California: 2019 Just Cause Eviction and Rent Cap Bill AB 1482

Studying new rental laws?

As of this date, this California state bill has not yet been signed by the Governor, but is expected to be since he has indicated his approval.
Bill signed in October, 2019.
Update: Long Beach rent ordinance rescinded by Council on Dec. 3rd, 2019.

Exemptions for Previously Existing Ordinances

This AB 1482 recognizes local ordinances, such as Long Beach Tenant Relocation Assistance (see link at bottom), passed prior to September 1, 2019 as follows:
Even if a local ordinance is less protective than the AB 1482, it will preempt the newer state law unless "more protective provisions" are passed to that local ordinance after September 1, 2019. If Long Beach or other cities were to do that, specific terms must be met.  "More protective" means:

"1. The local law must be 'consistent' with AB 1482. 2. The local law must provide higher relocation assistance or provide additional protections. 3. The local government has made a binding finding that their local ordinance is 'more protective.' "

 So if you're a Long Beach landlord or renter, check the link to the local ordinance below for complete coverage of its terms which went into effect August 1, 2019. Please note that OYOs and stock coops may be subject to rent caps and just cause under the new AB 1482, as noted below. Note:  Just cause under AB 1482 applies to tenants who have been continuously and lawfully occupying the property for 12 months or more. 

Otherwise, if you're in another city without its own ordinance, or unincorporated areas, you will probably need to look at the link to AB 1482.

AB 1482:
Goes into effect January 1, 2020.

Rent cap:  All rental increases since March 15, 2019 will count toward the cap of 5% plus inflation, or up to 10% total, whichever is lower.  See indexes for determining inflation https://www.bls.gov/regions/subjects/consumer-price-indexes.htm#CA  or this index if regional information not available for you  https://www.dir.ca.gov/OPRL/CPI/EntireCCPI.PDF.

Exemptions from the rent cap: 
Single family residences and condominiums, provided renter receives notice of the exemption (this may not include stock coops or OYOs, however and they may be subject to rent caps and just cause);
The owner is not a real estate investment trust, a corporation, or an LLC in which one member is a corporation;
Housing built issued a certificate of occupancy in last 15 years, generally meaning newer housing;
A duplex in which one unit is owner's primary residence;
Housing restricted by deed as low, low income housing;
Dormitories for higher education institutions;
Housing already subject to local rental control ordinance;
Section 8 rentals are likely exempt;
Exemption for just cause for ADUs, and an SFR that rents out up to 2 bedrooms in the house, or in which a tenant shares bathroom or kitchen facilities with the owner; 

Reasons for just cause eviction include: non payment of rent; breach of lease after given notice to correct violation; nuisance; unlawful use of property; damage to property; refusal to allow entry; when a tenant fails to vacate after giving notice of leaving; subletting property in violation of lease.

One month's rent must be paid to a tenant in the following circumstances including: withdrawal from rental market; demolition or substantial remodeling of property; government order to vacate; conversation of property to owner occupied.  Relocation assistance is not contingent on the renter's income amount.

Finally:
This post is NOT an exhaustive summary of these laws, so it is advisable for additional assistance to be consulted whether you are a landlord or a tenant.    However, I would be happy to provide the entire legal summary, as currently provided by the California Association of Realtors legal team, in pdf format, if you provide me with your contact information. It covers many questions and answers in great detail concerning AB 1482. 

For reference:  CA Bill 1482 , Long Beach Tenant Relocation Assistance Bill.

Finally, complete property search of both sold and active listings are available on my website at www.juliahuntsman.com, simply by looking in the dropdown list under "status"-- the following is a link to income property throughout Los Angeles County actively listed in the MLS:  Income properties.
Rental/for lease properties may also be searched on the site in the same way.
Please feel free to  contact me for help on finding a property!!
.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Average Selling Prices for August, 2019 in Long Beach,Lakewood, Cerritos, Huntington Beach and Three Counties

Alamitos Bay, Long Beach

All these prices are for the month of August, 2019, based on data from CRMLS Infosparks:

Average prices for single family homes in Orange County were showing a slow downward trend since early 2018 but shot upward in May of this year, while Los Angeles County is still trending up from $919,000 in December 2018, and San Bernardino County's average remains solid.
The average days on market for the four cities is about the same as in June.  However, in the very high end markets in Long Beach, properties over $1 million are now generally on the market longer than those under $1 million.  In comparison, prices for the 236 actively listed Long Beach houses under $1 million are currently at 49 average days on market at an average list price of $657,000.  More buyer opportunity in this range!

Luxury Market:

There are currently 87 active single family homes (as of 9/24) listed over $1,000,000 in Long Beach, the average days on market is currently 87; the average days on market for all single family sales over $1,000,000 in the last 6 months was 60 days for 149 properties. There are currently 34 properties in escrow, average of 99 days on market.  If you have a listing over $1,000,000, it might be taking a little longer to sell.
In comparison, in 2018, 241 single family homes sold over $1,000,000 in an average of 63 days.

Average single family home prices vary according to area, and here's what they look like locally:

August, 2019

Long Beach
$743,017 (down 1.2% from July)  Avg Days on Market : 36

Lakewood
$628,684 (up 3.1% from July)       Avg Days on Market : 22

Cerritos
$728,655                                        Avg Days on Market : 42

Huntington Beach
$1,014,446 (18 month high)          Avg Days on Market : 40

Los Angeles County
$966,765 (still down from a high in May, 2018)

San Bernardino County
$377,714

Orange County
$1,087,04

The above prices are for single family homes, please contact me for condo market prices!

