Showing posts with label For Buyers. Show all posts
Showing posts with label For Buyers. Show all posts

3/18/2024

Quote For the Day By Theodore Roosevelt

Craftsman Bungalow Home in Long Beach

"Every person who invests in well selected real estate in a growing section of a prosperous community adopts the surest and safest methods of becoming independent, for real estate is the basis of wealth."  Theodore Roosevelt, Speech, September 9, 1903.

Whether you're wealthy or not-so-wealthy, consider how you can invest in real estate: as a sole owner, as an income property investor, or as a partner among several at your level of affordability.  You don't have to have the ability to buy the most expensive real estate in order to benefit from real estate ownership.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

1/24/2024

8 Eye-Opening Things Home Inspectors Can’t Tell You

What’s included in a home inspection may not be as important as what isn’t.

A home inspection may feel like a final exam, but it’s not quite so clear cut. Your inspector’s report won’t include a clear-cut  A+ if a house is a keeper or an F if it’s a money pit.

What is included in a home inspection report is a set of neutral facts intended to help you decide on a home’s final grade.

Oh sure, a seasoned inspector will know if a home is a safe bet or full of red flags. But they’re actually bound by a set of rules that limit what they can tell you.

Here’s what they can’t say:

#1 Whether They Would Buy This House

Here’s the big one: Many buyers think an inspector will give them a thumbs up or thumbs down, but they can’t. Giving real estate advice violates the International Association of Certified Home Inspectors’ code of ethics.

Clues to look for: Count up your issues. “The average inspection turns up around 20,” says Larry Fowler, a home inspector in Knoxville, Tenn., who has done around 10,000 home inspections in his 22 years in the business. “If there are more than 30 items, you may have a bad house,” Fowler adds. “If there are fewer than 10 items on the list, you may have a bad inspector.”

The bottom line is that every house and buyer are unique and what inspection results one person is fine with, another may not be. Confer with your agent once you have the report.

#2 If It Has Termites, Rats, or Mold

Yikes! You might assume this trio of homewreckers would be part of every house inspection checklist, but your inspector isn’t licensed to look for them.

Clues to look for: Inspectors can note that those sagging floors are evidence of termites, or that shredded insulation is evidence of rats, or the black stuff on the walls is evidence of fungal growth. To turn evidence into proof, ask a specialist for a follow-up inspection.

#3 If the Pool or Septic System Are in Good, Working Order

Home inspectors aren’t certified to inspect everything that could appear in any home. So for example, if there’s a pool, some may turn on the pool pump and heater to make sure they work, but they won’t look for cracks or plumbing leaks. You’ll need to find a pool inspector. In other cases, you may need a septic systems or wells expert, an asbestos or radon specialist, etc.

Clues to look for: Any special feature is your cue to find a specialist. “We’re general practitioners,” Fowler says.

And here’s a bonus tip: Consider a home’s advanced age a “special feature,” as they’re likely candidates for lead paint, asbestos, and other old-home hazards.

#4 That They’re Making The House Look Worse Than It Is

Some inspectors make note of every tiny thing in a house, even inconsequential ones. Like chipped paint. Scratched windows. Surface mold in a shower. These folks are sometimes known as deal killers.

Clues to look for: If your inspector’s report is pages long and full of items that won’t hurt the value of the home, it’s probably not a big deal. Sit down with your agent, and go through the report to determine which (if any) issues could affect your offer.

Note: See sample inspection reports from around the country at the International Association of Certified Home Inspectors website.

#5 If That Outlet Behind the Couch Actually Works

An inspector can only check what they can see without moving anything. This means the foundation could be cracked behind that wood paneling in the basement. Or the electrical outlet behind the sofa might not work.

Clues to look for: The inspector should note if they’re unable to inspect something critical. Consult with your agent about what to do, such as asking the seller to take down the paneling or offering to pay to have it removed. Alternately, offer a lower price.

#6 Whether They’ve Inspected the Roof Closely

Some inspectors will climb up on the roof to look closely at shingles and gutters — but they’re not required to. If it’s raining or icy, or the roof is steep or more than two stories high, they can stay on the ground and report what they can see from there.

Clues to look for: They should note whether they walked the roof, but if it’s not clear, ask. If they haven’t, keep this in mind when evaluating their roof inspection report. They should still note any missing or damaged gutters or downspouts and the general condition of the roof based on what they can see from the ground.

#7 What You Should Freak Out About (or Not)

It’s an inspector’s job to find things wrong with the house. Big things, little things, all the things. It’s not their job to categorize them as NBD or OMG. A checkmark next to a crumbling foundation will look the same as a checkmark next to chipped paint.

