, east,
and west of the thirteen hundred block of Indian Canada.
Speaker 2 (04:42):
Worlds are closed.
Speaker 7 (04:43):
Is there's why de refield over two hundred and fifty yards.
The FBI's Evidence Response team is on scene right now
processing evidence and we'll be here for a significant amount
of time. Our bomb technicians are working with the post
blast scene as well well to determine the origins of
the blast. We are working to confirm the identity of
(05:06):
the deceased, and we will provide that to you as
soon as we can, but we are keeping that close
hold in order to protect the integrity of the investigation.
Speaker 3 (05:17):
So they're protecting the integrity of the investigation by withholding
the identity of the deceased. But they've also said that
there is no longer a threat to the public and
that they are not actively looking for anyone else. But
here's more from FBI Assistant Director in charge for la
Akille Davis.
Speaker 7 (05:38):
Make no mistake, this is an intentional act of terrorism.
The FBI is investigating it as such. Our Joint Terrorism
Task Force is here working in lockstep with the Palm
Springs Police Department, the ATF, and a whole host of
agencies that I've already mentioned.
Speaker 2 (05:55):
Listen to that first part again.
Speaker 7 (05:57):
Make no mistake. This is an intentional act of terrorism.
Speaker 3 (06:02):
Intentional act of terrorism, no more threat to the public,
not actively looking for someone. There is one person dead.
That's how you kind of piece it together and assume
that that person who died in this blast is likely
the person responsible for it. But we're gonna wait and
hopefully find out specifics. Coming up in our eight o'clock hour,
(06:22):
we will hear from someone who has CIA experience about
what these investigators are gathering at that scene and how
they will go about this investigation, how they might find
out motive. I know, if you're like me, you maybe
spend a little too much time on one of your
(06:44):
preferred social media channels. I can't help myself, but I
am often on X. I don't post a lot myself
but I doom scroll a lot, and in the immediate
aftermath you just see a lot of wild speculation. And
it struck me that immediately you saw blame shifted towards
conservatives and immediately blame shifted towards liberals, depending on who
(07:09):
popped up in your feed. And I mean, we are
just cooked as a society that we can't even wait
for the literal dust to settle before finding someone to
blame outside of who's directly responsible, blaming it on whichever
ideology we're just not in line with. And that is
certainly what I saw. But this is something that terrified
(07:33):
a community in our region today, and we'll let that
investigation play out and hopefully we will know more. It's
clear that the federal government means business. You heard from
the FBI Assistant director in charge here in LA, but
we've also heard from US Attorney Bill Assale here in
Los Angeles. He posted a message on x saying we
are aware of the explosion that occurred this morning in
(07:55):
Palm Springs. Fbis on the scene. We will release as
much information as possible once we were able to confirm details.
But beyond Saley, the US Attorney General Pam Bondy also
weighed in on this blast in Palm Springs today. She says,
we are working to learn more, but let me be clear,
the Trump administration understands that women and mothers are the
(08:18):
heartbeat of America. Violence against a fertility clinic is unforgivable,
and when you hear the word terrorism thrown around, you
know that this is a very serious investigation. Coming up,
We're going to hear from the police chief in Palm
(08:40):
Springs about the immediate response in the aftermath. We'll also
hear from an elected official in Palm Springs about what's
going on there right now. We do have more to
talk about in this show. We've seen some recent analysis
about how expensive it is to own a home in
(09:01):
southern California, how much money you need to be making
in order to do that.
Speaker 2 (09:05):
It's a lot.
Speaker 3 (09:06):
The prices are going up and your income is likely
not matching the requirements. A shocking amount of money that
you'll need. And we got a busy hour coming up
at eight o'clock as well as we go back to
La City Hall. Apparently they haven't solved the financial crisis
that they're in, but they have on paper anyway, made
significant progress. Originally it was gonna be sixteen hundred layoffs.
(09:28):
It is far fewer now. A busy two hours of
Michael Monks reports ahead. You join us on the iHeartRadio app.
Click on that talkback button and we'll play some of
those comments throughout the broadcast. Thanks for being with us
on this Saturday night.
Speaker 1 (09:41):
You're listening to KFI Am six forty on demand.
Speaker 3 (09:46):
I'm Michael Monks from KFI News. Will be with you
till nine o'clock tonight. A you may have just heard
this from Brigita Degostino on the KFI twenty four hour
news room. A Mexican Navy ship has hit the Brooklyn
Bridge during a promotional tour in New York City. The
off of its mast brushed the span of that famous
bridge as it was sailing through the East River. Fire
(10:07):
officials say there have been some injuries. The Mexican Navy
said in a post online that the incident tonight involved
the let me try to pronounce this quat quatomac kuwata
mooch whatever it was. It was a navy. It was
a Mexican Navy ship that was really lovely. If you
(10:28):
see the post online, you can see video of it
actually hitting the bridge. Obviously, we've all got our cameras
out no matter where we are, but if you're at
the Brooklyn Bridge as a tourist, you're taking video, and
that's exactly what was going on, because this beautiful ship
was approaching this bridge on the East River. You can
see the video online as it smashes into the bridge.
It doesn't look like there's much damage to the bridge,
(10:49):
but the mass, the big tall mask on this the
mast on this ship collapse, completely collapse.
Speaker 2 (10:57):
So this ship was heavily.
Speaker 3 (10:59):
Damaged and obviously its voyage could no longer continue. The
Mexican Navy says that the status of personnel and material
was under review by naval and local authorities, which were
providing assistance. It doesn't it's unclear the extent of the
injuries of those people who were on board this thing.
There was initial reports of search and rescue, so waiting
(11:22):
to find out whether anybody might have fallen overboard. Also
had those terrible severe storms hitting parts of the US
Midwest and south. It left at least twenty seven people dead.
In my home state of Kentucky, where Governor Andy Basheer
said today there were eighteen weather related deaths.
Speaker 2 (11:40):
There.
Speaker 3 (11:40):
Ten others in the state were hospitalized in critical condition.
This tornado that swept through Kentucky leveled homes across multiple towns,
tossing vehicles and leaving people homeless. Seventeen of those deaths
were in the same county in the southeast part of
the state. One other was in a different county. There's
(12:02):
this fire Department Major Roger Leslie Leatherman, he's been a
fied veteran for thirty nine years. He was fatally injured
while responding to this deadly weather. The governor says parts
of two dozen state roads were closed, some could take
days to reopen. Meanwhile, trouble of our own right here
(12:23):
in southern California. A powerful explosion that started in a
vehicle parked in the rear lot of a fertility clinic
in Palm Springs was described by investigators today as quote
an intentional act of terrorism. One person died, four others injured.
The clinic was heavily damaged, and windows were shattered at
(12:47):
other nearby businesses in Palm Springs. Today, I want to
take you back to Palm Springs.
Speaker 2 (12:53):
Now.
Speaker 3 (12:55):
We're going to hear from police Chief Andrew Mills, and
he was part of the press conference that took place
a couple of hours ago. And again we don't know
the identity of the person died, but this is also
the message that we're hearing from law enforcement like Palm
Springs Police Chief Andrew Mills, and I.
Speaker 4 (13:15):
Need to just communicate two things with our community. One,
please be patient. There are blocks of debris and it'll
take a meticulous effort to make sure that we get
every piece of evidence so we understand very thoroughly what happened.
Speaker 2 (13:30):
And so people are going to need to be patient
with us.
Speaker 4 (13:32):
And the second thing is if they find pieces of
evidence in their yards or in their homes or in
their side of their homes, please leave it where it is,
give us a call the non emergency number, and we
will do what we kind of come and get it
as quickly as possible. I also want to make sure
that our community understands this is an isolated incident. I
(13:53):
am confident that the community is not at.
Speaker 2 (13:56):
Risk any longer.
Speaker 3 (13:57):
Community not at risk any longer one person. So draw
your own conclusions from that. Here's more from Police Chief
Andrew Mills.
Speaker 2 (14:05):
Terrorism came knocking on the door of Palm Springs.
Speaker 4 (14:12):
We survived, and I can tell you that this city
will rise and be more effective as a beacon of
hope than before.
Speaker 3 (14:22):
So they're not mincing words except about the identity of
the suspect at this point, which is understandable, But they
are not mincing words about what this event was. They
are flat out saying this was an act of terrorism.