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

A Little Random Data About the Long Beach Market in August 2019

As of August 26th, there were 299 active listings for single family homes in the MLS:

Smallest house for sale = 480 sq. ft.
Largest house for sale = 7692 sq. ft.
Lowest list price = $375,000
Highest List price = $11,995,000
Longest days on market = 525
Listings that mention a bomb shelter = 0
Listings that mention walk score = 4
Listings that mention a pool = 30
Listings that mention granite = 77
Listings that mention an ADU = 7

On occasion, there is a listing that describes a bomb shelter (a 1950s era feature); walk score has gotten a lot of talk in the past, but where is it now?; pools are very much in the market, but not desired by everyone; granite couinters hit the big time for over a decade, but may not be desired by all buyers who may decide other material, such as quartz, is more to their liking.  And ADUs (accessory dwelling units) were passed into law in California as an attempt to help ease the affordable housing crunch--if you are thinking of adding one, be sure to check in with the City's requirements first--the upside is they are good way to have a second legal unit without having to be in an R2 zone.

If you are interested in looking into a property with these characteristics (or without) and want to know more, just contact me!

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

How a Listing Went From $1 Billion to A Low, Low, Selling Price

This story could be the story of many sellers, albeit on an exaggerated scale.  How did a property on the market for $1 billion dollars ultimately sell for .1% of that, or a 99.99% loss?

It's the story of an investor buyer who wanted the 157 acre parcel in Beverly Hills, and to get it he borrowed $45 million from the seller (Mistake No. 1), the Mark Hughes Estate, and bought it in 2004.  In time, the debt surged to $200 million with interest and fees added. The investor transferred ownership to an LLC controlled by the investor's partner, which was unsuccessful last month in declaring bankruptcy.  The Hughes estate could either buy the property back, but lose the $200 million it was now owed, or let it go to foreclosure auction. But any other buyer purchasing prior to the foreclosure auction would have to pay the $200 million in debt, and there were no takers. So the property went back to the Hughes estate, after 15 years, leaving it to absorb the $200 million debt.  However, the LLC, known as Secured Capital, made a last minute offer of $150 million for the property, but the estate ignored the offer, according to the company's attorney (Mistake No. 2).  So last week, the property sold for $100,000 at auction. 

So 1) don't overprice your property; 2) or do a carryback loan to a buyer who can't perform, 3) and, finally, know when to cut your losses so you don't lose out completely (the estate could have at least recouped $150 million) and then, end up selling at a below market price that you can't even buy a condo for.  And last but not least, check your days on market, and keep checking your market value.


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

July 2019 Market Prices for Houses in Long Beach

No matter what is said about housing affordability up to this point, the house prices continue upward overall.

In January 2014, the average price of a single family home in Long Beach was just under $500,000. Following the peaks and valleys all along since then, the average price in July 2019 was $775,352, while the median (midway point of all SFR's sold) is $660,000, vs $455,000 in January 2014.

Days on Market:  July, 33 average days on market. This is time before an accepted offer, so what does this mean? You can't waiting around forever before making an offer.

List to Sold:  In the last 5 years, houses have sold in the range between 97% of list price to 100% of list price, with the July average at 98.6% of original list price.  So what does this mean? That you have to make your offers strong.

Months Supply:  This is the amount of inventory on the market before it would run out at the current rate of sale, and this has been ranging, since 2014, between 1.5 months and 3.5 months.  It's been a long time since the 6 month supply level, considered the market norm, has been around. So what this this mean? Limited supply helps drive prices up, less inventory,  continued demand.

Closed Sales:  Since 2014, this varied  between monthly lows of 102 and 106 SFR closings a month, to 259 a month.  In July, 212 single family homes sold.  What does this mean?  It's not unusual for low sales in January and more sales in the summer.  Since 2008, the highest number of sales were in August 2012 (260) and June 2017 (259).   Per data on the MLS, just to compare, going further back to January 2000, 183 SFRs were sold; in July of 2001, 350 SFRs were sold.  So our market volume has slowed consideredly since that time, and prices have gone up.

But buyers are still looking to buy, so if you are thinking about selling, even if you're not sure when, whether you have a house, condo, or unit properties, please contact me. I can work with trust and probate properties also!

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

It Just Got Easier to Buy and Sell Condos with FHA

Downtown Long Beach condo view

As I've previously posted,  condos haven't gotten a break from HUD for a long time.  Many HOAs, if not most, in Long Beach lost their FHA certification and didn't renew it.  It was once a permanent approval, but due to the 2009 and later mortgage fallouts, HUD required HOAs to renew their FHA loan approvals every two years.  For most Boards, that's a nano-second.  Plus, HUD removed the ability to get a "spot" approval, meaning a single unit could be approved for an FHA purchase, even if the rest of the HOA was not approved.

Finally, HUD is giving back.  Effective October 15, 2019, the new rules (click on the title link) will:

Extend the approval period from two to three years;
Allow for "spot" approvals, those single unit mortgage approvals, up to 20% (currently, none are allowed);
Allow additional flexibility in the ratio of investors to owner-occupants in the association, between 25-75% (currently, 50% owner occupancy required).

To give an idea of how this will help FHA buyers, nationally there are more than 8.7 million condo units, but only 17,792 FHA condo loans were originated in the last year, according to the National Association of Realtors.

These loans changes may also come under specific lenders' requirements, so who you work with on youir FHA loan may have an impact on what HOA may or may not be eligible.  However, since lenders want to make loans, there should be a lot of incentive to help a qualified buyer complete a condo purchase.
These new changes are very beneficial to condo sellers, who should find a buyer faster when not owning in an HOA-approved building.

