How Many Properties Under $300,000 in Long Beach?



Ocean Blvd Condo

Today, the Southern California MLS (combined with CARETS) shows 631 properties in all areas of Long Beach. This is more than June, 2009 (431) and less than December, 2008 (737).

There are 269 single family homes of which 38 are bank-owned and 136 are short sales, the majority are in North Long Beach.  There are 340 condos under $300k,  of which 48 are bank-owned and 182 are listed as short sales. There are 13 co-ops, 4 require short sale approval and 1 is lender-owned. There are only 9 OYOs, probably because many have converted to condominium status in recent years--only 1 requires short sale approval and none are listed as bank-owned.

From these 4 categories, it's clear that short sales constitute nearly 50% of the market in this price range, while bank-owned properties, while bank-owned properties are about 14% of this category in Long Beach.

If you the buyer submits an offer on a short sale, know that they require patience and the ability to wait. The seller wants to avoid a foreclosure, and can usually only do so by obtaining short sale approval from the bank, and counting on the buyer to stick around for the entire process. Buyers should understand all of the short sale addendum terms, and be clear about the waiting period you've agreed to--if there is no waiting period (number of days) inserted in the addendum, that means you're committed to waiting until either the bank says it's not approved, or the bank says it's approved--whichever is longer. In other words, agree to 90 days and if there's no approval by that time, then it's safe to cancel and move on. A 30-day escrow including bank approval would not be realistic for almost all properties.

This is the affordable range for many people, and it also attractors investors who have a lot of cash. Some properties give a 10-day period for owner-occupants to make offers, another reason why the buyer should be prepared in advance with loan approval and funds documentation to be ready to make that offer, assuming it's the property you want. Otherwise, try to find a property being sold by an equity seller.

The future will continue to feature distressed properties in one form or another: "Sales of distressed properties are set to peak in 2011 at 2.3 million transactions before falling to more normal levels at 850,000 in 2016, according to a report from John Burns Real Estate Consulting."  Does that mean prices will continue to fall? It all depends . . . on the area and local real estate. That's why you should keep up with prices in the area of your interest, and stay in touch with a good lender and a good Realtor who can keep you updated on recent sale prices, interest rates and current lending guidelines (which can change every few months or every few weeks).

Nearby cities of Cerritos, Lakewood and Signal Hill also have properties, ranging in number from 22-27 each, under $300,000--the vast majority are condominiums with a small sprinkling of houses. Norwalk, however, has 200 properties, the majority being single family homes, so this is another area of opportunity for those willing to live a little further inland.
To see all properties of interest to you, including income property, just go to my website property search at http://www.juliahuntsman.com/. 

Going Green: Recycle Your California Appliances

Is your refrigerator getting more expensive to run? I think mine is because it's now 10 years old, and my electricity usage is going up (but cleaning the coils can also lower electrical usage too). If you're going to replace them, don't dump your old appliances or have them hauled away before you check this program first. The California Energy Commission is behind the Cash4Appliances program. Click on the link for more information.

Don't dump your old appliances, instead, recycle them, and/or get a rebate through the listed partners if you bought from them. This includes Best Buy, Home Depot, Fry's, Howard's, Lowe's, and other major chains.  I unfortunately do not see Sears on this list (where I bought my refrigerator). This program applies to residential occupants, and landlords and tenants of residential properties.

This program started in April, 2010, and will continue until funds are gone. Per their website today, there is over $11,000,000 available in funds. This program includes your refrigerator, clothes washer, room air conditioner, freezers, dishwashers, certain water heaters, and certain furnaces. As of July 28, eligible energy efficient appliances and rebate amounts available are: refrigerators $200, clothes washers $100, and room air conditioners up to $50. California Cash for Appliance PLUS rebates include: dishwashers $100, freezers $50, water heaters $300-$750, and HVAC systems: $500-$1000.

Another source for recycling refrigerators is through Southern California Edison, which will remove your working refrigerator and pay $35.

FHA Loan Right After Short Sale?

Short sales are a problem for sellers who want to get into a new home right away. Besides the probable impact to your credit score and the issue or rebuilding it, there are normally the mortgage loan guidelines that require a waiting period of 2 or more years after a short sale, depending on the buyer and the loan.

But for certain buyers, there could be an option:  If you are a borrower who has not suffered delinquent loan payments, but has suffered a market devaluation of your current home, you could be eligible for an FHA loan immediately upon sale of your current home IF:

1. You aren't selling your home and buying a new one simply to take advantage of today's lower prices;
2. You purchase at a reduced price a similar or superior property within a reasonable commuting distance;
3. The short sale is for your primary residence.
4. You are current on your mortgage payments and no 30-day late payments.
5. Your home is not pre-foreclosure (with a Notice of Default recorded against it).
6. You have no late payments on installment debt prior to the short sale.

The borrower's reasons for selling would have to be approved on the new loan's underwriter, but for example, if you're moving for school reasons for your child, or job relocation reasons for yourself, perhaps this loan is for you.
Please give me a call or e-mail me to see if this would work for you!

Condo Prices in Bixby Knolls and Belmont Hts/Belmont Shore/Bluff Park

The August 2010 median sold price of a condo in 90807 (Bixby Knolls and adjacent areas) actually increased by $10,000--to $170,000--compared to August 2009. That's down, however, from the $240,000 condo median in April.  I chose this zip code because I actually underwent a first time experience ever of receiving a buyer's lender appraisal $20,000 less than the contract price. (This leads into issues about out-of-area appraisers and the AMCs, which will not be elaborated on here.) So therefore, it seemed a good idea to see what Clarus Data Metrics research revealed this month. The for-sale price in this zip code for condos shows an overall decrease in asking price by 23%, but an overall increase in selling price by 6%. December and April were two months of exceptionally high prices reaching up to the $300,000 median. The monthly number of units sold range from 4 to10 in the last 12 months, and the same range for properties in escrow each month over the last 12 months, currently up 75% from August 2009. The monthly total number of condos for sale ranges from 39 to 55 over the last 12 months.

The August 2010 median sold price of a condo in 90803 (Belmont Shore, Bluff Park, Naples, etc.) actually decreased by 4%, ranging in median price from $550,000 to about $275,000 over the last 12 months, with the current median being $326,000. The median asking price is currently $50,000 lower than August 2009. The number of sold properties for August--15 condos--is one of the two highest months for the past 12 months. The number of condos in escrow has fluctuated from 6 to 15 per month in the last year--currently the pendings are down (by 3 units) from July and down from August 2009. Currently there are 83 condos on the market in this zip code, the lowest number was 59 last January. So although supply is up, so is demand--9 sold in August 2009, 15 sold in August 2010.

Buyers and sellers should know that lending in condos means a review of owner occupancy ratio (less than 75% is a deal killer for some lenders, less than 51% is a deal killer for all lenders), the number of owners delinquent in their HOA dues (can't be more than 15%), and existing lawsuits are all items that come under review in their review of the association's documents. Other issues could be HOA reserve funds and signs of lack of common area maintenance.

FYI: "Median" is not the same as "average"--the median number divides the group into two equal halves: Half the properties sold were above $326,000 and half were under that price.

Any why are those cows there? Because they like to keep an eye on things too.