California Accessory Dwelling Unit (ADU) Laws Starting in 2020

While ADU units require local jurisdiction approval, i.e., city permits for example, the State of California loosened requirements as of January 1, 2020.  Now, the state has passed updated conditions to reduce the costs for developing ADUs, and to grant automatic approval with local limits for certain ADUs.  The standards below include most of the updated law.

Where formerly ADUs must be owner occupied on the site, that is no longer a requirement by cities or counties if permitted by 2025. Applications must be approved within 60 days, without a hearing or discretionary review.

• No impact fees for ADUs under 750 sq. ft.
• Single-family homeowner associations must allow development of ADUs, subject to reasonable standards.
• Single family homeowners can develop junior ADUs, which are under 500 sq. ft. within a residence.
• Parking replacement is no longer required, and parking impacted districts (such as in Long Beach) are no longer a condition.
• No minimum lot size
• No height limit under 16 feet or side/rear setbacks over 4 feet required.
  
• No maximum unit size limit less than 1,000 sq. ft for a 2-bedroom ADU.
• No setbacks requirements for conversions/replacements of existing legal structures.
• Unit may be added to a multi-family property:  New unit of existing non-living space allowed for every  four existing units; and two new detached homes, with 4-foot side/rear5 setbacks, allowed up to 16 feet in height.

It is the property owner's responsibility to consult with your local city/county jurisdiction to obtain local permits for construction.  For additional information go to https://www.caforhomes.org/aduupdate

https://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml and http://www.longbeach.gov/lbds/planning/adus/.

For my "Quick Guide"  outlining the above points, please contact me.  It's important to know that following some of the guidelines and calling an unpermitted structure an "ADU" may only cause inspection issues at some point in time.  Following and obtaining necessary permits is essential, and it will give value to your property, besides providing someone with a legal rental home.

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

The Latest on Open Houses

You've probably noticed that open house signs are few and far between these days. 

Actually, public walk-in open houses are currently not allowed under statewide law in California.  If "open house" signs are posted, there must be an accompanying sign rider stating advance appointments only.  Showings can only be set by advance appointment, with a signed form provided in advance declaring the party is free of COVID-19 virus, digitally signed by the buyer's agent and the buying parties and sent in advance of the appointment to the listing agent.

This is the State guidance, but local area restrictions may be more restrictive, so in areas prohibiting all open houses, no open house signs should be seen at all.  When properties are shown by agents, masks and hand sanitizer must be used, the number of people in the house must be controlled practicing social distancing (usually one buying party at a time, and the buyer agent and listing agent).  The entry rules also apply to home inspectors  and other professionals who enter the property during escrow. 

The Rules for Entry should be posted near the main entry of the home.

We miss the public walk-in open houses, but yet if you were the seller, especially if still living in the property, you would most certainly want all necessary precautions followed.  It's really to the advantage of everyone.

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

June 2020 Housing Market in and Around Long Beach Area--Inventory and Price

The median price (same number above, same number below midpoint) lowered to $702,000 for a single family home in June, but this is well above December's $652,500.  The average days on

market was significantly lower than December's:  25 days in June, although the overall housing supply for Long Beach increased to 2 months' worth (still low, however). 

The median price for a Long Beach condo in June was $398,000, average price $454,000--this varies greatly depending on size and neighborhood.  The average days on market increased to 39 days in June,  and the inventory has increased significantly to 3 months supply, about the same amount as last October. 

In the last 30 days, 158 single family homes sold in Long Beach, most selling in 30 days or less, and all except 4 sold within 90 days, including the million plus homes.  Most buyers are looking below $600,000, which means Wrigley, west side of Long Beach, some in California Heights and others in North Long Beach.  Belmont Heights is typically not below $700,000 right now.

Lakewood single family median price dropped a little, but at $630,000 is still higher than 2019, but only 39 houses closed escrow in the last 30 days!  Which means a serious inventory shortage in Lakewood, at 1.2 months supply!!  So anyone who wants to sell in Lakewood now, it's time to consider!!!  There are currently 91 in escrow, and only 30 active listings on the market there ($529000+ starting list price).  So there should be a higher number of future closings, but there's opportunity to sellers with only 30 active on the market.

