Properties are Selling in Long Beach 90803

The buyers have gotten in the Spring action mode in Long Beach's 90803 zip code--and for some buyers, there are issues of multiple offers in certain parts of Long Beach within days of the property coming on the market. This is a result of the combination effect of sellers pricing their property correctly, presenting it well (even staging it, that's been betting the fastest offers), and buyers who are pre-approved and motivated to buy.

In a quick review of the MLS, in the 90803 zip code (Naples, Belmont Heights, Belmont Shore areas), there are 101 active single family home listings waiting for a buyer, and there are 30 single family homes currently in escrow, list price between $425,900 (Island Village) to $3,350,000 on the water with a boat dock (Naples)--days on market ranged from "0" to "395".

In the same area are 54 condos waiting for a buyer, ranging from $189,000 to $1,095,000 in complexes such as Marina Pacifica, Village on the Green, Bixby Village, Spinnaker Cove, and in areas of Naples, Bluff Park, the Peninsula, and Belmont Heights. There are 19 condos in escrow, ranging up to $669,000 in asking price, having been on the market from 3 days up to 364 days.

For motivated sellers, believe it or not, we need more inventory. If you would like a market analysis of your home or income property, at no obligation, there's nothing to lose by talking over the current value of your home. I can even send you market comps via e-mail, plus other valuable market information.

Prices are still low, and motivated buyers should check out their financing options now.

To find more Bixby Village properties on the market, go to Long Beach Condos, Lofts and Associations, which is updated through the MLS, so you will get current information on which listings are on the market.

California Market is Speeding Up

California Association of Realtors report for March, 2009, shows a 63% increase in sales and an increase in statewide median price of 2.2% over February, 2009. The unsold inventory index fell to 5 months overall, compared with 12 months one year ago.

"The statewide median price showed the first monthly increase since August 2007, and has remained in the $250,000 range over the past three months," said C.A.R.'s Chief Economist Leslie Appleton-Young. "A number of regions around the state also have registered monthly gains for one or more months since the beginning of this year. While these are welcome signs, it remains to be seen whether home prices have stabilized.
"While we still face continued weakness in the general economy and expect continued foreclosures, the increased incidence of multiple offers indicates that first-time home buyers and investors are responding to dramatically improved housing affordability. Low mortgage rates and house prices, coupled with the federal first-time home buyer tax credit, is having a definite impact on the California housing market," Appleton-Young added.

The existence of multiple offers on residential property is reported by numerous local buyers I've talked to in the last few days in the Long Beach area, and the decline in local inventory has been very evident. Properties that are strong in curb appeal, or are staged, are getting the fastest response from buyers.
Another indicator is the number of day on market: statewide, 8 day less that this time last year to sell.

Making Home Affordable for YOU

President Obama's $75 billion program for homeowners now has the first six banks or participants, per the Los Angeles Times:

Chase Home Finance, part of JPMorgan Chase Co., will receive up to $3.6 billion, the largest amount among the six companies. The other recipients: Wells Fargo Co., GMAC Mortgage Inc., Citigroup Inc.'s CitiMortgage unit, Select Portfolio Servicing and Saxon Mortgage Services Inc.

More banks and companies will be added in the coming months. The Making Home Affordable program can be found at FNMA and Freddie Mac sites for those with FNMA or Freddie Mac loans. By clicking on the above link, the homeowner can find out eligbility for the program. This program is for owners who are not able to meet current refinancing loan requirements, who bank is participating and who who have FNMA or Freddie Mac loans.

This plan is to help people who are current on their mortgage payments to refinance and take advantage of today's lower interest rates. Under this plan, Fannie and Freddie will be allowed to refinance qualified homeowners up to a 105% loan-to-value of the CURRENT VALUE of the home. It's well worth your time to keep checking on whether or not your current mortgage and your bank, now or in the future, will be one that qualifies for this plan.

