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.

 

 

 

What Are Some of the California Tenant/Landlord Rules About Pets In HOAs?

If you live in a homeowner association in particular, questions may have come up about the presence (or not) of pets when leasing property:

California passed new pet laws effective in 2000 for homeowner association owners, allowing a minimum of one dog, cat, fish, or bird (simply speaking) per owner.  The homeowner association is allowed to set further rules concerning size, number of pets above one, and other rules including the presence of animals in the common area, or animal behaviors, as long as they don't conflict with state law.

So what does this mean for tenants who are renting in a homeowner association, because the pet laws for owners do not necessarily apply towards tenants, the exception to many of the following rules being if the tenant is disabled and requires a certain service animal under "reasonable accommodation" rules.

• A landlord may ban pets in a lease; the law allowing pets in an HOA concerns owners, not their tenants.
• A landlord can restrict breeds or types of pets.
• A larger deposit may be charged if a pet is allowed, but the total deposit must comply with California's rules about maximum security deposits.
• If allowed in a homeowner association, the pet provisions will apply concerning any rules such as cleaning up pet waste in the common area, being leashed in the common area, or areas where pets may be allowed or prohibited such as pools or other recreation areas.
• If, for example, a dog bites or harms the postal worker who is on the property delivering mail, the dog's owner will be responsible for his/her pet, and the property owner could also have some responsibility depending on the circumstances involved.
• A landlord/tenant lease can require the tenant to obtain renter's insurance to cover pets on the premises.

For more detailed information, please contact me via phone or e-mail to be sent a more detailed summary prepared through California Association of Realtors about landlord/tenant pet laws and how they might affect you, whether you are or will be a landlord, tenant, or someone who may want to know more about service animals in this situation.

Tighter Lending Standards Are Making Home Sales More Difficult

Long Beach housing inventory/end of 2012

Although much is being said about the housing recovery, the fact is that mortgage loans are much tougher to get than in years past.

• It's just recently come out that some lenders are loosening up the requirement for equity (30% or more) for owners wanting to keep their current homes, but then, a lot of property owners just getting into the market didn't know about that rule in the first place.  It's one of the many things making it difficult for people to move on, because even if they otherwise qualify for a new mortgage, their property doesn't. 
• Another issue is FICO scores.  Higher than ever scores are being demanded of the "average" buyer and this has impacted the market to the extent that, per Laurie Maggiano of the U.S. Treasury's Homeowner Preservation Office, between 2007 and 2012, new home purchases dropped 30% for those with a FICO score over 780.  In that same period of time, new home sales dropped 90% for borrowers with a FICO score between 620 and 680. "Where are these folks supposed to live?" asked Maggiano.  (At one time, a FICO score of 700 or higher was considered very good for a borrower.)
• And then again, specific lenders have their own overlay of loan requirements.  Fannie Mae and Freddie Mac may accept FICO credit scores as low as 620, and FHA will approve applications with scores as low as 580, yet investors for the loans may require FICOs at least 60 points