Price and Value -- It's Increasing for Southern California Lately

The buyers' tax credit had an effect: There were more sales. And the low mortgage rates are helping (below 5% with paying one point). Per Dataquick, May sales of houses and condos in Southern California were the highest since May 2006: "...what we saw in May was partly driven by government stimulus".  May's typical monthly mortgage on new purchases was approximately $1293 -- do you remember when it was about $2200?--but that's still an increase from 2 years ago. Home flipping is trending higher--current rules require an investor to wait 90 days. Sales volume is up in Los Angeles and Orange Counties in this category, and so is the median price: $345,000 and $450,000. Although houses and condos cannot be compared across the board in all ways, nor can all geographic areas, this seems to be an overall general trend in price and sales. And, buyers who paid all cash account for over 24% of May sales. That's 10% higher than the 23-year monthly average.  This is not news to those buyers who have submitted offer after offer and continually lose out in the median price range. Will this trend hold, and how much had to do with the tax credit, which ended April 30th?
California Association of Realtors reports that April sales (May's report not out yet) for single family homes statewide increased 21% over previous April, to $306,230, but sales volume decreased statewide by 8.1% from prior April for SFRs. From C.A.R. on May 24th, "Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for April may be exaggerated due to compositional changes in housing demand." So, in other words, real estate is local.

Condos vs. Houses: How's it Going?

There it is, all in one picture: a condo building and two large homes, side-by-side, each property owner choosing where to live for individual reasons. And among those reasons would most certainly be affordability, but then even if a condo buyer could include the market value of either of the two houses in his price consideration, would he or she, looking down from a condo window, still want to buy the house with the large lot, square footage, maintenance, and property taxes? (The former owner of the house on the right once told me that he did make such a choice will standing in an upper floor condo next door.) These particular properties happen to be at two extremes of size and value (the condos are in the $500,000 range and the houses are double and triple that), but many people will ultimately prefer a house over a condo if they can also choose other adjustments in their criteria.

Nationally, condo inventories are higher than houses, but according to the National Association of Realtors, "the condo market has actually outperformed the single family market recently. In February, condo sales were up 30.3 percent YOY in comparison to 4.3 percent for single family homes. Starting in July of 2009 condo sales have been running at rates higher than the total for either 2008 or 2009."

In Long Beach, the months supply of inventory ending in February 2010 for single family homes is 3 months (down 44% from last year: 1045 vs. 1290 in 2/09), while the months supply of inventory for condos and lofts is 3.75 months (down 46% from last year: 449 condos on the market vs. 592 in 2/09).

Long Beach condos in escrow were up by 42% from 2/09; the number of houses in escrow were up by 30% from 2/09. The median sold price for houses in Long Beach, however, has increased from $310,000 to $350,000, while the median price for condos has decreased from $237,000 to $203,000. (These trends may vary somewhat by specific areas.) Days on market has decreased for both, but overall condos are spending less time than houses on the market.

Historically, in the local market, condos are the first time buyer's most likely choice due to price, and yet because of the distressed market many of those borrowers are having trouble, and condos are the likely choice of many investors and all cash buyers as prices make them more and more attractive.

Although March's figures are not available yet, more inventory in both categories has been coming on the market locally, and the California tax credit as well as what's left of the federal tax credit are helping to spur more action.

Stay tuned.

Long Beach, Cerritos, Lakewood Unsold Inventory Index in Steady Decline

The residential inventory in many areas of Long Beach is steadily declining, as of today in Long Beach, there are 831 single family homes and condos listed as "active" in the MLS (down from about 870 just a few weeks ago), with 775 in escrow.
Cerritos has 66 active residential listings, and has 67 in escrow.
Lakewood has 99 active listings, and 148 residential properties in escrow.

The gap of available properties is closing.

The median price statewide has increased for the 5th straight month, as sales in lower priced inventory has dropped, and more sales occurred in the upper ranges.