If you are interested in finding out about a condo purchase, Please contact me.  I've been helping buyers and sellers since 1994!


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

Are You in Shock? Did Loan Forgiveness Affect Your Credit Score?

But not in a postive direction?

A consumer or borrower might think that getting rid of a loan would improve a credit score.  But the reality is that in spite of all the talk about helping students, for example, by helping them obtain cancellation of the school loans, just the opposite happened. In fact, I know of a non-student case where a borrower's second mortgage was voluntarily forgiven by the lender, but then that person went to obtain a new purchase mortgage loan approval to buy a second property, and their credit report now showed a foreclosure. And apparently, according to the New York Times, some student borrowers are finding that their loan servicers are reporting they are delinquent in loan payments,  rather than a debt forgiveness.  The next problem is that the loan servicers seem reluctant to correct these reporting errors, and thus the borrower's FICO score drops, and it may be enough to prevent obtaining a credit card, or a loan.

A mortgage borrower could notify the Consumer Financial Protection Bureau, assuming he/she has the documentation that the loan was cancelled. Also, a dispute concerning the reporting error could also be initiated through the credit bureaus. 



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

Here Are Important Tips For Your Online Home Search

Hunting for a new home online is a great place to start your search, but it should not be your end all be all. Good listing agents are excellent at highlighting the best features of the home, but keep in mind there may be more than meets the eye. To make the most of your time and efforts and gather a well-rounded picture of home listings online, keep the following three things in mind.

1. Stay up to date. When you start your search, make sure you find a site that pulls up-to-date listings directly from the multiple listing service (MLS) where real estate agents actively post their most current homes for sale. Many online resources update less often or fail to remove listings that are off the market, making it more difficult to sort through the clutter.
2. Pictures can be deceiving. Real estate photographers are experts at showing a home in the best possible light. Many use tools and strategies to boost appeal, such as a fisheye lens to make areas look larger and creative editing to make colors and textures really pop. But, often listings will not contain photos of unappealing parts of the home, like small closets or outdated bathrooms.
3. See it to believe it. Once you find what appears to be your dream home online, call up your REALTOR and schedule a showing. You want to take the opportunity to vet the home in person and explore every part of it before beginning the offer process. Your REALTOR will help you cover all your bases and will ask questions you may not have thought of.

---

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

For Sale in Long Beach in El Dorado Park Estates

El Dorado Park Estates home

Just reduced, great opportunity in desirable area of Long Beach, CA. 

Would be great for a buyer who needs a downstairs bedroom, a pool, and a remodeled kitchen with newer cabinets and granite countertops.  Sliding door from living room to pool area, formal dining room plus large eating area next to kitchen.  Central air and heat, great for the warm weather days. 

Direct access from the two car garage. Home has a total of 5 bedrooms, 3 baths. There are only two other houses on the market besides this one that have 5 bedrooms, not common!  Near El Dorado Park, the Long Beach Animal Shelter, close to Rossmoor shopping center. Near Newcomb Academy in Long Beach.
Price is now $919,900.00.  To see this property, contact me, easy to show.



Listing Broker El Dorado Realty SoCal.

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

Average Selling Prices for June, 2019 in Long Beach,Lakewood, Cerritos, Huntington Beach and Three Counties

View of downtown Long Beach

All these prices are for the month of June, 2019, based on data from CRMLS Infosparks:

Average prices for single family homes in Orange County were showing a slow downward trend since early 2018 but shot upward in May of this year, while Los Angeles County is trending up from $919,000 in December 2018, and San Bernardino County's average is now up the highest in the last 18 months as homeowners and investors find buying opportunity there.
The average days on market for the four cities is about the same as before.  However, in the very high end markets in Long Beach, properties over $1 million are generally on the market longer than those under $1 million.

Average single family home prices vary according to area, and here's what they look like locally:

June, 2019

Long Beach
$749,502                 Avg Days on Market : 33

Lakewood
$612,286                 Avg Days on Market : 28

Cerritos
$784,959                 Avg Days on Market : 43

Huntington Beach
$1,239,491 (18 month high)   Avg Days on Market : 40

Los Angeles County
$968,802 (still down from a high in May, 2018)

San Bernardino County
$377,243 (highest average price in last 18 months)

Orange County
$1,085,899 (down slightly from May 2019 18-month high)

 

For condo prices, please contact me!

For an online and automated home valuation, try my site at http://www.juliahuntsman.com/home-evaluation.  It probably works more accurately for single family homes than condos in some areas, depending on what properties lie within about a one-mile radius.  Try it!  And I am always happy to do a more customized report to send out via e-mail.  If you're thinking about making a move, do it! It pays to keep an eye on things.

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

The State of the Nation's Housing 2019: Harvard University Annual Report

What It Takes to Buy a Home in the U.S.

This forty-four page annual report describes housing issues on a national basis, so this is not the place to look for your local neighborhood or city stats.  Just keep these points in mind for your general knowledge.  The entire report may be viewed at the end of this post.

Housing supply has been discussed constantly, especially in California.  There was actually an oversupply of housing between 2000-2010, but since then builders have been slow to catch up, especially in the last 8 years.  The report goes on to list various reasons for this: builder hesitance, labor shortages, new housing being built for the high end of the market instead of lower end, rising  cost of materials make it difficult to build for the middle market, and objections to high density development in many areas.