Cerritos:  Only 20 houses closed escrow in the last 30 days.  Sales price starts at $600,000.  Currently there are 32 homes in escrow, and 17 active listings available, starting at $689,000 and up to $2.2 million.

No matter where we look, it's the same story, we need more listings, because there are buyers who want to buy. 

The part of the market that is taking longer to sell is the over $1million market, with 256 homes on the market at an average of 137 days on the market for homes in Rossmoor, Long Beach, Lakewood, Cerritos, Signal Hill and Huntington Beach market.  More are very recently coming on the market in the last few days, so if this is your price range, there's lots of opportunity here!!!

Have some questions?  go to http://www.juliahuntsman.com/FAQs.html.  If you'd like another answer, just get in touch with me.  I'll try to help!

Curious about what your home might sell for?  Let me know, I'll send you my professional estimate based on 25+ years as a Realtor.

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

May Market Mayhem - State and Local

Statewide, California home sales fell to their lowest level since November 2007.  May sales of single family homes was down over 41% from one year ago, and down 13% from April of this year.  However, pending home sales (properties in escrow) were up  67% in May.

Part of the problem, besides the general effect of pandemic slowdown, is housing supply, per CAR:

"All major regions recorded a decrease in housing supply of more than 25 percent, with both the Southern California and the Central Valley regions falling by more than 33 percent. All counties in Southern California, except Ventura, declined 36 percent or more from last year, with San Diego dropping the most at 42.7 percent. The Bay Area also experienced a significant housing supply decline, but at a relatively smaller degree compared to the Southland. Eight of the nine Bay Area counties recorded a decline in active listings on a year-over-year basis in May, and six had a decrease of more than 25 percent. San Francisco was the only county in the region with an increase in active listings from last year."

Additionally, SoCal home price unchanged: 

"Median prices continued to dip in May from last year in the Central Coast and the Bay Area but inched up slightly in the Central Valley region. The median home price was virtually unchanged in Southern California."  

Locally, prices continue upward, and anecdotally, buyers continue to experience multiple offer situations.

Long Beach median single family home price         $740,000, up 13%

Lakewood median single family home price            $649,000, up 8%

Bellflower median single family home price            $575,000, up 4%

Signal Hill median single family home price            $1,215,000

Rossmoor median single family home price              $1,349,000

Cerritos median single fmily home price                    $765,000, up 6%

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

5 Criteria For Pricing A Home (Plus More)

When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales. Unless your home is in a tract where few house modifications have been made, there’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison.

1. Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better. Appraisers usually use distance, i.e., up to one mile, as one of the selection bases for comparable homes, however a very similar home on your block will be included for value consideration over a very similar home a half-mile away.
   

2. Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available. Depending on other factors, home sales from the previous 6 months, and if there are many, the previous 30-90 days, will be selected for comparison.
   

3. Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics. If your home is in a 1920s Spanish bungalow historic district, it's not likely that a 1962 contemporary style home will be selected even if it is not far away.  And, a condo is rarely ever considered a comparable for a single family home.
   

4. Features and upgrades: Remodeled bathrooms and kitchens can raise a home’s price, and so can less flashy upgrades like a new roof or HVAC system. Be sure to look for similar bells and whistles. However, a remodeled kitchen does not automatically raise the price of a house using the cost of the remodel.  Since remodeled kitchens and bathrooms are more common in the market, they will be a more standard basis for comparison. 
   

5. Sale types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons.  Some lenders when requesting an appraisal will not want to use a distressed property as a comparison for a standard sale, however, if a distressed sale property otherwise compares to your home, and it sold for market value, it may be accepted in the appraisal.

Other factors such as square footage:  Unless it is a very down market with very few sales and the appraiser must make adjustment calculations, a 2000 square foot house that is 4 bedrooms will not ordinarily be used as a comparison for a 900 square foot home with 2 bedrooms--it would simply fall outside the usual comparison parameters.  In that case, an appraiser is more likely to widen the search area to find a more similar property in a similar area.