The plan helps owners at risk of foreclosure by offering government assistance to help offset the cost of modifying loans of qualified homeowners into affordable mortgages allowing them to keep their homes. There are several different ways to achieve this: rate reduction; extending loan term, or allowing principal forbearance or cramdown. The unpaid balance must be $729,750 or less for owner occupied primary residence of 1-4 units, a first trust deed, current monthly payment exceeds 31% of gross monthly income, are among the requirements. Go here for a self-assessment tool.

If you are thinking of selling, or you need more information about whether or not you can modify your loan, or are eligible for a short pay, contact me directly or go to http://www.juliahuntsman.com/.

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More Demand, More Sales--More Sales, More Buyers and Sellers

In spite of the billions of dollars spent and given away to Freddie Mac, Fannie Mae plus numerous other banks and institutions, in spite of the many government loan modification programs and federal homeowner help programs, loan streamlining programs ... but so many buyers are still reluctant to buy. Yes, there are more limitations on types of loans available, basically buyers have a choice between 3.5% down payment (FHA), 10% and 20%+ down payment loans (conventional). There are some first time buyer programs, there are still VA loans, but most buyers are going to fit in the middle of the distribution curve on the first 3 types of opportunities.

There needs to be even more incentive(s) if there is to be a return to a real estate market where there are properties closing escrow with move-up buyers. Why, especially in California which is still a higher-priced market than other states, should only first-time buyers under a certain income level be eligible for the $8000 tax credit? Why not make it available to anyone who purchases a home? or an investment property? I've been meeting people lately who have certain assets, sense that the bottom of the market may be getting closer but they're still unsure, and this credit might give them the incentive to finally make the move off the fence.



Another suggestion has been to put a moratorium on the capital gains tax for future sales of residential property purchased in 2009 and 2010 which might encourage these capable but indecisive buyers to finally make a move into the market. Yes, a strong increase in sales has been occuring in 2009, but it's also at the lower end of the market. Think of the buyer who might otherwise put an offer on a high end property if these other incentives were in place.

Free Southern California Home Buyer's Fair this weekend April 18th

Bulletin just in:

Thousands of potential home buyers are expected to converge this weekend for the Southern California Home Buyer’s Fair at the Los Angeles Convention Center in downtown Los Angeles. Sponsored by California Association of Realtors and the “Los Angeles Times,” the second annual Southern California Home Buyer’s Fair is open from 10 a.m. to 5 p.m. Saturday, April 18, and 11 a.m. to 4 p.m., Sunday, April 19. The event is free to the public. In addition, the first 200 attendees each day will receive a free movie ticket (one ticket per person).

The Fair features more than 50 educational “how-to” seminars designed to help home buyers navigate today’s real estate market with confidence and peace of mind. Seminar topics range from monitoring and fixing credit, finding and applying for a mortgage, to purchasing a foreclosure, short sale or REO. Several of the sessions also will be offered in Spanish. The Southern California Home Buyer’s Fair (www.homebuyersfair.com) also will feature nearly 75 exhibit booths, where attendees can obtain information from industry experts about homeownership and the home-buying process.

For a home search through our SoCalMLS expanded home search of all types of properties, please visit my other site at www.juliahuntsman.com

Rent vs. Buy in 2009

Now that tax time finally over, it's a good time to get into the rent vs. buy scenario for 2009.

Buyers who close escrow early in the year are likely to have greater benefit from tax deductions for 2010. In the current market, buyers are seeing opportunity that has not been theirs for several years. This slide from California Association of Realtors shows the total tax liability difference over 5 years between renters and buyers, taking into account the $8,000 tax credit, mortgage interest and property tax deductions. The overall tax liability savings at the end of five years for the buyers is over $11,000.

The $8,000 buyer tax credit must be taken advantage of before December 1, 2009. This credit is a great tax advantage in the first year of ownership--don't miss out!