While the suspense concerning future inventory continues, as the home supply backlog grows, it's important to keep in mind: nobody knows for certain how and when and where the increase in inventory will happen.

Per the California Association of Realtors August report:

"With inventory levels well below the long-run average, a supply shortage at the low to middle-tiers may have constrained sales in lower-priced homes and led to an increase in the median price. The supply of homes is expected to increase later this year as the number of foreclosures continues to rise from last year. However, the government and lenders’ efforts in modifying loans, combined with delays in processing the backlog of delinquencies may ease the number of defaulted loans, thus making a prediction on the number and timing of the flow of distressed properties less certain."

Find a residential or investment property through the MLS search.

Fewer Homes to Buy as Sales Increase, Prices Jog Upward

Various industry sources have reported that June, 2009 showed the highest California median price this year at $274,740 (statewide median). June sales showed at 20 percent increase over the prior year. The statewide unsold inventory in June was at 4.1 months, locally the figure is even lower. Per the July 2009 report from California Association of Realtors: "The index is now 3.5 months lower than a year earlier and well below the peak of 16.6 months in early 2008. In fact, low inventories may constrain sales and contribute to upward pressure on home prices through the rest of the busy season."

The higher end properties are accounting for more sales, with properties below $500,000 accounting for about 76%, down from 85% at the beginning of the year. From March to June, the market share of distressed properties declined, contributing to the increase in median price.

Los Angeles County median sales price, July 2009, at $340,000; Orange County median at $490,000.

News about Southern California from Dataquick as of August 18th:

"In the region’s more affordable areas, many first-time buyers continued to choose government-insured FHA financing. Such loans were used to finance 37.2 percent of home purchases last month, up from 36.9 percent in June and 19.7 percent a year ago. "

"The recent drop in foreclosure resales, coupled with the rise in high-end sales, has helped stabilize some of the regional home price measures. But there’s still quite a bit of distress out there, and plenty of unknowns with regard to how lenders and borrowers will choose to proceed,” said John Walsh, DataQuick president.

And probably the most telling comment about the future:

“Even if we are at or near bottom,” he added, “history suggests we could bounce along that bottom for quite a while.”

Will the Real Home Value Please Speak Up?

December, 2008 median home price: Is it $387,021 for Los Angeles County, or is it $278,000? Well, for one thing, you have to dig a little deeper. Dataquick's $278,000 median price figure is for "Southern California" which includes at least 5 counties (single family and condos), and if you've been following the reports, you know that Riverside County has taken a very large "hit" thus lowering the overall median for Southern California. The other important thing to know is that condos prices have softened considerably, and are lower overall than detached single family home prices. Zillow's median price of $387,021 is based on Los Angeles County alone, and is considerably higher based on its own calculations of "size and characteristics of homes in the area -- whether they were sold or not -- and other factors". California Association of Realtors for Los Angeles County is $336,980 (not including condos).

The thing to remember is that "all real estate is local". So if you would like to know the prices for your area, contact me for reported sales in your zip code or neighborhood.

Summer Sales Active in the Long Beach Areas

This 5-bedroom and 3500 sq. ft. Long Beach estate home in Belmont Heights (with guest quarters) closed escrow in August and sold for $1,950,000 after being on the market for 18 days before going into escrow.

What happened with other residential properties in July and August (as listed in the So Cal MLS)? In Long Beach, Cerritos, Lakewood, Seal Beach and Signal Hill, properties were on the market about 74 days before going into escrow, and sold at about 93% of their original list price:

Long Beach

Condos

• 132 sold
• Selling price range: $73,100 - $885,000
• Selling price to original list price (SP/OLP) - 91%
• Average of 74 days on market (DOM)

Houses - July

• 178 sold
• Selling price range: $100,000 - $2,825,000
• SP/OLP - 92%
• Average of 70 DOM

Houses - August

• 190 sold
• Selling price range: $102,000 - $3,800,000
• SP/OLP - 94%
• Average of 82 DOM

Signal Hill

In a city previously populated by more oil derricks than houses, this 1946 and 1070 sq. ft. bungalow sold at $275,000 after 42 days on the market, very fast for a short sale. No garage. This is the low end of this market in an older neighborhood. New view houses on the hill sell for triple.

