Interested in Owning/Living in 2-4 Unit? New Lower Down Payment

Mediterranean duplex style

 New loan limits are in place for 2024, by both FHA (Federal Housting Administration) and FHFA (Federal Housing Finance Agency).  FHFA is the regulator of both Fannie Mae and Freddie Mac loans. The new conforming loan limit is $766,550, an increase of $60,000 over last year's limit.  For FHA loan, popular among first time buyers, the limit is $498,257.  But due to higher cost markets in some areas, in California, New York, the District of Columbia, Hawaii and other pricey markets, the limit for FHFA conforming loans in 2024 will be set at $1,149,825.  

Also, as of last November 18, 2023, FNMA is accepting 5% down payment on 2, 3 and 4 unit properties.  They must be owner occupied in at least one unit.  This lower down payment allows the purchaser to put more money towards standard purchase costs, property maintenance or reserve funds for the future.  To obtain qualification information, the buyer needs to contact an experienced loan officer for more information on all loan limits and financing. A buyer should also learn about owner/tenant laws, and more, assuming other units will be rented out, which of course brings in income on the property. This lower down payment is a huge benefit to buyers interested in residential multi-unit purchases.
For representation to purchase a property and assistance with all contract and disclosure aspects of buying, please contact me, a REALTOR since 1994.

 PROPERTY SEARCH:  Find multi-family units at this link and complete the form for residential income, select "active", and then under "property subtype" select (use control button) duplex, triplex, quadraplex, multifamily, and then click "Apply".  Long Beach and Lakewood, as of January 17 have approximately 48 active multi-unit listings in the MLS at all prices. Some listings may show a "Down Payment Resource" link to another site for financial information for the buyer, as well as directions, map location of property, and other tax and feature information.

This search box may be used in multiple areas for multiple types of properties. Please contact me for further information about areas.  The information you see at this link is directly from the MLS, however if you have questions or are looking for in depth assistance, please let me put my experience to work for you.

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

What’s Happening in the Long Beach Area Housing Market? Speeding Ahead?

Boat in Marine Stadium

It’s probably not a shock that the real estate market is softening. After a period of low-interest record rates, we’ve seen a significant increase in the average mortgage after multiple subsequent rate point hikes from the Fed as it tackles inflation. This has hampered both buyers and sellers.

This creates a lock-in effect. Homeowners like you probably hold a low-interest rate mortgage and are reluctant to sell in an environment with rising rates. Buyers also don’t want a high-interest rate, but buyers are still in the market. Mortgage companies offer alternatives to a 30-year fixed loan along with many ways the buyer and seller can work to buy down the loan to make the payments more palatable.

There are fewer listings on the market, and active buyers are still looking for the perfect home at the right price. Some homes are still selling within weeks, about 30% nationally. What’s the secret? Being ready for occupancy and pricing properties based on condition and comparable sales.

An excellent REALTOR can work with you to do the right things to make your home attractive to potential buyers. If you’re not interested in selling right now, you can sit tight because you’ve built equity in your home, and even in this unsteady market, that equity will likely not erode.

I’m always here to answer questions about the property value of your home and specific neighborhood comparables. Please use your favorite form of communication to reach out!

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #0118899

What is the Value of a REALTOR?

 A REALTOR is a member of the National Association of REALTORS, and in California, a member of the California Association of REALTORS and a local Board of REALTORS. Being a REALTOR member, among other things, means there is a Code of Ethics required of all members as set forth by the national Association and enforced at the state and local levels. When a seller or buyer hires a REALTOR agent, he/she hires an individual (who may also be part of a team) to help them through a very large financial and personal event of selling or buying a new home.  Sometimes, even though the client may view a presentation, the full duties and obligations of the REALTOR may not be fully expressed at the time. But in fact, there are upwards of 160 things a REALTOR does in most transactions, all as part of their agreed upon commission:

1. Pre-listing activities which include valuation, property analysis, research other relevant properties in tax record and MLS, answering preliminary questions from seller, setting up appointment, prepare listing presentation, and more.

2.Listing Appointment Presentation which includes market condition and projections, review agent's profile and credentials, power of MLS and web marketing, explain agency, review and explain all listing contract documents, net sheet, selling conditions in a tenant occupied property, staging, included property, and other possible factors.

3. When property is under Listing Agreement, there are multiple documents for review by and seller signature, required by state law and/or broker practice, repairs (which can also come up much earlier in the process), obtaining of keys, showings, to name just a few.