A few things you may find on an inspector’s report that aren’t a big deal:

  • Condensation in a basement or crawl space
  • Early signs of wood rot on trim
  • Cracks in bricks from the house settling
  • Faux stone siding that’s been improperly installed
  • Radon levels below 4 pCi/L

These items, however, could trip your freak-out response (if you’re not prepared to address them):

  • Standing water in a basement or crawl space
  • HVAC not working
  • Outdated wiring, especially knob-and-tube wiring or aluminum wiring
  • Wood rot
  • Old plumbing pipes
  • Radon levels above 4 pCi/L

#8 Who They’d Recommend to Fix It (and How Much It Will Cost)

Your inspector may seem like the perfect source of insider info on repairing issues they see all the time, but the opposite is actually true.

You don’t want your inspector to make financial decisions based on their report. Think about it: If an inspector’s buddy Steve gets a plumbing gig every time a certain issue turns up on a report, it gives that inspector some pretty big (and not cool) motivations to find that issue.

Even giving you a price range for the repair is off-limits. It’s not their area of expertise, it creates a conflict of interest (they could be endorsing Steve’s great deal, after all), and, perhaps most importantly, it’s against the ethics rules.

Clues to look for: This is good home ownership practice. Try to price out every item on your home inspector’s report, big and small. Do some research, and call three contractors or check out three retailers for the service or part needed to resolve each issue. You’ve got this, future homeowner!

 This and other helpful articles are on HouseLogic.  Find more information, and a list of member home inspectors, at https://www.creia.org/resources-for-home-owners-realtors.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

1/16/2024

What Happened in 2023 in the California Real Estate Scene

Graphic showing 2023 market data in California

 The 2023 housing market had ups and downs, but buyer competition remained, and prices continued upward for the most part, in spite of inflation, shrinking insurance availability, and increased mortgage interest rates.

Home sales slowed, but the housing market hasn't crashed. Mortgage rates went to 7 percent, prompting many homeowners to not sell, and those who did were sometimes offering incentives to the buyers.  Housing shortages are reflected in the December to December 23% decrease in new listings, and the overall 20% decrease in closed sales.  But median and average sale prices both increased.

For 2024, the chief economist of the California Association of Realtors, Jordan Levine, predicts continued price improvement, and sales volume improvement compared to 2023. Mortgage rates are already easing, which lowers the monthly mortgage payment amount, and perhaps will fall to the 6-6.5% range. To combat the inventory shortage, expect widening support  for accessory dwelling nits and the conversion of empty office buildings into residential space. Insurance carriers may continue to withdraw, and cause an increase in prices while forcing the buyers to look at outside carriers.  The California Fair Plan is a growing option, but comes at a higher cost for only basic coverage.  Buyers should do their  best to find as many insurance carrier options as possible.  A new down payment assistance resource directory may offer help for some buyers, contact me for a program that may work for you.

You're probably aware of ChatGPT generated information, and the discussions about using Artificial  Intelligence (it's not new, a Magnum P.I. segment in the 1980s had Magnum and his consultant friend talking about and referring to artificial intelligence and what they were discovering then what computers could do!) are now frequent in the real estate profession. Some property descriptions, marketing materials and social media posts are online from AI.

The median-priced home in California is now $830,620,  in Long Beach the December 2023 average sales price was $1,060,056 and for a condo it was $557,532--but that varies: the 90803 zip code average price for condos was $741,333.

With the softening of interest rates (remember, an 800+ credit score gets you the best rate, so take care of your credit), buying a home may be more possible for buyers and sellers alike.  Please contact me with any questions, sometimes all it takes is a conversation to help get you started.

 


Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

11/07/2023

Long Beach Year-to-Date for Single Family Homes as of September 2023 (and LA County Information)

Year to Date Stats September 2024

 

 Long Beach Market, September year to date:  

  • Existing home sales total 796 (down almost 30%)
  • Monthly average of active listings total 94 (down over 26%)
  • Active listings with reduced prices total 31.4%  

Sales to list price is 100% with the median price of $900,000.  There's still competition out there and at the same time sellers need to be realistic on pricing and offers for their local market.

As of 11/7/2023: there are 153 active listings of single family homes in Long Beach, with a median of 32 days on the market (yes, at this time of year timing is usually slower).

September Los Angeles County Inventory Report showing city prices and market information:


 

Contact me for your real estate needs!

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

9/19/2023

Things to Know About Open Houses in California


Did you know that California agents must observe certain protocols or rules about holding open a property?

For instance, usually the person you meet on the open house property is a licensed agent, but on occasion there may be an unlicensed assistant there who may greet the public, hand you a flyer or brochure or schedule a appointment with the real estate agent. But only a licensed agent may show the property, discuss terms and condition of a sale or the features of the property, location of schools or amenities, or engage in other conduct which could induce the open house attendee into signing a contract. Unlicensed assistants may not engage in any solicitation or negotiation with visitors to the open house.