So who commits terrorism on a fertility clinic in Palm
(14:43):
Springs on a Saturday in May. That's what investigators are
going to find out. Coming up in the eight o'clock hour,
we will hear from a former CIA investigator who will
explain what exactly these folks are looking for, what type
of information might be gathered. Obviously, the car that appears
(15:05):
to be the originator of this blast completely destroyed, so
destroyed that there are images circulating online of body parts
at least one torso it looks like in the middle
of a street in Palm Springs. It was a significant blast,
but that doesn't mean there's not evidence that can be gathered,
even from the vehicle. So we'll hear from that former
(15:27):
CIA investigator who will shed some light on what folks
are looking for right now at that very scary scene today.
Mayor pro Tem Naomi Soto also spoke at that press
conference in Palm Spring. She specifically talked about the fertility clinic.
Speaker 5 (15:46):
This this morning is a terrible tragedy. We have one
person killed, several others who have been hurt, and our
heart goes out to everyone who has been impacted and
their families. I want to acknowledge that the building that
was damaged is a fertility clinic and the this is
a place of hope. This is a building that people
(16:06):
go to to start or expand their families. We acknowledge
their pain and concern across the community for the arc
patients and staff. This is a building where hope lives
and we are confident it will continue afterward, as their
meaningful work must continue.
Speaker 3 (16:22):
The owner of that fertility clinic has said online that
acknowledged a vehicle park near the building exploded, but it
appears that the damage to the building itself was primarily
confined to the office area. Wish is to suggest that
the area that is important to people working with the
(16:43):
fertility clinic for pregnancy purposes that that area was unharmed.
So we hope to learn more about that situation because
obviously it's scary if you're in Palm Springs when something explodes,
but it's also scary if you and working with this
clinic to start a family and then you get word
(17:05):
that there's been an explosion there. And we'll bring you
the latest throughout the next couple of hours. Regitta Degasino
and I will do that coming up next.
Speaker 2 (17:17):
New analysis shows that you need to be.
Speaker 3 (17:19):
Making a lot of money to buy a house in
La County, Orange County. It's a little bit easier in
some of the other counties in southern California relatively, but
it is a shocking salary that you need to be
making in order to purchase a home in Greater La
a shocking amount, and the prices are shocking too. We
(17:42):
want to hear from you. You can join our conversation
by opening up the iHeartRadio app, click on that talkback button,
and we will play some of your comments about everything.
We're talking about, what happened in Palm Springs today, the
cost of real estate, and then in our next hour,
when we go back to La City Hall, if apparently
fixed much of their budget crisis, we'll see if that's true.
Speaker 1 (18:03):
You're listening to KFI AM six forty on demand.
Speaker 3 (18:07):
This is Michael Monks Reports on Michael Monks from KFI
News with you till nine o'clock tonight. New analysis has
shown the cost to buy a home in southern California
and the income needed to do it is practically out
of reach for oh, I don't know all of us.
Real estate agent and regular KFI guest Justin Worsham joins
us now to talk about what the market looks like.
Speaker 2 (18:28):
Justin.
Speaker 3 (18:28):
One of my favorite activities, because I don't have a
great social life, is to sit at home and scroll Zilo.
Speaker 2 (18:33):
I know that was a big pandemic thing. It's lingered
with me.
Speaker 3 (18:36):
I have a fantasy budget of one point four million dollars.
Speaker 2 (18:40):
Why are you laughing at well?
Speaker 8 (18:42):
Like the median house price at La County is one
point two Just till you know you can retire, Michael,
I believe in you. I hear people if it's a fantasy,
I know, but I don't want to have like a mansion.
Speaker 2 (18:52):
You know, you're not there.
Speaker 8 (18:55):
It's a lot of work in burbank that's like gives
you a suburban fifteen hundred.
Speaker 3 (18:59):
Square foot home. I think fifteen hundred square feet is
about right. I'd like fifteen hundred to two thousand square
feet one point four is my budget. And there are
three areas that I look at. Maybe a condo downtown. Yeah,
and you can do well with one point four million
dollars in.
Speaker 2 (19:16):
A condo condo. Yeah. You can have beautiful views and
then you have the hoas.
Speaker 8 (19:20):
And that's what people always think that condos are cheaper.
But I always tell them the reason the condos are
priced cheaper is they're less desirable because the shared walls
and then the usually the hoas can in many cases,
especially now, can affect the affordability. It's it's not that
far off from a single family home, depending on your budget.
You're absolutely right.
Speaker 3 (19:37):
I mean, and if you I guess, measure the amenities
against the amount you're paying for them, you think, huh,
that doesn't make a lot of sense.
Speaker 8 (19:44):
Most people don't even use the amenity, right, Like how
many people are going to the gym in their hoa
or using the public pool, Like that's not what people want.
Speaker 2 (19:51):
I guess if there's insurance coverage and HBO.
Speaker 8 (19:54):
You know, I st still have internet, like it's an
old drive by motel exactly.
Speaker 2 (20:02):
I also look at mid City Hancock Park. I love
Handcock Park, and I was like, you're not getting in
a Handcock Park for one point four. You can justin
I believe I'm telling you. I know you're the expert here,
but I'm not far off. Well.
Speaker 8 (20:13):
I think this amount of time you spent scroll might
be more expert than me.
Speaker 2 (20:17):
On hand, you can get a.
Speaker 3 (20:18):
Beautiful old house in Koreatown Hancock Park Country Cluster. Sometimes
you could get a really beautiful fixer for one point
four if you're going to get more in it. But
some of them are ready to go and they're gorgeous.
I also look at Long Beach. I love Long Beach.
Speaker 8 (20:32):
Yeah, and you can Long Beach gets a bad rap
because of weird gangster rap. I don't know what Snoop
did for the tourism. You know, kind of weird, but
they got their own vibe right. It's like the Second
City for sure. No, it's a great place.
Speaker 3 (20:46):
I bring all this up because like one point four
is my my fantasy budget, and like you said, that
won't buy you a lot in uh La County on average.
And it doesn't matter anyway, because what have we learned
about how much money need in order to buy a
house anyway in La or Orange.
Speaker 8 (21:03):
County, I think to even have a shot at like
being competitive in the market, you have to have a
household income that is at least two hundred and fifty
thousand dollars or more for La County. I think it's
closer to three fifty or more for Orange County.
Speaker 2 (21:14):
But you might know who makes that much.
Speaker 8 (21:18):
I dude, I have no idea, to be honest, the
fact that I am still transacting as a realtor sometimes
blows my mind.
Speaker 2 (21:25):
Right now, how is business? Right now? Business is okay?
Speaker 8 (21:28):
Like so the I when I first started my real
estate career, people told me that the average realtor only
did three to four transactions. So I'm like, oh, I'm
killing it now right at the end of the pandemic.
Speaker 2 (21:36):
Like the right before the rate hikes.
Speaker 8 (21:38):
At twenty twenty three, I did twenty two transactions for
twenty seven million. That put me in the top six
percent of realtors in LA County. So that puts me
in the top twenty five hundred, just to give you
some ideas of what that means. And now since the
rates have gone up and that ripple effect has hit
my business, I'm lucky to do about twelve to fifteen
deals a year, and that's which is more in part
(21:59):
with the average average realtor does about one deal a month.
So my question is, are the people who are coming
to you saying, you know what the dream is here
or ready to buy help us find the house of
our dreams? These are people making three fitty Yeah. I
mean I don't really get into the nitty gritty of
their actual finances because they talk to their lender about that,
but yeah, people are buying homes what I am seeing.
Speaker 2 (22:20):
So, I'm forty six years old across the board.
Speaker 8 (22:23):
If the people I'm helping are younger than me, then
they are getting significant financial help from mom and dad
for the down payment, like and by significant, I mean
usually the minimum is a quarter of a mill up
to a half a mill on average. But I'm helping
a client right now that they were putting. Mom was
gonna come in with eight hundred k for the house
that she decided to say, forget it, We're just gonna
(22:44):
pay all cash.
Speaker 2 (22:44):
So one point three million she's thrown out.
Speaker 3 (22:47):
Mom just has one point three to help with the
down payment. Yeah, or is this the purchase the purchase price.
That's the purchase price is one point three to three million. Okay,
so it does help if you come from wealth.
Speaker 2 (22:56):
Oh yeah.
Speaker 8 (22:57):
But what's interesting is a lot of these parents don't
live in California, so they're they're living in like the
Midwest and the Southeast and uh and they're they're kicking
in and for me, I'm just like, is this all
of your parents' retirement? A lot of them come with
the caveat that there needs to be an accessory dwelling
unit ADU or guest house so that when they get
older and they need somebody to take care of them,
so they're like pre paying for their convalescent home.
Speaker 2 (23:20):
Niki.
