This is a two bedroom plus den single family in a Long Beach historic district within walking distance of the ocean. This 1920's home features recent upgrades in the kitchen and bathroom, new landscaping with auto sprinkler, refinished hardwood floors, completely enclosed rear yard. This area is zoned for 2 units, a great plus! Please contact me for more info on this well-priced home. NOTE: SOLD JAN, 2007
10/27/2006
Rose Park South Historic District
This is a two bedroom plus den single family in a Long Beach historic district within walking distance of the ocean. This 1920's home features recent upgrades in the kitchen and bathroom, new landscaping with auto sprinkler, refinished hardwood floors, completely enclosed rear yard. This area is zoned for 2 units, a great plus! Please contact me for more info on this well-priced home. NOTE: SOLD JAN, 2007
10/26/2006
Housing Perspective: No High Unemployment, No High Interest Rates
Although the media has focused on the downside of the changing real estate market, there are also compelling messages about real estate that consumers need to remember:
Ø Prices are still going up. In September, the median home in Orange County home increased 2.6% and 3% in Los Angeles County, as compared to September of 2005. This is a healthy adjustment considering housing prices increased 80% over the last five years.
Ø Interest rates are low. Rates for 30-year fixed mortgages have dropped as low as 5.8%. That’s a great rate!
Ø There is a healthy supply of inventory, not necessarily an oversupply. The unusually quick sales cycle of recent years has created unrealistic expectations. California Association of Realtor's 25-year historical data reports that in California the average Unsold Inventory Index is 7.7 months. According to data from Southern California MLS, the current Unsold Inventory index is 6.2 month’s supply.
Ø Homes are selling. We live in a highly desirable part of the country. In September, 2,664 homes closed in Orange County and 7,917 closed in Los Angeles. Currently, there are 2,787 pending sales in Orange County.
Ø Today’s UCLA economic forecast reports that home sales should increase next year as the current stalemate between buyers and sellers pushes some pent-up demand into 2007.
Ø Dataquick reports that NONE of the flags of market distress have begun to appear. The distress flags were cited as high foreclosure rates, over-borrowing or high amounts of speculative buying.
Ø It’s critical to infuse some historical perspective in the current marketplace. Prior housing downturns were precipitated by high unemployment and interest rates. Conversely, today’s interest rates are low and we have a dramatically expanding job market.
Ø Prices are still going up. In September, the median home in Orange County home increased 2.6% and 3% in Los Angeles County, as compared to September of 2005. This is a healthy adjustment considering housing prices increased 80% over the last five years.
Ø Interest rates are low. Rates for 30-year fixed mortgages have dropped as low as 5.8%. That’s a great rate!
Ø There is a healthy supply of inventory, not necessarily an oversupply. The unusually quick sales cycle of recent years has created unrealistic expectations. California Association of Realtor's 25-year historical data reports that in California the average Unsold Inventory Index is 7.7 months. According to data from Southern California MLS, the current Unsold Inventory index is 6.2 month’s supply.
Ø Homes are selling. We live in a highly desirable part of the country. In September, 2,664 homes closed in Orange County and 7,917 closed in Los Angeles. Currently, there are 2,787 pending sales in Orange County.
Ø Today’s UCLA economic forecast reports that home sales should increase next year as the current stalemate between buyers and sellers pushes some pent-up demand into 2007.
Ø Dataquick reports that NONE of the flags of market distress have begun to appear. The distress flags were cited as high foreclosure rates, over-borrowing or high amounts of speculative buying.
Ø It’s critical to infuse some historical perspective in the current marketplace. Prior housing downturns were precipitated by high unemployment and interest rates. Conversely, today’s interest rates are low and we have a dramatically expanding job market.
10/25/2006
No Change in Rates
The Federal Reserve maintained its hold on rates today, noting the cooling housing market, but still "feels the economy will expand." Because of this cooling market, some lenders are softening requirements for certain loans, which is the best opportunity for buyers with uncertain FICO scores in the low 600s. If qualified at a higher rate a while back due to that problem, take another look now, you may be qualified for a lower rate.