An appraisal is an opinion of value by the appraiser, and sometimes one of the parties disagrees with it, in which case a buyer may request another one by a different appraiser (and probably have to pay the price for it as well).  Listing agents will usually meet the appraiser at the property and hand them comparables they believe justify the contract price.  When I've done this, most appraisers will review those properties especially when the agent is extremely familiar with the nearby sales.

Getting the right list and sell price is important for a smooth transaction, and these are the more common issues agents need to take into consideration when presenting market information so that a seller gets the proper perspective on pricing their home.

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

What is the Difference between Home Warranty and Home Insurance?

When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible. Another consideration is whether you are purchasing a single family home, or a property such as a condo situated inside a homeowner association which also carries a master common area policy.  Be sure to find out about the coverages available.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.  Some home warranty policy coverages may be quite extensive, so if you are covered through one when you close escrow, be sure to review what's included before calling a repair person, because savings may be considerable if you have coverage. The upfront home waranty fee for a repair call is usually much less than paying a full cost repair man or plumber.  Although not required, often a seller is willing to pay such a home warranty premium for one year, through escrow for the buyer.

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

How Do I Find the Right Property?

Today buyers have the ability to constantly look at homes on the internet before ever finding an agent to work with, or really knowing what they want.  In fact, according to surveys of buyers, the vast majority start their home searches online.  There's so much to choose from, so what should buyers do if they are really serious shoppers and know they want to buy? Put in writing what you are looking for.  Write down everything that you think is significant for making a house (or condo) your home.  Maybe your first decision will be:  am I looking for a single family home, or a condominium?  How many bedrooms and baths? Sometimes people say, "I'll know it when I see it", but that approach in my experience has never led a buyer into a home. Buyers should be as clear as possible about their priorities, but also expect a little flexibility about them.

2.  Most people have a location in mind--schools, shopping, ambience, are all things to consider. More than one area should be considered in order to give more options.

3. If you go to see homes at open houses or private showings with your Realtor, have an idea of what to ask questions about in  terms of condition, upgrades, age, etc.  Some things will not be visually obvious or known to the listing agent or your Realtor, they will more likely be a question for the physical inspector if you are in escrow on the property.

4. It's wise to not expect that a property have exactly all the features you would desire--just keep in mind that you can "make it your own" in the future.

5.  Working with an experienced Realtor will help you gain the right knowledge in your home search--online searches will be a good preliminary tool, but an experienced professional will guide you to the local market and buying preparation.

While the experienced past buyer may think some of these things are obvious, the market changes and so do certain aspects of purchasing.  An experienced professional has current knowledge of transaction requirements, as well as the current housing market!

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

The May Real Estate Market for Long Beach and Nearby Cities

The average price of a single family home in Long Beach continued upward as of today's (June 1) available data--12.6% higher at an average price of $809,637. See how it compares to the previous years in May.  But other things are part of this picture also:  Total closed sales are down 46% from last June--107 for the month; current listings down 25% from last year; sales prices are still on average within less than 1% of the original asking price; inventory, one of the keys to this situation, is consistently low at 2 months, meaning if no new inventory came on the market all property would be gone within two months. Average days on market also decreased from last year.

Lakewood has a similar story:  average home price is up 9% to $657,347; total closed sales  down 39% at 43 sales for the month; current listings are down 42% at 51 listings total; closed prices are with 1.6% of original asking price; inventory is at .9% months, less than one month!  average of 14 days on market. 

Bellflower:  average sales price of SFR up by 4% at $575,000

Cerritos:  average SFR price up to $760,000, an increase of 6% from lst year.

Huntington Beach: average SFR price down 1.7% to $1,072,000 (typical of the million + category).

Cypress:  average SFR price up 18% at $855,000.

So the story of the under one million market is that prices have trended upward, and the pandemic effects are present in showing properties, open houses, amount of inventory, but not in market prices so far.

If you are thinking of selling, it's coming into the ideal time of year to be on the market.

Please contact me or go to www.juliahuntsman.com for a quick online estimate of your home's value.

