Not All Homes Are Selling Immediately in Long Beach--Opportunity?

Almost every day there is an article posted about the shortage of inventory, and I personally hear stories of fellow Realtors with buyers who are in heavy competition with others to find their next home.  It is very much a time of low inventory overall, and buyers may actually be racing each other to the next home viewing before quickly putting an offer. Many homes in the Long Beach area are going into escrow after just a few days on the market--especially in certain areas such as East Long Beach. 

Long Beach park

But not all sellers are moving as quickly as others.  There could be various reasons for this, but nevertheless, not everything is selling in 8 days.  At the top end of the market, a house on the Peninsula listed for $4,779,500 and facing the ocean has been on the market for 361 days, almost a year, although it's been in escrow 3 times, and is currently back on the market. The next lengthiest listing is a small bungalow house on the market for $469,000 for 208 days in the area between 10th and Anaheim. Another bungalow house near Atlantic Ave and 6th St (downtown area) is on the market for $505,000 for 157 days, another investor or first time buyer opportunity.  Four more homes located in Lakewood Village, Belmont Shore, Belmont Heights, Naples,  and downtown are still waiting for buyers, all having been on the market longer than 106 days.  Another 21 homes in all areas of Long Beach have been on the market between 85 and 32 days as of February 4th, prices ranging between $499,000 and $6.8 million+. The remaining 67 active listings have been on the market less than 30 days, which is indicative of general market conditions.  

In the last 6 months 1,096 single family homes sold at an average price of $981,930 ( in spite of one taking 403 days) in Long Beach with an average of 20 days on the market.  There are currently 169 single family homes in escrow at an average of 25 days on the market, with some areas selling especially quickly:  Stratford Square (1) has 7 average days on market; Los Altos (7) average 17 days; Lakewood Village (3) average 13 days; Ranchos/Lakewood Plaza (10) average 11 days; El Dorado Park Estates (3) average 16 days, and so on.  Practically all areas are selling under 30 days on average.

But for some houses, even though inventory is low and the average time on market is low, there can still be opportunity for some buyers.  Please feel free to use the property search at http://www.juliahuntsman.com, where you will find all the listings as shown on the MLS.  

Market Graphics

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

New Laws Affecting California Real Estate Starting in 2022

Naples Canal

Every year many new bills are signed into California law, and this year is no exception.  Not all have to do directly with real estate, but here are some of the ones that do:

AB 468 concerns emotional support animals (which are not the same as service animals).  While landlords must provide reasonable accommodation concerning emotional support animals per current federal or state law, there are now restrictions on how health providers may provide documentation, requiring specific language, in order to reduce emotional support animal fraud.  To read more about service animals vs. emotional support animals, go to Emotional Support Animal Fraud.

AB 491 Fair Housing Equal Access, a new law which states that in "mixed-income multifamily structures, all occupants must have equal access to common entrances, areas, and amenities as the occupants of market-rate housing units." (California Association of Realtors).  The purpose of this bill is to eliminate the "poor door" for certain occupants of designated affordable housing units who in some instances were not allowed to use certain entrances or common area features.

AB 938 Appraisal Discrimination: To combat this problem which has existed in some geographic areas (nationwide) , after July 1, 2022, Realtor contracts in California which also require the delivery of a Seller's Transfer Disclosure Statement (TDS), must contain specific language concerning unbiased valuation of properties which cannot be influenced by race, religion, marital status, pregnancy, and 13 other categories.

SB 392 Homeowner associations must "communicate with homeowners via email if that is the homeowner's preferred method of communication (for notices that are required to be delivered individually under the Davis-Sterling Act)." (California Association of Realtors). This is a time saver and a money saver for associations which may be spending hundreds of dollars annually on mailing costs for multi-page documents that are required by law to be sent to HOA members. The annual budget report, annual policy statements and notices regarding assessments or delinquencies, among others, are notices that must be delivered "individually," and thus, the homeowner may now require that they receive these notices via email.

SB 9 governing lot splits in otherwise single SFR zoned areas, is lengthy and should require in depth study by the interested party:

"This law requires a city or county to ministerially approve either or both of the following, (subject to exceptions and conditions):  a) A housing development of no more than two units in a single-family zone ("duplex").  b) The subdivision of a parcel zoned for residential use, into two approximately equal parcels ("lot split")." (California Association of Realtors).

Existing law governing zoning of units and/or Accessory Dwelling Units may help the end user achieve his/her housing dream, and in spite of media coverage on how SB9 will chop up neighborhoods, there are many requirements to be consulted with, so long term affect may ultimately be seen as one more tool for increasing housing, rather than a huge overwhelming impact on neighborhoods.

 Further laws concern redaction and disclosure (if known by the Realtor) of restrictive covenants AB 1466;  SB 60 governing short term rentals; Revocable transfer on death deeds (avoiding probate) SB 315;

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

The Shape of the Housing Market to Come

According to Tian Liu, Chief Economist at Enact, remote work is still driving the housing market buyer preferances.  COVID-19 has shaped the choices and home desires, and will continue to do so well into the future.  Homes are the complete center of people's lives as they assume the roles of work center, recreation center as well as family living center. According to a recent survey of 1000 Americans, 44% want to work from home without venturing elsewhere. Rental homes fall into the same category:  "According to Invitation Homes, a major single-family rental company, rents for new leases grew by 13.8% year over year in second-quarter 2021, while rents for renewals grew by 5.8% year over year. These figures represent significant increases in the value that people place on single-family homes." 

For younger buyers, when to buy is a timely question--for each of the past five years, 5.5 million people reach their 33rd birthday--peak homebuying years. Historically low interest rates have helped to push many of these people into the buyers market, rising last year from 2.65% to 3%. The higher rates anticipated this year may bring a correction to prices, or at least a slowing. 

Rapid home price growth has also been fueled by the lag in new home construction. Many homes for which permits have been issued are anticipated to be completed in 2022, growing the inventory significantly and impacting the sellers market into a more balanced one.  Buyers are cautioned to be realistic in their home appreciation expectations if they buy now--historically homes have provided modest appreciation in value.  Like many other investments, they should look to the long term.

https://www.scotsmanguide.com/browse/content/the-pandemic-continues-to-shape-the-housing-market

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