Homeowner Affordability and Stability Plan Loan Terms

There is a lot of confusing information about loan modification opportunities, plus the additional fact that unqualified companies or individuals are attempting to take advantage of borrowers. Before you go with an offer you receive in the mail, please get a second opinion by calling up a known lender or contacting a bank officer, or your REALTOR. There are modification programs for both FHA and conventional loans, the following applies to conventional loans. So here, courtesy of Prospect Mortgage in Irvine, is better information and a link to a government website:

The Homeowner Affordability & Stability Plan

On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan. The plan has two primary components:

Low-cost Refinancing. To be eligible, the loan on the property must be owned or securitized by Fannie Mae or Freddie Mac. These loans cannot exceed 105% of the home’s current market value. The Fannie Mae and Freddie Mac loans will have no prepayment penalties or balloon payments. There are no refinance cash-outs. Borrowers who are currently delinquent or have been 30 days overdue more than once during the past 12 months will not qualify.

Loan Modification. If you wish to inquire about a loan modification, you may contact the company that is currently servicing your loan. To be eligible, homeowners must be at risk of default or foreclosure. Qualified participants must also have experienced financial hardship, including loss of income, a significant increase in expenses or an interest rate that will reset to an unaffordable level. Monthly mortgage payments (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) must exceed 31% of gross monthly income. The unpaid principal balance on the home loan must be equal to or less than $729,750 for one-unit properties (there is a higher limit for two- to four-unit properties).
If there’s a second loan, only the first mortgage is eligible for a modification, and it must have been originated on or before January 1, 2009. Qualifying loans include those owned or securitized by Fannie Mae or Freddie Mac. The government is working on getting other loan servicers to participate by offering substantial incentives.

If you want to find out if your loan is owned or securitized by Fannie Mae, you can call 1-800-7FANNIE, or visit www.fanniemae.com/loanlookup. Freddie Mac may be contacted at 1-800-FREDDIE, or by visiting www.freddiemac.com/mymortgage.
To learn more about the Homeowner Affordability and Stability Plan, visit www.makinghomeaffordable.gov.

Long Beach Selling Trends for March 2009

Has your idea of a new home taken root? You might find this interesting:

The overall picture for Long Beach from February 7-March 3, 2009, is that the inventory for residential properties continues under 6 months, meaning that it would take that amount of time for the current number of listings to sell before all properties would be sold, or off the market. Inventory supply for the current period climbed up to 4.6 months (from 3.5 months from the prior month).

In the pool of eight areas--Lakewood, Cypress, Cerritos, Los Alamitos, Long Beach, Signal Hill, Rossmoor, and Seal Beach--Long Beach is in the middle in terms of inventory supply, with Lakewood having the lowest amount at 2.3 months, and Seal Beach at the highest with 11.9 month. Just a reminder: a classic real estate "benchmark" is that 6 months of inventory is the turning point for a buyer or seller market, thus by definition the first 6 in the list are in a seller's market at this time.

But is that true for all price ranges in Long Beach, and all neighborhoods? No, overall, residential properties under $700,000 have less available inventory, with the $400,000-$600,000 going the fastest at 4 months and less.

Areas with the longest months' supply is Belmont Shore/Heights/Naples (90803) at 8 months, and downtown/Ocean Blvd. (90802) at 6.6 months. The other major zip code areas in the city were less than six months, with Carson Park/El Dorado Park Estates/other east Long Beach areas (90808) having the least amount of inventory available at 2.4 months. Does this correspond with selling price? Well, the 90808 zip code area, with the least amount of inventory, sold in the upper half of price-per-square foot range at $331, while 90813 sold at the low end of $203 per sq. ft.

For a copy of the complete report via e-mail, please contact me with your information, and I'll be happy to send it.

In comparison to this time last year, Long Beach was second highest in terms of inventory supply at 8.7 months, second only to Signal Hill, and all price ranges except one was over 6 months. In this period 2008, Long Beach was second highest in price per square foot at $409, and is now 3rd highest at $348 per sq. ft.

Yes, it's very much a "pricing reality" message for sellers, and a "get moving" time for motivated buyers who would like to avoid the multiple offer situation as much as possible.