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

Looking for Home Inspiration? Try These Instagram Authors

7 Instagram Accounts for the Ultimate Home Design Inspiration

@inspire_me_home_decor

With 5.3 million followers, it won’t be long before you understand why so many people get hooked on Inspire Me! Home Décor’s Instagram. You’ll find everything from grand and opulent to whimsy and practical, but you’ll certainly never be bored.

@marieflaniganinteriors
Can’t get enough rustic charm? Then be prepared for serious design envy when you follow Marie Flanigan. The Houston designer’s posts are filled with rich woodwork and earthy tones that yield warm spaces.

@myhouseishome
My House Is Home delivers an eclectic mix of contemporary-meets-cozy living spaces all over the world. Characterized by dramatic flair and plush décor, you’re more than likely to come across your dream home here.

@pierre.yovanovitch

Defined by soft lines and contours, French designer Pierre Yovanovitch creates spaces that look as if they’re straight out of an M.C. Escher painting. Materials like wood, stone, marble and metal all come together and result in homes that are minimalist and inviting.

@the_real_houses_of_ig
For a daily dose of downright beautiful living spaces, The Real Houses is a treasure trove showcasing homes, designers and products from around the world. You’ll find endless inspiration along with all the latest trends and styles.

@martynbullard
Celebrity designer and television personality Martyn Lawrence Bullard is known for his eye-popping colors and patterns. His knack for bold design has resulted in A-list clientele, from Elton John to Ellen Pompeo, and you’ll often catch a glimpse into their homes on his Instagram.

@alyssakapitointeriors
NYC-based designer Alyssa Kapito is a master of creating elegant spaces that are both timeless and tranquil. Her aesthetic has a distinctly Upper East Side feel with soft, neutral tones and an exquisite sense of light and space.

Thanks to Paige Brown of RisMedia for this post.

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

The April, 2020 Market in Long Beach, Bellflower, Lakewood and Cerritos

In spite of 2020's global health and economic pandemic issues, the Southern California housing market continues to move on. 

As of the end of April, the Long Beach average single family home price increased almost by 9% compared to one year ago.  The Cerritos single family home price increased by over 21%, Bellflower increased over 20%, while Lakewood increased by 4%. 

But what else is happening?  While the price went up, the supply of inventory compared to April 2019 continued downward, as it was already doing for months.  Bellflower's inventory decreased by 50%, Long Beach decreased by 12%,  Lakewood by 37%, and Cerritos decreased by 52%.  Also, houses sold much faster compared to one year ago, the days on market decreased 27%-66% across the four cities.

And, contrary to some buyers' expectations, April selling prices also stayed within 3% of the original list price. 

Not just in April, but actually since 2012, available inventory has been one of the biggest issues for buyers, because a limited supply tends to drive prices upwards.  There are numerous reasons for the limited supply, beyond the purpose of this particular post, which have been discussed elsewhere. 

But it can only be said again, that if you are an interested seller, maybe not even sure at this point because you need to make further decisions, it's still to your advantage to get information now about preparation--it will only help you in the future and perhaps make your path easier.

Please contact me for more assistance.  I have 25 years experience working with both buyers and sellers.

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

A Sign of the Times--California Property Pictogram and Showing Rules

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How to Visit the Property

Are you wondering about what it takes to see property now, if you're a buyer, or marketing your property if you're a seller?

On May 8, the California Department of the Public Health issued its “Industry Guidance: Real Estate Transactions,” which requires agents to post rules on the property – with pictograms -- that must be agreed to as a condition of entry by all people viewing the property. 

• Wear a protective mask
• Wash your hands with soap and water, or hand sanitizer
• Wear gloves
• Practice social distance, 6 feet apart
• Do not touch surfaces, including knobs, faucets, countertops, light switches, etc.
• Discard disposable gloves, asks, or shoe coverings
  

This or a similar rules form must be posted at the entrance to the property being shown, as well as a form signed by showing agent and the buyer, will keep property showings in compliance with the current health standards. 

It's part of the "new normal" in the industry.  Visitors to the property are required to bring mask, gloves, and engage in social distancing per these rules.  Sellers will need to keep some hand sanitizer handy.  It's really not too much work, and actually keeps things clean!

If you'd like to know more about preparing your property for the current market, or know your home's value, I'm very easy to reach!