Speaker 8 (23:20):
Yeah, they're old folks. That's a gamble too. Yeah, But listen,
that's and that's the other thing. People are so worried
about ad US. They're going to ruin our single family
neighborhoods and make rentals and overcajest. And sure you could
be arguing that they overcongest, but most of the people
that I see get ADUs are buying it because of
multi generational living. Mom and dad are going to live
in the back.
Speaker 3 (23:37):
We're talking with Justin Worsham, realtor about or broker. A
real estate broker's saying both. You know, I get confused,
and I know that this is like a registered trademark
thing around the word realtor. So I don't want to
get sued by these guys.
Speaker 8 (23:48):
I am both. They are not that, which is they're
trying to be on the defense right now.
Speaker 3 (23:52):
Well, hey, they're the ones the California Association of Realtors
are the ones who put out this report about how
much money people need on average to buy the median
riced home Los Angeles County two hundred and twenty two
thousand dollars high two hundred, where the median price is
eight hundred and sixty two thousand dollars. Orange County, the
median price is one point four to five million, and
you need three hundred and seventy three thousand dollars income.
(24:14):
Now that can be a couple and it gets a
little bit easier. I suppose to see how an income
could add up to that if you've got a couple
of solid jobs like hosting it KFI.
Speaker 8 (24:27):
Dreams at one point, for we're taking you in Orange County, baby,
you're right there in the media.
Speaker 3 (24:32):
I haven't spent enough time in Orange County, but I'm
afraid I'm gonna vibe with Orange County and I'm going
to be.
Speaker 2 (24:36):
An everybody trust everybody about it.
Speaker 3 (24:38):
Everybody is because it's like I'm moving to LA and
then I end up in Orange County because like that's
where I belong.
Speaker 2 (24:43):
I'm scared of that. Everybody is.
Speaker 8 (24:44):
I hear it all the time because I think there
was like ten years ago or something it shifted. I
don't know if you I'm not saying that's what you're saying,
but a lot of what I hear is the politics.
People don't want to go to Orange County because they
feel like it's too conservative. Yeah, but it like just
ticked over to fifty one percent dem like within the
last ten years. So I'm sure it's wobbled back and forth.
But it's it's a beautiful place to live. It has
(25:06):
to be because last twenty twenty four, twenty one point
seven appreciation in the median house price, while interest rates
are in the low sevens, they still had that level
of appreciation because people are that interested in living there.
Speaker 3 (25:18):
Would you be willing to take me farther out? Because
in Riverside County you need one sixty four where the
median price is six forty. San Bernardino one twenty eight
half a million. And I like the city of San Bernardino.
I think the city is you know, it's a big
city in its own right, It's got its own thing
going on.
Speaker 2 (25:36):
It's kind of far and it's kind of hot. That's
the problem.
Speaker 8 (25:38):
So most of the people that are probably making money
where that seems like such a cheap house price, they
live or they work out here in the valley or
in other parts of LA and so they have to
do like a two hour commute. That two ten is
no joke. I've helped clients who actually I've helped clients
who worked here at KFI that lived in the Kouk
in the Cucamonga and and so they had to sit
(25:58):
in that traffic. And I I sat in that traffic
like going back and forth and going, oh my gosh,
like this that is what everybody thinks LA living is.
Speaker 2 (26:06):
Does this stop people from moving here? The price?
Speaker 8 (26:09):
Yeah, that's so Weirdly enough, I looked at some data
that the reason people are leaving California when they're surveyed,
this is what they say is they say family, reasons,
and I think that that means politics. I think there
are a lot of conservatives that are tired of the
liberal politics of California. Take it or leave. But I'm
not here to make a political speech. But that's what
they're saying, and they're going to more conservative states. The
(26:31):
other reason, the secondary reason, is cost of living, and
they're doing that same thing.
Speaker 2 (26:35):
What we're seeing is a transition from blue state to
red state.
Speaker 8 (26:38):
Because red states traditionally have more land, it's easier for
them to develop on that land. They don't have like
the environmental impact surveys and everything that we have, Like
in southern California, if you want to make a development, it's.
Speaker 2 (26:49):
Fifty thousand dollars just to start the process.
Speaker 8 (26:52):
Not a shovel in the ground, not a document done
just to say I would like to build new homes
in southern California the county.
Speaker 2 (26:58):
What's fifty k.
Speaker 3 (27:00):
We're going to talk more about why it costs so
much to live here, where it costs the most to
live here. And also if you think, well, I guess
I'm just gonna rent forever, you might have some bad
news too, because the price to rent in Californian the
amount of money you need has also gone up. Will
continue with Justin Worsham.
Speaker 1 (27:16):
You're listening to KFI Am six forty on demand.
Speaker 3 (27:19):
I'm Michael Monks from KFI News with you till nine
o'clock tonight. There is this new analysis that shows you
need a lot of money to be able to afford
a house in southern Californian exorbitant amount of money, really
well above what a lot of us have. And we're
gonna continue our conversation now with the real estate agent
Justin Worsham about how tough it is out there. Justin
I'm wondering, how often are you laughing in people's faces
(27:43):
other than.
Speaker 2 (27:44):
Yours right now? A lot?
Speaker 8 (27:45):
To be honest, No, because honestly like, oh, there's got
to be people who come to you and like, well,
this is what we've got, this is what we want,
and this is our budget. The last time that I
didn't laugh, but the last time I had to stop
myself from laughing was I had a client who is
referred to me and she's like, I want to buy
a condo and I always ask I try to frame
around because you don't know what people understand about the process.
(28:07):
So I said well, how much do you have for
down payment? And she's like, I got about six thousand dollars.
I was like, oh okay, And I said, and how
much are you looking to be able to spend each month?
And she's liked, I'd like to be in the fifteen
hundred to two thousand dollars range. And what I said
to her, I was like, Okay, we are building a
plan for you to save money to be able to
buy a house, because those two numbers don't.
Speaker 2 (28:25):
Jive unless you've got a listing in Billings.
Speaker 8 (28:28):
Yeah, exactly, they need to leave the state in south
of California. But what happened was her career advanced, she
eventually got married. And to the point you made earlier
is that single income is hard to buy a home.
Once she combined that second income, they bought a beautiful
house for one point three million dollars a few years ago.
And now things are better and they're shopping for an
even bigger house now in the Beverly Hills area.
Speaker 3 (28:50):
Hill they're doing from a six thousand dollars bet down payment.
That is a story made in Hollywood.
Speaker 8 (28:55):
Yeah, they are doing very well, and they're great clients
in mind, but yeah, now they're kind of looking around
the three million dollar rate.
Speaker 2 (29:00):
We're the hotspots right now in southern California.
Speaker 8 (29:02):
Who a lot of Westlake Village is there's a lot
of money being put into there, like it's getting some
in my opinion, like overflow from Hidden Hills. There's a
lot of money that in that Hidden Hills. That's where
a lot of the athletes I live in that area.
These are big houses, These are big in Hidden Hills.
Oh my gosh. There's a friend of mine who's a
builder and he built a fifteen million dollar home that
(29:23):
it was a big home and it had two guesthouses
on the lot. And the person paid fifteen million dollars
cash and immediately tore down the two guesthouses and gutted
the main house.
Speaker 3 (29:33):
Where are the hotspots for the people right at this
medium the median income and the medium price.
Speaker 8 (29:37):
Here's where I think this is where I think things
are going is Santa Clarita, like the Valencia area up
Stevenson Ranch up north of the valley. Right now, there's
a lot of inventory because they just had a huge
development of brand new homes go in there. And that's
my guess is that when you right now, what we
have in Southern California is a real supply demand.
Speaker 2 (29:54):
It's very basic.
Speaker 8 (29:55):
All these legislatures want to talk about, Oh, realtors are
charging too much in commission and they're the ones who
are pushed the prices up.
Speaker 2 (30:00):
No, it's supply and demand.
Speaker 8 (30:03):
The SKAG the Southern California Association to Governments, they said
they need one point four million homes by twenty twenty
nine to try to meet the demand, and then when
they looked into that, they said the most that they
could do was four hundred thousand. So we don't have
the space because most of the area is single family
homes to provide the homes that people need to meet
the demand. So when you get a surplus of inventory
(30:24):
like it looks like we're seeing right now up in
the Santa Clarita area, that causes prices to maybe drop
or at least go stagnant, like just kind of stay.
And so I think there's a great opportunity to get
like houses that were built that whole area was developed
in like the eighties and nineties, so instead of like
most of the valley where it's forties and fifties LA
even earlier, you get newer homes that are going to
(30:44):
have four plans that are more desirable for today's buyers.
