Very Basic Guideline on Choosing a Home Loan

Whenever a shopper is quoted a monthly payment, he must also be shown the highest monthly payment possible on that loan, and the month it would be reached, assuming the borrower always makes the minimum payment allowed.

This is a really good home loan shopping guideline for all homebuyers, especially those who may be quoted a low start rate. There are many required disclosures, including an APR, the annual percentage rate which are your loan fees and costs which are supposed to show the true cost of your loan, but not always so! The APR is a complex calculation which may vary from loan to loan even with the same lender; ask for a good faith estimate which should look like this 2005 sample from the California Department of Real Estate. Buyers, if you're serious about shopping for a new home, you should be serious about taking the time to look into what you need in a loan and a lender!

Long Beach

April California Median Home Price Still Up

The trend continues: The California median home price is up by another 6.2% over April, 2006,, to $597,640--the sales volume is down over 27% compared to the same time last year. With more time on the market, buyers can spend a little more time looking and deciding which home they want to buy. In the meantime, loan guidelines have tightened up with most lenders and interest rates are not decreasing.

The statewide median price is not necessarily the local median price in your area, because those are impacted by the local composition of type of housing and other economic activity. But here are CAR's statistics for April on communities with the biggest increases:

"Statewide, the 10 cities and communities with the greatest median home price increases in April 2007 compared with the same period a year ago were: La Habra, 55.1 percent; Laguna Niguel, 26.2 percent; Los Gatos, 20 percent; Los Angeles, 19.8 percent; Moorpark, 18.7 percent; Dana Point, 18.2 percent; San Juan Capistrano, 17.1 percent; Redwood City, 15.3 percent; Ridgecrest, 13.9 percent; Walnut Creek, 13.6 percent."

Cooper Arms: Co-op to Condo

Originally conceived in 1922 as the most luxurious co-operative apartment building in Long Beach, it was rival to the Biltmore Hotel in Los Angeles and the Huntington and Maryland Hotels in Pasadena. The construction of the Cooper Arms reflected the building boom after World War I and the discovery of oil in the region.

The Cooper Arms was the first tasteful result of that building boom when it opened in March, 1924 as the city’s first residential high rise, catering to elegant resort living. The investors behind the building were a virtual “Who’s Who” of Long Beach. William Frist, owner and editor of the Long Beach Press, Dr. W. Harriman Jones, prominent surgeon and of course, Larkin Y. Cooper. Cooper owned a great amount of property in Long Beach, concentrating on property on Ocean Boulevard. He owned the property where the Cooper Arms was built.

The architects of the Cooper Arms were Alexander Curlett and Claude Beelman prominent architects of the day who also designed the Farmers and Merchants Bank building at Pine Avenue and 3rd Street in Long Beach and the Security Bank building at Pine Avenue and 1st Street in Long Beach. Claude Beelman later became a significant architect of buildings on the “Miracle Mile” of Wilshire Boulevard in Los Angeles. The Cooper Arms was built by the Scofield Construction Company, also the builders of the Biltmore Hotel in downtown Los Angeles. The Cooper Arms is designed in the Italian Renaissance Revival style with elegant architectural and decorative features on both the interior and exterior. The building is a twelve story, steel frame reinforced concrete structure with exterior walls of brick finished in smooth stucco. The ground floor is comprised of both public and private space. Commercial uses are adjacent to an arcade which accesses the Ocean Boulevard frontage.

The Linden Avenue entrance accesses a Spanish loggia which exits to a large garden on one side and a large public space on the opposite side, known as the “Grand Salon”, designed as a prominent gathering place for the elegant resort residents of the 1920’s. The Grand Salon has an eclectic decorative composition typical of the 1920’s era. Design elements include Egyptian-derived lotus, swags and medallions inscribed with urns and profiles. The large public space also displays a formal marble front Louis XVI fireplace.