Currently, in terms of number listings, there are 71 single family residences listed in 90808, and 86 condos and single families in 90813 (parts of downtown further inland from the shoreline).

To find more properties on the market, go to http://www.juliahuntsman.com for an easy property search.

CalSTRS Loans Allow for 3% Down Payment

These are great loans for employees of the California public school districts or California community colleges--and, being a first-time buyer is not a requirement. This program is for any employee, and is not restricted to teachers only.

The 80/17/3 program means the buyer's down payment is 3%, and the 2nd trust deed is the 17%. The interest rates on the 1st and 2nds are the same, and right now they are at 5%. A borrower can take out 50% of what is in their account, and the FICO score requirement on the 3% down is 620.

Buyers, if you belong to STRS, these are great opportunities. Other than FHA and VA loans, there are virtually no other opportunities for low down payment programs. And while currently an FHA loan may be allowed as high as $729,750, the maximum CalSTRS loans go as high as $650,000 which is still very competitive for many Southland and Long Beach areas, and certainly for much of the condominium market.

For a conforming sales price of $521,250, 1st loan amount of $417,000 and 2nd of $88,612, borrower's 3% down payment, the principal and interest at the current 5% interest rate would be $2238.55 (excluding property taxes and insurance, no payment on the second for 5 years).

One year ago the rates were 6% and that same loan amount scenario required a P&I payment of $2538, or $300 more.

For loan amounts over $417,000 up to %650,000, interest rates are currently at 6%

Rates are current as of today, April 1.

To find a lender doing STRS loans in the Long Beach area, please contact me.

562-896-2609

www.juliahuntsman.com

Sales Trend is Getting Stronger in Long Beach Area

If you saw the post from earlier in the month, you read about the strong decline inventory in Long Beach for February 2009 to 6 months and under, especially compared to the same time last year (data courtesy of RealDataStrategies and the SoCalMLS). The chart at the right shows the upward movement (although I don't believe "median price" data is necessarily applicable to all local areas or neighborhoods due to many other conditions). There's additional news around about some 2008 markets actually increasing over 2007, per Anthony Carr's post at Realty Times, including:

"Texas - 3.6 percent, South Dakota – 3.6 percent, Montana – 2.6 percent, Mississippi – 1.7 percent, Utah - 1.5 percent, New Mexico - 1.3 percent".

This data comes from a Bloomberg.com report using data by FirstAmerican CoreLogic, based in Santa Ana, California.

And, per Dataquick's March 19 report for California statewide sales, the increase has been going on here for the last 8 months, while the median price remains stable:

"An estimated 29,225 new and resale houses and condos were sold statewide last month. That was down 0.8 percent from 29,458 in January and up 42.5 percent from 20,513 for February 2008. Sales have increased on a year-over-year basis the last eight months."

Dataquick's report for February for Southern California: "Sales have increased on a year-to-year basis since last July."

"The market is so tilted away from normal mainstream activity that it's impossible to generalize or predict based on the atypical patterns we're seeing. That means that normal demand and supply is building up. The floodgates could open once mortgage credit starts to open up," said John Walsh, MDA DataQuick president.

Further, in the Long Beach area, February of this year is reportedly 3rd highest in sales after October and November of 2008. And today, Freddie Mac states mortage rates are near or at the bottom, and any further reductions would be "incremental". Rates for 30-year fixed mortgages are at 4.85%, the lowest in its history of surveys which began in 1971, "down a full percentage point from a year ago", and rates for a 15-year fixed mortgage dropped to 4.58%.

With constant repetition in the media about foreclosures and the hard times of many, it's hard for buyers to believe that by waiting, they can be waiting too long for their area. If the current decline in housing inventory persists, the competition scenario is likely to emerge at some point in time in certain areas, in fact it already has for some properties judging by the show of hands at last Thursday's broker meeting from agents dealing with multiple offers for their clients.