And you're paying probably one point two million dollars for
a twenty six hundred to three thousand square foot home
with five bedrooms, four baths, and if there's.
Speaker 3 (30:55):
Gonna be a lot of hunter green, a lot of
brass in there, maybe some wallpaper trim around the k
change apples and actually not to put poo your joke,
because I think it's hilarious, but in all honesty, these
homes are beautiful in.
Speaker 2 (31:07):
Every I live in Burbank.
Speaker 8 (31:09):
I've lived in Burbank since I came and sometimes I
bought my house in a lit a little bit before that.
Speaker 2 (31:13):
That's where I love to live. My kids are in
the school.
Speaker 8 (31:16):
Every time I take a client to Santa Clarita, I
second guess why I live in Burbank, Because for the
one point one million dollars that my three bedroom, one bath,
eleven hundred square foot home is worth in Burbank, I
could have an almost three thousand square foot home in
Santa Clarita for about the same price. This isn't sustainable though,
right and for southern California, and it seems like the
(31:36):
answer is this generic we need more housing, Like there
needs to be more built, and it's not just that
it costs a lot to build. There are so many
parts of this region where you're not allowed to build
certain types of housing, and so you end up seeing
policies enacted by local governments like we just saw at
La City Council this week, We're going to make sure
that airport and hotel workers are making thirty dollars an
(31:57):
hour without any introspection, any inner work on the fact
that there are policies that are enacted by these governments
that hurt the development of housing, which would lower the
cost of living. In my experience as a realtor, like
I just this again, not trying to get political, but
as a realtor, I feel like legislation is really taking
(32:18):
band aid approaches to a chronic illness, right, Like it's
like trying to treat something like diabetes or high cholesterol
with a band aid or a short fix, where you know,
instead of having conversations about diet and exercise. You know,
like maybe I don't even what pills work, Like I
take a statent, but some of them work. But you
get my analogy, Like, my point is that there's a
(32:38):
bigger problem that is not something that can be really
handled in the terms that these politicians have. And I
think what happens is that when they're focused on just
getting re elected most of the time, that they enact
these things that don't really help. Like the state legislature
has basically made local planning board obsolete by saying there's
no single family home zoning anymore in the state of
California at all.
Speaker 3 (32:59):
Are you concerned earned for me that somebody working at
a hotel, a hotel made is gonna move to Hancock
Park before I get a chance to as the.
Speaker 8 (33:06):
Incomes go up. But that's the primary concern. But I
heard you say that, that's all. I'm basically sweating. You
can't see it right now, but I'm sweating.
Speaker 3 (33:13):
Well, look, you'll sweat more in the Santa Cluda Valley though, right.
I mean that is one of the drawbacks. I mean,
you do have to get satrified everywhere.
Speaker 8 (33:18):
So the people are like, oh, it's so funny, Like, oh,
it's too expensive to live here, Like, but if I
go up there, it's hot, You're gonna be inside in
a beautiful house with a pool in your back, that's true,
and an outdoor kitchen with a grill like I don't know,
maybe it's my redneck upbringing, but there's beautiful houses up there.
Speaker 2 (33:33):
Man, I'm telling you you're right. San Bernardino it is there.
You go. That's all cute. You can find a really
nice pocket there too. Yeah.
Speaker 3 (33:39):
I went apple picking last fall and I was just
in awe of how cute the neighborhoods were. If you
don't have to drive out here to work, that's right.
I would have to work in San Bernardino County.
Speaker 8 (33:48):
But so many people And that's what we thought was
gonna happen after the pandemic, because people were gonna work remotely.
And I still think it's happening. It's just slow. There's
a slow migration. But we need either to build a
significant amount of homes in southern California or we need
a significantmount of people to leave.
Speaker 2 (34:01):
The other problem I pick who leaves. Yes, I would
love to put you on that. Oh okay, if we
could just put the list together, yes, tell me if
we don't.
Speaker 8 (34:08):
I don't have time to say this, but I do
want to say is that the other problem is is
that right now it's in the sixty two percent tile
of homeowners in the entire country that have an interest
rate that's below four percent. Two years ago, it was
ninety two percent of homeowners had an interest rate below
six percent, and that number just tick down to eighty
nine percent. So three percent of people sold their house
(34:30):
with an interest rate that was less than six percent,
and that's usually because of some kind of death, divorce
or death right. The debt became unmanageable and they have
to be able to sell those homes and move on
to a lot of people though, that are leaving the
state because they're paying like a two and a half
or a three percent interest rate on their home. They're
deciding to keep it and rent it out instead of
(34:50):
sell it and become what we call accidental landlords. Just
by the finances alone, and.
Speaker 3 (34:55):
If you're thinking about renting, it doesn't get any easier
really quickly. La and Orange Counties. About one hundred and
twenty thousand dollars is what you need to rent comfortably.
Speaker 8 (35:03):
And it's even more steadfast because most landlords like especially
if it's represented by a relter. Whenever I help somebody
rent out a home, I always tell the owners I said,
you want to get somebody who makes at least three
times the monthly rent so that the rent is only
thirty percent of their income. And I'm renting out there
are homes up here in the valley that are renting
for five thousand dollars, and so you got to make
(35:24):
fifteen grand a month to be able to rent a
single family home in the valley. The best was in
Tuluka Lake. I had somebody who was asking me what
they should do because they inherited a home and they
were told that they could rent it for ten k,
and a lot of realtors like, oh, yeah, I could
rent this for ten k to you, and I was like, yeah,
you could, but did they tell you how long it takes,
because it takes two or three months. And it's because
(35:45):
what they didn't tell you is that who are the
kind of people that are going to want to spend
ten k a month on a rental because they have
to make at least thirty thousand dollars a month and
if they make that much, they're buying a one point
two to one point four million dollar house because that's
a drop in.
Speaker 2 (35:57):
The bucket for them.
Speaker 3 (35:58):
Well, justin when my one point four million budget goes
from fantasy to reality.
Speaker 2 (36:03):
I'll give you a call.
Speaker 3 (36:04):
Please do I want to be at the house warming
party at least? All right, we'll see you in Hancock Park.
Thanks for coming on. We got another hour ahead on
Michael Monks Reports, and we will be going to La
City Hall where they may have sort of solved their
budget problems. It's not as bad as it was. We'll
also hear from a group who says they could solve
it entirely. That's just ahead right here on KFI AM
(36:26):
six forty
Speaker 1 (36:27):
KFI AM six forty on demand
You're listening to KFI Am six forty on demand.
Speaker 2 (00:04):
Happy Saturday.
Speaker 3 (00:05):
This is Michael Monks Reports on Michael Monks from KFI News.
We're with you for the next couple of hours. We're
gonna start by continuing our coverage of what went down
in Palm Springs today. We are sad to report that
there are four people injured. One person is dead. You
get the sense from what officials are saying that that person.
Speaker 2 (00:24):
Who is dead may have been a suspect.
Speaker 3 (00:27):
I guess that's speculation technically at this point, but I've
been to enough press conferences involving law enforcement to pick
up on these cues. And when they say that there's
no more threat, they're not actively looking for anyone. But
this was a criminal act. You can assume that the
one person dead is the person they suspect in this.
(00:49):
We will wait for them to confirm that, of course,
but that is the sense one gets. Here's what it
sounded like as it was going down on dispatch in
Palm's Rings courtesy of Broadcastify potinional.
Speaker 2 (01:07):
We have a black pilotrol.
Speaker 3 (01:08):
Coming up, So that was the initial calls that were
coming in to the police department. It continued here from
broadcastifying to be multiple buildings.
Speaker 4 (01:21):
Uh yeah, active fires, one.
Speaker 3 (01:27):
Vehicle, I forget, and the damage was extensive. A bomb
outside a fertility clinic in Palm Springs. What we know
about the damage to the building itself is that it
seems to have been confined to the office area, and
(01:48):
that the contents the important contents. Certainly what is important
to the would be families that are using this service.
That's all apparently okay, But the damage was so bad
that there is debris strewn hundreds of yards away. You
can hear from this witness explain, we heard.
Speaker 2 (02:10):
This loud noise. I shook all of our building.
Speaker 5 (02:13):
Our pagies were scared.
Speaker 2 (02:15):
We actually thought something had hit our building.
Speaker 3 (02:19):
I've been to Palm Springs, of course, I know a
lot of you have been to Palm Springs. It's just
one of the best places in southern California, a beautiful
little slice of desert life, just a couple of hours away.
