Takeaways From the PWR 2020 Economic Summit

About 1,000,000 people have left California since 2010

• Pacific West Association of REALTORS held its meeting in  Garden Grove today on current real estate topics state wide and locally:  
• There are two Proposition 13s coming up:  One is a new proposition on the March 3rd ballot dealing with a bond for school construction debt; the other is the well-known Proposition 13 issue from 1978 appearing on the November ballot and dealing with the Split Roll Tax Initiative where commercial properties, not residential properties, would be restructured for their property taxes if voted in, with the objective of commercial properties paying higher tax than currently (did you know that over time residential properties have been increasing thereby carrying a tax burden not enjoyed by commercial properties).  Don't confuse the two.
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• Proposition 5 will hopefully obtain enough signatures to be back on the  November ballot, and partially rewritten from its last ballot appearance when it was defeated.
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• The State is in the longest post recovery period from a recession ever, over 10 years!
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• The U.S. unemployment rate is down to 3.5%, the lowest rate ever; while the overall California unemployment rate is at 3.9%, but this varies by county.
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• The corona virus effect is global, and is affecting the supply chain around the world, for instance, Toyota in China is just one of many places currently unable to produce for the world market. The next 6 months may see continuing impact, globally and locally, even affecting prospective foreign buyers here.
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• The California population was 20 million in 1970, it's now double that at 40 million people.
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• The housing market typically slows before major elections, there is no correlation to political parties.
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• Housing prices are most often referred to when dealing with "up" or "down" trends, yet the  annual number of residential transactions hasn't changed for the last 10 years!
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• From 2003 to the present, home prices have increased by 53%!
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• Where are sales headed?  Perhaps with higher prices, but not with more inventory.  Inventory has been constrained at the same level since 2012.  May now be the new normal at 2-3 months of inventory.
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• Statewide, the average time on market is 28 days; in the ultrahigh luxury market, the average time on market is 39 days.

•  Many college age young adults want to be able to buy their own home.
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• Buyers want a "Pinterest" home, their expectations are high.
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• The Los Angeles County median home price is $641,000; the Orange County median home price is $840,000, with the lowest inventory in 15 years.
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• Where is the fastest rising price increase?  City of Norwalk.
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• It's predicted that by 2025, California will be a majority renter state.
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• California property owners need to change their image of what increased density might look like in their neighborhood--developers too.  New multifamily housing does not have to have the "cell block" look, there are more elegant designs which could blend well into single family home areas.

REALTORS are represented in 90% of sales, a figure that hasn't changed in 30 years.

Thanks to Leslie Appleton -Young, California Association of REALTORS Chief Economist.

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

Market Prices for November in Long Beach, Huntington Beach, Lakewood, Cerritos, plus Three Counties

Looking for Remodel ideas?

All these prices are for the month of November, 2019, based on data from CRMLS Infosparks:

Average prices for single family homes in Orange County are still showing a slow downward trend since May, 2019, while Los Angeles County is still up from earlier in 2019, and San Bernardino County's average is continuing to the highest average in the last 5 years! This is a buying opportunity for many right now.

The average days on market for the four cities is between about 20 and 50 days.  However, in the very high end markets in Long Beach, properties over $1 million are now generally on the market longer than those under $1 million.  In comparison, prices for the 236 actively listed Long Beach houses under $1 million are currently at 49 average days on market at an average list price of $657,000.  More buyer opportunity in this range!

Luxury Market:

There are currently 68 active single family homes (as of 12/3) listed over $1,000,000 in Long Beach, the average days on market is currently 91.  There are currently 36 properties in escrow, average of 104 days on market.  If you have a listing over $1,000,000, it might be taking a little longer to sell than earlier in the year, but also not unusual for this time of year.

Average single family home prices vary according to area, and here's what they look like locally:

November, 2019

Long Beach
$734,340 (down from October)       Avg Days on Market :18 (down from Oct.)

Lakewood
$606,335 (down from October)       Avg Days on Market : 22 (down from Oct.)

Cerritos
$811,173 (up from October)            Avg Days on Market :39 (up from Oct, down from July)

Huntington Beach
$1,143,086 (down from 18 month high)   Avg Days on Market : 50 (highest since Feb. 2019)

Los Angeles County
$955,098 (down from July and October)  Avg Days on Market : 37

San Bernardino County
$383, 071 (September was highest avg of last 5 years at $392,195)  Avg DOM : 27 (down from Feb.)