The open house visitor should see the licensee's license number on advertising flyers and brochures with the agent's name, and on open house signs which bear the agent's name and brokerage name.  But license numbers are not required on generic style signs which only say "for rent" "open house", "for lease" which do not bear an agent name or brokerage name.

Licensees cannot discriminate on the basis of a protected class, including have children. Unless it's a Senior Housing community which is for those aged 55 years and older where anyone younger would not be allowed to own.

And, the Department of Real Estate strongly advises against a licensee leaving an open house unattended, so if you see a note when you arrive stating an invitation to come inside, but the agent leaves a note they'll be back shortly, you may want to return when the agent is there.  An unattended home might be an invitation to a problem.

If you are thinking of selling and want an experienced Realtor's advice before you put your home on the market, please call, text or email me! I'll be glad to answer your questions.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

8/21/2023

Higher Home Prices and Higher Interest Rates, But Homes Still Sell

The National Association of Realtors data shows home prices increased in 60% of the nation's largest metro areas, while 30-year mortgage interest rates hover around 7 percent in the Freddie Mac survey of rates.

New inventory on the market is hampered by homeowners with mortgages at 3 percent rates and below who do not want to sell and move into a higher interest rate market which would of course increase their costs on monthly payments.

As an example however, twenty-three (23) out of thirty (30) single family residences as listed in CRMLS which sold in Long Beach in the last 30 days--from the date of this post--closed with buyer financing, including conventional, FHA or VA loans. Five properties closed all cash, and two listings did not indicate cash or mortgage.  So those buyers are obtaining loans, and they are obtaining home insurance as required by the lender (another challenge for some buyers in this market). A total of 100 single family residences sold in Long Beach in the previous 30 days, so the pool of 30 above would indicate that approximately 76% of homes are successfully closing with financing.  Insurance tips here

 If you are interested in an evaluation of your property, please call,  text or email me. I am here to help.

For buyers who need assistance in the current market, I'm also here to help, using my 28-plus years of Realtor experience.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

7/31/2023

Insurance - California Homeowner Policies - Tips on Finding and Keeping

Insurance is the Key!

Several companies have stated they are not issuing new policies to new customers, and some existing customers are receiving cancellations.  Below are some advisory tips whether you are in escrow and need insurance for a new purchase, or you're in an existing home and have received a notice.

 If an insurance company is not going to renew your policy, you must receive notice 45 days before the expiration date. If you didn't receive the property notice, the California Dept. of Insurance may be contacted at 1-800-927-HELP or online at www.insurance.ca.gov. Look for renewal provisions in your policy to see what you might qualify for under certain conditions.

Contact your insurance company immediately to see if there are fire-hardening steps you may  take to change the company's decision about non-renewal.

If you don't have an insurance agent, check online with the Department of Insurance in the Consumers Section to help you find an agent, and check if the agent works exclusively with one company or has access to multiple carriers. 

 Check the Residential Insurance Contact List on the DOI website for a list of admitted insurance companies.

Ask questions of the insurance agent: Does it cover current cost of rebuilding per current construction codes? Does it cover replacement cost value? Will the policy cover cost of rebuilding to pre-loss condition? Cover demolition and debris removal? Coverage on temporary rent and expenses while home is being rebuilt? What loss causes are not covered? 

Non-admitted carriers, i.e., surplus lines, do not have CIGA protection, but may be a solution for you. Investigate financial strength of a non-admitted carrier at A.M. Best.

As a last option, try the California FAIR Plan, which only covers fire and smoke. However, if you currently can find no other carrier, this Plan will provide you with coverage required by most mortgage company to keep your loan, or get a new one. It was designed to be a temporary option only, but this may be gap coverage until you are able to obtain a policy with more coverage. 1-800-339-4099. A Differences in Condition policy can be obtained separately to cover theft and liability.

IF YOU ARE IN ESCROW OR ABOUT TO BE:  Do not delay the search for home insurance. Begin immediately. Some insurance companies are using a monthly pool amount to issue policies, so if you qualify and are told you will get insurance, your transaction must close on the date you give to the insurance company, or otherwise if it's delayed in closing, you will lost your place in line, get rolled over to the next month where you start over again--the seller may not go along with this unless it was agreed upon in writing, and given the competitive nature of the housing market, there may be another buyer in line with an offer.  So do nothing to delay your closing date if this is how you are advised you're getting insurance coverage.  

Thanks for California Association of Realtors for the above information.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

7/11/2023

Long Beach Houses: What's on the Market And for How Long

Beautiful corner lot home
The market seems to be back to multiple offers and buyers feeling a lot of stress, unable to get into contract with a seller. It's true, there's low inventory, and higher interest rates.  

