Downtown "Fun Bus" to Broadway and 4th St. Businesses

The Big Red “Fun Bus” is a free ride on Thursdays from 6 pm to Midnight and Saturdays from 1 pm to 6 pm – as a way of connecting all the cool shops and dining establishments along Broadway and 4th Street between Pine and Redondo while passengers listen to live music and enjoy special promotions offered through their website. It’s being funded by business owners on Pine through Downtown Long Beach Associates as a way of connecting their businesses in a fun way from downtown and the East Village to the neighborhoods of Belmont Heights (historic district), Bluff Park (historic district), Bluff Heights and Alamitos Beach along the Broadway and 4th St., which adjoins Rose Park South (historic district).

It's a great opportunity to visit stores and shops such as KiKi Originals, an alternative to the warehouse style bridal stores "where you feel like a number instead of a bride." Shop owner, Kim Kessler, a resident of Long Beach for over ten years, has made dreams come true for her brides. KiKi Originals can design anything you can dream of for your wedding party including bridal gowns, bridesmaids, flower girls, and mothers. Sasha's Living With Style just recently expanded into a period Craftsman-style house on Broadway (see first photo above) which had been a rental for many years. The house is typical of many houses originally built in the area, and a great setting for her home design store.

Mark Sutherland of Bungalow Marcasso at 2720 E. Broadway specializes in home and garden accessories, arts, and gifts--"Voted Best Gift Store for 2007 by Beachcomber Newspaper readers!"

Long Beach long beach real estate 'Voice this!

How Today's Rate Cut Affects You

Quote of the day:

"Long-term rates, such as those for mortgages, don't respond directly to the Fed's short-term rate moves. Sometimes, mortgage rates move in the opposite direction when the Fed reduces the federal funds rate. But more often than not, mortgage rates eventually follow the Fed's lead. That might be one of the motivations of the central bank, (Richard DeKaser, chief economist for National City Corp) says -- "to help the housing market by lowering the refinance rate on many resetting mortgages. That makes it easier for people confronting resets, which we know are rampant right now, to achieve more affordable rates."

If you have a Home Equity Line of Credit, that will be favorably affected. But keep on eye on mortgage rates, because taking a cue from last week's volatility where there was an almost-unheard-of-three-quarters-of-a-percent movement in one day, you could definitely save money.

Long Beach long beach real estate 'Voice this!

What Does the Rate Cut Do For You?

Whenever the Federal Reserve increases or decreases rates as it did today, it means different things for different people. The winners will be people with good credit scores because the better your score, the better interest rate you receive. This means that if you have an adjustable rate mortgage, it's a really good time to refinance into a fixed interest rate mortgage. It's also a really good time to look for a new home--your payment will be lower with lower interest rates.

The other reason your credit score is so important is not just the rate you'll qualify for, it's the type of loan available to you. I'm including this somewhat pessimistic article (to appeal to the conservative among you) on today's rate cut, how it affects mortgage rates, and tighter lending standards compared to those of 2-3 years ago which have made certain loans out-of-reach that were once available for borrowers with lower FICO scores. At the same time, FHA loans (usually made with a very low down payment) are on the table with the Senate-passed FHA Modernization Act for an increase in loan amount to assist first-time buyers. There are in fact numerous first-time buyer programs available. In fact, the Los Angeles Times and the California Association of Realtors are hosting a free first time homebuyer fair at the Los Angeles Convention Center in April, 2008.

So if you're looking to refinance or purchase for the long term, you may have a great opportunity at this time.

Long Beach long beach real estate 'Voice this!

California Median Prices are Down and Up

The most recent California median prices, as reported by Dataquick for November, 2007, vary by area (figures reflect houses and condos together):
In Long Beach, zip code 90803 which is Bluff Park, part of Belmont Heights, Naples, Belmont Shore area, there were only 7 sales reported, but the median price for a single family home increased by about 9% over November 2006 sales. The condo sale median price decreased in 90803 by about 14% (based on 3 sales), and decreased in 90802 (based on 21 sales) by about 6% compared to 2006. But, overall, Long Beach only declined .98% from November 2006.