Orange County
$1,040,012 (down from May)                  Avg Days on Market : 29 (up from May)

The above prices are for single family homes, please contact me for condo market prices!

The graphic above may give ideas on remodel projects if you're thinking of selling.

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

Are Long Term Homeowners Staying in Their Homes Just To Spite Their Kids?

The baby boomer generation takes a certain amount of flak for not moving on and selling their current home that they've lived in for so many years, and the younger generations equally so for supposedly not being interested in buying.  Lowest mortage rates still do not seem to be incentive enough for bringing buyers off the shelf. There's a lot of labeling that goes on as people search for answers, and a lot of misinformation and misunderstanding.  The economics of the housing market is a compilation of factors over time, and doesn't amount to just any one thing, like being too selfish to sell, or too disinterested in buying. Tax issues, for example, are putting a squeeze on long term owners, known as the SALT cap, mixed with being faced with being forced to move up to higher prices in California, if they stay here. For these and other reasons, the fact is that owners are staying put about twice as long as the average stay about 15 years ago.
And, there's even a current projection now, that in spite of the long term squeeze on inventory, the future may bring so many houses on the market from the baby boomer generation that there may not be enough buyers from the later generations to take up the slack.

For sellers who do decide to sell, and find a less expensive market to move to, it's wise to be practical in pricing.  Still, home sales in California continue to show mild growth overall, since mortgage rates continue to be favorable for buyers.

If you are interested in finding your home's value, please contact me.  I have been helping buyers and sellers achieve their goals since 1994.

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

July 2019 Market Prices for Houses in Long Beach

No matter what is said about housing affordability up to this point, the house prices continue upward overall.

In January 2014, the average price of a single family home in Long Beach was just under $500,000. Following the peaks and valleys all along since then, the average price in July 2019 was $775,352, while the median (midway point of all SFR's sold) is $660,000, vs $455,000 in January 2014.

Days on Market:  July, 33 average days on market. This is time before an accepted offer, so what does this mean? You can't waiting around forever before making an offer.

List to Sold:  In the last 5 years, houses have sold in the range between 97% of list price to 100% of list price, with the July average at 98.6% of original list price.  So what does this mean? That you have to make your offers strong.

Months Supply:  This is the amount of inventory on the market before it would run out at the current rate of sale, and this has been ranging, since 2014, between 1.5 months and 3.5 months.  It's been a long time since the 6 month supply level, considered the market norm, has been around. So what this this mean? Limited supply helps drive prices up, less inventory,  continued demand.

Closed Sales:  Since 2014, this varied  between monthly lows of 102 and 106 SFR closings a month, to 259 a month.  In July, 212 single family homes sold.  What does this mean?  It's not unusual for low sales in January and more sales in the summer.  Since 2008, the highest number of sales were in August 2012 (260) and June 2017 (259).   Per data on the MLS, just to compare, going further back to January 2000, 183 SFRs were sold; in July of 2001, 350 SFRs were sold.  So our market volume has slowed consideredly since that time, and prices have gone up.

But buyers are still looking to buy, so if you are thinking about selling, even if you're not sure when, whether you have a house, condo, or unit properties, please contact me. I can work with trust and probate properties also!

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

Housing Market Review, Fewer Sales and More Listings on the Market

Sales volume down in So Calif

As one can see from the slide (presented at 2/27/19 talk by Joel Singer, CEO of California Association of Realtors) to the right, sales volume locally (and elsewhere) is down, and has been for some time--since April of 2008.

Another example of reduced 2018-2019 sales volume in Los Angeles and Orange Counties are in the two charts showing reduction by about 37% compared to January 2018 in LA; reduction by about 35% in OC. The median price for OC home declined $35,000--median price in LA stayed the same. INTERESTING!!

Sales volume change in Los Angeles County

Sales volume change in Orange County

 







In Long Beach, sales volume decreased about 5% in one year. The City of Orange had a 12% decrease in sales. But year-over-year median price home prices increased in Yorba Linda, Norwalk, Garden Grove, and elsewhere, whereas Long Beach/Lakewood have decreased by lesser amounts in price.