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

Is The Convenience Worth the Cost? IBuyers Have Contracts, Too

iBuyers v. traditional buyer offer

The iBuyers have been a  certain presence on the market for a while.  Often they are bulk buyers or investors looking for profit and will offer to pay cash for your home, sight unseen.  They may be able to close in days, and maybe for some reason a seller would wish to consider such an offer under certain circumstances.  These buyers claim to speed up and simplify the transaction while removing hassle and inconvenience for sellers and buyers.  But despite iBuyers' claims to revolutionize the real estate transaction, some agents are not finding their transactions with iBuyers to be quick or seamless  ("Selling to an Algorithm", REALTOR Magazine, Sept.Oct 2018).  Typically, the inspection is held after the acceptance of the offer.  In one instance, a team of five Opendoor contractors "went through the house with a magnifying glass".  When all was said and done the requested repairs came to about $16,000 on a $300,000 home, this was for replacement of tubs and toilets, retiling of showers, all at the seller's expense.  The sellers relied upon their agent for help, but still made less than if working with a traditional buyer.

The story above is one example, but both the story and the graphic illustrate that their is a price for "convenience".  And would it work if, for example, you have a lien on your property to pay back at close, or heirs to consider for whom you would want to get your highest and best price? 

Realtors are bound by the Code of Ethics set forth by the largest trade organization in the country: the National Association of Realtors, which means they are governed in such matters by their local Board. Realtor contracts and transactional forms are carefully set up and reviewed to comply with all professional standard and state and federal laws.  The investment company or investor buyer may not have any such professional trade affiliation, use their own contracts, and any potential legal recourse must be taken directly to the courts.  It pays to know the features and clauses of the investor company's contract, and a seller would be wise to take the contract to an attorney for review before signing.  If a seller is truly interested in seeing what such companies offer, obtaining multiple offers before signing anything is possible, if only to use for comparison purposes.  Be aware that their motto is true to the concept of buy low, sell high--their goal is to slip the property and make money from it.

There's no harm in checking out an iBuyer offer, but there are also concessions and fees for such a buyer, and perhaps a much lower net at close. The iBuyer company may claim to not charge a commission, but the seller should ask about all other fees and costs, including their terms about any repairs requested before the close of escrow--don't be surprised if the seller is asked to pay, so check the contract before signing.

If you are thinking of selling and you would like to see a further explanation and comparison scenario for your property, please let me know for a no obligation valuation and comparison of estimates.

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

Owning vs. Renting - What Is the Comparison?

House, Owning vs Renting, April 2020
Click to enlarge

It's worth a look to find out what the difference is between renting and owning.
Let's say you're currently paying $2500/month in rent and you're thinking how nice it would be to own instead.  Based on a single family home price of $500,000 (it could be less if you're looking at condos, but remember to include HOA fees), and a down payment of 10% ($50,000), you could come out ahead in the local market after 4 years.  This is assuming a loan at around 3.63%, hazard insurance, home maintenance at .5% ($2500 annually), annual home appreciation of 2.5%, annual rent appreciation of 2.5%, and a gross household income of between $77,000-$165,000 where your tax savings might be about 22%.

Condo, Owning vs Renting, April 2020

The second graphic is for a condo at $400,000, monthly HOA dues of $275, gross household income up to $77,000, and a loan down payment of 5% ($20,000) and home maintenance cost of about .1% annually (that depends on numerous factors not included here).  A condo purchase like this one has an earlier date for breaking even, but notice the differences in equity.


These are samples of course, but based on standard Los Angeles County property tax rate of 1.25% (increases over time), and an HOA dues level which could be higher or lower depending on luxury vs basic HOA, and other factors. It's not guaranteed that the home growth rate will continue at it's present rate.  It's intended to be an example so that a prospective buyer might think about his/her capability to buy.

Many people prefer to rent, but many people have incomes and savings which could allow them to buy and obtain home equity benefits and tax savings.

If you have a sample scenario you want to try, just contact me!

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

Pandemic: Local Housing Market Trends for March 2020

The single family home market in Long Beach, Lakewood, Huntington Beach and Cerritos, for March 2020 show average home price increases in all cities except Cerritos, which is down 6%. See the panel at the right of this blog for those graphs.