But homeownership nationally is up to 64.4 percent, with the largest increase in the 25-39 age group, in spite of worsening affordability.  In California in 2017, homeowners numbered 7,137,000, at 54.9 percent of the population of 13,005,000 households. California ranked the highest of all states in the nation for number of homeowners, but states such as Delaware, Iowa, Michigan, Utah, and others, ranked higher in percent of homeowners, with New York being slightly lower in homeowner percentage compared to California, per the US Census Bureau, 2017 Community Survey.

The millennial and baby-boomer generations will be the two largest groups for housing demand:  "These two large generations will propel growth in 35–44 year-olds and lift the number of older adults to new heights." The 65 and older crowd  will grow by 11.1 million, and 35-44 year olds will grow by 2.9 million, all in the next decade.  This will be an increase of 8.4 million households for baby boomers, who are largely expected to age in place.  The demand for entry level homes will increase for the 35-44 year olds, the group with the most children.

The highest affordability rates are in metro areas where the home values are less than 3 times the income, and the median-income home could afford 84% of recently sold homes.  These markets are primarily in the midwest and northeast, where as the California coastal areas have home values approximately 6 times the income.

Assuming the current housing supply issues, and the continued demand for more housing, house prices and rents are expected to continue an upward trend.  And the constraints on housing development must be addressed.  In 2018, single family starts rose 9 percent in the West.

For the full report, go to the State of the Nation's Housing site.



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

What Is An iBuyer?

.... an internet buyer making an offer through one of several companies which claim to speed up and simplify real estate transactions, appealing to the convenience factor for both buyers and sellers. Offers are made sight unseen, based on a proprietary valuation model.  Maybe the speed is appealing, these after all are investor buyers, and you may need to sell quickly because you're in foreclosure, or some other type of distressed situation.

But the seller doesn't always know that these companies will still charge full commission, plus discount the fair value of your home in exchange for all that ease of sale. While this type of sale is relatively new to the market, some estimates are that the actual costs to the seller amount to a fullj 10% of the value of the home, whereas selling with a traditional agent could mean a 6 percent commission. 

"So what does this really mean for the homeowner’s bottom line? Most homeowners purchase their home with a mortgage. If you purchased your home for $400,000 with 20% down, you showed up to closing with $80,000 of your own money, which is also your equity. If the value of your home remains the same and an iBuyer offers you $380,000 for your home — a 5% discount to fair value — you will lose $20,000 on the value of your home, plus pay a 5% commission (an additional $19,000). This is a higher transaction cost compared to selling on the open market for $400,000. More importantly, compare that combined $39,000 to your original down payment of $80,000 -- you will be giving up close to 50% of the equity you put into your home partly for the convenience of a quicker sale. Does the added cost make sense for the consumer?" *

 In 2018, Zillow said that 90 percent of sellers who engaged its Instant Offers platform did not follow through and chose a traditional agent instead. A traditional agent is there to guide the seller through the many disclosures and legal requirements of selling a home, and in California there are many. Before a seller considers this type of transaction, he or she should carefully investigate the actual costs, the home's fair market value, and the completeness of the transaction.

For an estimate on your home, please contact me.  I've been helping buyers and sellers for almost 25 years!



*Forbes Magazine, June 5,2018

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

When Owner Occupant Dies and The Home Has a Reverse Mortgage

This is a situation many heirs are beginning to deal with, and it's important to know what can happen after the death of a loved one who had such a mortgage.

Simply put, an heir has options: 1) He or she can pay back the loan; 2) sell the home to pay back the current loan amount, and keep the remaining proceeds; 3) deed the home back to the lender; 4) let the lender foreclose.

But really, the last two options should only be options when there is no equity left in the home, because why would an heir want to walk away from a potential sale and receive the remaining equity?  The first option may work for some people, if they have the ability to refinance with their own mortgage, thereby paying off the reverse mortgage.  But if an heir doesn't have the desire or financial ability to keep the home with a new loan, the remaining option is to sell the home.

Most original loan documents give a year to dispose of the property, but in practice, HUD will find out when the borrower passes away, and a due-and-payable notice will go out to the heirs giving them an opportunity to decide what to do. An appraisal may be required within 30 days, and a longer time period may be allowed for the heir to decide whether they're selling or staying.
It's a huge mistake to ignore this letter, because if 6 months passes by after the issuance of that letter, the home may be foreclosed on.  In California, from the initial filing of the foreclosure, there is another 121 days after which time the foreclosure is complete, and the heirs have now lost the home.

So the desirable situation is for the heir to keep in touch with the lender, answer their questions and get the home prepared for sale.  The lender really doesn't want to file foreclosure, they will only take the home back when they have no other choice, it's a cost to the lender, and they are not in the business of acquiring homes. So the lender will probably be very willing to work with an heir who plans on listing the home and getting it sold. That also sounds simple, but preparing the home for sale in order to get the best price may require pre-marketing work because an aged occupant may not have kept up maintainence, repairs, or upgrades for many years.  Be prepared for this, but it will be worth it for the heir if they stand to recoup a sizeable amount from the sale, i.e., what if the last statement balance on the mortgage was around $450,000, but the house is worth $750,000! A Realtor's job in this instance is to guide you through the preparation and actual sale of the home. See more information here.

If you need a Realtor to help you determine the value of a home with a reverse mortgage, please contact me right away, because time is of the essence! I have been helping clients with residential real estate since 1994.

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

Long Beach April 2019 Monthly Report, Graphics Style

April 2019 Market Report for Long Beach, California

 Median price for Long Beach in April was $633,000 based on 125 home sales (which is really not a lot for a monthly total), but the median days on market is only 20, yet about one-third of the active listings has been reduced. What this doesn't tell you is that the most price reductions are in the high end of the market which are taking longer to sell, because note that the sell-to-list ratio is 100%! As they always used to say in school, there's plenty of room at the top (because the bottom end of the market is and has been selling faster).