The essential points presented last week were:
"• Housing market conditions continue to soften | • Sales down double-digits despite recent decline in interest rates | • Price growth remains near lowest level since early 2012 | • Fundamentals are still solid | Window of opportunities for buyers"

The good news for buyers is that inventory statewide is the highest in almost 3 years.  Buyers and sellers have become so accustomed to a history of lowered inventory, it's time to be reminded that a normal market is about 6 months of inventory--we're still not there! The lowest price segment of $200,000 and lower has not seen an increase, however, and many buyers need that price point.  Long Beach in February, for example, had 2.5 months of inventory for single family homes, and that was a 38% increase over one year ago. We still need more units on the market.  The biggest recent increase of active listings on the market is in the Bay Area, 57% higher than last year.

Advice for sellers is to be reasonable in your asking prices, it's still a very good time to sell.  Buyers may take some encouragement as the inventory comes up!



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

Average Sales Prices Mostly UP in Selected Long Beach Areas, Signal Hill and Lakewood for 2018

Lately, the internet is full of stories about softening prices, but it turns out to not be all true.  It depends on the city and overall region.  But take a look at these stats, taken directly from the CRMLS, which happens to be the largest MLS in the country with 96,000 subscribers and another 143,000 agents in participating MLS's.

Below are the average sales prices for single family homes, with the sales count for that period in parentheses (  ).  It was a little different than I expected--I chose these areas in Long Beach as representative of single family homes for different points in the city, and then chose Lakewood and Signal Hill as entire cities.

As you will see below, in most cases, for 2018, both average sales price and sales volume increased in the second 5 months of the year, compared to the first 6 months--not what I expected to see, especially in the highest price area of the city where properties are spending more time on the market.

Long Beach

Area 1 - Naples, Belmont Shore/Park, Marina Pacifica, Bay Harbor - UP
1/1 - 6/1 --   $1,220,951    (71)
6/2 - 12/1 -- $1,588,024    (90)

Area 2 - Belmont Heights, Alamitos Heights, Bluff Park - UP
1/1 - 6/1 --   $996,377       (44)
6/2 - 12/1 -- $1,106,803    (63)

Area 5 - Wrigley Area - UP
1/1/ - 6/1 --   $538,908      (50)
6/2 - 12/1 --  $574,446      (63)

Area 6 - Bixby, Bixby Knolls, Los Cerritos, California Hts - MIXED
1/1 - 6/2 --   $760,435        (101)
6/2 - 12/1 -- $749,131        (107)

Area 7 - North Long Beach - UP
1/1/ - 6/1 --  $447,282         (100)
6/2 - 12/1 -- $464,851         (165)

Areas 31,32,33,34 - Los Altos, Conant, Ranchos, Plaza, Stratford Square - UP
1/1/ - 6/1 --  $696,026         (187)
6/2 - 12/1 -- $716,253         (252)

City of Signal Hill - UP
1/1/ - 6/1 --  $747,303         (27)
6/2 - 12/1 -- $872,874         (23)

City of Lakewood - UP
1/1/ - 6/1 --  $589,653         (314)
6/2 - 12/1 -- $612,165         (401)

If you are interested in selling for 2019, or would just like some idea at this point of your market value, please contact me directly via text, phone or email.


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

Average Selling Prices in Long Beach, Cerritos, Lakewood, and Orange County, June 2017

Prices are going up, and here's what they look like locally.  For a single family detached home, the average prices in this group range from $575,786 to $770,826, and for overall comparison to Orange County at over $1 million, they're obviously somewhat lower.  Overall Los Angeles County average price is $918,450 (the median price is $632,000 for June).  All these prices are for the month of June, 2017, based on data from CRMLS

One characteristic to note is that Orange County as a whole has increased just over 4%, Los Angeles County has a whole has increased over 9% in June.  The areas with more lower priced homes (relatively speaking) are seeing bigger increases than Orange County, with overall higher priced homes, with a smaller percentage increase.
How much higher will things go?  Unknown, but as long as the interest rates are lower, and buyers are able to find sources for down payment funds, the end is not in sight according to many market experts. The Federal Reserve, however, is expected to raise rates one more time this year.

"But while interest rates will increase to an estimated 5% by the end of 2018 and 6% by the end of 2019, most economists expect home price growth will also slow to between 2% and 4% once rates begin to rise."