• 17 houses and condos sold
• Selling price range: $280,000 - $1,128,182
• SP/OLP - 96%
• Average of 75 DOM

Cerritos

This spacious 1970 four-bedroom 1820 sq. ft. home in Cerritos sold at $640,000 after 79 days on the market, under conditions of a notice of default and a short sale.

• 47 houses and 5 condos sold
• Selling price range: $238,800 - $1,299,000
• SP/OLP - 95%
• Average of 58 DOM

Lakewood

• 105 houses and 8 condos sold
• Selling price range: $252,000 - $789,000
• SP/OLP - 93%
• Average of 65 DOM

Seal Beach

This oceanfront, with Catalina views, 3-bedroom 4200 sq. ft. home with lap pool and wine cellar sold for $5,500,000 after being on the market for 237 days.

• 15 houses and 6 condos sold
• Selling price range: $240,000 - $5,500,000
• SP/OLP - 91%
• Average of 89 DOM

Southern California Cities in Escrow

Here's the general trend of current pending sales of several cities noted through the SoCalMLS record, first taking all residential and commercial properties at all prices, and second looking at condos and houses in escrow and listed over $750,000 (second group for some cities):

• Long Beach - 19% (approx. 576 plus 2499 active); 12% (30 pending, 213 active)


• Norwalk - 21% (approx. 134 plus 493 active)


• Cerritos - 31% (approx 65 plus 147 active); 21% (76 pending, 281 active)


• Bellflower - 20% (approx 82 plus 319 active);


• Cypress - 24% (approx. 57 plus 166 active);


• Lakewood - 29% (approx. 115 plus 283 active); 17% (2 pending, 10 active)


• Stanton - 24% (approx. 51, plus 160 active);


• Seal Beach - 18% (approx. 50 plus 221 active); 23% (10 pending, 33 active)


• Downey - 20% (approx. 135 plus 554 active); 6% (6 pending, 97 active)


• Huntington Bch - 20% (250, plus 1014 active); 21% (76 pending, 281 active)

For properties over $750,000, Downey appears to be the least successful in that market. Both Huntington Beach and Long Beach escrows range up to the $5,000,000 price.

This is an "unscientific" local market assessment to take a look at general trends in the area, with the only price breakdown for residential being over or under the $750,000 mark, a completely arbitrary price point based on my personal experience with buyer comments about their affordability.

The first-time buyers and others in the $300,000-$350,000 price range are out in full force, recognizing that with the buyer affordability index at 44% (California Association of Realtors), now is the time to buy. Sales activity is historically higher at this time of year, but my opinion is that the second half of 2008 will fare better than the first half of 2008 and all of 2007. "Short Pay" sales seem to be more than half the market in some areas, but the good news is that some banks are becoming faster and more efficient in handling their approvals and closings on these properties.

Are higher end properties over $750,000 selling slow in all areas (see Dataquick article)? Not in Seal Beach or Huntington Beach--whereas that seems to be true in Long Beach, Downey, Lakewood, with Cerritos doing better in that price range.

Many bank-owned properties right now are a poor reflection on the market, most of them are sold in poor condition with no attempt at any basic carpet and paint clean-up, a minimal cost, so those either invite lowball offers or sit longer on the market.

Yep, More News on California's Rise In Sales, and Prices

I hope all buyers are taking note of the following right now, because if this buying trend is true as a lot of recent sales indicates it is, the trickle-up effect will take place for homes in the higher price ranges.