For help in this current market, don't be afraid to send me a message.  There are all different reasons for buying and selling, and I can help you with that!


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

What Is the California Tax Withholding for Buyers and Sellers?

Kitty says "Keep your eye on your withholding tax"

Very often sellers are unaware of this California tax withholding requirement to pre-pay their tax due on the gain of their property, and may equate it with capital gains tax or property taxes.

For income property sellers, and those doing property exchanges, installment sales and other transfers, this information may be most important:

The escrow officer must notify the buyer of his/her responsibility to withhold 3 and 1/3 percent of the gross sales price of real property sale, whether by an individual or non-individual such as an LLC, corporation, trust, etc., and pay it to the Franchise Tax Board, UNLESS an exemption applies.

The exemptions include sales less than $100,000; property last used as a principal residence; sales of decedent's principal residence by the estate; sale by 1031 exchange; seller's tax liability, calculated at the maximum rate (currently 12.3%) on the taxable gain, regardless of seller's actual rate, will be less than 3 1/3% of the gross proceeds and seller certifies that fact under penalty of perjury. 

For sellers in the pre-listing stage who are wanting to calculate their ultimate seller's net after a sale should be sure to give all such information to their tax adviser, if that is who is doing their calculations. Escrow is responsible for notifying the buyer of their responsibility to withhold, and the buyer must do so when escrow closes.  If the seller's actual tax rate is different than 12.3% above, then they need to consult with their tax advisor on the status of their particular state income tax requirements. 

See more information from the Franchise Tax Board  .


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

Have You Ever Been Hacked? What To Do Next

Online security affects all of us. Here is some new advice from the chief information officer Josh Sharfman at California Association of Realtors:

1. Isolate your computer by turning off wi-fi and unplugging the hardwired connection to the internet.

2. Change your password, but there's more on this:  Use a passphrase, as recommended by the National Institute of Science and Technology.  This means

• A unique passpharase at least 15 characters long and difficult to guess, such as "myllamahasnotoes".  Upper and lower case letters, numbers and special characters are counterproductive because a good password is one you can remember.
• Check your passphrase against a list on "Pwned Passwords at www.haveibeenpwned.com/Passwords, where you may also checks compromised accounts.
• Don't worry about periodically changing your passphrase. This may be controversial, but recent studies have shown that periodic changes are counterproductive.

 3. Enable multi-factor authentication (MFA) or (2FA).  This requires you to use two different methods of confirming your identity by text, phone call of verification code in an app. Go to www.turnon2fa.com to learn how to turn on MFA.

4. Update your security questions and responses, try to use less common questions.

5. Scan your computer using your installed antivirus software while it is disconnected from the internet. Reconnect your computer and then download updates and run antivirus scans again.

6. Reach out to your contacts to let them know you've been hacked, and you might want to give them the advice in this article!

For help on how to buy your next home, please contact me.  I have been a Realtor for 24 years, and I know how to help you. Both buyers and sellers are cautioned about wire fraud security in their transactions.  I have more information for buyers and sellers on my website at http://www.juliahuntsman.com.

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

Average Selling Prices for June, 2019 in Long Beach,Lakewood, Cerritos, Huntington Beach and Three Counties

View of downtown Long Beach

All these prices are for the month of June, 2019, based on data from CRMLS Infosparks:

Average prices for single family homes in Orange County were showing a slow downward trend since early 2018 but shot upward in May of this year, while Los Angeles County is trending up from $919,000 in December 2018, and San Bernardino County's average is now up the highest in the last 18 months as homeowners and investors find buying opportunity there.
The average days on market for the four cities is about the same as before.  However, in the very high end markets in Long Beach, properties over $1 million are generally on the market longer than those under $1 million.

Average single family home prices vary according to area, and here's what they look like locally:

June, 2019

Long Beach
 $661,746                 Avg Days on Market :34

Lakewood
$603,745                  Avg Days on Market : 28

Cerritos
$728,655                  Avg Days on Market :42

Huntington Beach
$1,014,446 (18 month high)   Avg Days on Market :40

Los Angeles County
$966,765 (still down from a high in May, 2018)

San Bernardino County
$377,714(highest average price in last 18 months)

Orange County
$1,087,04 (down slightly from May 2019 18-month high)

 

For condo prices, please contact me!

For an online and automated home valuation, try my site at http://www.juliahuntsman.com/home-evaluation.  It probably works more accurately for single family homes than condos in some areas, depending on what properties lie within about a one-mile radius.  Try it!  And I am always happy to do a more customized report to send out via e-mail.  If you're thinking about making a move, do it! It pays to keep an eye on things.

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

Top Floor Cathedral Ceiling Condo, Turnkey, under $420,000

Prime top floor condominium with spacious city views of the downtown Long Beach skyline. Cathedral ceilings and upper level clerestory windows offer plenty of light into the south facing living room. Extensive recent upgrades include stylish new kitchen cabinets, addition of dining area cabinets below new quartz kitchen counter and tiled backsplash, new gas stove, microwave and refrigerator. Bedrooms are spacious, closets have sliding mirror doors. Bathrooms have new dark colored cabinets, light colored counters, mirrors and tiled bath/shower areas, new appliances and new tile flooring. Hallway has additional counter and storage. A separate laundry closet in the hall includes a stackable washer/dryer. New vinyl flooring throughout sets off the light colored walls. Many Association features include the community pool and spa, exercise room and common area patio. There are two side-by-side parking spaces on the ground floor level in the gated parking garage. This unit is walking distance to Cesar Chavez Park, transportation and close to downtown entertainment, and is freeway close. A great opportunity at a good value.
Views, lots of light, Turnkey!
555 Maine Ave., #403, Long Beach.

