Things to Know About Open Houses in California

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

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

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

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

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

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

 

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

Statewide California Home Sales Facts for July, 2023

 

July California Sales and Price Report

Market Information - median  day to sell  down by 2 days; sales to list ratio is the same; price per square foot down by $2; 30-year fixed rate up over 1%....

Information from the California Association of Realtors about sales statewide:

• The median number of days it took to sell a California single-family home was 16 days in July and 18 days in July 2022.

• C.A.R.’s statewide sales-price-to-list-price ratio* was 100 percent in July 2023 and 100.0 percent in July 2022. 
• The statewide average price per square foot** for an existing single-family home was $409, down from $411 in July a year ago. 
  
• The 30-year, fixed-mortgage interest rate averaged 6.84 percent in July, up from 5.41 percent in July 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

 

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties. 

Thought for consideration: while interest rates are challenging for buyers, many are able to negotiate a buydown from the seller. For more information about how a buydown can help you, please contact me via text, phone or email.

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

California Property Tax Portability Calculator under Proposition 19

Craftsman bungalow home in Long Beach

If you are contemplating selling in California and relocating, you may be able to save money on your property taxes if you are 55 years of age or older, severely disabled, OR whose home has been substantially damaged by wildfire or natural disaster.  You may transfer the taxable value of the primary residence to a new replacement residence anywhere in the state, within two years of the sale, and up to three times, or as often as needed if your house was destroyed by fire.

The Property Tax Portability Calculator at the link below (courtesy of California Association of  Realtors) estimates the amount of annual property taxes that a home seller could save as a result of porting their current property tax base to a new property under California's Proposition 19. This measure was passed in November 2020 and became effective in 2021.

See C.A.R.'s Quick Guide for more information about Proposition 19. 

Claims are made through your local County tax assessor's office.  The link for information at Los Angeles County Assessor is here.

Tax Portability Calculator 

 

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

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

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

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

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

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

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

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

Closed Sales Volume in California, Southern California and Long Beach

May, June and July of 2023 down 18% in Southern California sales volume for single family homes, better than last December's volume which was down 46% (see the orange bar for Southern California).

Home sales volume bar graph statewide

Southern California home sales volume has been "below the line" for over two years, along with all areas of the state.

High homes prices and unfavorable rates continue to have influence for buyers, of which 41% believe prices will continue to climb. Those who believe it's a good time to sell continues at the rate of 64%, so inventory not loosening up much on the sell side. 

Although there's been a crunch on obtaining purchase home insurance in certain areas, the local market is still seeing buyers successfully closing their escrows.

In the last 30 days, 97 single family homes (average price $1,136,577) and 69 condominiums (average price $592,000) sold in Long Beach.

If you would like to find out more about selling, doing a 1031 exchange, or just find out more about the market in your area, please contact me via phone, email or text.  And please feel free to do a property search on my website.

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

Insurance - California Homeowner Policies - Tips on Finding and Keeping

Insurance is the Key!

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

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

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

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

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

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

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

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

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

Thanks for California Association of Realtors for the above information.

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

Dark Sky Illumination Trend Addresses Adverse Effects of Light Pollution

 

Dark Sky Anza Borrego Desert - Credit: John Loo via Flickr (CC)

Dark Sky Illumination Trend Addresses Adverse Effects of Light Pollution: 

Light pollution disturbs nature and can cost billions. Communities and cities are increasingly aware of the negative effects of light pollution and are passing ordinances to curb the problem. This affects how homeowners light their yards, and real estate professionals who know the ins and outs are better equipped to help their clients.

Have you looked at a nighttime photo map of the U.S. showing major cities with clusters of lights?  According to the article at the link, "Over the last 25 years, light pollution has increased by at least half and is growing about 10% annually, according to the International Dark-Sky Association (IDA), a Tucson, Ariz.-based organization focused on reversing the issue."  

Christmas lights, LED landscaping lights, expanding population in cities needing nighttime lighting, commercial displays, are all sources of increased light pollution.  It doesn't just block out our view of the nighttime sky, it impacts "plants, animals, insects, fish and people by affecting their natural rhythms and habits."   Further, " 'About 20 to 50% of the light that shines into the night sky is said to be lost due to fixtures being unshaded, which results in an estimated economic cost of about $3 billion, says Brian Liebel, Director of Strategic Initiatives at IDA. “We all pay that cost, either directly through utility bills or in the prices of goods and services, into which infrastructure costs are rolled.' ”

Tips by the IDA that property owners may want to consider are:

• All light should have a definite purpose. Before installing any, homeowners should weigh reflective paint or self-luminous markers instead of permanently installing outdoor lighting.
• Light should be directed only where needed, which is made easier with a shield and by aiming the light beam, so it points downward.
• Low light levels limit the amount of light.
• Light should be used only when it is needed rather than left on 24/7; that is why motion detectors and timers are useful.
• Light colors should be carefully selected and preferably warmer colored rather than blue-violet. “The blue scatters the light more in the night sky and increases the level of light pollution,” Libel says.

Please see the entire article at the link. And view the International Dark Sky Association site.

If you would like a home consultation because you are thinking about selling, please contact me by text, email or online. I have a lot of experience which I can put to work for you.

 

 

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

Beautiful corner lot home

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

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

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

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

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

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

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

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

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

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

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

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

 

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

Housing Affordability for California Buyers, Up or Down?

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

Regional/State Chart for home prices in California

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

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

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

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

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

Buyers Want to Know: About Area Schools

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

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

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

California Distinguished Schools

California School Dashboard

School Accountability Report Card 

Charter Schools in California

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

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

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

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