How Is Housing So Strong Right Now?

If you're a potential buyer or seller sometime in the past year, you've had some experience with Property Entry and Advisory Declaration (PEAD) forms, required for all prospective buyers to sign before entering a listed home on the market. 

PEAD Data

To backtrack a little, both the national and California economies have recovered, and COVID figures are on the decrease at this time.  Looking back to Feb.-April of 2020, earning data shows that job losses for people earning over $100,000 annually were at 12%; job losses for earners under $100,000 annually were at 88% -- the retail, food industry and other service jobs were the hardest hit, while the other job categories over $100,000 income were not hit nearly as hard.  Interest rates are at historic lows and are likely to stay that way for sometime to come.  Mortgage applications dipped last Spring, but climbed way up in January 2021, all of which is fueling home sales in 2021.  California saw a 22% increase over last year in number of homes sold, over 484,000 in one month (but compare to January of 2005 when over 600,000 sold).  

In December, 2020, total California home price rose to $717,930 (+16.8% from last year); fueled also by low inventory (-48%), leading to median of 11 days on market and a list-to-sales-price ratio of  100.1% (+1.9%). 

Southern California home prices have increased to $650,000, overall, over 16% since one year ago,  and sales have increased 13% year over year: By county, OC at $971,000; LA at $697,660; Riverside $495,500; San Bernardino $390,000; San Diego $730,000; Ventura $776,000.

This is the strongest growth in California in 7 years.

Only 5% of sales are all cash, but two of five homes were sold to first time homebuyers.  And 33% of those 1st timers had more than 20% down payment!!  Yes, parents, friends and family are helping them out. 

So as the charts above show, showing traffic shows the homebuying momentum as the PEAD forms are tracked in various counties.  Lately the showing pattern is: put home on market mid-week, showings take place at 15 minute intervals Friday, Saturday, Sunday, offers are due in Sunday or Monday, by Wednesday of the following week, the buyer is found.  Needless to say, winning offers are completely documented with solid loan pre-approvals and proofs of funds.  This is a hectic time for buyers who must compete and be prepared (on some properties) to overbid. 

With the lowest housing supply in years, most sellers who can think about making a change will get showing activity.  If you're wanting a home value estimate, this is a good time to contact a Realtor.

See the complete housing report here
 

 

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

Long Beach Sales Volume and Price Comparisons in 2020

2019-2020 Sales Volume Comparison, Long Beach

As broken down by area, the highest number of sales for 2019 and 2020 took place in the North Long Beach area, followed by the Bixby area and Lakewood Plaza.   Most areas had fewer sales in 2020, but Belmont Shore/Naples areas actually had higher sales volume in 2020 compared to 2019.

See how average Long Beach single family home price (blue) rose in 2020 compared to 2019 with lower inventory (green) for single family homes! The top average in 2019 was under $800,000, whereas the top average in 2020 was just under $1,000,000. The Corona virus and the restrictions placed on how homes were to be shown (for the really motivated buyers and sellers) the market prices continued upward, fueled by the lowest inventory and lowest rates seen in recent times.

 

2020 Average sales price Long Beach

2019 Average sales price Long Beach

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

New Real Estate Laws Which Might Affect You in 2021

 Condominium or other homeowner association homeowners may be accustomed to establishing the number of rentals allowed in the association, but under AB 3182, the common interested development must now allow at

Happy 2021!

least 25 percent of owners to rent or lease out their units starting January 1, 2021, regardless of whether the HOA has formally amended their governing documents. This also includes ADUs related to the property:  if the owner occupies his own unit then renting out a space within the unit, an ADU or junior ADU must be permitted. No matter what, the existing rights that owners currently enjoy to rent out their units cannot be changed. Thus in a 30 unit building, 25% of the units is 8 (rounded up from 7.5) which may now be allowed to rent out, regardless of what current rules or CCRs state.

 Rent moratorium and other state and local laws affecting landlords and tenants are in effect, or may soon expire.  They are numerous and complex, so without mentioning them further here (AB3088 and SB 1079 would be two of those laws), any landlord or tenant is advised to consult with their local city and/or county, and/or apartment association attorney, before selling, renting, raising rents, or evicting concerning his/her property.

The law authorizing the revocable transfer on death deed which allows a transfer of property by deed to a named beneficiary has been extended for another year.  (SB1305). This is another legal instrument which the property owner is wise to seek some legal advice about before making such a transfer.

Home hardening disclosure which requires a seller of a home built before 2010 in a designated high or very high fire area to povide a buyer with documentation that it is in compliance with local laws about vegetation management and defensible spaces. Look for more information here from Cal Fire https://www.readyforwildfire.org/.

 AB1885 increases the homestead exemption to $300,000 or the countywide median sale price of a single family home, whichever is greater, not to exceed $600,000.  In Los Angeles County, that would be $600,000.  Existing law exempted $75000 to $175,000 (depending on residents' situation) of a home's equity from a judgment debt.  The new law increases this equity exemption amount to the higher levels, and will be adjusted annually for inflation.

AB2463 prevents foreclosure of a principal place of residence based on a judgment lien if it was based on consumer debt. 

This is only a portion of new laws affecting California property owners, for instance the new laws passed under Proposition 19 have been discussed in 2 earlier posts.  For a complete list and more explanation of new laws concerning renting and rent control, consumer privacy act, foreclosure forbearance, exemption from reassessment after a declared disaster, and more, please contact me for a digital copy.

 

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