But not all properties are selling within a few days of coming onto the market. However, many of the home sitting on market are in the higher price range, over $1,000,000.  

The record holder on the active market in Long Beach right now is a single family in the 90803 zip code listed at $3,149,000, on market for 350 days as of July 11th--it doesn't appear to have been in escrow according to MLS data.  

The next highest time on market is a house listed at $829,000 in the 90804 zip code, on market for 336 days as of July 11th.  It was reduced from $929,000, and doesn't reflect that it's ever been in escrow.   

The next property is back in the 90803 zip close to the water listed at $3,749,000, on market for 243 days, also never in escrow per the MLS data. 

Another home in North Long Beach, completely redone on the interior is listed at $795,000, on market for 148 days.  

Then Bixby Highlands has a listing $1,099,000, on market for 127 days, never in escrow.

And so it goes through a list of 124 active properties, with the lowest house starting at $469,000, the highest list price being $6,999,000.

In Long Beach, in this group of 124 all active SFRs in the city, the average list price is $1,522,138 with an average of 41 days on the market.  There are 64 listings under $1,000,000, roughly half of the total group.

Currently, there are 109 SFRs in escrow , with average of $1,162,566 and an average 35 days on market.

So in spite of the overall inventory shortage, there's more active listings than are getting into escrow.

If you would like help buying or selling, please contact me for local area information of your property, and local listings on the market. I've had 28 years of experience helping both buyers and sellers.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

6/19/2023

Housing Affordability for California Buyers, Up or Down?


Housing affordability brightened somewhat in the 1st Quarter of 2023 since interest rates have dipped, see several areas below for comparisons.  The first three columns are the percentage of homebuyers who could buy the median priced home*:

Affordabilityfor homes chart prices California
Regional/State Chart for home prices in California

*Above chart from CALIFORNIA ASSOCIATION OF REALTORS® Traditional Housing Affordability Index First quarter 2023

 These figures exist for all counties, but four major areas are selected above, plus statewide figures for single family home and condos.

As has been widely stated, inventory is down, therefore total sales volume is down, 2023 units are projected to reach 279,000 units, down from the 342,000 units sold in 2022. Will home prices decrease as predicted (in blue print)? The public will have to stay tuned on both prices and interest rates:

"C.A.R. also announced it has revised its 2023 Housing Market Forecast and projects existing single-family home sales to reach 279,900 units in 2023, a decline of 18.2 percent from the 342,000 units sold in 2022. While home prices in general are expected to improve in the second half of the year, the California median home price is projected to decrease 5.6 percent to $776,600 in 2023, down from the annual median price of $822,300 recorded in 2022. The updated projection on the statewide median price, however, is an increase from the estimate of $758,600 forecast last October. C.A.R. also projects the 30-year fixed mortgage interest rate to average 6.3 percent for the year.

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

6/17/2023

Buyers Want to Know: About Area Schools

Many times a buyer may be searching in an area without much familiarity with it.  And they're hoping their Realtor can provide them with an "orientation" to the area, and describe the nature or quality of local shopping, proximity to freeways, or schools.  Schools are usually important to parents because they want to ensure their children (or child) is receiving a good education in a good learning environment.  

But what Realtors specialize in is listing and selling property, and while they may have certain personal knowledge and experience with area resources, they cannot personally or professionally vouch for area standards, nor attempt to define what is "good", "not good" or "excellent" for their client. But what a Realtor can do is point their client to resources that help a buyer complete the buyer's investigation of their potentially new neighborhood, so that buyers may determine for themselves what is satisfactory or not. 

Woman teacher in front of formulas on blackboard

The following links are found on one or more State of California websites, and are there for anyone to use!

California Distinguished Schools

California School Dashboard

School Accountability Report Card 

Charter Schools in California

There are other sites which rate schools, but before you make up your mind about a school based on a certain rating, take the time to research it more indepth and consider what is really important to you. Compare other schools to the one you may be considering, and also research online about the current educational issues for students statewide. 

Hopefully, you will find the right neighborhood for you faster, if you start your search for factors important to you early!

Please contact me by text, email or phone call for help with property values and what it takes to buy your next home!

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

6/01/2023

What Could the Potential Loss of Insurance Mean for a California Home Transaction?

View from Signal Hill Home on Bluff

The news about State Farm not writing new policies is part of a larger story.  

It's not news that premiums have increased and that areas of wild fires have seen a pullback from insurance companies. The refusal by insurance companies is not just in climate zones, many  types of properties are now affected, including areas that are low risk of fire and flood.