From Associated Press today:

As foreclosures push down California housing prices, first-time home buyers surge into the market. The California median home price fell 30 percent in May, the sharpest decline in 20 years, since DataQuick Information Systems began keeping records. The drop in home prices has sparked a home-buying rally that's beginning to reverse more than two years of monthly year-over-year sales declines. "Inland markets hit hardest by foreclosures and falling prices are now the most likely to post higher sales than last year," says Andrew LePage, a DataQuick analyst. "These communities have been attracting first-time buyers, first-time move-up buyers and investors." Richard Cosner, president of Prudential California Realty, says buyers of homes whose prices have declined in the last 18 months from $400,000 to $200,000 must compete with multiple bidders. "For the first-time homebuyers and for that bottom tier of homes, we've found what the bottom of the pricing is," Cosner says.

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Is April 2008 the Bottom of the U.S. Housing Market?

According to this Opinion article by Cyril Moulle-Berteaux, in the Wall Street Journal, May 6, 2008, it might be--

• "Home sales peaked in July 2005" (I can buy that. In August 2005, the time on market started stretching out longer and longer. But it was August of 2007, when the loan credit shrank, that prices started to drop.)


• "Prices got so high that people who intended to actually live in the houses they purchased...stopped buying". Yes, the speculators left the building.


• "It now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s." And due to the reduction in types of loans, first-time buyers especially are at a disadvantage.


• "When the rate of house-price declines halves, there will be a wholesale shift in markets' perceptions." So in other words, could there be a shift in supply vs demand as people start to recognize some good buys?


• "House prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market." He says we will see seven months supply by the end of 2008; currently, in many areas there is 10-11 months supply on the market.


• "Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do." Another answer is that there are a lot of cash and 50% cash buyers -- not everyone is a first-time buyer -- and the cash buyers eventually become active in the market.

What do you think? Is is time to sow new ground yet, like those civic-minded Rotary guys in the old photo (local park, by the way)? Are we close to the bottom the market? If you don't think so, or you do, just leave a comment.

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Properties are Selling in Southern California

It's that time of year when the weather is warmer, and traditionally there is more market activity, so what's happening now in local area cities? How many properties are currently in escrow?
For residential properties (houses, condos, townhomes, own-tour-owns, coop units) as listed in the MLS:

1. Long Beach - 397 (March closed esrows - 165)
2. Huntington Beach - 215 (March closed escrows - 104)
3. Cerritos - 42 (March closed escrows - 24)
4. Lakewood - 121 (March closed escrows - 49)
5. Seal Beach - 33 (March closed escrows - 30)
6. Los Alamitos, including Rossmoor area - 16 (March closed escrows - 16)
7. Bellflower - 50 (March closed escrows - 14)
8. Cypress - 49 (March closed escrows - 15)
9. Costa Mesa - 74 (March closed escrows- 44)

If the above figures are any indication, the sales activity has increased overall. There are factors such as length of escrow time and seasonal activity, however, the overall decline in the median sales price combined with higher loan limits available are factors as well. Check the March zip code chart for sales trends in your area.

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Long Beach Market Absorption Rates

The absorption rate is how long the current inventory will remain on the market at the current rate of selling. In all price ranges shown, there are more properties currently in escrow than have closed escrow in the last 30 days. Hopefully that means that the economic stimulus package and temporary increase in loan amounts is bringing a surge in activity.

Here are several different listing and selling price range categories for all properties (commercial/residential but mostly residential including large multiunits) in Long Beach listed on the MLS as of 4/9/2008:

$1 million plus listing price:
260 active listings; 10 sold in the last 30 days at an average of 107 days on the market; Market Absorption Rate is 26 months. But in this price range there are currently 26 in escrow (backup and pending).

$600,000-$699,000 listing price:
207 active listings; 17 sold in the last 30 days at an average of 76 days on the market; Market Absorption Rate is 12 months. There are 34 in escrow (backup and pending).

$500,000-$599,000 listing price:
296 active listings; 31 sold in the last 30 days at an average of 98 days on the market; Market Absorption Rate is 9.5 months. Currently there are 56 in escrow.