If a buyer were interested in the average selling price of $350,000 for a house, then San Bernardino County and the Inland Empire would be the place to search in Southern California, and Northern California in many counties, excluding the Bay Area, would hold some similar opportunities.

For an online and automated home valuation, try my site at http://www.juliahuntsman.com/home-evaluation.  It probably works more accurately for single family homes than condos in some areas, depending on what properties lie within about a one-mile radius.  Try it!  And I am always happy to do a more customized report to send out via e-mail.  If you're thinking about making a move, do something besides stare.

Long Beach and Los Angeles County Selling Markets for June, 2017

It's an ever declining inventory in California.
For all of Los Angeles County in May, the median house price was $600,000, vs. $555,000 in May 2016.  Yet the sales volume decreased by 30% in that time period.

The California statewide median home price continued over $500,000, as the competition for lower priced homes keeps pushing the overall trend upward.  The number of active listings has decreased by over 13% compared to one year ago.

In Long Beach, it's a similar story. New listings are down over 7%, pending sales down almost 40%, and days on market are less than 50% of last year, but median and average sales prices of single family homes are up 5% and 6%.   The inventory is less than 3 months supply. And the list-to-sell ratio is often at 100%, or higher. In the last 30 days, only 211 single family homes sold in Long Beach, and average days on market was 26 days, with an average closing price of $701,000, per the MLS, at a los $275,000 to $3.5 million.

Yet, sellers must be reminded that unless they have an all cash buyer, current financing regulations dictate certain conditions for the borrower, and ultimately for the seller.  And buyers expect a well-prepared property. Favorable for everyone is that fact that mortgage rates continue to be low at this time.

If you're thinking of selling, please contact me for a competent estimate of market value of your home! Or go to www.juliahuntsman.com for a quick automated estate give to you online.

Long Beach Market Prices for Houses and Condos Feb. 2017

Long Beach prices Feb. 2017

The average sales price for a house in Long Beach in February was $672,000 (an increase of 7% over same time last year); the average price for a condo was $413,000 (an increase of 8% over same time last year.)

What is going to happen to interest rates?  For a while they were predicted to go up to 5% this year, but today (Friday), they are 4% or 4.125% depending on the loan level for conventional loans, and 3.75% or less depending on loan level for FHA/VA loans.  What will happen in the future depends on a lot things that are currently going on in Washington DC, and predicting the future is not a sure thing.

One of the biggest problems is still lack of inventory, as one can see on this report, it's gone down from last year (it can't get much lower, by the way), and it's not just the case in this city, this is across the board.  This has made the market get much more competitive (who thought it could get worse?), and the days on market figures are showing that, less time on market means the properties are getting snapped up faster and there are multiple offers.  The chart shows average figures, they vary greatly according to price range and location.  A $450,000 house in excellent showing condition will not last, but the $1,000,000+ range offers more selection and more time: there are 75 active listings in CRMLS in Long Beach over one million, and days on market is also 75.  Apparently, in Arcadia, per a conversation with a fellow Realtor this morning from that area, it's the $5,000,000 properties that are hot and moving fast.  Every market is different.

Lakewood: Average SFR selling price - $546,000; Condo $401,000.
Cerritos:  Average SFR selling price -  $743,000; Condo $335,000.
Huntington Beach: Average SFR price - $906,000; condo $510,000.

If you're thinking of making a change, please contact me

California State and Regional Home Sales in August 2016

The August median home price for a California single family home was up to $526,000 in August, an increase from $498,000 in August 2015.

For the Southern California Region, the median home price was $496,000, an increase of over 6 percent from the same time last year.

The median single family home sales price in Long Beach was $546,750 (per CRMLS data), an increase from $537,000 last year.  The Long Beach months supply of inventory increased about 7% from last year to about 3 months of inventory.

As discussed at yesterday's Economics Panel the the California Association of Realtors Expo being held in Long Beach, 3 months of inventory appears to be the "new normal" (compared to 6 months in past years).  This ongoing level of inventory involves numerous factors, one of which is that owners are staying in their homes about 13 years (compared to 5-7 years in the past).

Selling Prices as of February, 2016 for Long Beach/Lakewood Single Family Homes

Here are the median closing prices for several zip codes covering

The far west area of Long Beach (90810);
Belmont Heights/Shore and Naples areas (90803);
Carson Park-Long Beach and Lakewood (90808);
and Lakewood Mutuals (90712).