If you're a buyer or seller and currently in a transaction, be aware that the buyer contingency in a standard California Association of Realtors contract allows for investigation of the property, including insurance issues that may prevent coverage.  This is very important that the buyer understand their contracts, and follow up completely on insurance coverage.  Under standard timelines, the buyer contingencies are removed assuming the buyer is satisfied with various areas of investigation. However, since lenders offering a mortgage want to see proof of insurance coverage prior to close of escrow, buyers are strongly advised to obtain an insurance binder or evidence of commitment to insurance coverage as soon as possible in the escrow period (the 1st day it opens), and not remove their buyer contingency until they know they will have insurance policy on that property. Otherwise, they may risk losing their buyer deposit under the terms of their contact with the seller.

Homeowner associations are seeing increases in their master policy premiums, changes in coverage limits, or a refusal to renew policies.  If an HOA master policy isn't renewed, then the mortgages of the condominiums owners are also at risk, since lenders want proof of that policy coverage for the common areas. Or, in the case of some associations, the increase in premium may be so huge it causes a special assessment: one HOA reported in the San Diego Union Tribune ended up with an $8,000 per unit cost for master policy insurance coverage.

If you're a homeowner with current coverage, do not let it lapse, because it may not be renewed.  The California Fair Plan may be an option for some residents and businesses; it protects the home for fire risk and will satisfy a mortgage company's insurance requirement, but it does not cover theft, flood, earthquake, hail, vandalism or personal liability (only special earthquake policy provides coverage for that). 

Insurance brokers are reporting challenging coverage searches for their clients, and are not always successful.  The one area of insurance so far not reporting a problem is renters insurance, which does not cover fire risk.  

If you are not currently represented by a Realtor in a transaction and are interested in finding out what the buyer contingencies are in a purchase transaction, please contact me via phone, text or email.

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

6/02/2022

Profile of Homebuyers in 2021: How Did They Buy a Home?

Buyers in 1981 vs. 2021
The 2021 Profile of Homebuyers and Sellers is the 40th anniversary of the first National Association of Realtors report. The 2021 report is unusual because it is the first full year in which buyers and sellers purchased or sold during the COVID-19 pandemic, in what turned out to be a record setting year.

Based on data collected nationwide between July 2020 and June 2021, the survey consisted of 129 questions via paper or online in both English and Spanish.  Consumer names were obtained from Experian which maintains an extensive database of recent homebuyers derived from county records (which are public). The entire report is 164 pages with multiple graphics covering aspects of buyers and sellers experiences, and information about working with their agents. 

This post will be about the buyer experience section, and will primarily be hitting the highlights. 

First time homebuyers grew to 34 percent, greatly helped by the low interest rates but then challenged by a housing market with lowered inventory, rising prices and much competition from other buyers. Buyers reported the most difficult task was finding the right home to purchase, and the time spent in a home search was only eight weeks.  Eight-eight percent (88%) of buyers used a real estate agent to help them purchase.  

The typical first time buyer was 33 years old, repeat buyers were up to an all time high of 56 years.  Sixty percent were married couples, 19 percent were single females, nine percent single males, and nine percent unmarried couples. The largest share of buyers were in the 25 to 34 age group, and the median income was $102,000,

First Step in Homebuying for all Buyers

 

The majority of buyers either began their search online or contacted a real estate agent as a first step in the home search. Few people read books about the homebuying process or attended a home buying seminar--even visiting open houses was lower in activity as an initial step in  the home search.


 

 

Information sources used in home search

For information, all age groups primarily turned to an agent and then to an internet device , and then visited open houses.

But where the buyer found the home they actually purchased was on the internet for 51% of buyers, through their agent for 28% of buyers, with much smaller percentages for yard signs, personal contacts, homebuilders or the sellers themselves.  This is a complete contract to 2001 when 8% of buyers found their home on the internet and 48% through their agent.

This is only a partial representation of buyer characteristics in the Report for 2021, for a complete copy of this study, please contact me via phone or email. 

And for help in buying a home, I can work with you with my 25+ years of experience.

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

4/18/2022

Are New California Homeowners Prepared for Home Maintenance Costs?

According to a recent survey discussed in the Scotsman Guide, 70% of a poll of 1600 recent homebuyers  had one major regret in their buying experience: reasons tied to "cost-based remorse".  Buyer, or seller, remorse is not unusual, nor has it ever been no matter in what market a transaction occurs--much of it, I believe, is due to unexpected aspects of the experience.  It's impossible to predict all events, but the more preparation, planning, and advance knowledge a party has, the faster the remorse will subside. 

Spanish bungalow
1920s Spanish bungalow

In today's market of fast moving market of competitive bids, advance preparation about costs and the subsequent homeowning experience is essential--because often in a fast-paced bidding war, time to think things out slowly doesn't exist.