There is no question that the virus pandemic is currently influencing the markets.  Before mid-March, the average daily closed sales in 6 Southern California counties were  higher than at the end of March which shows a downward curve. Los Angeles County, for example, averaged 82 closings a day dropped to 67 average daily closings by the end of March.  The average daily new listings in Los Angeles County dropped from 135 to 98. Similar drops in new listings are in Orange, Riverside, San Bernardino, San Diego and Ventura.  It so far doesn't mean that sales have stopped, or completely will, but the trend is obvious at this point. On average, counties are down about 25% overall in listings.
So what is the hope here? Mortgage interest rates are low, and are set to stay that way for indefinite time this year.  Prior to the mid-March slowdown, California February sales volume was the highest in two years. Small business and unemployment assistance, and direct payments, were a start to fiscal stimulus.  In spite the media attention to what the pandemic will do to our world in the future, look at past events with SARS, MERS and Fukushima, and how the market recovered:

If current measures of social distancing are adhered to, and if the needed medical resources are obtained, the current projection is a decline by June 1.  But will we meet that?  Everything depends on how people follow the rules!!

If you have questions about how to sell your home in the current market, just contact me.  Necessary contract requirements such as physical inspections, appraisals, buyer inspection, etc., can be carried out within guidelines unless there is some stricter local level operating.  Virtual open houses minimize contact to keep to the absolute essential visit to a property.  For more on this, please contact me.  Email, phone, or text.

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

What Is Happening With Buying, Selling and Closing in California??

UPDATE: real estate is now classified as an essential business. Stay tuned for further information about what this means for you.

If the pandemic was happening before the widespread use of the internet, a lot  of our current options would not be available.  So much of our business can be handled without being physically present, that we can get all transaction documents signed, all escrow documents signed, without having to leave our computers.  Listings may be uploaded, viewed and closed virtually.

One could theoretically forego all physical contact and buy the property, and in fact, some buyers have bought this way.  What is changed, however, is, if strictly following California Association of Realtor guidance, is currently there is no in-person showing of properties, no in-person listing appointments, no property inspections, no in-person open houses--but there are virtual open houses.  Well, what if it's a vacant property, and there's no one to be in immediate contact with?  Maybe then?  Best get legal consultation, but be assured, if your property has to go on "hold" status for a while in the MLS because buyers don't want to come over and see it, and right now many do not, and you're not getting any offers (digitally of course), the MLS will not count those days on "hold" status, so when it does go back to "active", that time on hold will not be included.

So, right now, Realtors in California do have to comply with the "Safer at Home" California prohibitions.  California Association of Realtors is currently, however, attempting to get the Governor to make real estate one of the essential businesses.  Because after all, some people are already in escrow, and have to move out and away for the new owners.

But if you are thinking of selling, and have more questions about how to handle a "virtual" situation, I can definitely help.  Yes, the County Recorder Office is closed, however, the title company I most prefer to work with is issuing gap title coverage so that a property can still close, and be covered.  Escrow companies are not receiving in-person visits, but their officers are still in the office working, handling phone calls, and issuing documents.  Are you not computer savvy?  You can still get your docs sent to you for execution and physically sending back, but if you can handle digital signatures (not difficult at all) then all real estate transaction documents on the Realtor's end, and all escrow documents can be handled via computer.  This has been the trend for several years now, in fact.

It's a good time to buy, in Long Beach there's 1.6 months of inventory, that means the available properties to buy are low and you could have competition, but on the other hand interest rates are extremely low!!!! so you save money on the monthly payment. And, it's a good time to sell, because there only 1.6 months of inventory in Long Beach.

So contact me to find out your options right now--the crunch won't last forever.



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

How Is Local Long Beach Market Being Impacted?