If you live in central Los Angeles and there's still
there's still quite a scene going on right there because
of how significant this blast was. So we're gonna hear
(02:44):
from law enforcement momentarily, but I would like for ABC's
Rob McMillan to set the scene of what it all
looked like in the immediate aftermath.
Speaker 6 (02:56):
The blasts then sent a number of bits of debris
they forced through the building out onto the street. The
concussion so strong that it actually blew out the windows
at Desert Regional Medical Center, the third story windows across
the street from that blast liquor store looks like there's
an apartment complex. Several buildings around that fertility clinic also
(03:19):
have their windows shattered.
Speaker 3 (03:21):
This happened earlier today, a powerful explosion apparently originating in
a vehicle parked outside this fertility clinic, rocking Palms Springs today,
damaging the clinic, killing one person, shattering windows multiple other businesses.
There was an image that circulated online a witness that
showed what appeared to be at least part of a
(03:43):
body near the blast scene, and we all saw that
later covered with a white blanket. It was hard to
tell what body part that was, but some of the
speculation on line and you know, kind of looking at it,
it was a little torsoy, you know, it was like
(04:05):
the mid section of someone. Again, the only person who
died in this appears to be the person that is
suspected in this act and what does it mean to
be suspected in this act?
Speaker 2 (04:21):
Well, we're going to find out.
Speaker 3 (04:22):
FBI Assistant Director in charge for la Akiel Davis is
in Palm Springs. They had a press conference just a
couple of hours ago, and here's what he said.
Speaker 7 (04:33):
This explosion was significant, covering several blocks north, south, east,
and west of the thirteen hundred block of Indian Canada.
Speaker 2 (04:42):
Worlds are closed.
Speaker 7 (04:43):
Is there's why de refield over two hundred and fifty yards.
The FBI's Evidence Response team is on scene right now
processing evidence and we'll be here for a significant amount
of time. Our bomb technicians are working with the post
blast scene as well well to determine the origins of
the blast. We are working to confirm the identity of
(05:06):
the deceased, and we will provide that to you as
soon as we can, but we are keeping that close
hold in order to protect the integrity of the investigation.
Speaker 3 (05:17):
So they're protecting the integrity of the investigation by withholding
the identity of the deceased. But they've also said that
there is no longer a threat to the public and
that they are not actively looking for anyone else. But
here's more from FBI Assistant Director in charge for la
Akille Davis.
Speaker 7 (05:38):
Make no mistake, this is an intentional act of terrorism.
The FBI is investigating it as such. Our Joint Terrorism
Task Force is here working in lockstep with the Palm
Springs Police Department, the ATF, and a whole host of
agencies that I've already mentioned.
Speaker 2 (05:55):
Listen to that first part again.
Speaker 7 (05:57):
Make no mistake. This is an intentional act of terrorism.
Speaker 3 (06:02):
Intentional act of terrorism, no more threat to the public,
not actively looking for someone. There is one person dead.
That's how you kind of piece it together and assume
that that person who died in this blast is likely
the person responsible for it. But we're gonna wait and
hopefully find out specifics. Coming up in our eight o'clock hour,
(06:22):
we will hear from someone who has CIA experience about
what these investigators are gathering at that scene and how
they will go about this investigation, how they might find
out motive. I know, if you're like me, you maybe
spend a little too much time on one of your
(06:44):
preferred social media channels. I can't help myself, but I
am often on X. I don't post a lot myself
but I doom scroll a lot, and in the immediate
aftermath you just see a lot of wild speculation. And
it struck me that immediately you saw blame shifted towards
conservatives and immediately blame shifted towards liberals, depending on who
(07:09):
popped up in your feed. And I mean, we are
just cooked as a society that we can't even wait
for the literal dust to settle before finding someone to
blame outside of who's directly responsible, blaming it on whichever
ideology we're just not in line with. And that is
certainly what I saw. But this is something that terrified
(07:33):
a community in our region today, and we'll let that
investigation play out and hopefully we will know more. It's
clear that the federal government means business. You heard from
the FBI Assistant director in charge here in LA, but
we've also heard from US Attorney Bill Assale here in
Los Angeles. He posted a message on x saying we
are aware of the explosion that occurred this morning in
(07:55):
Palm Springs. Fbis on the scene. We will release as
much information as possible once we were able to confirm details.
But beyond Saley, the US Attorney General Pam Bondy also
weighed in on this blast in Palm Springs today. She says,
we are working to learn more, but let me be clear,
the Trump administration understands that women and mothers are the
(08:18):
heartbeat of America. Violence against a fertility clinic is unforgivable,
and when you hear the word terrorism thrown around, you
know that this is a very serious investigation. Coming up,
We're going to hear from the police chief in Palm
(08:40):
Springs about the immediate response in the aftermath. We'll also
hear from an elected official in Palm Springs about what's
going on there right now. We do have more to
talk about in this show. We've seen some recent analysis
about how expensive it is to own a home in
(09:01):
southern California, how much money you need to be making
in order to do that.
Speaker 2 (09:05):
It's a lot.
Speaker 3 (09:06):
The prices are going up and your income is likely
not matching the requirements. A shocking amount of money that
you'll need. And we got a busy hour coming up
at eight o'clock as well as we go back to
La City Hall. Apparently they haven't solved the financial crisis
that they're in, but they have on paper anyway, made
significant progress. Originally it was gonna be sixteen hundred layoffs.
(09:28):
It is far fewer now. A busy two hours of
Michael Monks reports ahead. You join us on the iHeartRadio app.
Click on that talkback button and we'll play some of
those comments throughout the broadcast. Thanks for being with us
on this Saturday night.
Speaker 1 (09:41):
You're listening to KFI Am six forty on demand.
Speaker 3 (09:46):
I'm Michael Monks from KFI News. Will be with you
till nine o'clock tonight. A you may have just heard
this from Brigita Degostino on the KFI twenty four hour
news room. A Mexican Navy ship has hit the Brooklyn
Bridge during a promotional tour in New York City. The
off of its mast brushed the span of that famous
bridge as it was sailing through the East River. Fire
(10:07):
officials say there have been some injuries. The Mexican Navy
said in a post online that the incident tonight involved
the let me try to pronounce this quat quatomac kuwata
mooch whatever it was. It was a navy. It was
a Mexican Navy ship that was really lovely. If you
(10:28):
see the post online, you can see video of it
actually hitting the bridge. Obviously, we've all got our cameras
out no matter where we are, but if you're at
the Brooklyn Bridge as a tourist, you're taking video, and
that's exactly what was going on, because this beautiful ship
was approaching this bridge on the East River. You can
see the video online as it smashes into the bridge.
It doesn't look like there's much damage to the bridge,
(10:49):
but the mass, the big tall mask on this the
mast on this ship collapse, completely collapse.
Speaker 2 (10:57):
So this ship was heavily.
Speaker 3 (10:59):
Damaged and obviously its voyage could no longer continue. The
Mexican Navy says that the status of personnel and material
was under review by naval and local authorities, which were
providing assistance. It doesn't it's unclear the extent of the
injuries of those people who were on board this thing.
There was initial reports of search and rescue, so waiting
(11:22):
to find out whether anybody might have fallen overboard. Also
had those terrible severe storms hitting parts of the US
Midwest and south. It left at least twenty seven people dead.
In my home state of Kentucky, where Governor Andy Basheer
said today there were eighteen weather related deaths.
Speaker 2 (11:40):
There.
Speaker 3 (11:40):
Ten others in the state were hospitalized in critical condition.
This tornado that swept through Kentucky leveled homes across multiple towns,
tossing vehicles and leaving people homeless. Seventeen of those deaths
were in the same county in the southeast part of
the state. One other was in a different county. There's
(12:02):
this fire Department Major Roger Leslie Leatherman, he's been a
fied veteran for thirty nine years. He was fatally injured
while responding to this deadly weather. The governor says parts
of two dozen state roads were closed, some could take
days to reopen. Meanwhile, trouble of our own right here
(12:23):
in southern California. A powerful explosion that started in a
vehicle parked in the rear lot of a fertility clinic
in Palm Springs was described by investigators today as quote
an intentional act of terrorism. One person died, four others injured.
The clinic was heavily damaged, and windows were shattered at
(12:47):
other nearby businesses in Palm Springs. Today, I want to
take you back to Palm Springs.
Speaker 2 (12:53):
Now.
Speaker 3 (12:55):
We're going to hear from police Chief Andrew Mills, and
he was part of the press conference that took place
a couple of hours ago. And again we don't know
the identity of the person died, but this is also
the message that we're hearing from law enforcement like Palm
Springs Police Chief Andrew Mills, and I.
