Positive News in the Long Beach House Market

LB market up in some areas

While it's certainly not true everywhere, the coastal area news is surprisingly up!

Comparing February 2011 to February 2012 in 90803 zip code, there's a huge increase in sales prices! and a huge decrease in the listing supply, and a (huge) increase in pending and closed sales.  Average sales and median prices comparing the two February periods increased by 63% and 41%!

And when comparing the average 90803 sales price over the entire year period, the average sales price increased from $717,997 to $724.188.

This exact same price scenario is not true in all areas, however, but in general it is true throughout Southern California and elsewhere that sales activity has increased greatly, and listing inventory has decreased.

In the 90807 area (Bixby Knolls, California Heights, etc.), the median and average sales prices have increased for the February year comparison period by 16 and 17%, but is down 5-7% when looking at the entire last 12 month period, wtih a 20% increase in closed sales. Again, listing inventory is down by 37%.

Low interest rates are helping to fuel the march towards more buyers finally getting into the act of buying.

If you know of someone thinking of selling, is now the time to start making that move?

For a similar report for your area in Long Beach, Lakewood, Cerritos, Bellflower, San Pedro, Cypress, Seal Beach, Huntington Beach and many other cities in Los Angeles and Orange Counties, just contact me via e-mail or phone!

See more news: Local Regional Market Report--March 2012 -- and check out the 1-Minute Newsletter tab above.

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.

Saving Energy Saves Money in Your Home

Just recently I was in our local Belmont Shore shopping zone and kept walking by a large sidewalk bin of CFL (compact fluorescent light) light bulbs. Somehow, it gradually dawned on me that at $.99 each, these were a real bargain and far below the going price of $5.00+ in most retail stores.

According to flexyourpower.org, replacing standard incandescent light bulbs with compact fluorescent light bulbs savs 75% of lighting costs. If you live in household of several people where the lights may be on as much as half the day, or you live in a condominium building requiring public lighting, this can be a tremendous savings in a year. Not only is it a savings to you, it's a savings for everyone. "If all Californians replaced five bulbs with CFLs, it would be like taking 275,000 cars off the road. "

So I bought a lot more than 5 bulbs, well worth it at $1.00 each--not only are they energy saving, but a 23 watt CFL bulb equals a 100 watt incandescent bulb, and the CFL will burn up to 10,000 hours.

HINT: After trying out different brands, you'll find the right tone for you.

I used the "warm white" from MaxLite, but the end result also depends on the lamp shade or other globe the light will be shining through.

Go to FlexYourPower.org and check out the many other energy saving tips. You really can't lose.

And if you are in Belmont Shore soon, Billings Hardware has a great supply of CFLs.