Costs of owning your new home should be considered before you begin your househunt:

1. Age of home

2.  Location (nearer the ocean means salt air can affect paint and old foundation concrete)

3. Pest control (inspections every 2 years, please--termite and dry rot issues)

4.  Plumbing (replace sink and toilet valves before they break down or become impossible to turn; water heater may need replacement after a few years; waste lines; sewer lines)

5. HVAC system (vents need cleaning, furnace filters need replacing)

6. Gutter cleaning (clogged gutters cause water issues)

7. Fences (wooden ones degrade)

8. Landscaping maintenance 

9. Roof (Composition roofs with one layer may last 20-25 years--less if more layers)

10.  Home insurance (may go up due to rise in claims, climate issues, location)

How to budget for these costs on a general basis?  

Try the 1% rule: If the selling price was $700,000, reserve $7000 annually; or using the square footage rule, a 1200 square foot house will mean saving $1200 per year.  This may also depend on whether you own a single family home or a condominium (but monthly dues are also a homeowner cost). These are only initial estimates, but will also help a homeowner prepare.  More guidelines are at this site by State Farm (I'm not endorsing this company, only providing a link as a guideline). The buyer should search several sources, including their own insurance company, to gain estimates.  And see this real-life home-buying example of a couple in Gardena California and their cost/budget experience

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

3/29/2022

Long Beach Condominium Market--More Affordable for Many Buyers

 

Currently there are 62 active condo listings in across Long Beach, with the overall average price being $562,469 per MLS data.  This is a lower number than the 90 current house listings, however, SFR average price for the entire city of Long Beach is $1,226,196, significantly higher than the condo average.  While condo prices range from $1,500,000 down to $270,000, the median and average prices are well below $600,000.  

555 Maine Ave

There are currently 131 condos in escrow with an average of 29 days on market, while there are 100 single family homes in escrow with similar days on market, and of course at a much higher average price than the condominiums.  

Condominiums are located throughout almost all areas of Long Beach and provide an avenue to homeownership in a neighborhood which may otherwise be totally unaffordable to the buyer. Older HOAs may not offer enough parking for all owners because the building requirements before the 1980s were different, but later developments were required to offer a parking space per the number of bedrooms in a unit.  And, older developments were most commonly built with community laundry rooms, while later ones offer inside laundries and central air and heat.  Many older buildings, however, feature more interior square footage and seem more spacious. Condominiums may have more rules to meet for lender approval on a buyer loan, because the lender looks not only at the unit, but also at the common area maintenance and condition, so buyers searching for a condo home should keep this in mind.  Rules and regulations of HOAs are part of the buyer's new homeownership--living in a condo is a certain way of living that is different than a single family home, but in today's market, especially, it offers ownership opportunity.

Long Beach also has some lower priced stock cooperatives and own-your-own properties which appear to be condos but are not, which are also affordable buyer opportunities, but do have some different mortgage requirements. If you find such a property on the market and want to find out more, please contact me.  To find condos on the market in Long Beach, go to my condo search .

If you're a seller thinking of making a change and you want to put your condo on the market, please contact me for important information about selling your condo. I have 25 plus years of experience and have sold numerous condominium units.


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

3/24/2022

Who Wants to Buy a House? Millennials Do Too.

If you watched 60 Minutes on March 20th, you probably saw the segment with Lesley Stahl about the rental market, specifically the corporate rental market.  While Gary Berman of Tricon, whom she interviewed, stated that the corporate landlord represented only about 2% of the total national rental market, it is a powerful segment.  Because their homes are turnkey in a rising market, their rents may be up 30% or more compared to a previous year: examples were 35% higher rents in New York, 39% higher in Portland, 10% higher in Los Angeles, but surprisingly down in Kansas City.  There has always been part of the population which by choice prefers to rent--such renters actively do not want the responsibility of maintaining property.  And then there is the segment of the population which may have good income, but is cash poor, or has credit ratings below the mortgage approval guidelines.  But increasingly are those young renters who would like to buy their first home, have excellent qualifications to get a mortgage but may not have enough cash to compete in over-list-price multiple bid offers or enough to obtain a 20% down loan, perhaps 5% down is the best they can do.  

 View from porch of home

But one thing that I don't believe is true are the younger buyers--typically in the under-40 millennial age group--who have been characterized in multiple media sources in the last few years as being uninterested in owning a home.  This was made clear by the young couple spotlighted in the 60 Minutes show, who directly contradicted the statement made by Mr. Berman that millennials "don't desire to own a home" because their main emphasis is living in a turnkey space and thus fit the profile of "You can rent the American dream" as opposed to owning it, which young couple made it clear they wanted to be able to buy a home, but competing in the current buyer/seller market was extremely tough for them.