Speaker 4 (13:15):
Need to just communicate two things with our community. One,
please be patient. There are blocks of debris and it'll
take a meticulous effort to make sure that we get
every piece of evidence so we understand very thoroughly what happened.
Speaker 2 (13:30):
And so people are going to need to be patient
with us.
Speaker 4 (13:32):
And the second thing is if they find pieces of
evidence in their yards or in their homes or in
their side of their homes, please leave it where it is,
give us a call the non emergency number, and we
will do what we kind of come and get it
as quickly as possible. I also want to make sure
that our community understands this is an isolated incident. I
(13:53):
am confident that the community is not at.
Speaker 2 (13:56):
Risk any longer.
Speaker 3 (13:57):
Community not at risk any longer one person. So draw
your own conclusions from that. Here's more from Police Chief
Andrew Mills.
Speaker 2 (14:05):
Terrorism came knocking on the door of Palm Springs.
Speaker 4 (14:12):
We survived, and I can tell you that this city
will rise and be more effective as a beacon of
hope than before.
Speaker 3 (14:22):
So they're not mincing words except about the identity of
the suspect at this point, which is understandable, But they
are not mincing words about what this event was. They
are flat out saying this was an act of terrorism.
So who commits terrorism on a fertility clinic in Palm
(14:43):
Springs on a Saturday in May. That's what investigators are
going to find out. Coming up in the eight o'clock hour,
we will hear from a former CIA investigator who will
explain what exactly these folks are looking for, what type
of information might be gathered. Obviously, the car that appears
(15:05):
to be the originator of this blast completely destroyed, so
destroyed that there are images circulating online of body parts
at least one torso it looks like in the middle
of a street in Palm Springs. It was a significant blast,
but that doesn't mean there's not evidence that can be gathered,
even from the vehicle. So we'll hear from that former
(15:27):
CIA investigator who will shed some light on what folks
are looking for right now at that very scary scene today.
Mayor pro Tem Naomi Soto also spoke at that press
conference in Palm Spring. She specifically talked about the fertility clinic.
Speaker 5 (15:46):
This this morning is a terrible tragedy. We have one
person killed, several others who have been hurt, and our
heart goes out to everyone who has been impacted and
their families. I want to acknowledge that the building that
was damaged is a fertility clinic and the this is
a place of hope. This is a building that people
(16:06):
go to to start or expand their families. We acknowledge
their pain and concern across the community for the arc
patients and staff. This is a building where hope lives
and we are confident it will continue afterward, as their
meaningful work must continue.
Speaker 3 (16:22):
The owner of that fertility clinic has said online that
acknowledged a vehicle park near the building exploded, but it
appears that the damage to the building itself was primarily
confined to the office area. Wish is to suggest that
the area that is important to people working with the
(16:43):
fertility clinic for pregnancy purposes that that area was unharmed.
So we hope to learn more about that situation because
obviously it's scary if you're in Palm Springs when something explodes,
but it's also scary if you and working with this
clinic to start a family and then you get word
(17:05):
that there's been an explosion there. And we'll bring you
the latest throughout the next couple of hours. Regitta Degasino
and I will do that coming up next.
Speaker 2 (17:17):
New analysis shows that you need to be.
Speaker 3 (17:19):
Making a lot of money to buy a house in
La County, Orange County. It's a little bit easier in
some of the other counties in southern California relatively, but
it is a shocking salary that you need to be
making in order to purchase a home in Greater La
a shocking amount, and the prices are shocking too. We
(17:42):
want to hear from you. You can join our conversation
by opening up the iHeartRadio app, click on that talkback button,
and we will play some of your comments about everything.
We're talking about, what happened in Palm Springs today, the
cost of real estate, and then in our next hour,
when we go back to La City Hall, if apparently
fixed much of their budget crisis, we'll see if that's true.
Speaker 1 (18:03):
You're listening to KFI AM six forty on demand.
Speaker 3 (18:07):
This is Michael Monks Reports on Michael Monks from KFI
News with you till nine o'clock tonight. New analysis has
shown the cost to buy a home in southern California
and the income needed to do it is practically out
of reach for oh, I don't know all of us.
Real estate agent and regular KFI guest Justin Worsham joins
us now to talk about what the market looks like.
Speaker 2 (18:28):
Justin.
Speaker 3 (18:28):
One of my favorite activities, because I don't have a
great social life, is to sit at home and scroll Zilo.
Speaker 2 (18:33):
I know that was a big pandemic thing. It's lingered
with me.
Speaker 3 (18:36):
I have a fantasy budget of one point four million dollars.
Speaker 2 (18:40):
Why are you laughing at well?
Speaker 8 (18:42):
Like the median house price at La County is one
point two Just till you know you can retire, Michael,
I believe in you. I hear people if it's a fantasy,
I know, but I don't want to have like a mansion.
Speaker 2 (18:52):
You know, you're not there.
Speaker 8 (18:55):
It's a lot of work in burbank that's like gives
you a suburban fifteen hundred.
Speaker 3 (18:59):
Square foot home. I think fifteen hundred square feet is
about right. I'd like fifteen hundred to two thousand square
feet one point four is my budget. And there are
three areas that I look at. Maybe a condo downtown. Yeah,
and you can do well with one point four million
dollars in.
Speaker 2 (19:16):
A condo condo. Yeah. You can have beautiful views and
then you have the hoas.
Speaker 8 (19:20):
And that's what people always think that condos are cheaper.
But I always tell them the reason the condos are
priced cheaper is they're less desirable because the shared walls
and then the usually the hoas can in many cases,
especially now, can affect the affordability. It's it's not that
far off from a single family home, depending on your budget.
You're absolutely right.
Speaker 3 (19:37):
I mean, and if you I guess, measure the amenities
against the amount you're paying for them, you think, huh,
that doesn't make a lot of sense.
Speaker 8 (19:44):
Most people don't even use the amenity, right, Like how
many people are going to the gym in their hoa
or using the public pool, Like that's not what people want.
Speaker 2 (19:51):
I guess if there's insurance coverage and HBO.
Speaker 8 (19:54):
You know, I st still have internet, like it's an
old drive by motel exactly.
Speaker 2 (20:02):
I also look at mid City Hancock Park. I love
Handcock Park, and I was like, you're not getting in
a Handcock Park for one point four. You can justin
I believe I'm telling you. I know you're the expert here,
but I'm not far off. Well.
Speaker 8 (20:13):
I think this amount of time you spent scroll might
be more expert than me.
Speaker 2 (20:17):
On hand, you can get a.
Speaker 3 (20:18):
Beautiful old house in Koreatown Hancock Park Country Cluster. Sometimes
you could get a really beautiful fixer for one point
four if you're going to get more in it. But
some of them are ready to go and they're gorgeous.
I also look at Long Beach. I love Long Beach.
Speaker 8 (20:32):
Yeah, and you can Long Beach gets a bad rap
because of weird gangster rap. I don't know what Snoop
did for the tourism. You know, kind of weird, but
they got their own vibe right. It's like the Second
City for sure. No, it's a great place.
Speaker 3 (20:46):
I bring all this up because like one point four
is my my fantasy budget, and like you said, that
won't buy you a lot in uh La County on average.
And it doesn't matter anyway, because what have we learned
about how much money need in order to buy a
house anyway in La or Orange.
Speaker 8 (21:03):
County, I think to even have a shot at like
being competitive in the market, you have to have a
household income that is at least two hundred and fifty
thousand dollars or more for La County. I think it's
closer to three fifty or more for Orange County.
Speaker 2 (21:14):
But you might know who makes that much.
Speaker 8 (21:18):
I dude, I have no idea, to be honest, the
fact that I am still transacting as a realtor sometimes
blows my mind.
Speaker 2 (21:25):
Right now, how is business? Right now? Business is okay?
Speaker 8 (21:28):
Like so the I when I first started my real
estate career, people told me that the average realtor only
did three to four transactions. So I'm like, oh, I'm
killing it now right at the end of the pandemic.
Speaker 2 (21:36):
Like the right before the rate hikes.
Speaker 8 (21:38):
At twenty twenty three, I did twenty two transactions for
twenty seven million. That put me in the top six
percent of realtors in LA County. So that puts me
in the top twenty five hundred, just to give you
some ideas of what that means. And now since the
rates have gone up and that ripple effect has hit
my business, I'm lucky to do about twelve to fifteen
deals a year, and that's which is more in part
(21:59):
with the average average realtor does about one deal a month.