• 2 bedroom, 2 full baths
• 2 parking, side-by-side
• South facing downtown city skyline
• Central Air/Heat
• Extensively remodeled, all appliances included.
• 
   MLS:  PW19086104
  Price, $410,000
  HOA dues:  $310/monthly 
• In escrow as of 4/24/2019 
• This unit closed on June 26,2019
  
  
  
  
  
  
   

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

What Does It Mean to Be a Co-signer on a Mortgage?

In today's world where there are higher home prices, many first time buyers, or younger buyers especially, are fortunate to have parents or grandparents to help them out financially.  There may be different reasons for seeking a co-signor on a mortgage loan, and sometimes there is another adult willing to help in that way.

According to an article by Lise Howe in REALTOR Magazine, 22.8 percent home purchase loans in 2017 included a co-signer, an increase from 2016 (data from ATTOM Data Solutions).

Frequently, buyers and sellers look to their Realtor as a source for answers during a transaction, but there are times we cannot advise when the question involves legal advice, tax advice, and other issues which are not included in a real estate license.  So a buyer and his/her co-signer really need to obtain advice and information about the responsibilities of being a co-signer.

So keep in mind, if you're a co-signer:

1. You are completely responsible for the loan payments if the buyer is unable to make payments.
2. The co-signer's credit report will reflect problems, if any, with the mortgage.
3. The loan affects the co-signer's own debt-to-income ratio, which could affect their own purchase plans in the future for borrowing capacity.
4. The co-signer's debts and financial information must be given to the lender as part of the buyer's loan process.
5.  Is your risk in the situation covered, i.e., your cash flow?

The decision for what type of mortgage to obtain is the buyer's responsibility, and it's the buyer's responsibility to search out their best options for borrowing.  So buyers, please talk to your tax advisors and a financial planner to make sure whatever you're considering fits into your financial capacity.

An option that does not involve co-signing is for the buyer to obtain help on the down payment only; with interest rates having dropped lately, buyers can qualify for more and possibly not need a co-signer. 

Please contact me if you would like more information about making a home purchase.  I have worked with many first time buyers in my 24-plus years of real estate experience!


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

A Few Positive Points about the Current California Housing Market

Here's some good news about the California real estate picture, in spite of everything else we hear/read/see:

• California unemployment is the lowest in over 40 years.
• The number of active listings increased in all California regions--highest number is in Southern California as of February, 2019:  over 26,000 single family homes on the market which is 20% more than last year.
•  California home price continues to grow at a modest pace, median price Feb. 2019 was $534,140, growth of 2.2%.
• The Inland Empire (i.e., San Bernardino County, and surrounding areas) price growth increased to 5.7% , compared to 1.4% in Los Angeles area. So what does this say about where it could be a good place to buy?
• Over all increase in owner-occupied single family homes from 2000: from 6,295,466 to 6,669,522 in 2018.
• More than half of California sellers surveyed by CAR think it's a good time to sell in 5 of last 7 months.
• Interest rates are low and may stay low for the rest of 2019! Good time for FHA buyers! The lower the rate, the lower minimum qualifying income for the buyer! Take advantage of low rates!
• Despite tough market conditions, first time buyer share is highest since 2012, at 34.8% in 2018.

Overall, the economy fundamentals are strong, including low national unemployment rates and increased job growt as of December, 2018.

While housing affordability is still an issue in California, prospective buyers do have options. And, a very important fact for buyers to learn is that there are LOW DOWN PAYMENT options, in the CAR survey over 70% did not know that an FHA loan only requires 3.5% down!!  FHA loans also allow for less perfect credit than conventional mortgages.
Please contact me if you are interested in buying or selling and let me put my 24+ years of experience to work for you!


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

That's Who We R®

That's Who We R®: The National Association of REALTORS®’ exciting new national ad campaign will clearly demonstrate the value of a REALTOR® to consumers, distinguish REALTORS® from other real estate agents, and deliver a sense of pride in REALTORS®.



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

Where Do U.S. Cities Rank on Vacancy Rates?

Jacaranda Trees in Stearns Park, Long Beach

The percentage or number of vacant properties in a region may indicate how easy or tough it is to buy or sell there, with higher vacancy rates usually meaning a buyer has an easier time of negotiating with the seller, but there are certain factors to take into account.  Lending Tree ranked the nation's 50 largest metro areas based on vacancies, and came up with some interesting numbers. Some, but not all, areas with more vacancies are more affordable than others.

Miami, Orlando, and Tampa in Florida have the highest vacancy rates, but those vacancies are also based on those areas being second home destinations, meaning they are not occupied all the time and therefore push up the percentage rate on vacancies.   San Jose, Denver and Minneapolis have the lowest vacancy rates in the nation--they have strong job markets combined with an influx of millennial buyers, factors which help sellers sell, but make tougher conditions for young homebuyers.
The next four cities with the lowest vacancy rates are Salt Lake City, Portland (Oregon), San Francisco and Los Angeles with 5.55% to 5.85% vacancy rates.

But a homebuyer might want to skip Florida, and head straight to Las Vegas, which has a 14.56% vacancy rate (4th highest in the nation on this survey) and a median home price of $212,300.  And speaking of median home prices, the lowest in this survey is in Buffalo, N.Y., at $135,000, with a vacancy rate of about 9%, which is the national average.

