Quote For the Day By Theodore Roosevelt

Craftsman Bungalow Home in Long Beach

"Every person who invests in well selected real estate in a growing section of a prosperous community adopts the surest and safest methods of becoming independent, for real estate is the basis of wealth."  Theodore Roosevelt, Speech, September 9, 1903.

Whether you're wealthy or not-so-wealthy, consider how you can invest in real estate: as a sole owner, as an income property investor, or as a partner among several at your level of affordability.  You don't have to have the ability to buy the most expensive real estate in order to benefit from real estate ownership.

 

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

Early March 2024 California Real Estate Report

 Here's an abridged summary of CAR's market data report:

March 4, 2024 – Recent economic reports suggest that inflation continues to cool from last year but may remain sticky in the short term. ... While it is widely expected that the Federal Reserve will not cut its policy rate in its upcoming meeting, mortgage rates could begin to trend down more meaningfully towards the end of the second quarter if the economy continues to slow.    

 

Consumer confidence slips for the first time in three months: Consumers’ attitude towards the economy took a step back in February, as the Conference Board’s Consumer Index fell 4.2 points to 106.7 last month, declining for the first time since November of last year. ... Recent rising trend in interest rates could have affected how Americans feel about the economy as well, and concerns over the U.S. political environment may also have been a contributing factor to the decline in the optimism.    

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Mortgage rates remain elevated after key inflation data: The average 30-year fixed rate mortgage (FRM) reported by Freddie Mac for the week ending February 28 climbed again for the fourth consecutive week to the highest level since mid-December of last year. ... The Fed wants to see more evidence that inflation is slowing consistently and could wait until the second half of the year before making any rate cuts. Mortgage rates, as a result, could remain elevated at the start of the homebuying season. 

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Income edges up but inflation-adjusted spending dips: Americans were making more in January but may not be spending more after accounting for inflation. Personal income growth jumped 1% on a month-over-month basis and recorded the highest increase since July 2021. ... With the core PCE deflator notching its biggest monthly gain in 12 months, real consumer spending, in fact, declined 0.1%, the lowest since August of last year. 

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Construction spending unexpectedly falls in January: Construction spending in the U.S. started off the year slow with total outlays declining on a month-to-month basis by 0.2% in January, its first drop in 13 months. ... With vacancy rate likely to climb as more new apartments are expected to be released this year, multifamily construction should pull back further in the next 12 months.

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Mortgage delinquency holds steady near historic lows: Mortgage delinquency inched up at the end of 2023 but remained near record low levels, according to a recent report from CoreLogic. Mortgage borrowers who were late in making their payments by at least 30 days or more accounted for 3.1% of all outstanding mortgages in December, an increase of 0.1 percentage point from 3.0% recorded in December 2022. ... With home prices projected to increase in 2024 and the economy likely to experience a mild growth this year, delinquency rate could rise but is not expected to increase sharply in the next 12 months.

 

Spring is coming and so is it time to seriously think about your real estate plans for this year?

 

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

Colors Make a Difference When Selling a Home

Many times a property owner loves their colors, that deep purple wall in the living room is such a nice contrast to a golden orange kitchen.  And in some countries, bright colors or very deep colors are seen as desirable, so sellers need to work at what the buyer sees when viewing their home. The fewer the personal elements, the easier for the buyer to make the house his, or hers.  It may be difficult to achieve perfection in staging to sell, but usually paint, at least in the main entry areas and living room, is achievable for most people.

Color definitely has an impact on the feeling a prospective buyer may have about a home. Colors that are a personal reflection of the owner's taste may be seen as an additional expense to paint out for the buyer--and may even be a hurdle to getting an offer.  A large house with a strong forest green exterior was one the market in my area for the entire listing period, and never sold, even though an estimate was obtained for the buyer (multi-thousands of dollars to paint out). So the effect of color cannot be underestimated for most buyers, it's either difficult to look past and reimagine the home, and/or it's seen as another expense to fix.

So what do professionals, and agents, recommend?  Neutral colors. Warm neutral colors as opposed to cool neutral colors.  While certain gray colors are currently often seen in flooring and other interior features, they are usually on the cool side.  The owner should strive for a feeling of warmth according to a majority of 71 professionals surveyed.

Exterior colors may have the same effect.

However, in some areas such as Long Beach that have historic districts guiding the exterior home design, darker colors may prevail and be acceptable due to historic considerations. The era of the home can be the owner's guide in many cases.

For more on this topic, go to https://www.fixr.com/articles/paint-color-trends-2024#colors-for-selling-a-home-in-2024

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

January 2024 Market Report for Long Beach and Los Angeles County

LA County and Long Beach Housing Data, Jan. 2024

 Sales growth for Long Beach in January was down by 5%, while the median price climbed upward another 8% to $886,000.

Median price for all of Los Angles County was $925,000, also an increase by 8%.

Look at other cities: Similar median price but far fewer sales, such as Hawthorne, West Covina,, Claremont and San Dimas. 

 So one of the things this chart shows is that Long Beach is more active than other cities: housing variety, larger city, range of prices.

Sales over list price: in Long Beach in January, 49% of sales were over list price, for Los Angeles County it was 39% of sales were over list price.

(This is an interactive chart, display is a screenshot only.  I would be happy to forward the link upon request, it covers all counties and most cities in California.)

NOTE:  The graph at the right shows average home price for Long Beach for February 2024 was $1,086,764, and increase of  11.1%; the median home price in February was $925,000, an increase of 5.7% (compare to January median price of $886,000).

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