Cerritos house prices declined about 15% from Nov. 2006; Lakewood and Downey declined 11% and 12%; San Pedro, with ocean views from elevated areas, appreciated over 4%.

Some areas, such as Lancaster and Tujunga, with more foreclosure and short pay incidents are suffering hits to their prices.

Los Angeles County's November 2007 median price overall declined 4.79% over November 2006.

Long Beach long beach real estate 'Voice this!

"Let's Get a Little Perspective" - 2007 Was NOT a Bad Year

On Thursday mornings I usually attend a broker preview meeting for local agents--it's information sharing about listings, buyer needs, and an opportunity to network. Here's information sharing that came out of last week's meeting:

2007 is tracking to be the 4th BEST year in history since statistics began in 1952.

1988 -- 3.5 million units sold
1991 -- 3.1 million units sold
1998 -- 4.2 million units sold
2000 -- 4.6 million units sold
2004 -- 5.7 million units sold
2005 -- 7.1 million units sold
2006 -- 6.4 million units sold
2007 -- 5.5 million units sold

30% of U.S. homes are owned free and clear -- these are not affected by subprime loan conditions.

Total Mortgage Debt = $9.9 TRILLION

Subprime Mess = $75 Billion (equates to .0075% or 3/4 of a 100th of a percent)

Banks do NOT experience 100% loss in foreclosure -- potentially $25 billion (loss), or 1/3 of one 100% of a percent.


Long Beach long beach real estate 'Voice this!

Selling Price is Not the Whole Story

With this week's low interest rates, the opportunity to buy is better than ever. Did you know a half-point drop in your interest rate makes a huge difference on your monthly payment? Let's say you are taking out a $300,000 mortgage, and you have been expecting to pay 6%. What if the loan market changed, and/or you decided to pay an additional 0.5% to 1% towards buying down the rate (or you negotiated with the seller to do that for you!), and now you're able to get that same loan at 5.5% (an historically low rate). Your monthly principal and interest just lowered from $1798.65 to $1703.37.
What if you had that same $300,000 mortgage with a 6% interest rate and suddenly other economic factors in the market caused a jump up in rates, and in order to close on time, you're now going to pay 6.25%--you're payment is now $1847.15.
It really pays to not wait, whether it's making an offer, finding the right loan, getting that loan locked at the right time.
If you're thinking about waiting 6 months because you think home prices will be coming down further, just remember that even if that's true to a certain degree, the selling price of the home isn't the only thing that will impact your monthly payment.

Long Beach long beach real estate 'Voice this!

Long Beach Neighborhood, Lakewood and Cerritos Price Roundup for End of 2007

Happy New Year to All--

here is my first post for 2008, a round up of some local prices for houses and condos in several Long Beach neighborhoods in the last quarter of 2007, for which I shamelessly ask for a sign-in.

Unlike the recession of the mid-1990's, selling time is much longer (all over the country, too) but prices may not be falling through the floor, and there may be even a tightening of inventory in such areas as Belmont Heights--I'll be adding more areas to this list in the next few days, so please check back.
Sales are typically lower in the 4th quarter of any year, as also reflected here.
Click on the links for actual lists of houses sold.

Belmont Shore and Naples (90803) - 43 houses sold in the 3rd quarter; 24 houses sold in the 4th quarter.
Bixby Knolls, California Heights, Virginia Country Club areas - 53 houses sold in 3rd quarter; 48 single family homes sold in 4th quarter.
Los Altos area homes (90815) - 19 single family homes sold in the 4th quarter; 42 sold in 3rd quarter.
Park Estates area homes (90815) - 6 sold in 3rd quarter; 1 sold in 4th quarter.
Cerritos (all) - 66 houses sold in 3rd quarter; 29 houses sold in 4th quarter.
Lakewood (all) - 130 houses sold in the 3rd quarter; 93 houses sold 4th quarter.

Long Beach long beach real estate 'Voice this!