The 12th floor solarium occupies a major portion of the top floor. It was designed to function as a ballroom, meeting room, banquet room and all-purpose informal entertainment center. The room has a domed ceiling with original lotus and bud molding. French doors open onto wrought iron balconies on the north, west and south sides of the room with commanding views of both ocean and city. The original hardwood floors, carefully installed at the time of construction of the building to absorb noise and provide correct resilience for dancing, are still in place and in good condition. Floors 2 through 12 comprise the 159 residential units, once owned as cooperative apartments, today are condominiums.

The Cooper Arms is located in the heart of downtown, and within walking distance to the beach, restaurants, theatres, exclusive night clubs, and the East Village Arts District. This building offers community laundry and historic meeting areas.

Units vary in features: some have a Murphy bed built-in the living room which often have high ceilings, walk-in closets with an eating area in the kitchen; a balcony with views of the ocean, downtown marina, and the mountains; HOA dues may be as low as $118 per month which includes water, sewer, and heat, and vary in size according to whether they are studio, 1 or 2 bedroom.
Long Beach

Buyers: There's No Time Like Right Now

Real estate supply and demand goes in cycles, it always has. Sales are down, inventory is up past the 6 month level, but what else is happening? Interest rates are creeping up, and there are no predictions for any decreases by the Federal Reserve on the horizon. Don't be one of those people who, two years after the fact, comes back and wants something from today's market that's not around any more, i.e., more inventory to choose from, lower rates, or even a lower price. Did you know that so far this year, the median home price in Los Angeles County is higher than last year? In fact, it is in the top 10 areas of median price increases in the state. If you want more information about loans or real estate, contact me by phone or e-mail. See my site at www.juliahuntsman.com for more information or a property search that is updated throughout the day.

Long Beach

Long Beach Ebell: Gone to Lofts, Every One

Long Beach Heritage Museum photo
This conversion took place with the theatre portion of the Ebell Club on 3rd Street. It's namesake in Los Angeles is regarded as very important culturally and architecturally. Fortunately, the original theatre part of the building in Long Beach is now preserved in another form, but unfortunately, its reason for being declined with the condition of the building over time. Taking the name from a gentleman in the late 1800's who wished to help women of the era maintain a center of culture important to them, these "clubs" attracted many of the wives of men of local stature and some measure of wealth as their original members, starting a tradition of contribution that carried on for many decades. In Long Beach, this is one of many loft conversions from older buildings which in the past would have disappeared. All the original converted units are now sold out and interested buyers must wait for resales. Close to downtown and on a major bus line, it's also in a residential neighborhood and about 3 blocks from the ocean. What more can you ask for in a loft?
Long Beach

Clearing Up the Loan Picture

Since I frequently hold open houses I regularly talk to prospective buyers. It's no secret that sales volume has dropped and that predictions abound about the coming drop in prices. I think one of the reasons for buyers holding off is because home shoppers feel like they're shopping in a store when the Big One hits, and suddenly their thrown into another aisle where all around them is shopper's chaos. Recent events in the subprime market have helped the speculation, but may this will add in some perspective about our current economy, which is, after all, still strong:

The Mortgage Bankers Association, in its testimony to Congress last fall, said that homeownership rates are at record levels, nearly 69 percent. It stands to reason that with a higher rate of ownership, there is a higher rate of foreclosure.

Delinquency rates typically peak 3 to 5 years after origination, which is in keeping with record home sales and record loans following 2001. In other words, this was to be expected.

Approximately 1 percent of all loans are in the foreclosure process, well within historical norms, according to the MBA. That’s still less than the post-recession peak of 1.5 percent just four years ago.

Three out of four loans that enter the foreclosure process will not wind up as a foreclosure sale, either because the home owner cures the delinquency, works out a payment plan with the lender, refinances, or sells the home.

Somewhere between 0.5 percent and 1 percent of all homes going into foreclosure are owned by subprime borrowers, according to estimates by Walt Molony, spokesman for the NATIONAL ASSOCIATION OF REALTORS®. On the low end, that's one home in foreclosure out of approximately 200, suggesting that high foreclosure rates are not just a subprime problem but due to a wide range of other causes.