Prices are current as of the last day of February, 2016, from one year prior.

Median Selling Prices

90810  $379,900 | +17.2%

90803  $992,500 | +13.8%

90808  $644,500 | +17.2%

90712  $495,000 | +6.5%

   The Average Selling Prices* are a little different :

 90810  $362,000 | +11.8%

   90803  $1,162,165 | +24.6% 

90808  $648,131 | +7.9%

90712  $498,489 | -1.6%

*(median=midpoint price of all selling prices; average=sum of all selling prices divided by total number of properties sold)

November 2015 Sales Prices in California

California home sales volume and median prices for November, 2015:

Affordability in the California Housing Market

With the improvement in the California housing market since the "bottom of the market" in 2009, affordability has changed.

California's housing affordability index is at 29 percent, meaning 29 percent of California's homebuyers can afford the median-priced home of $487,420, which is a statewide figure.  The required income is just over $98,000.  To compare, 38 percent of the California population makes an annual income of $78,000 or more.  While not all single buyers may fit this profile, couples able to use both incomes to qualify are more likely to suceed, especially in the lower-priced condo market in certain cities.

In spite of this affordability declining over time, it appears to have stabilized in the 30% range.  Has it affected sales volume? Apparently not, because sales volume has increased 5.7% since the same time last year.

Downtown Long Beach

Will gradually increasing interest rates affect California's housing market?  Hopefully not, if the economy and labor markets continue to stabilize or grow.

What is the Long Beach median single family home price doing?  Here are the latest citywide figures:




 Long Beach condo price for the citywide median price of under $350,000
is posted below:

Prices in Long Beach, Lakewood, Cerritos, Signal Hill

Home prices continue to rise in Los Angeles and Orange Counties, 6% to June of this year from June of last year according to the Los Angeles Times.  In the four cities below, the average days on market for a single family home in August ranges from 41 days (Lakewood) to 67 days (Signal Hill). Long Beach had total closings of 193 (not surprising since it's the largest city of the four), Signal Hill had 6 closed sales, Cerritos had 26 sales, and Lakewood had 72 sales.

Even though the National Association of Realtors® reported that sales in July were the highest since 2007, Long Beach and Cerritos sales volume decreased somewhat in August.

Housing inventory is still low, although a recent daily trend for the local market shows a higher number of new listings in the MLS than closed sales. For August, however, each of the four cities below shows a decrease in inventory supply from the prior month: 1.6 months (Lakewood) being the lowest, and 3.7 months (Signal Hill) being the highest. Long Beach had 2.2 months supply in August. The traditional norm for a normal market supply has been 6 months.  This is a long term trend: Prices go up while inventory remains low.

Condo prices, which are typically lower than single family home prices, also increased from the prior month: average prices in Lakewood -- $485,000; Signal Hill -- $379,000; Long Beach -- $362,000; Cerritos -- $392,000; all prices represent increases from prior month range from 2% (Signal Hill) to 60% (Lakewood).

Don't Overprice Your Home's Asking Price

When a willing buyer and a willing seller complete a home sale, they have just announced to the world what the value of that property is.  That home may now be used as a marker for other similar home sales, based on other factors:

Location - proximity to community attributes such as parks, schools, and job market usually has more desirability to the buyer.
Size - Larger homes and larger lots may sell for more, and comparing a home to one that is much larger or much smaller could lead to the wrong pricing.  A buyer's lender may have very specific criteria on size when it comes time for the appraisal.
Bedrooms and bathrooms - The most common request from buyers today is for a three-bedroom, two-bath home; families today want and expect more privacy than in prior eras. And, the difference between a two-bedroom vs. a three-bedroom home may be critical for the buyer.
Features - Luxury sells, and homes with newer flooring, newer counters and cabinets are perceived as more luxurious and appealing. Some features such as spas and pools may not be worth extra to the buyer, these are often market-led factors. Newer landscaping may be a comparison item depending on the area.
Condition - A newer home that is well-maintained retains more of its original value, as do updated older homes. Homes with deferred maintenance sell for less.
Appeal - A home that looks inviting on both the exterior and the interior may be able to compensate somewhat for a less desirable location, or some other condition the seller has no control over.