So my question is, are the people who are coming
to you saying, you know what the dream is here
or ready to buy help us find the house of
our dreams? These are people making three fitty Yeah. I
mean I don't really get into the nitty gritty of
their actual finances because they talk to their lender about that,
but yeah, people are buying homes what I am seeing.
Speaker 2 (22:20):
So, I'm forty six years old across the board.
Speaker 8 (22:23):
If the people I'm helping are younger than me, then
they are getting significant financial help from mom and dad
for the down payment, like and by significant, I mean
usually the minimum is a quarter of a mill up
to a half a mill on average. But I'm helping
a client right now that they were putting. Mom was
gonna come in with eight hundred k for the house
that she decided to say, forget it, We're just gonna
(22:44):
pay all cash.
Speaker 2 (22:44):
So one point three million she's thrown out.
Speaker 3 (22:47):
Mom just has one point three to help with the
down payment. Yeah, or is this the purchase the purchase price.
That's the purchase price is one point three to three million. Okay,
so it does help if you come from wealth.
Speaker 2 (22:56):
Oh yeah.
Speaker 8 (22:57):
But what's interesting is a lot of these parents don't
live in California, so they're they're living in like the
Midwest and the Southeast and uh and they're they're kicking
in and for me, I'm just like, is this all
of your parents' retirement? A lot of them come with
the caveat that there needs to be an accessory dwelling
unit ADU or guest house so that when they get
older and they need somebody to take care of them,
so they're like pre paying for their convalescent home.
Speaker 2 (23:20):
Niki.
Speaker 8 (23:20):
Yeah, they're old folks. That's a gamble too. Yeah, But listen,
that's and that's the other thing. People are so worried
about ad US. They're going to ruin our single family
neighborhoods and make rentals and overcajest. And sure you could
be arguing that they overcongest, but most of the people
that I see get ADUs are buying it because of
multi generational living. Mom and dad are going to live
in the back.
Speaker 3 (23:37):
We're talking with Justin Worsham, realtor about or broker. A
real estate broker's saying both. You know, I get confused,
and I know that this is like a registered trademark
thing around the word realtor. So I don't want to
get sued by these guys.
Speaker 8 (23:48):
I am both. They are not that, which is they're
trying to be on the defense right now.
Speaker 3 (23:52):
Well, hey, they're the ones the California Association of Realtors
are the ones who put out this report about how
much money people need on average to buy the median
riced home Los Angeles County two hundred and twenty two
thousand dollars high two hundred, where the median price is
eight hundred and sixty two thousand dollars. Orange County, the
median price is one point four to five million, and
you need three hundred and seventy three thousand dollars income.
(24:14):
Now that can be a couple and it gets a
little bit easier. I suppose to see how an income
could add up to that if you've got a couple
of solid jobs like hosting it KFI.
Speaker 8 (24:27):
Dreams at one point, for we're taking you in Orange County, baby,
you're right there in the media.
Speaker 3 (24:32):
I haven't spent enough time in Orange County, but I'm
afraid I'm gonna vibe with Orange County and I'm going
to be.
Speaker 2 (24:36):
An everybody trust everybody about it.
Speaker 3 (24:38):
Everybody is because it's like I'm moving to LA and
then I end up in Orange County because like that's
where I belong.
Speaker 2 (24:43):
I'm scared of that. Everybody is.
Speaker 8 (24:44):
I hear it all the time because I think there
was like ten years ago or something it shifted. I
don't know if you I'm not saying that's what you're saying,
but a lot of what I hear is the politics.
People don't want to go to Orange County because they
feel like it's too conservative. Yeah, but it like just
ticked over to fifty one percent dem like within the
last ten years. So I'm sure it's wobbled back and forth.
But it's it's a beautiful place to live. It has
(25:06):
to be because last twenty twenty four, twenty one point
seven appreciation in the median house price, while interest rates
are in the low sevens, they still had that level
of appreciation because people are that interested in living there.
Speaker 3 (25:18):
Would you be willing to take me farther out? Because
in Riverside County you need one sixty four where the
median price is six forty. San Bernardino one twenty eight
half a million. And I like the city of San Bernardino.
I think the city is you know, it's a big
city in its own right, It's got its own thing
going on.
Speaker 2 (25:36):
It's kind of far and it's kind of hot. That's
the problem.
Speaker 8 (25:38):
So most of the people that are probably making money
where that seems like such a cheap house price, they
live or they work out here in the valley or
in other parts of LA and so they have to
do like a two hour commute. That two ten is
no joke. I've helped clients who actually I've helped clients
who worked here at KFI that lived in the Kouk
in the Cucamonga and and so they had to sit
(25:58):
in that traffic. And I I sat in that traffic
like going back and forth and going, oh my gosh,
like this that is what everybody thinks LA living is.
Speaker 2 (26:06):
Does this stop people from moving here? The price?
Speaker 8 (26:09):
Yeah, that's so Weirdly enough, I looked at some data
that the reason people are leaving California when they're surveyed,
this is what they say is they say family, reasons,
and I think that that means politics. I think there
are a lot of conservatives that are tired of the
liberal politics of California. Take it or leave. But I'm
not here to make a political speech. But that's what
they're saying, and they're going to more conservative states. The
(26:31):
other reason, the secondary reason, is cost of living, and
they're doing that same thing.
Speaker 2 (26:35):
What we're seeing is a transition from blue state to
red state.
Speaker 8 (26:38):
Because red states traditionally have more land, it's easier for
them to develop on that land. They don't have like
the environmental impact surveys and everything that we have, Like
in southern California, if you want to make a development, it's.
Speaker 2 (26:49):
Fifty thousand dollars just to start the process.
Speaker 8 (26:52):
Not a shovel in the ground, not a document done
just to say I would like to build new homes
in southern California the county.
Speaker 2 (26:58):
What's fifty k.
Speaker 3 (27:00):
We're going to talk more about why it costs so
much to live here, where it costs the most to
live here. And also if you think, well, I guess
I'm just gonna rent forever, you might have some bad
news too, because the price to rent in Californian the
amount of money you need has also gone up. Will
continue with Justin Worsham.
Speaker 1 (27:16):
You're listening to KFI Am six forty on demand.
Speaker 3 (27:19):
I'm Michael Monks from KFI News with you till nine
o'clock tonight. There is this new analysis that shows you
need a lot of money to be able to afford
a house in southern Californian exorbitant amount of money, really
well above what a lot of us have. And we're
gonna continue our conversation now with the real estate agent
Justin Worsham about how tough it is out there. Justin
I'm wondering, how often are you laughing in people's faces
(27:43):
other than.
Speaker 2 (27:44):
Yours right now? A lot?
Speaker 8 (27:45):
To be honest, No, because honestly like, oh, there's got
to be people who come to you and like, well,
this is what we've got, this is what we want,
and this is our budget. The last time that I
didn't laugh, but the last time I had to stop
myself from laughing was I had a client who is
referred to me and she's like, I want to buy
a condo and I always ask I try to frame
around because you don't know what people understand about the process.
(28:07):
So I said well, how much do you have for
down payment? And she's like, I got about six thousand dollars.
I was like, oh okay, And I said, and how
much are you looking to be able to spend each month?
And she's liked, I'd like to be in the fifteen
hundred to two thousand dollars range. And what I said
to her, I was like, Okay, we are building a
plan for you to save money to be able to
buy a house, because those two numbers don't.
Speaker 2 (28:25):
Jive unless you've got a listing in Billings.
Speaker 8 (28:28):
Yeah, exactly, they need to leave the state in south
of California. But what happened was her career advanced, she
eventually got married. And to the point you made earlier
is that single income is hard to buy a home.
Once she combined that second income, they bought a beautiful
house for one point three million dollars a few years ago.
And now things are better and they're shopping for an
even bigger house now in the Beverly Hills area.
Speaker 3 (28:50):
Hill they're doing from a six thousand dollars bet down payment.
That is a story made in Hollywood.
Speaker 8 (28:55):
Yeah, they are doing very well, and they're great clients
in mind, but yeah, now they're kind of looking around
the three million dollar rate.
Speaker 2 (29:00):
We're the hotspots right now in southern California.
Speaker 8 (29:02):
Who a lot of Westlake Village is there's a lot
of money being put into there, like it's getting some
in my opinion, like overflow from Hidden Hills. There's a
lot of money that in that Hidden Hills. That's where
a lot of the athletes I live in that area.
These are big houses, These are big in Hidden Hills.
Oh my gosh. There's a friend of mine who's a
builder and he built a fifteen million dollar home that
(29:23):
it was a big home and it had two guesthouses
on the lot. And the person paid fifteen million dollars
cash and immediately tore down the two guesthouses and gutted
the main house.
