June 2020 Housing Market in and Around Long Beach Area--Inventory and Price

The median price (same number above, same number below midpoint) lowered to $702,000 for a single family home in June, but this is well above December's $652,500.  The average days on

market was significantly lower than December's:  25 days in June, although the overall housing supply for Long Beach increased to 2 months' worth (still low, however). 

The median price for a Long Beach condo in June was $398,000, average price $454,000--this varies greatly depending on size and neighborhood.  The average days on market increased to 39 days in June,  and the inventory has increased significantly to 3 months supply, about the same amount as last October. 

In the last 30 days, 158 single family homes sold in Long Beach, most selling in 30 days or less, and all except 4 sold within 90 days, including the million plus homes.  Most buyers are looking below $600,000, which means Wrigley, west side of Long Beach, some in California Heights and others in North Long Beach.  Belmont Heights is typically not below $700,000 right now.

Lakewood single family median price dropped a little, but at $630,000 is still higher than 2019, but only 39 houses closed escrow in the last 30 days!  Which means a serious inventory shortage in Lakewood, at 1.2 months supply!!  So anyone who wants to sell in Lakewood now, it's time to consider!!!  There are currently 91 in escrow, and only 30 active listings on the market there ($529000+ starting list price).  So there should be a higher number of future closings, but there's opportunity to sellers with only 30 active on the market.

Cerritos:  Only 20 houses closed escrow in the last 30 days.  Sales price starts at $600,000.  Currently there are 32 homes in escrow, and 17 active listings available, starting at $689,000 and up to $2.2 million.

No matter where we look, it's the same story, we need more listings, because there are buyers who want to buy. 

The part of the market that is taking longer to sell is the over $1million market, with 256 homes on the market at an average of 137 days on the market for homes in Rossmoor, Long Beach, Lakewood, Cerritos, Signal Hill and Huntington Beach market.  More are very recently coming on the market in the last few days, so if this is your price range, there's lots of opportunity here!!!

Have some questions?  go to http://www.juliahuntsman.com/FAQs.html.  If you'd like another answer, just get in touch with me.  I'll try to help!

Curious about what your home might sell for?  Let me know, I'll send you my professional estimate based on 25+ years as a Realtor.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

REDUCED. Extensively Remodeled 1923 Cape Cod Style Home in Belmont Heights ...

Now priced at $999,789. October 28 2015.
Remodeled, but with its original character. This is the home for you, just 12 lots from 2nd Street in Belmont Shore, shops and fun. This 1923 Cape Cod is in prime Belmont Heights on a northwest corner lot which offers morning, afternoon and evening light/sun. This home has all the character and charm that anyone could ever want, and can easily be used as a 4 bedroom 2.5 bath home.

The 3rd floor works beautifully as a large master with 3/4 bath, or guest suite, with expansive ocean/water views. As you enter the living room you will see the original hard wood floors with dark wood inlays, a Batchelder tile fireplace, and custom crown molding and plantation shutters covering the double paned windows. The large formal dining room has original inlays as well as original corner builtins. The kitchen also has a cozy fireplace,  granite counters and tons of storage. The 2nd floor offers 3 bedrooms, including an office with builtins, plus a large bath. The large master on the 2nd floor has dual closets and a features a sitting area. This home offers central heat updated electrical, copper plumbing, central heat. Also featured is a subterranean 15x140 garage so no land is wasted on driveway and garage.
Asking $1,099,999.  Click on link for more photos and floor plan.
http://www.planomatic.com/mls41382

For more information on availability of this property, please contact me soon! 562-896-260, Lic. #01188996

Note:  This listing is off market.

What Will the Loan Amount Reduction to $625,500 Do to Local Markets?

Today I was contacted by a Los Angeles Times housing market reporter covering the market on new loan amounts coming into effect soon.  It's really hard to say exactly what the outcome will be, but one thing is certain: California really doesn't need any more uncertainty or instability in its housing market.  Legislators elsewhere really do not seem to be very concerned, probably because the vast majority of them do not have a home to sell in California.

Single family homes in the high end market of 90803 and 90814 may feel the cut in loan amounts to $625,000. Currently there are 145 active listings, 113 of which are over $625,500 (the new loan amount starting October 1st).  Between June 1 and August 31, 26 homes sold over $729,750 (the current limit on conforming loans), and 24 sold under $625,500, while 16 sold between the two loan amounts.  That represented 25% of the total 66 homes sold in that time period.