In my experience, adults of all ages would prefer to live in a turnkey home, not just younger adults: and if not turnkey then a home purchase that presents a clean, relatively updated condition.   The view that younger adults don't care about owning a home is a misrepresentation that can ultimately deny them the opportunity to own, thereby gaining housing and community equity.

The current trend in asking buyers to remove standard contract contingencies can be a direct pathway to housing disaster for  a number of reasons--yet this is what many younger (and older) adults encounter in the home offer process, and is indeed discouraging, and just influences their continuing status of being a renter when they would like to be an owner.  The upward price climb is staying in motion, but other things do not have to, and should not.  Sellers should be advised of the risks involved.

See the 60 Minutes video .  

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

2/04/2022

Not All Homes Are Selling Immediately in Long Beach--Opportunity?

Almost every day there is an article posted about the shortage of inventory, and I personally hear stories of fellow Realtors with buyers who are in heavy competition with others to find their next home.  It is very much a time of low inventory overall, and buyers may actually be racing each other to the next home viewing before quickly putting an offer. Many homes in the Long Beach area are going into escrow after just a few days on the market--especially in certain areas such as East Long Beach. 

Long Beach park

But not all sellers are moving as quickly as others.  There could be various reasons for this, but nevertheless, not everything is selling in 8 days.  At the top end of the market, a house on the Peninsula listed for $4,779,500 and facing the ocean has been on the market for 361 days, almost a year, although it's been in escrow 3 times, and is currently back on the market. The next lengthiest listing is a small bungalow house on the market for $469,000 for 208 days in the area between 10th and Anaheim. Another bungalow house near Atlantic Ave and 6th St (downtown area) is on the market for $505,000 for 157 days, another investor or first time buyer opportunity.  Four more homes located in Lakewood Village, Belmont Shore, Belmont Heights, Naples,  and downtown are still waiting for buyers, all having been on the market longer than 106 days.  Another 21 homes in all areas of Long Beach have been on the market between 85 and 32 days as of February 4th, prices ranging between $499,000 and $6.8 million+. The remaining 67 active listings have been on the market less than 30 days, which is indicative of general market conditions.  

In the last 6 months 1,096 single family homes sold at an average price of $981,930 ( in spite of one taking 403 days) in Long Beach with an average of 20 days on the market.  There are currently 169 single family homes in escrow at an average of 25 days on the market, with some areas selling especially quickly:  Stratford Square (1) has 7 average days on market; Los Altos (7) average 17 days; Lakewood Village (3) average 13 days; Ranchos/Lakewood Plaza (10) average 11 days; El Dorado Park Estates (3) average 16 days, and so on.  Practically all areas are selling under 30 days on average.

But for some houses, even though inventory is low and the average time on market is low, there can still be opportunity for some buyers.  Please feel free to use the property search at http://www.juliahuntsman.com, where you will find all the listings as shown on the MLS.  

Market Graphics

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

1/05/2022

The Shape of the Housing Market to Come

According to Tian Liu, Chief Economist at Enact, remote work is still driving the housing market buyer preferances.  COVID-19 has shaped the choices and home desires, and will continue to do so well into the future.  Homes are the complete center of people's lives as they assume the roles of work center, recreation center as well as family living center. According to a recent survey of 1000 Americans, 44% want to work from home without venturing elsewhere. Rental homes fall into the same category:  "According to Invitation Homes, a major single-family rental company, rents for new leases grew by 13.8% year over year in second-quarter 2021, while rents for renewals grew by 5.8% year over year. These figures represent significant increases in the value that people place on single-family homes." 

For younger buyers, when to buy is a timely question--for each of the past five years, 5.5 million people reach their 33rd birthday--peak homebuying years. Historically low interest rates have helped to push many of these people into the buyers market, rising last year from 2.65% to 3%. The higher rates anticipated this year may bring a correction to prices, or at least a slowing. 

Rapid home price growth has also been fueled by the lag in new home construction. Many homes for which permits have been issued are anticipated to be completed in 2022, growing the inventory significantly and impacting the sellers market into a more balanced one.  Buyers are cautioned to be realistic in their home appreciation expectations if they buy now--historically homes have provided modest appreciation in value.  Like many other investments, they should look to the long term.

Key Points in Pandemic Housing
https://www.scotsmanguide.com/browse/content/the-pandemic-continues-to-shape-the-housing-market


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

11/06/2021

Buying Another Home? Have You Calculated All Potential Monthly Costs?

If you're currently thinking of buying, you're probably think a lot about the current interest rates and your monthly mortgage bill.

But there's more.