 To continue on, each of the following categories also involves many detailed steps: 4. Entering Property in Multiple Listing Service Database, 5. Marketing The Listing, 6. The Offer and Contract, 7. Tracking the Loan Process, 8. Home Inspection, 9. The Appraisal, 10. Closing Preparations and Duties, and 11. Follow Up After Closing.

Additionally, there are sometimes unexpected challenges that may occur which a REALTOR may have to spend additional time on - probate properties which require specific handling and working with the estate's attorney, or challenges to the buyer's loan due to sudden interest rate increases, additional negotiations to solve these problems, or property conditions discovered during the buyer's inspection. No two transactions are ever the same.

 So if you as a seller or buyer are wondering about your  transaction, ask your agent, it's important for the client to know and understand as much as possible!

And for a COMPLETE list of what happens, please feel free to contact me, because I have always found that the more prepared a client is in the beginning, the greater the communication and hopefully, satisfaction, will be.

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

Happy Holidays to All

 

 

 

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

California Lic. #01188996

Long Beach November 2023 Residential Market for Condos and Houses

 The November average sales price for a single family home continued up from November 2022 (on a monthly basis), as did the median price, by over 12%! However, the overall average decreased slightly compared to the same time last year.

Condo prices went up on both a monthly comparison and for the over all year compared to one year ago.

New listings for SFRs were down compared to November of last year, showing the inventory crunch (a pattern found in just about all markets); but for condos new listings were up, but pending sales and closed sales were down from one year ago.  And for both types of sales, the number of days on market are longer.

 The good news is that the 30-year interest rate has recently decreased, which makes a difference on the buyer's prospective monthly payment! So we hope to see more of this in 2024.

 For an estimated value of your property whether it's one, two, three or four units, please contact me. I can help you plan before you take any actual steps.

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

Holiday Events for December 2023

Looking for fun things to do in December? Here's a partial list of local activities!

 Dec. 7-9 - Rancho Voices: A Holiday Celebration - https://www.rancholosalamitos.com/events.html

 Dec. 8 - Homeschool Holiday - https://www.aquariumofpacific.org/events/info/homeschool_holiday

 Dec. 8 - Versa Style Dance Company - https://www.carpenterarts.org/event/versa-style-dance-company-0

Dec 8 - 17 - The Nutcracker - https://www.scfta.org/events/2023/american-ballet-theatre-s-the-nutcracker

Dec 9-23 - A Christmas Carol Long Beach Playhouse - https://lbplayhouse.org/event/a-christmas-carol-2023/ 

 Dec. 9 - Long Beach Symphony Holiday Swing - https://www.lbentertainmentcenter.com/events/long-beach-symphony-5/

Dec. 9 - 10 - Huntington Harbour Boat Parade - hhboatparade.org 

Dec 10 - Maker's Market Long Beach Museum of Art - https://www.lbma.org/mc-events/makers-market-2/?mc_id-420091

Dec 10 - Chanukah Celebration - https://2ndandpch.com/portfolio/chanukah-celebration/

Dec. 15-16 - Celtic Woman Christmas - https://www.scfta.org/events/2023/celtic-woman-christmas

Dec. 16 - Breakfast with Santa - https://2ndandpch.com/portfolio/breakfast-with-santa/ 

Dec. 16 - The Long Beach Nutcracker - https://www.lbentertainmentcenter.com/events/the-long-beach-nutcracker-2/

Dec 19-24 - How the Grinch Stole Christmas - https://www.scfta.org/events/2023/dr-seuss-how-the-grinch-stole-christmas!-the-musical 

Dec. 30 - New Year's Eve Party Queen Mary - https://queenmary.com/tours/new-years-eve/

 

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

Are You Considering Creating an ADU on Your Property? New Law Allows it to be Separate Property

New ADU law now allows Californians to create and sell as a separate property, whereas previously  they were only rental properties.

Accessory Dwelling Units have been allowed for several years now, and were created under state law.  

"ADUs come in all shapes and sizes — for example, a converted garage, a small home in the backyard, or, as often seen in San Francisco, an unused portion of the main house, said Assemblyman Phil Ting (D-San Francisco), who drafted the legislation.

"Under AB 1033, which was signed into law this week, property owners in participating cities will be able to construct an ADU on their land and sell it separately, following the same rules that apply to condominiums. It gives homeowners more options for building on their property, and “the hope is, it would create more homeownership,” said Ting."