Currently, of the 145 active listings, 113 are listed over $625,500 (just using the loan amounts as the dividing line for the sake of discussion), 95 are listed over $729,750--meaning 18 are in the critical area in between.  Currently, 26 homes are in escrow, all over $625,500--but would the 8 in the critical area under $729,750 be buying in the future at a higher interest rate?  The homes in escrow (26) of the 145 active listings shows that the seller in this area currently has about an 18% chance of selling in the current loan market. 
Now, along with an already competitive situation in the high-end market, what will the future bring with a jump up in interest rate for the new jumbo loan amount?
See more at http://longbeachrealestate.blogspot.com/2011/07/change-may-be-coming-in-loan-amounts.html

But, there is more, not to be discussed here: the QRM, or qualified residential mortgage which basically could turn the conventional loan market at all levels into a one-size-fits-all 20% down payment.

How Many Short Sale Listings in Belmont Heights, the Shore and Naples Areas?







3923 E Vista

 Currently, including actives and those taking backup offers, there are 20 single family properties in short sale status in the 90803 zip code. They range in price from $449,000 for 3923 E. Vista St. to $2,350,000 for 5649 E. Corso Di Napoli.

3923 E Vista is a two-bedroom 1923 bungalow style home in Belmont Heights, east of Redondo Ave, with a detached garage.
The Treasure Island home on Corso Di Napoli is a bay front home with open water view, and includes two 48' boat docks.
It is listed as a two-story house, with 3 bedrooms and 3 baths, and a 2-car garage.



5649 E Corso Di Napoli

 There are 12 more active short sale listings in this area, including 2703 E 2nd St, listed at $740,000 in Bluff Park Historic District. This property is a 1909 craftsman style house on a corner lot, and is waiting for an offer! This is a great price in a neighborhood where recent sales have closed over $1,000,000.

Since December 1, 2010, 3 short sale (single family) properties have closed in this zip code; 3 properties closed as bank-owned sales; and 25 were listed as "standard sales", out of a total of 33 sold in all categories in the same time period.

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.

How Does an Owner Cope with a Coastal Property Near Rising Water Level?

If you live in California, and Southern California in particular, your property may be near the coastal areas and at or near sea level--and therefore closer to the water table levels. At certain times of the year there are annual high tides, i.e., the one seen almost up to the asphalt level of Pacific Coast Highway through Huntington Harbour.

Houses with basements, or more likely crawl spaces under the raised foundation, may show signs of moisture or even flooding. This is dealt with by creating sumps--or holes in the ground to collect water--and installing sump pumps. The pumps may be set up with connectors (i.e., a hose) to carry the water off the property, via drains, or whatever method complies with local codes.

While a buyer should obtain professional assistance about the best type and system to install, if you're buying property almost level to the water, don't be surprised to find out you may have to deal with this.

In more extreme cases, you may want to find out about subsidence and call in another expert. You will want to review the natural hazard disclosure reports, and even local flood zone reports available online through FEMA. Also, be aware that if the property is in a specific FEMA flood zone, additional insurance may be required before your lender will fund your new loan, or otherwise require you to obtain the additional insurance if you already own the property. You may be able to obtain an elevation certificate issued by a qualified surveyor if your property sits at a high enough elevation.

For more information about contacting an appropriate local professional, please feel free to give me a call.

Properties are Selling in Long Beach 90803

The buyers have gotten in the Spring action mode in Long Beach's 90803 zip code--and for some buyers, there are issues of multiple offers in certain parts of Long Beach within days of the property coming on the market. This is a result of the combination effect of sellers pricing their property correctly, presenting it well (even staging it, that's been betting the fastest offers), and buyers who are pre-approved and motivated to buy.

In a quick review of the MLS, in the 90803 zip code (Naples, Belmont Heights, Belmont Shore areas), there are 101 active single family home listings waiting for a buyer, and there are 30 single family homes currently in escrow, list price between $425,900 (Island Village) to $3,350,000 on the water with a boat dock (Naples)--days on market ranged from "0" to "395".

In the same area are 54 condos waiting for a buyer, ranging from $189,000 to $1,095,000 in complexes such as Marina Pacifica, Village on the Green, Bixby Village, Spinnaker Cove, and in areas of Naples, Bluff Park, the Peninsula, and Belmont Heights. There are 19 condos in escrow, ranging up to $669,000 in asking price, having been on the market from 3 days up to 364 days.

For motivated sellers, believe it or not, we need more inventory. If you would like a market analysis of your home or income property, at no obligation, there's nothing to lose by talking over the current value of your home. I can even send you market comps via e-mail, plus other valuable market information.

Prices are still low, and motivated buyers should check out their financing options now.

To find more Bixby Village properties on the market, go to Long Beach Condos, Lofts and Associations, which is updated through the MLS, so you will get current information on which listings are on the market.

