Current State of the Real Estate Market in Long Beach

Conditions for property sales have largely returned to normal, meaning there are very few distressed properties or "special condition" issues on the market.

Out of a total of 401 active listings for single family homes and condominiums in currently on the Long Beach market, as listed in the Realtor multiple listing service, there are:
  • 381 standard sales
  • 4 foreclosures
  • 4 notices of default
  • 8 real estate owned, including HUD
  • 6 short sales
  • 4 probate sales
  • 2 requiring third party approval 
In other words, the market from 5-7 years ago which featured a minimum of 35%-50% distressed listings in many areas, both in California and across the country, has improved to a market of majority regular sales.

In the last 90 days (4th quarter of 2016), 562 single family homes sold in Long Beach as "regular" sale, at an average price of $652,936 (ranging from $199,000 to $3,790,000).

In the prior 90 days (3rd quarter of 2016), the MLS reports 563 Long Beach single family homes sold at an average price of $664,070 (ranging from $200,000 to $4,750,000).  So in Long Beach, the overall pricing has been fairly stable for a house for about the last 6 months, based on data from the MLS. As it has for multiple years now, inventory remains in the 2-3 months level, which is what creates more competition among the active buyers and a decentivized seller market which ends up staying put, not finding what they would move on to.

What will happen in 2017 in the bigger picture?  The median California house price is predicted to rise a little over 4%, housing affordability still going down, but sales volume is expected to rise over 2016. There are lots of market variables: global market changes (Brexit); increasing conventional interest rates for some (so far VA and FHA rates are still lower), but interest rates are still very low compared to earlier market cycles; foreclosed houses bought up and turned into rentals; the fact that California is delayed in construction of new units and will probably not catch up for years with the population growth; and also, affordability challenges for first-time and lower income buyers, a very big issue; plus, the baby boomers staying in place, and not moving like their parents did, which means fewer listings on the market (just one of the reasons for depressed inventory).

One thing helping buyers are down payment assistance programs, CalHFA being one, another are two-income families with documented income, and a third is the persistance to become a homeowner.

Please contact me for information about selling, I am also able to search out information in more distant markets which may help a seller in their decision to relocate.

No comments:


Related Posts Plugin for WordPress, Blogger...
Web Statistics