So while prices, and rents, are high on the west coast, if you are able to give yourself options, consider an area on this Lending Tree list.  It may not have the weather of the West Coast, but then that's why so many people have flocked here for generations, and created all that homebuying competition.
If you still think you'd like to consider a home in the Long Beach/Los Angeles metro area, I can help you with that, just go to www.juliahuntsman.com and search for a property! Or contact me by text or phone, or email! I have 25 years of experience to help you with.

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

Housing Market Review, Fewer Sales and More Listings on the Market

Sales volume down in So Calif

As one can see from the slide (presented at 2/27/19 talk by Joel Singer, CEO of California Association of Realtors) to the right, sales volume locally (and elsewhere) is down, and has been for some time--since April of 2008.

Another example of reduced 2018-2019 sales volume in Los Angeles and Orange Counties are in the two charts showing reduction by about 37% compared to January 2018 in LA; reduction by about 35% in OC. The median price for OC home declined $35,000--median price in LA stayed the same. INTERESTING!!

Sales volume change in Los Angeles County

Sales volume change in Orange County

 







In Long Beach, sales volume decreased about 5% in one year. The City of Orange had a 12% decrease in sales. But year-over-year median price home prices increased in Yorba Linda, Norwalk, Garden Grove, and elsewhere, whereas Long Beach/Lakewood have decreased by lesser amounts in price.

The essential points presented last week were:
"• Housing market conditions continue to soften | • Sales down double-digits despite recent decline in interest rates | • Price growth remains near lowest level since early 2012 | • Fundamentals are still solid | Window of opportunities for buyers"

The good news for buyers is that inventory statewide is the highest in almost 3 years.  Buyers and sellers have become so accustomed to a history of lowered inventory, it's time to be reminded that a normal market is about 6 months of inventory--we're still not there! The lowest price segment of $200,000 and lower has not seen an increase, however, and many buyers need that price point.  Long Beach in February, for example, had 2.5 months of inventory for single family homes, and that was a 38% increase over one year ago. We still need more units on the market.  The biggest recent increase of active listings on the market is in the Bay Area, 57% higher than last year.

Advice for sellers is to be reasonable in your asking prices, it's still a very good time to sell.  Buyers may take some encouragement as the inventory comes up!



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

More Realistic Lender Rules for HOAs would permit more Buyers to Buy Affordable Homes

According to the National Association of Realtors, there are between 145,000 and 155,000 condominium projects in the United States.  As background information, in order for FHA loans to be approved in a condo development, the entire association must be approved by HUD (per its guidelines) and this approval must be obtained every 2 years. That is a lot of paperwork for most HOAs to focus on, along with all their other usual work in maintaining their association, via their Boards of Directors.   "As of January 2019, FHA has approved only 9,427 of 52,410 condominium project applications." Hence, many association in the U.S.--certainly in Long Beach--have dropped their former approvals, and sellers must now depend on buyers who obtain conventional financing.  But they are losing prospective buyers, since many first-time buyers opt for FHA loans for a variety of reasons.

HUD has been asked to lengthen the recertification process time, as well as loosen up on other items such as owner-occupancy requirements.   Currently, 50% owner occupancy is required for FHA loans, but HUD is being asked to reduce that to 35%--because many HOAs do not have rules about how many rentals are allowed, and lower owner occupancy ratios are excluding buyers bringing FHA loans with them. Also, HUD restricts the number of FHA loans allowed in a project to a very low percentage, but eliminating that rule would allow more buyers to buy. In the past, "spot approvals" were allowed, meaning one unit could be approved for an FHA loan in a non-approved building, as long as that HOA met certain criteria.  Spot approvals are once again being requested, again, this would increase homeownership.  The two-year approval period is asked to be increased to five years, this would vastly help Boards of Directors and sellers alike.

Given the almost daily appearance of lack of affordability for buyers in the newsfeed, an opportunity to buy a condominium, which is a lower sales price market compared to houses in many areas, is an opportunity for homeownership for all.

If you are interested in a condominium purchase, or finding out about the features of condo owership, please contact me via phone or email. I am familiar with condos, and would be happy to share my information with you.


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

Sales Volume, But Not Price, Down in Los Angeles and Orange Counties in 2018

Los Angeles County Median Sales

 One of the most immediately noticeable things about the two charts is the decline in number of sales in both Los Angeles County and Orange County in 2018 compared to 2017. 
LA County sales for both single family homes and condominiums declined about 40 percent in 2018, and the same for Orange County.

Yet the median sales prices increased.

 The price increase is also predicted for 2019, at a lower rate in some price categories.  The market under $600,000 continues to be the most competitive and sells more quickly.

Interest rate hikes are likely to be left alone for a while, and the Mortgage Bankers Association currently reports the highest level of mortgage applications since 2010.

In the continuing competitive real estate environment, buyers must be totally prepared with a complete loan pre-approval from a qualified lender, while sellers are advised to be realistic in pricing of properties.
 

Orange County Median Sales

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

Time to Update Your Home Appliances for Water Conservation

Jan. 1 2019 deadline

Do you live in a condo, or own a multi-family property built before 1994? Or are you improving or remodeling a property?  It's now time to make changes as of January 1, 2019.

Beginning in 2017, all single family homes were required in California to install water conserving plumbing fixtures, i.e., most commonly faucets, showerheads and toilets.

And what exactly are the requirements? SB407 puts it this way, so look for toilets (really, they've been on the market for a long time now) that are not more than 1.6 gpf, and so on:

“Noncompliant plumbing fixture” means any of the following:

(1) Any toilet manufactured to use more than 1.6 gallons of water per flush.