Your Next Home: Belmont Heights & Alamitos Heights Stats

Yes, there are a few single family properties that have been on the market for a long time, in this area there are 55 single family listings in "active" mode, and 3 properties have been on the market exactly one year or longer. Taking those out of the calculations, the average days on market (DOM) for this area is 104 days for the actives.

There are 12 in escrow--DOM of 67 excluding one of the sales that has been on the market for close to a year--and two sold in less than 14 days. Inventory as of January 6, 2009 showed 5.2 months of inventory supply (all property types) for Long Beach--compare that to 8.1 months of inventory supply for January, 2008.

For 90803 zip code (Belmont Heights, Naples, Belmont Shore, Bluff Park) in January 2009, the inventory supply is at 6.8 months.

Did you know that 6 months is considered the national turning point for a change to or from a buyer's or seller's market? Meaning less than 6 months inventory on the market (the amount of time it would take to sell all properties on the market at the current selling rate) is when the market flips over to favoring the seller.

If you'd like the market picture for your neighborhood or area of interest, I have that information also available by e-mail.

So if you're interested in this area, there are some great opportunities especially considering the interest rates which lowers your monthly payment, saving you thousands of dollars over the life of your loan. Take a look again at my December post on the cost of waiting to buy.

How Many REO and Short Pay Properties Are There in Belmont, Alamitos Heights?

The filing of notices of default increases each quarter in California, per Dataquick on October 23rd, "Foreclosure resales have emerged as a major market factor, accounting for 47.6 percent of all California resale activity last quarter" but not all areas are impacted as heavily as others:

So far, for areas falling in the 90803, 90814 zip codes, the MLS listings are showing, out of 257 residential properties up to 4 units listed, there are 27 "short pay" and "NOD" listings, 3 in bankruptcy, and 11 REOs (bank-owned properties). The 4-bedroom, 2100+ sq ft Alamitos Heights single family home at right is an REO property that has been on the market for 8 days, and is competitively priced at $679,900. Looking for your next home? This is a great residential area close to the coastline, Cal State Long Beach, the 405 and 605 Freeways, and a few blocks from a major grocery chain store, bank and eateries.

BUT, did you know that we (meaning Realtors) have an REO Advisory that goes along with your offer on a bank-owned property? Be sure and ask for this important disclosure because you the buyer should know that owners of bank-owned properties are not legally required to provide you with certain information that you would expect from a "equity" seller, and you may even be asked to sign the bank's addendums, and in some cases, the bank's own contract form, that are not the same as the standard Realtor contracts. They are exempt from the transfer disclosure statement, the natural hazard disclosure statement (although the listing agent is not exempt from this), the supplemental property tax notice, Mello-Roos lien disclosure, the 1915 Improvement Bond Act notice (that's how you learn about other taxes affecting your property), and notice of private transfer fees, or the earthquake guide book. After all, they never lived in the property, and took it back in foreclosure, so they just want to sell it. Also, they often will do no repairs, including termite repairs, or so they say. As time goes on, though, I'm hearing that banks are more willing to contribute towards buyer closing costs.

Unlike the last recession, REO properties in this market are not well-prepared for sale, may need a lot of repairs, or just plain smell bad requiring the buyer to use a lot of imagination to see the ultimate potential. The issue in some communities has been such that laws have been passed forcing banks to maintain their properties and drain the swimming pools.

So, buyer beware, but if you can get past the physical condition and the disclosure issues, or lack thereof, you may find a great home.

The same story goes for a "short pay" property, and indeed, there are a growing number these days. If you make an offer on one, be sure you receive a "short pay" advisory with your contract--this details conditions surrounding the bank's approval of the seller's market value of the property vs. the mortgage amount owed and how it may affect you, the prospective buyer. You may be in a for a wait just for an initial response, especially if there is also a second lender whose approval must also be obtained. Banks vary in their efficiency handling these offers, and much depends on the completeness of the seller's package, along with the growing number of properties affected.

One thing that's immediately affecting the number of Notices of Default filed right now is that lenders are required to contact borrowers in advance of filing default notice. Just how much this is affecting the market, and how far into the future, is unknown:

"It's unclear just how much foreclosure activity will be time-shifted into future months. We'll know more when we have fourth-quarter numbers. What's interesting is that the surge in activity certainly did level off during the second and third quarters. A lot of the market's distress is working its way through the system and the spectacular jumps in activity may be behind us. Or it may be that those processing the default paperwork are just maxed out," said John Walsh, DataQuick president.

So, when all is said and done, take advantage of the opportunity before you.