The idea is that this may allow more affordable homeownership including existing owners who could move into a rear property while renting out, or selling, their existing home. 

This has been successful in several other states, and in California, each city will be opting in to the plan in order for it to be an owner option locally.  Interested parties need to go to their local government to discover current plans for this owner option, and follow the local guidelines to create an condominium-style ADU.  For a recent article on this ADU law, go to the link.

 

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

Rental Relief for Eligible Residential Landlords in Los Angeles County

 

Downtown Long Beach

Are you an owner of residential 1-4 units in Los Angeles County?  A program is now launched to assist landlords impacted by the COVID-19 pandemic and tenants who fell behind in their rents. 

Landlords may begin applying in mid-December and multilingual support will be available. This program is offered through Los Angeles County Rent Relief and administered by the Department of Consumer and Business Affairs. The program will offer grants of up to $30,000 per unit to eligible landlords for expenses dating from April 1, 2022 to now.

More information is available at www.lacountyrentrelief.com.

If you would like market information on your rental units for potential selling value, please contact me via text, email or phone call!

 

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

Long Beach Year-to-Date for Single Family Homes as of September 2023 (and LA County Information)

Year to Date Stats September 2024

 

 Long Beach Market, September year to date:  

• Existing home sales total 796 (down almost 30%)
• Monthly average of active listings total 94 (down over 26%)
• Active listings with reduced prices total 31.4%  
  

Sales to list price is 100% with the median price of $900,000.  There's still competition out there and at the same time sellers need to be realistic on pricing and offers for their local market.

As of 11/7/2023: there are 153 active listings of single family homes in Long Beach, with a median of 32 days on the market (yes, at this time of year timing is usually slower).

September Los Angeles County Inventory Report showing city prices and market information:

 

Contact me for your real estate needs!

 

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

New Real Estate California Laws for 2024

Here are some of the laws pertaining to real estate (although this is not all inclusive) that parties to a sale or purchase of a  home may want to know about.

 

• Property "flippers" must disclose recent repairs and renovations. This applies to residential 1-4 units, if property was closed within 18 months from prior sale, and renovations were performed by the contractor with whom the seller entered into a contract. For more complete information on this law, feel free to contact me, or review Assembly Bill 968.
• The Natural Hazard Disclosure statement now "expands the disclosures required by the Natural Hazard Disclosure Statement (NHD) to include High as well as Very High Fire Hazard Severity Zones (FHSZ) by explicitly highlighting three new subcategories of FHSZs. If the property is located in any of these zones, the defensible space and (for properties built before 2010) fire hardening disclosures would then be required."  Assembly Bill 1280.
•  ADUs (Accessory Dwelling Units) may now be sold separately as a condominium from the primary residence. Assembly Bill 1033

 There is now a permanent prohibition on requiring owner occupancy of a parcel containing an ADU.  Senate Bill 976

The California FAIR Plan Association (fair access to insurance requirements) plan will be extended to commercial properties by July 1, 2024, and the new law requires the Association to reduce the number of existing policies by allowing admitted insurers to offer homeowner policies to current FAIR Plan policy holders. Senate Bill 505

Allows a jurisdiction with local rent control to require an owner of a rent-controlled unit to allow a tenant with a permanent physical disability to relocate to an available comparable or smaller unit located on an accessible floor of the property and retain their same rental rate. Assembly Bill 1620.

Landlords may collect no more than one month’s rent for either furnished or unfurnished units in addition to first month’s rent. There is an exception for small landlords, defined as a landlord who is a natural person or LLC and owns no more than two residential rental properties with no more than a total of four units offered for rent.  Assembly Bill 12

Vacation Rentals: Beginning July 1, 2024, AB 537 prohibits a place of short-term lodging, as defined, from advertising, displaying, or offering a room rate that does not include all fees or charges required to stay at the short-term lodging, except government-imposed taxes and fees. Assembly Bill 537

Listing Agreements. This law prohibits: 1) exclusive listing agreements lasting longer than 24 months from the date the agreement was made; 2) renewing an exclusive listing agreement for longer than 12 months from the date the renewal was made; and 3) recording or filing an exclusive listing agreement of any duration.  Applies to residential one to four properties, condos and manufactured homes. It also deems any licensed real estate professional who violates these prohibitions as having violated that person's licensing laws.  Assembly Bill 1345

 There are numerous additional laws concerning tenants/ owners, housing laws, short term rentals, and more.  For the complete summary, please contact me via text, email or phone call.  I will be happy to help!

   

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