It's realistic in the Long Beach area market to consider at least a purchase price of $600,000, so for this post I'll assume the buyer has an approval for this price.  The figure at the right assumes a  down payment of 20% and a loan term of 30 years, interest rate at 3.16%.  As shown, the monthly principal and interest is $2065.35 every month.  

Since this buyer is putting down 20%, the lender usually allows property taxes to be paid directly by the homeowner, not paid into an escrow account.  

Closing costs and the expenditures associated with moving into a new property are not included in these amounts, but buyers must at least consider the total cost of closing escrow. Your lender will be including that in estimates so they should not be a surprise.

So looking at other costs associated with being a homeowner, which the buyer should pay attention to before signing a contract with a seller, there are property taxes, home insurance, and "other costs".  It's the "other costs" that often the homeowner does not calculate directly, or even deal with until it's time to leave the home.  That can often lead to what's known as deferred maintenance, something to be avoided. Because as the deferred maintenance piles up, it leads to faster deterioration.

At least 1% of home's value should be included on an annual basis for such things as roof repair, termite or pest control, paint or stucco repair, fence repair, garage door servicing, to name a few.  If the home predates 1932, foundation or retrofit may come up (home before then were not required to be bolted to the foundation). 

Although used in this scenario, a 20% down payment is not required to buy a home, FHA loans only require 3.5% down payment.

To discover different scenarios, go to the Calculator link for all types of calculations, not just real estate, and read the notes below--they are very informative.  The Consumer Financial Protection Bureau is also a useful source to consult.

For more information about buying a home, please contact me.  I have over 25 years of experience helping clients make home decisions.

 

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

9/28/2021

What Are You Willing to Give Up to Buy Your First Home?

A survey of just over 1,000 Americans, conducted by Cinch Home Services, a home warranty firm, shows


what some people are willing to do in order to afford a home purchase.  Homes are expensive, more than ever especially in California where the median price is now over $800,000, yet owning a home is still viewed as most important, especially in the younger generation. And what are they most willing to give up?  Alcohol.  

In viewing the survey results, it becomes obvious that saving money could impact various industries:  California wine industry, the travel industry, clothing companies, restaurants, candy manufacturers of chocolate--it goes on and on.  Not only is this survey about home buying, it could also be seen as an indirect comment of how housing affects the overall economy, as well as being an overall picture of how many young adults spend their income.  Is alcohol such a big give up? It can be if going out to dinner with drinks is a  consistently main feature of leisure entertainment.  And some other choices don't really seem tied with saving money--but saving 30% of your salary might really add up for a prospective buyer if that dollar savings is significant enough for their chosen market price. Maybe not seeing your family as often means you're spending more time working overtime--that too might help economically as long as it doesn't infringe on family ties too much.  But getting only 3 hours of sleep every night is not going to lead to a more productive workday for the average human being who needs 7-8 hours of sleep. So some of these choices are not productive, in my view.  But some are, and young adults should review their monthly budgets to see where they can save money and cut back on debt (not specifically mentioned here).  Cutting back on debt improves credit scores, which greatly assists in getting a mortgage loan, and also produces a greater sense of well being, which is important in working towards the goal of homeownership!!

For more information on home buying or selling, please contact me.  I've had 25 years of experience helping buyers and sellers with their residential properties.

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

8/10/2021

Mid-Year Forecast for California's Housing Market - 2021

Home in Alamitos Heights

In his July 28, 2021 Report, California Association of Realtors economist Jordan Levine recapped what's going on the real estate market so far this year:

1. The share of first time buyers is the highest in 10 years, fueled by low, low interest rates--two of every five homes was sold to first time buyers--while there are fewer repeat buyers in the market because fewer current homeowners are selling.

2. First time buyers are also more affluent:  33% of these buyers have 20 percent down payments, or higher, while only 10% are using zero down loans.

3. Vacation and second home sales are highest in four years.

4. The first half of 2020 ended with a 33% increase in home sales, and a 37% decrease in inventory, making a very competitive market for buyers.

5.  Statewide, 71% of home sales closed over asking price.

6. Despite COVID, 20 California cities grew by 40% last year, with Big Bear, Malibu, and Montecito being the top 3.

7. And 30 cities almost doubled in sales growth in 2021 compared to 2020:  Palos Verdes Estates (148%), Signal Hill (109%), South Pasadena (116%), to name several.

8.  The fastest growing sales were in San Francisco area and Southern California as of June 2021.

9. In May 2021, condo sales rebounded almost 160% by June 2021.

However, housing supply and overall affordability continue to be issues, and the need for more housing is still urgent.  Sales are expected to slow, there may be more inventory (which overall is still low) but the median price is not predicted to go down for the remainder of 2021. 

If you're a local homeowner thinking about selling, please contact me for an evaluation of your home, units or condo.

 

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

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