Finally, subprime borrowers are higher risks and have always had a higher delinquency rate than prime borrowers. Yet, only six percent of home owners are nonprime borrowers with adjustable rate loans that are resetting to higher rates.

Long Beach

Housing Opportunity: Think About It

Industrial vs. commercial vs. housing use: This is one of the stories in Long Beach. As in some other cities, downtown Long Beach is building up its mixed retail/residential use most recently through loft conversions, and residential-over-retail use. But still, we have a housing shortage, not just here, but throughout the state--an estimated and predicted shortage that's been no surprise for at least a couple of decades to certain economists. It's supply vs. demand, and it's one of the reasons that the median price in Los Angeles County still increases at this point. While the inland counties such as San Bernardino and Riverside have suffered more due to foreclosures, the Long Beach area and the subprime loan fallouts is far less involved and remains overall far healthier, in spite of the increase in housing cost in this area. Downtown retail is still growing; the local office market is strong.

“We’ve obviously had a huge pull-back, but I think people feel there are opportunities on the horizon because mortgage rates are still quite attractive and there’s still a lot of inventory on the market,” Kyser says, “but at the end of the day, the irony is you still have an overall shortage of housing in Los Angeles County . . . of about 290,000 units, as well as a huge lack of affordable housing." Jack Kyser, chief economist of the Los Angeles County Economic Development Corporation.

It's still a good time for property buyers to buy, and to take the long term view.
Long Beach

Getting Your Home Insurance Lined Up

Home insurance coverage in California is important for everyone, but this article about Allstate Insurance is why homebuyers especially need to be vigilant. Insurance coverage for homeowners is cyclical, and depends on the disaster climate in which companies underwrite. Although they say they are no longer to give coverage, or coverage is contingent on certain factors being present, insurance companies have been known to change their minds later. Nevertheless, when you're in escrow, or even when you are house shopping, start researching possible insurance companies. There was a time when coverage could easily be obtained about 10 days before escrow closed, but that hasn't been around for a long time, and it's getting stickier. Your credit may be checked, and prior claims on the property you wish to insure may impact which company will insure you. There's really no time to waste for finding coverage before you close escrow. If you're obtaining a loan, it will be required by the lender, and you should get it regardless.

Number of Sales Goes With Seasons?

Condo sales by quarter



While all we seem to be hearing about is that sales are down, historically, the time of year has something to do with it, too.

If you compare 2007's condo sales for zip code 90803 (Belmont Heights, Bluff Park, Belmont Shore areas) as shown in the local MLS, with 2006's sales at the same time last year, even more have sold with about the same number expiring. Sold condos per quarter range from 23 to 42, with the second quarter of 2006 highest in sales. Although not reflected on this chart, the median prices from local tax data for Los Angeles and Orange Counties has increased over last year's prices.

While not exactly a scientific study covering all parameters, this does show sales are continuing actively in the current market. We'll see if the second quarter of 2007 echoes last year's.
Long Beach

Counteroffers: What To Do

It's not unusual, whether you're a buyer or a seller, to start feeling that the other side is being totally unreasonable, or that the price is too low from a buyer or the seller is asking way beyond a reasonable asking price.

Sometimes, buyers may get upset and refuse to make a second counteroffer back to the seller because they feel the seller just won't listen, especially if it concerns the price. It's important to keep negotiating at that point. Getting upset will only get in the way. Each party may have what they feel are totally valid reasons for their position, and if you can find out what those are (and this is where your Realtor works for you), at least you have an understanding of the other side even if you're ultimately not going to agree with them. Once the emotional level has dropped, it's easier to make a rational decision that you won't regret later if you do end up rejecting the deal.

If you feel you're backing down on an important issue, then don't. Explain why this is important to you so that it can be communicated to the other party. Possibly the other side will walk away at that point, but that possibility also exists during the contingency periods during escrow.

It's important that you know why you think as you do--it can make the difference between selling/buying the property or not.

Long Beach