(2) Any urinal manufactured to use more than one gallon of water per flush.

(3) Any showerhead manufactured to have a flow capacity of more than 2.5 gallons of water per minute.

(4) Any interior faucet that emits more than 2.2 gallons of water per minute."

Here is the link to the law on plumbing fixtures replacement as passed in 2009 which set the deadlines and requirements for California properties:  SB 407

But what if you sell your condo or house and you haven't complied with the law yet? Just be aware that the seller must disclose to the best of his/her knowledge if such fixtures have or have not been installed.  The lack of such fixtures is not a condition of sale according to the law, but you will still be in violation of the law, and the buyer may really wish for the seller to take care of this before the close of escrow, it all  depends.

But considering years of water drought, and the necessity of cutting back on water usage throughout the state, it's really best to comply with the law--everyone has been given 10 years!!

Also, cities may have stricter standards than what the state requires, so check your local municipality, such as Los Angeles, San Francisco, and San Diego, which do have point of sale requirements.

At this point I'm not aware that Long Beach has more stringent requirements than the state.  The City is, however, offering a rebate if you give up your 1.6 gpf toilet and get a .8 gpf toilet http://www.lbwater.org/Rebates -- see a list to download on approved fixtures.  More information on the City's water program is currently on their website: http://www.lbwater.org/Residential%20Conservation

 See prior post:  2017 post on low-flow toilets

Lastly, for more complete information, I will be happy to share a complete up-to-date posting from California Association of Attorneys legal section about this law, to clarify any questions about how to negotiate with your buyer on this subject, and more.  Just call or email me with your specific question and contact information. If it turns out I think you're a non-California property owner in China, I'm probably not going to respond.☺

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

Orange County, 2018 Year in Review

OC Single Family Homes 2018

This chart is only for single family homes in Orange County, no condominiums are included. 

This is the overall picture from December 2017 to December 2018; the market in the OC had higher peaks during the summer and fall.  Overall, however, the lower number of pending sales, meaning fewer properties are in escrow, is much less than one year ago and has been on a steady decline since a peak month in May, 2018.
Sales prices overall have not changed significantly, and it's still a good time for sellers to put their properties on the market.

For a confidential valuation of your property, please contact me.  I make it easy for you to get decisive information about putting your property on the market.


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

Los Angeles County, 2018 Year in Review

2018 Year in Review for LA County

This chart for 2018 is for single family homes only, it does not include condos.

Los Angeles County prices continue upward, albeit at a slower pace, while sales volume continues down.

The gap between original list price and sales price is widening a little to about 3% on a county wide basis.

Please contact me for confidential help on selling your property!


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

Average Sales Prices Mostly UP in Selected Long Beach Areas, Signal Hill and Lakewood for 2018

Lately, the internet is full of stories about softening prices, but it turns out to not be all true.  It depends on the city and overall region.  But take a look at these stats, taken directly from the CRMLS, which happens to be the largest MLS in the country with 96,000 subscribers and another 143,000 agents in participating MLS's.

Below are the average sales prices for single family homes, with the sales count for that period in parentheses (  ).  It was a little different than I expected--I chose these areas in Long Beach as representative of single family homes for different points in the city, and then chose Lakewood and Signal Hill as entire cities.

As you will see below, in most cases, for 2018, both average sales price and sales volume increased in the second 5 months of the year, compared to the first 6 months--not what I expected to see, especially in the highest price area of the city where properties are spending more time on the market.

Long Beach

Area 1 - Naples, Belmont Shore/Park, Marina Pacifica, Bay Harbor - UP
1/1 - 6/1 --   $1,220,951    (71)
6/2 - 12/1 -- $1,588,024    (90)

Area 2 - Belmont Heights, Alamitos Heights, Bluff Park - UP
1/1 - 6/1 --   $996,377       (44)
6/2 - 12/1 -- $1,106,803    (63)

Area 5 - Wrigley Area - UP
1/1/ - 6/1 --   $538,908      (50)
6/2 - 12/1 --  $574,446      (63)

Area 6 - Bixby, Bixby Knolls, Los Cerritos, California Hts - MIXED
1/1 - 6/2 --   $760,435        (101)
6/2 - 12/1 -- $749,131        (107)

Area 7 - North Long Beach - UP
1/1/ - 6/1 --  $447,282         (100)
6/2 - 12/1 -- $464,851         (165)

Areas 31,32,33,34 - Los Altos, Conant, Ranchos, Plaza, Stratford Square - UP
1/1/ - 6/1 --  $696,026         (187)
6/2 - 12/1 -- $716,253         (252)

City of Signal Hill - UP
1/1/ - 6/1 --  $747,303         (27)
6/2 - 12/1 -- $872,874         (23)

City of Lakewood - UP
1/1/ - 6/1 --  $589,653         (314)
6/2 - 12/1 -- $612,165         (401)

If you are interested in selling for 2019, or would just like some idea at this point of your market value, please contact me directly via text, phone or email.


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

California Conforming Loan Limits Increased

Fannie Mae and Freddie Mac have increased the 2019 conforming loan limits, to match the increasing market which is higher than the national average.
Mortgage loan limits on loans acquired by Fannie Mae and Freddie Mac are increased  to $484,350 on one-unit properties and a cap of $726,525 in high-cost areas. The previous loan limits were $453,100 and $679,650, respectively.

Not all California counties will have the same upper loan limit, however, Los Angeles, Alameda, Orange, and other Bay Area counties such as San Francisco County will have the highest cap of $726,525 for one unit, and  up to $1,397,400 for 4 unit residential properties.  See California county loan limits.
 

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