If your house looks like this . . .

Too often sellers based an asking price on their own perceived value, or because they are comparing their property to a recent sale that is not completely comparable to theirs. Understanding how the buyer views the property, using the proper sale comparables most likely to be used by an appraiser, and seeing how their property stacks up against the immediate competition in the local market are important tools for seller objectivity.

It cannot be compared to this.

The public online valuation systems may be very accessible and offer quick valuations, but the homeowner should keep in mind that these systems do not use software that can "see" the home the way the buyer or your REALTOR does.  They use the public tax records, and may include properties inappropriate for yours.  As an example, 9 recently sold SFRs or condo properties in the Long Beach 90803 zip code between February 25th and August 4th, 2015 varied as much as 68% between the actual sales price and the online value estimate by a popular website company.  (Many real estate data sources within the industry do use AVMs, but some are "closer" to value than others.)  In this particular instance with the 9 properties, 6 of the properties were overestimated in value, and 3 were underestimated.  Two of the underestimated were within 1.8% of the actual selling price, which is a realistic market difference, while the third underestimated value was 17% less, which is far outside of the average  list-to-sell price.  The condo that was overestimated in value by 68% at $572,000 actually sold at $339,000.  Other estimates ranged between 7% to 41% over selling price. 

Speaking of estimates, the value of an experienced real estate professional cannot be underestimated. A good market opinion and strategy can earn you more money at the close, and save unnecessary time on the market.  Please contact me, a professional with 20 years' of experience! 

Single Family Home Prices in Long Beach 90803 and the City of Long Beach

Single family home prices in the 90803 zip code (including Bluff Park, Belmont Shore, Naples, Belmont Heights) have, on average, ranged between $554,000 and $970,000 over the last three years. November 2011 and September 2014 are so far the two highest points on the scale. The majority of houses selling over $900,000 during 2014 in this zip code are mostly in Belmont Shore, next is The Peninsula, Bluff Park and the lower part of Belmont Heights.

MLS: RS1406706

A home in the price range may have 3 bedrooms, 2+ baths, about 2100 sq.ft. on the interior, was about 70-80 years old, and was typically on the market for about 80 days. The property at the right at 177 Glendora was actually on the market 203 days per CRMLS, and closed escrow on October 20, 2014 selling at $969,000.

If you would like more information about the value of your home in this area, or any other area, please contact me for an in-person or online valuation.  Online valuations are considered more general, but a reasonable estimate of value may be obtained by looking at similar sales within a certain range and size.   

Top Five Reasons Investors Bought

What do you think of when you hear the word "investor"?  A large entity such as a corporation or company where individual names and identities are not easily known or seen? But according to a recent California survey, three-fourths of all investors are "mom and pop" type of investors who own from 1 to 10 properties, and the preferred type of property purchase is most often a single family home. Low yields on alternative investments is one reason for the demand for real estate investments.  These investors are looking for profit potential, as the median purchase price was under $300,000, which was the most frequent reason, with location being the least frequent reason for buying.  (Often, when first time investors say they want to buy an investment property, they frequently object to the location.  There might be a good reason for doing so, but selecting a location based on personal identification with a certain area is perhaps a sign the "investor" is looking for a place to move into some day.)

The five top reasons for an investor purchase in this survey were:
1.  Profit potential
2.  Good price
3.  Low interest rates
4.  Personal
5.  Location

The majority of these investors were interested in long-term potential of about six years, and over two-thirds in the survey rented out their properties after purchase.  About 25% of investors fixed and re-sold their purchases for profit, or "flipped" them, a phenomenon seen frequently in the less expensive housing markets in some cities.

The top countries of origin for foreign investors--27% of the total--were China, India and Mexico.  For all investors, the median rate of return was about 14% and the majority self-managed their properties.

Most investors found their properties through the MLS, so for an opportunity to find a property by working with a local real estate agent who knows the local market and can help you "pencil out" your investment figures, contact me via phone or e-mail! 562-896-2609.

C.A.R. Mid-Year Market-Update July 2013

Here is the California Association of REALTORS mid-year market update, it's quick and easy to follow, by analyst Leslie Appleton-Young. While one projection by CAR anticipates a slowing in home price increases, this presentation also points up the continuing lack of home inventory. With the increase in prices since one year ago, investors are having a harder time finding bargains, and we are seeing a majority of sales as "standard" transactions, with short sales being 25% or less of the market statewide.  Where will the home increase be in 2014? With supply and demand coming to closer balance (inventory increased about 2 percent between April and May), CAR's projection is a four percent annual increase in 2014. 