Here is just a quick synopsis to show the Long Beach market curve for single family houses, which is not different from surrounding cities.  Fewer new listings are coming on the market as the industry deals with the orders put in place by the California governor.  One bright spot is that California Association of Realtors and National Association of Realtors are appealing to state and federal governments to recognize the real estate profession as an "essential business".  Many occupations are related to the closing of a residential transaction, not the least of which is the need for properties to be available for buyers who need a place to live! If the industry is placed in this category, it will help significantly with buyers and sellers who are otherwise capable of dealing with the health situations. Having people see a property, one or two people at a time, certainly has far less exposure than going to the grocery store!

In February, the single family active listings was 271.
The current number of single family active listings is 186.

February single family pending sales: 144
Current number pending sales:  116

February total closed sales:  250
Current total sales closed 3/1/-3/24:  116

So the current corona virus situation will impact us for a while, and there may be quite a pent up demand when business gets back to normal, or almost normal.  Based on the curve of activity in China, and now New York, the next 60 days or so may be the biggest down swing in the California market before it gets better, but of course the future is not known at this point.


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

Ongoing Pandemic Situation May Have Some Stabilization?

As the pandemic flows through countries causing devastation, global data as of today also indicates over 72,000 have recovered from the corona virus, see  Arcgis link below.

As a followup to yesterday's post about the market, and some corona virus impacts, here is another segment of that same prediction, from California Association of Realtors:

Situation in China Beginning to Stabilize—Hope for Foreign Demand: The number of new Coronavirus cases has begun to fall in China and although the toll has been devastating, there are rising hopes that they may be getting the outbreak under control at last. This will take time to materialize in the housing market, and as we noted last week, international demand has fallen to cycle-lows in California, but this should help prevent a larger decline in demand from foreign buyers.

For those interested in the global picture, follow this link to the Arcgis global database, where on a postive note, the total global recovered case numbers are also shown in the far right column.      https://www.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6 

And, if you are interested in finding out how to place your home on the market at this time, I can go over the details of the current market issues with you. 

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

What Are the Upcoming Market Impacts for Real Estate?; and Long Beach Sales Stats

The California housing forecast for 2020 from the California Association of Realtors may be revised downward, but this greatly depends on the length and quality of the viral outbreak.  On the one hand we have GDP growth impact, but then we have very low mortgage interest rates which can offset a slower economy.  California could still achieve a healthy housing market for 2020.

The number of reported new corona virus cases in China has begun to fall.  This stabilization there will take time to trickle across the globe.  A March 6-9 email survey of  California Realtors shows varying attitudes:  36% believed there would be no impact on home sales or time on market; 25% of Realtors said clients put home purchase or sale on hold; 33% of Realtors had clients asking market questions related to corona virus. Other areas some Realtors felt would be impacted  were prices, closing, and supply.

Turbulent financial markets actually make real estate relatively more attractive.

If consumers maintain their confidence, economic growth will continue.  There have been so many re-finances from consumers taking advantage of low rates, that the mortgage industry is swamped!  Some have even started to raise their rates online in reaction to all the re-fi's.  However, don't think it's not a great time to make a home puchase and profit by the low rates, because it is!

The other fact is that since 2012, the housing inventory has not risen to the level prior to 2012, this is one of the things that has kept housing prices higher in California.  So low interest rates at this time actually offset that fact, and make monthly mortgages more attractive due to rates.

Long Beach February Market for Single Family Homes:  Inventory at 1.6 months supply (extremely low number of homes on the market); average sales price $759,000; number of houses on the market is 276; average days on market is 32. 

Sellers, this is your time to sell!!!

If you have more specific question in regard to viewing property, or listing yours, please contact me via phone or email at any time!



