Somebody will just price a house for 20 million to see if they get any bites. But on the higher end, sellers expectations are insane, sometimes. Now we’ve got to find that happy place in the middle where the sellers and the potential buyers are going to meet in the middle and actually transact. And what happened is sellers expectations became unrealistic. They do because right now, go back a couple of years, they went fast. Kirk Hawkins: And it seems like those properties tend to sit on the market a lot longer for those reasons.
Kirk Hawkins: And higher end would be anything 2 million and above? So there, I think it’s two markets, higher end is a little soft, lower end, a million and a half, a million bucks, five, six, 700,000 very hot. And as we all see, we have a big housing shortage essentially. But that lower end, here in California, in LA, a lot of demand, a lot of demand and that’s just population and housing needs, basic housing needs. So I’d say the higher end, which LA is, some people call the lower end under 2 million somehow because right now a starter home seems like 1 million bucks. So the demand there is more luxury based, I’d say, when someone’s buying a five or six or $10 million house, they’ve got the money and if they’re looking for financing, it’s very little financing. I think some of the buyers in the higher end are exhausted of paying really high prices for things that if you look back a decade, are inflated by maybe 70, 80 sometimes 100% depending on the neighborhood that they’re in. I think there’s a higher end market, which is a little bit soft right now. Sam Batayneh: Well, I think there’s two markets right now. We began by asking him what he thinks about the market right now. We talked about what could happen to the market if interest rates go up, why it’s so important for potential buyers to sift through bad information with help from their loan officers, why artificial intelligence and robots could change the home loan industry forever, and why you shouldn’t go beyond your means when it comes to a monthly payment. Sam Batayneh has been a mortgage broker for 15 years.
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