$400,000-$499,000 listing price:
433 active listings; 41 sold in the last 30 days at an average of 87 days on the market; Market Absorption Rate is 10.5 months. Currently there are 88 in escrow.

$300,000-$399,000 listing price:
476 active listings; 29 sold in the last 30 days at an average of 75 days on the market; Market Absorption Rate is 16 months. Currently there are 75 in escrow.

Per the MLS, there are 2664 active listings and 443 properties in escrow in Long Beach.

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Recent California Sales and Prices

The red bars in the chart at the right show the drop in California median sales price of single family houses since last summer. Is this all due to the foreclosures and delinquencies, as is heard so much of in the general media?

Since 1974, the average foreclosure rate per year is .81% (including the highest rates back in 1996 and 1997 of around 2%), and at the end of 2007 was 1.7%. The mortgage delinquency rate was at 4.4% at the end of 2007 (long term average is 3.9% and up as high as 6% in the mid-1980's). This means that out of all the loans made, 1-2% of those loans are having problems.

The loan resets many of this group are facing will continue for some time to come, and certain areas highly impacted by foreclosures will be more affected by lower prices. But in any market, there are always buyers and sellers, however currently, sales are below the 350,000-400,000 the expected "baseline" activity per the state's inventory of home and population demographics, and seems to coincide with the tightening in the credit industry since last summer, so that many people who could buy are delaying.


The statewide median price for detached housing dropped from the mid $580's in August to about $525,000 in October, to $475,460 at the end of December, 2007. However, the Los Angeles County median price for houses in December was $487,000.

Buyers and sellers will need to know their local area prices--sellers should be realistic about their asking price, and buyers should not be expecting cutthroat bargains just because sales are slower. In some areas, sellers are taking their homes off the market and leasing them if they feel they cannot get their price, and therefore there can actually be a shrinking inventory in some neighborhoods. One neighborhood I have been tracking in Costa Mesa (Orange County) featuring Greenbrook homes has actually shrunk from 10-12 houses listed on the market last Spring 2007, to now showing 3 listed as "active" and 1 that went into escrow on Feb. 12, as of Feb. 16, 2008.






Charts and price data per California Association of Realtors


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Long Beach Neighborhood, Lakewood and Cerritos Price Roundup for End of 2007

Happy New Year to All--

here is my first post for 2008, a round up of some local prices for houses and condos in several Long Beach neighborhoods in the last quarter of 2007, for which I shamelessly ask for a sign-in.

Unlike the recession of the mid-1990's, selling time is much longer (all over the country, too) but prices may not be falling through the floor, and there may be even a tightening of inventory in such areas as Belmont Heights--I'll be adding more areas to this list in the next few days, so please check back.
Sales are typically lower in the 4th quarter of any year, as also reflected here.
Click on the links for actual lists of houses sold.

Belmont Shore and Naples (90803) - 43 houses sold in the 3rd quarter; 24 houses sold in the 4th quarter.
Bixby Knolls, California Heights, Virginia Country Club areas - 53 houses sold in 3rd quarter; 48 single family homes sold in 4th quarter.
Los Altos area homes (90815) - 19 single family homes sold in the 4th quarter; 42 sold in 3rd quarter.
Park Estates area homes (90815) - 6 sold in 3rd quarter; 1 sold in 4th quarter.
Cerritos (all) - 66 houses sold in 3rd quarter; 29 houses sold in 4th quarter.
Lakewood (all) - 130 houses sold in the 3rd quarter; 93 houses sold 4th quarter.

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Property Tax Reduction

Don't pay more property taxes than what your current market valuation indicates. If you bought property 2 years ago, or less, then you probably want to keep close track of your local selling prices for properties similar to yours. For information on how to apply for property tax reduction, go to the Los Angeles County Tax Assessor's site located at the right column and download the form. You will need to provide certain information about sales within a certain time period for this year, plus get the form submitted by the date stated. For sales information to help you in this process, contact me, I will be happy to help you in your market sales information.