This is a good quick summary and easy to follow:

Average Selling Price for a House in Long Beach CA in 1Q 2013

For the first quarter of 2013 (January through March) in Long Beach, the MLS shows 503 single family home sales.

The sales price ranged from $98,900 (a 432 sq.ft bank-owned house) in North Long Beach to a sale for $3.8 million for a 3600+ sq.ft house on The Peninsula.  The average selling price in Long Beach for this time period was $443,772 for a 3 bedroom, 1.75 bath house between 1400-1500 sq. ft.  All cash purchases accounted for 122 of the total, or 24% of all houses sold.

• Of these homes, 18 out of the 503 houses sold for over $1,000,000 (a small percentage of all Long Beach houses), or 4%
• There were 364 houses selling under $500,000, or 72% of the total
• There were 265 houses selling under $400,000, or 53% of the total
• There were 121 houses selling between $501,000 and $999,999, or 24% of the total.

In other words, more than half of the selling activity took place at the price range under $400,000, and 88 of those purchases were by all-cash buyers, or 33% of the total number of purchases for houses sold under $400,000.  This means 72%, the vast majority, of the all-cash activity is in the lowest price range for the city. 

This is a paradise for certain sellers, and a big challenge for buyers, especially for the 1st time buyers and/or 2nd home buyers because under $400,000 is their most affordable market.  (And even though Long Beach is very competitive due to its location, some buyers are looking further south in San Diego area for lower prices.)

Cash buyers often attempt to buy at a much lower price, thinking the seller will be thrilled with them because the transaction does not require a lender or an appraisal, but often they come in very low, or much lower than what is attractive to the seller. So those offers don't always work, at least not at first. And are some sellers being unrealistic about their asking price? In some cases, yes, depending on other factors such as condition, upgrades, permitted square footage, and nearby comparables, but that is something to determine on a case-by-case basis.  Overall, the market trends in many Long Beach zip codes is going up by as much as 20% compared to this time last year.

A buyer's best protection is to be totally pre-approved with a solid pre-approval where the lender has not only their income and debt information, but their tax returns have been thoroughly reviewed as well (if possible, submitting to underwriting in advance can give additional assurance for a pre-approval).  I'm amazed at how often I hear from a hopeful property buyer who tells me they know they're well-qualified, "getting a loan will not be a problem."  If it's not a problem, do it now.  Buyers, sellers want to find out what a good loan source has to say about your loan qualifications or that your statement shows you have all the cash ready-- your own personal opinions simply will not carry much weight when you submit an offer. It is essential to accomplish this step PRIOR to looking at properties so that the seller knows qualified buyers are viewing their home. 

Please contact me for an estimate of your buying costs--I can help you with different down payment scenarios to show you what your monthly payment could be.

 

 

 

Long Beach Single Family Houses in May Are in Demand

Single family homes in Long Beach seem to be the one property type showing some consistency in price and numbers of sales recently. At the end of May, the median price of houses currently on the market was up 5% over last May, going from $375,000 to $395,000; while the median price of sold properties was up 28% compared to May 2009. The peak for sold price was in November, not surprisingly, as the initial homebuyer tax credit was scheduled to expire in December. The trend dropped in December, but the median list price and sold price has trended upward since then. Time will tell if the current tax credit extended to April 1, and the extended period to close until September 30, will show a similar peak, or will there continue to be activity?
I keep saying this, but many buyers, especially first-timers, don't realize that low mortgage rates (currently as low as 4.5% paying one point) is actually a price drop on your home. And for condo buyers who are seeing higher HOA fees compared to 5-8 years ago, a lower mortgage rate can make up for higher monthly fees. Plus, the borrower pays much less on the total loan over a 30-year period. See the entire May single family report.
Condos seem to see more peaks and valleys in the last year, with the median price of currently listed condos being down 2%, to $235,000 from $239,000 in May 2009, and the median price of solds is up10%, $200,000 to $220,000, since May 2009, with the overall supply of condo inventory now trending down for the last several months.