10/19/2006
2007 Housing Market Forecast by California Association of Realtors
The California Association of Realtors Expo tradeshow, the largest in the nation, was hosted at the Long Beach Convention Center this week, and an exciting show it has been. The annual California Housing Market Forecast by the Associations' Chief Economist outlined predictions for the housing market for 2007. Not surprisingly, a modest decline in the statewide median price (2 percent overall) is predicted with fewer sales overall. Some areas, such as San Bernardino and San Diego as well as second-home markets, may experience greater sales volume decline than others during the coming year, which is not expected to bear as a great a sales decline as 2006. The market momentum of the past several years has slowed, but keep in mind that California real estate has always been a good investment: since 1968, long-term price appreciation has averaged 9.1 percent.
10/16/2006
Take Another Look: No Housing Bust
This link to Kenneth Harney's Los Angeles Times article of October 16, 2006 will not last indefinitely, but it's well worth reading. Mortgage interest points have declined in recent months to 1 percentage point above 40-year lows; mortgage applications are up; unemployment is down; pending home sales are up as of NAR's October 2 report. The market is returning to 2003 levels, which was in itself a banner year for real estate sales.
All of which begs the question, "Just what kind of housing bust is this anyway? With gloom-and-doom purveyors forecasting imminent crashes in dozens of metropolitan areas, how could such key fundamentals as jobs, interest rates and even pending home sales simultaneously be trending in the opposite direction?" It's not a bust, it's a correction.
In a nutshell: "So, what's the source of some of the confusion about just where housing is headed? Mike Moran, chief economist of Wall Street's Daiwa Securities America, minces no words: The financial press and TV news shows are over-dramatizing what is a normal and long-predicted cyclical re-balancing, and 'portraying it as a catastrophe,' he said." With such eminent notables as the vice-chairman of the Federal Reserve, a managing director at JP Morgan Chase and the chief economist at Morgage Bankers Association all pointing out the "robust" economic indicators, buyers should certainly be taking note of the not-so-big market dip in prices.
All of which begs the question, "Just what kind of housing bust is this anyway? With gloom-and-doom purveyors forecasting imminent crashes in dozens of metropolitan areas, how could such key fundamentals as jobs, interest rates and even pending home sales simultaneously be trending in the opposite direction?" It's not a bust, it's a correction.
In a nutshell: "So, what's the source of some of the confusion about just where housing is headed? Mike Moran, chief economist of Wall Street's Daiwa Securities America, minces no words: The financial press and TV news shows are over-dramatizing what is a normal and long-predicted cyclical re-balancing, and 'portraying it as a catastrophe,' he said." With such eminent notables as the vice-chairman of the Federal Reserve, a managing director at JP Morgan Chase and the chief economist at Morgage Bankers Association all pointing out the "robust" economic indicators, buyers should certainly be taking note of the not-so-big market dip in prices.
10/12/2006
Home Price Forecast
Every day predictions can be found somewhere in the media as to where future prices will end up. Some local prospective buyers are expecting to see a 20 percent price drop in the Long Beach area in the next few months. That we are in a slower market, and a softening market, is more obvious. That predictions do not always come true ... we know about that, too. However, the Long Beach/Los Angeles area market, based on current projections, doesn't show that kind of a price drop, just check the list of cities and scroll down to Los Angeles to see an approximate 5 percent drop over a period from 2006 to the end of 2008. Another prediction is that interest rates for now and in the next several months will not be increased by the Federal Reserve. That is as good a prediction as any, and should be very helpful to those buyers thinking about making a move soon. See a property search from the local MLS here.
10/05/2006
The Number of Pending Home Sales
... rose in August compared to July, 2006. This index is used by the National Association of Realtors to rate activity in sales. If there is an anticipated reduction in listings on the market, as this index might show, that may mean price stabilization in the near future. Demand gets closer to supply. Pending home sales usually close 30-60 days. September and October data will tell more of the story. See this website for more real estate information.
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