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10 Biggest Buyer Mistakes

If thoughts about buying are holding you back, take a look at my presentation by clicking on the title (you can even leave your comments there if you want), then ask yourself what would it take for you to take that step. Would saving money do the trick? Most people are saying, "Yes, but the asking prices are still too high, and I'm waiting for them to come down."

But what if your monthly payment was lower? There is a way to negotiate pre-paid interest up front which can be paid by the buyer or the seller, that "buys down" the buyer's loan rate from the 30-year fixed rate and may save the buyer as much as $250 a month.

Don't wait for prices to come down if you can negotiate the same lower monthly payment now!



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CAR's Annual Expo and Tradeshow

You've probably read in the news headlines by now that the median price in California is projected to fall by about 4% overall in 2008, a figure presented by Leslie Appleton-Young in her Wednesday 2008 forecast (112 slides linked).

Having heard presentations on Wednesday and Thursday by Leslie Appleton-Young, CAR's chief economist, Jack Kyser of the Los Angeles Economic Development Corporation, Frank Nothaft from Freddie Mac, and Richard Green of George Washington University, one consistent message was that the impact of borrowers taking negative amortization and other subprime loans they could not handle has affected certain states much more severely than was ever thought. Although these economic experts differed somewhat in their market recovery time projections, all agreed that 2008 would probably not be a year for the bottom of the foreclosure market impact, and that it could take 1-2 years beyond to see the end of this issue. Markets where borrowers did not enter the subprime loan arena are actually seeing a price stabilization or increase in home values--these include Idaho and Texas. In spite of the subprime loan issues (and all the media attention), the first reason people experience foreclosure is still due to loss of employment. Los Angeles County is more stable than other areas of the state. The buyers having the most difficult time are those in the $500,000 and lower price range--the loan picture has tightened and a 5% down loan and 100% financing is reviewed very stringently by lenders, although the softening in prices in many areas is helping first time buyer affordability.

It also should not be surprising that this year's seminars included foreclosures and short sales, and how they should be handled by agents, buyers and sellers. Buying opportunities are out there, and sellers who want to sell should present their homes and price them to sell, not to sit. Please remember that there are buyers buying and sellers selling right now, so if you'd like to consider how to be one of these, or for a free professional evaluation of your home's current market and selling price, please contact me.

For an MLS search, please go to http://www.juliahuntsman.com to see 3 choices in finding houses, condos, and up to 4 units. For a commercial property search, please contact me.

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Market Activity in East Long Beach 90815 for September 2007

According to residential resale transactions recorded at the Los Angeles County Recorder's office for August, there were 306 transactions in zip codes 90802 through 90815--a decrease of 18% in sales for the same period in 2006 for the same area which shows 372 transactions.

California Association of Realtors reports a 27.8% decline statewide in numbers of sales for August compared to the same period last year, and an approximate 5% decline in median sales price.

Locally, though, it appears that all trends as showing in the Southern California MLS are down except the price:

Taking just the one zip code 90815, generally considered East Long Beach and including the varied housing characteristics of Los Altos, La Marina, Park Estates, Bixby Hill, Artcraft Manor, College Park West, and Stratford Square neighborhoods, 17 single family homes closed in September selling at 95% of the list price at an AVERAGE (probably very close to the median) price of $754,911 after an average of 55 days on the market--a decrease of 23% from September 2006.

The 90815 area for September, 2006, 22 single family homes closed at an average of $711,318, at 97% of the list price, after an average of 74 days on the market

For the 90815 in 2003 there were 39 sales, after 19 days on the market, selling at 99% of the list price at an aver sales price of $497,038. 2003 is the year showing the most recorded transactions from the Los Angeles County Recorder for the 11 zip codes mentioned above in the last 5 years at 423 total transactions.

The 90815 house at the right does not fit the average sale picture above--It features many interior upgrades including kitchen and bathrooms, has an earlier room addition which makes a den or a 4th bedrom, yet remains on the market after a year. The current asking price is $668,950--it's a great house for a young family because it's within walking distance to the elementary and middle schools, near shopping and the airport. If you would like to know more contact me, or find this property (it now has a little tree in the front) here.

