Fire Protection: Home Hardening Law for 2021 in California

Are you a property owner who's considered fire resistant materials for your home? If you already have made certain changes, you're probably closer to protecting your property in case of wildfire. Wildfires are not just in a certain part of the state, for instance, they could happen anywhere you live near brush and vegetation. A new law came into effect January 1, 2021 that requires a disclosure for properties that are:

• Within high or very high fire hazard zones 

• Built before 2010 

• Residential one to four properties; condominiums or other common interest development units; or manufactured homes    

The fire zones are disclosed in the natural hazard disclosure statements required in property transactions, where the box is checked on the form for which zone(s) the property is in.  Natural Hazard Disclosure reports and statements, required in California, are most often completed by professional sources which assume the liability for and have access to statewide reports concerning the hazard zones and required disclosures in California law.  California Association of Realtors now includes a disclosure form for sellers as part of their transactional documentation in a sale to cover requirements under the new law.

Fire hardening measures include Class A fire rate roofing materials (composition, tiles, steel), using 1/8" mesh at chimneys and vents, using screens over rain gutters, keeping vegetation at least 5 feet from the property, and multi-paned tempered glass.  

Parts of Los Angeles and Orange Counties may be significant for taking measures, but even in non-high-fire zones, they are a good idea for overall home maintenance and protection.

CalFire's website https://www.readyforwildfire.org/ contains this agency's advice on preparing for wildfire.

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

2020 Single Family Review for Los Angeles County

LA County House Snapshot for 2020

Last year saw a  consistent dip in all housing metrics after the beginning of the pandemic shutdown, but then a recovery began mid-year that hasn't stopped since.  The current market is marked with multiple offers and prices shooting upward since the end of January 2021.  The close of February showed an average house price for the County sitting at $1,232,890, an increase of 23% over one year ago, while the median price was $830,000.  February's average County-wide home price of $1,232,890 exceeds any average home price since 2008 and before. Some of the properties are seeing an increase of $50,000 sale price over list price, while others are  selling at or just above list price; one property in California Heights in Long Beach was listed at $699,000 and sold for $850,000.  It's not unusual for 15-20 offers or more, for houses that are move-in ready and partially or fully upgraded.  Months inventory, meaning how many houses are actually available for sale, is critically low, and it is this low inventory that fuels the upward price surge.  For January and February, months supply is 1.8 months (normal inventory supply is 6 months, but that's been gone since 2012).  Interest rates have been well below 3%, but with a recent increase in rates, mortgage applications have slowed. 

If you would like a market evaluation for your home or condominium, please contact me.  It's an ideal time to sell.

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

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