Speaker 3 (29:33):
Where are the hotspots for the people right at this
medium the median income and the medium price.
Speaker 8 (29:37):
Here's where I think this is where I think things
are going is Santa Clarita, like the Valencia area up
Stevenson Ranch up north of the valley. Right now, there's
a lot of inventory because they just had a huge
development of brand new homes go in there. And that's
my guess is that when you right now, what we
have in Southern California is a real supply demand.
Speaker 2 (29:54):
It's very basic.
Speaker 8 (29:55):
All these legislatures want to talk about, Oh, realtors are
charging too much in commission and they're the ones who
are pushed the prices up.
Speaker 2 (30:00):
No, it's supply and demand.
Speaker 8 (30:03):
The SKAG the Southern California Association to Governments, they said
they need one point four million homes by twenty twenty
nine to try to meet the demand, and then when
they looked into that, they said the most that they
could do was four hundred thousand. So we don't have
the space because most of the area is single family
homes to provide the homes that people need to meet
the demand. So when you get a surplus of inventory
(30:24):
like it looks like we're seeing right now up in
the Santa Clarita area, that causes prices to maybe drop
or at least go stagnant, like just kind of stay.
And so I think there's a great opportunity to get
like houses that were built that whole area was developed
in like the eighties and nineties, so instead of like
most of the valley where it's forties and fifties LA
even earlier, you get newer homes that are going to
(30:44):
have four plans that are more desirable for today's buyers.
And you're paying probably one point two million dollars for
a twenty six hundred to three thousand square foot home
with five bedrooms, four baths, and if there's.
Speaker 3 (30:55):
Gonna be a lot of hunter green, a lot of
brass in there, maybe some wallpaper trim around the k
change apples and actually not to put poo your joke,
because I think it's hilarious, but in all honesty, these
homes are beautiful in.
Speaker 2 (31:07):
Every I live in Burbank.
Speaker 8 (31:09):
I've lived in Burbank since I came and sometimes I
bought my house in a lit a little bit before that.
Speaker 2 (31:13):
That's where I love to live. My kids are in
the school.
Speaker 8 (31:16):
Every time I take a client to Santa Clarita, I
second guess why I live in Burbank, Because for the
one point one million dollars that my three bedroom, one bath,
eleven hundred square foot home is worth in Burbank, I
could have an almost three thousand square foot home in
Santa Clarita for about the same price. This isn't sustainable though,
right and for southern California, and it seems like the
(31:36):
answer is this generic we need more housing, Like there
needs to be more built, and it's not just that
it costs a lot to build. There are so many
parts of this region where you're not allowed to build
certain types of housing, and so you end up seeing
policies enacted by local governments like we just saw at
La City Council this week, We're going to make sure
that airport and hotel workers are making thirty dollars an
(31:57):
hour without any introspection, any inner work on the fact
that there are policies that are enacted by these governments
that hurt the development of housing, which would lower the
cost of living. In my experience as a realtor, like
I just this again, not trying to get political, but
as a realtor, I feel like legislation is really taking
(32:18):
band aid approaches to a chronic illness, right, Like it's
like trying to treat something like diabetes or high cholesterol
with a band aid or a short fix, where you know,
instead of having conversations about diet and exercise. You know,
like maybe I don't even what pills work, Like I
take a statent, but some of them work. But you
get my analogy, Like, my point is that there's a
(32:38):
bigger problem that is not something that can be really
handled in the terms that these politicians have. And I
think what happens is that when they're focused on just
getting re elected most of the time, that they enact
these things that don't really help. Like the state legislature
has basically made local planning board obsolete by saying there's
no single family home zoning anymore in the state of
California at all.
Speaker 3 (32:59):
Are you concerned earned for me that somebody working at
a hotel, a hotel made is gonna move to Hancock
Park before I get a chance to as the.
Speaker 8 (33:06):
Incomes go up. But that's the primary concern. But I
heard you say that, that's all. I'm basically sweating. You
can't see it right now, but I'm sweating.
Speaker 3 (33:13):
Well, look, you'll sweat more in the Santa Cluda Valley though, right.
I mean that is one of the drawbacks. I mean,
you do have to get satrified everywhere.
Speaker 8 (33:18):
So the people are like, oh, it's so funny, Like, oh,
it's too expensive to live here, Like, but if I
go up there, it's hot, You're gonna be inside in
a beautiful house with a pool in your back, that's true,
and an outdoor kitchen with a grill like I don't know,
maybe it's my redneck upbringing, but there's beautiful houses up there.
Speaker 2 (33:33):
Man, I'm telling you you're right. San Bernardino it is there.
You go. That's all cute. You can find a really
nice pocket there too. Yeah.
Speaker 3 (33:39):
I went apple picking last fall and I was just
in awe of how cute the neighborhoods were. If you
don't have to drive out here to work, that's right.
I would have to work in San Bernardino County.
Speaker 8 (33:48):
But so many people And that's what we thought was
gonna happen after the pandemic, because people were gonna work remotely.
And I still think it's happening. It's just slow. There's
a slow migration. But we need either to build a
significant amount of homes in southern California or we need
a significantmount of people to leave.
Speaker 2 (34:01):
The other problem I pick who leaves. Yes, I would
love to put you on that. Oh okay, if we
could just put the list together, yes, tell me if
we don't.
Speaker 8 (34:08):
I don't have time to say this, but I do
want to say is that the other problem is is
that right now it's in the sixty two percent tile
of homeowners in the entire country that have an interest
rate that's below four percent. Two years ago, it was
ninety two percent of homeowners had an interest rate below
six percent, and that number just tick down to eighty
nine percent. So three percent of people sold their house
(34:30):
with an interest rate that was less than six percent,
and that's usually because of some kind of death, divorce
or death right. The debt became unmanageable and they have
to be able to sell those homes and move on
to a lot of people though, that are leaving the
state because they're paying like a two and a half
or a three percent interest rate on their home. They're
deciding to keep it and rent it out instead of
(34:50):
sell it and become what we call accidental landlords. Just
by the finances alone, and.
Speaker 3 (34:55):
If you're thinking about renting, it doesn't get any easier
really quickly. La and Orange Counties. About one hundred and
twenty thousand dollars is what you need to rent comfortably.
Speaker 8 (35:03):
And it's even more steadfast because most landlords like especially
if it's represented by a relter. Whenever I help somebody
rent out a home, I always tell the owners I said,
you want to get somebody who makes at least three
times the monthly rent so that the rent is only
thirty percent of their income. And I'm renting out there
are homes up here in the valley that are renting
for five thousand dollars, and so you got to make
(35:24):
fifteen grand a month to be able to rent a
single family home in the valley. The best was in
Tuluka Lake. I had somebody who was asking me what
they should do because they inherited a home and they
were told that they could rent it for ten k,
and a lot of realtors like, oh, yeah, I could
rent this for ten k to you, and I was like, yeah,
you could, but did they tell you how long it takes,
because it takes two or three months. And it's because
(35:45):
what they didn't tell you is that who are the
kind of people that are going to want to spend
ten k a month on a rental because they have
to make at least thirty thousand dollars a month and
if they make that much, they're buying a one point
two to one point four million dollar house because that's
a drop in.
Speaker 2 (35:57):
The bucket for them.
Speaker 3 (35:58):
Well, justin when my one point four million budget goes
from fantasy to reality.
Speaker 2 (36:03):
I'll give you a call.
Speaker 3 (36:04):
Please do I want to be at the house warming
party at least? All right, we'll see you in Hancock Park.
Thanks for coming on. We got another hour ahead on
Michael Monks Reports, and we will be going to La
City Hall where they may have sort of solved their
budget problems. It's not as bad as it was. We'll
also hear from a group who says they could solve
it entirely. That's just ahead right here on KFI AM
(36:26):
six forty
Speaker 1 (36:27):
KFI AM six forty on demand
Popular Podcasts
Boysober
Have you ever wondered what life might be like if you stopped worrying about being wanted, and focused on understanding what you actually want? That was the question Hope Woodard asked herself after a string of situationships inspired her to take a break from sex and dating. She went "boysober," a personal concept that sparked a global movement among women looking to prioritize themselves over men. Now, Hope is looking to expand the ways we explore our relationship to relationships. Taking a bold, unfiltered look into modern love, romance, and self-discovery, Boysober will dive into messy stories about dating, sex, love, friendship, and breaking generational patterns—all with humor, vulnerability, and a fresh perspective.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com