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Sales Activity Comparisons for Long Beach and Cerritos

The number of houses selling over $1,000,000 in the 90803 zip code now equal about half of total sales of single family homes during July and August. While there are those who say that this fact skews the overall median price, it's still a fact that there is a market in this price range where it did not exist a few short years ago. In August, the AVERAGE sales price of 17 closed escrows, per the MLS, was $1,283,876 at an average of 64 days on market with the selling price about 91% of the original list price. In July, 25 properties closed escrow after an average of 68 days on the market at an average selling price of $1,408,653, at 92% of the original list price. The lower end of sales in this area was around $600,000, and up.

If these prices shock you, just look at the blue-footed doobie for a minute.

The story for July and August of 2006 for 90803 was almost the same for average price and number of sales (18 for both months), but the average time on market was MUCH longer: 124 days on market in July and 97 days on market for the average sale of $1,175,000 in August.

The story in Cerritos is similar: August of 2006 saw 53 days on the market, July was 42 days on market. August of 2007 was 26 days on the market (half the time to sell from one year ago) and July of 2007 the average sale time was 29 days on the market.

For both years the sale to list price percentage is higher than Long Beach--in July of 2006 it was 97% of the original list price and in July of 2007 it was 95% of the original list price. The average sale price has declined in those two months to $715,789 for August and $747,754 for July of 2007.

If you still want to be in Long Beach near the beach, the house at the right is on the market for $689,900 in Belmont Heights. For more information, call me or go to www.juliahuntsman.com and find 261 Grand on the property search engine.

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CAR: July's California Median Home Price at $586,030

While the sales volume continues to decline, the median price in this state remains strong. July's median price for single family homes (excluding condominiums) is even a little higher than this time last year, according to the California Association of Realtors.

Partially responsible for this decrease in sales are the tighter lending guidelines--for buyers looking for 100% loans, they are much tougher to find. For all buyers, higher FICO scores are demanded, and some loan programs have disappeared all together. These changes affect the entry level buyers the most, as even a 95% loan-to-value program may be difficult to find.

110 out of 371 communities/cities in this state showed an increase in their median price compared to one year ago. Click on the title link of this article and see the 10 highest priced communities in the state, and the 10 with the greatest increase.

Condos have increased overall to a median price of $434,640, a 2.4% over one year ago.

Real estate is local, so median prices don't reflect changes up or down in other communities on a month-to-month basis.

Important to keep in mind: “It is important to note that decline in sales is not driven by weakening economic conditions ... Rather, the statewide and national economies continue to move forward, with no recession on the horizon at this point in time."

Does Your Avocado Oven Scream "Fixer"?

According to this article it does. But I think it all depends on who you are (and the condition of the oven). If you're a retro person, the 1950's, 1960's, and 1970's may look like fun to you, or you may not care what year it was all made as long as it runs.

But to take into consideration all the things that go into pricing your property, "No Magic Formula" makes its point very well. Just as one oven doesn't predict a price, neither do other factors without considering the overall picture of size, number of bedrooms and bathrooms, amenities, condition, the current market trends, and location, location, location. Price may change 10% or more depending on whether or not the owner has an ocean or water view, or if the property borders a commercial area. It also depends on perceptions about an area or property, or whether or not the upgrades match area expectations. If every other house has an upgraded kitchen and bathroom, and yours does not, that will probably affect the selling price of your home unless you have other compensating factors that would be desirable to your buyer. That means you're waiting for just the right buyer and your house would probably sell faster if you had the upgrades that most of the other homes have in your area.

For buyers who worry about paying more than a home is worth (and there is no real estate cycle where this is not a fear), I could not agree more with the concluding quote of this article:

"Buy a home because you like it, you want to live there, and you're OK if the market goes up, and you're OK if the market goes down."