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

Takeaways From the PWR 2020 Economic Summit

About 1,000,000 people have left California since 2010

• Pacific West Association of REALTORS held its meeting in  Garden Grove today on current real estate topics state wide and locally:  
• There are two Proposition 13s coming up:  One is a new proposition on the March 3rd ballot dealing with a bond for school construction debt; the other is the well-known Proposition 13 issue from 1978 appearing on the November ballot and dealing with the Split Roll Tax Initiative where commercial properties, not residential properties, would be restructured for their property taxes if voted in, with the objective of commercial properties paying higher tax than currently (did you know that over time residential properties have been increasing thereby carrying a tax burden not enjoyed by commercial properties).  Don't confuse the two.
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• Proposition 5 will hopefully obtain enough signatures to be back on the  November ballot, and partially rewritten from its last ballot appearance when it was defeated.
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• The State is in the longest post recovery period from a recession ever, over 10 years!
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• The U.S. unemployment rate is down to 3.5%, the lowest rate ever; while the overall California unemployment rate is at 3.9%, but this varies by county.
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• The corona virus effect is global, and is affecting the supply chain around the world, for instance, Toyota in China is just one of many places currently unable to produce for the world market. The next 6 months may see continuing impact, globally and locally, even affecting prospective foreign buyers here.
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• The California population was 20 million in 1970, it's now double that at 40 million people.
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• The housing market typically slows before major elections, there is no correlation to political parties.
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• Housing prices are most often referred to when dealing with "up" or "down" trends, yet the  annual number of residential transactions hasn't changed for the last 10 years!
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• From 2003 to the present, home prices have increased by 53%!
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• Where are sales headed?  Perhaps with higher prices, but not with more inventory.  Inventory has been constrained at the same level since 2012.  May now be the new normal at 2-3 months of inventory.
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• Statewide, the average time on market is 28 days; in the ultrahigh luxury market, the average time on market is 39 days.

•  Many college age young adults want to be able to buy their own home.
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• Buyers want a "Pinterest" home, their expectations are high.
•  I
• The Los Angeles County median home price is $641,000; the Orange County median home price is $840,000, with the lowest inventory in 15 years.
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• Where is the fastest rising price increase?  City of Norwalk.
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• It's predicted that by 2025, California will be a majority renter state.
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• California property owners need to change their image of what increased density might look like in their neighborhood--developers too.  New multifamily housing does not have to have the "cell block" look, there are more elegant designs which could blend well into single family home areas.

REALTORS are represented in 90% of sales, a figure that hasn't changed in 30 years.

Thanks to Leslie Appleton -Young, California Association of REALTORS Chief Economist.

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

2020 Cost vs. Value Report for Los Angeles Area--Or How Much Do You Recoup?

Kitchen remodel

This annual report by Remodeling Magazine (Remodeling 2019 Cost vs. Value Report”, www.costvsvalue.com) comes out on a regional basis. In case you could be a first time seller, it's important to remember that what a project costs is not usually how much it's valued in the market.  The local market sales prices of similar projects determines value, or what the consumer is willing to pay for all the seller's hard work.  This projection fluctuates in these annual reports--starting in 2008 up to the present, the cost recoup percentages range between 61%-72%.  The final overall figure for 2020 for the L.A. area is 63% for a project that cost about $65,000. This is explained as a result of a "shaky decline over the last six years in the cost recouped for these remodeling projects" due to consistently rising project costs.

Another variation from year to year is what type of project brings the best return.  On the national level, several years ago it was new garage doors, for 2020 manufactured stone veneer brought in the highest recoup at 96%, with garage doors still high at 94%.   The lowest is upscale rendition of a master suite addition (once a very popular project) at 52%. Kitchen remodel is more profitable at the "minor remodel" level. Vinyl window replacement is almost at the upper 25% in replacement value.

For the Southern California/L.A. area, the highest individual project returns are minor kitchen remodel at 105% return ($26,000 cost); steel entry door replacement at 106% ($2000 cost); garage door replacement at 123% ($3800 cost); manufactured stone veneer at 130%; vinyl window replacement at 102% ($19,000 cost).  Roofing replacement for asphalt shingle of $30,000 cost was recouped at 92%. But a metal roof replacement only received 79% of a $48,000 cost, which in a high fire zone might be more highly valued.  The West Coast, interestingly, received the highest return on manufactured stone veneer (new item in this year's report) out of all the regions.   Interestingly, bath projects ranked lower than the minor kitchen projects (does everyone already have a new bathroom?), in the Pacific Region.  For definition of major and minor projects, just take a look the report at the link below.

For selling in the near term, just think of how to give your home exterior and interior appeal and how these projects might help you do that.

For the entire report, go to the 2020 report.

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

2019 End of Year Single Family Home Activity for Los Angeles and Orange Counties

Los Angeles County 2019 Review for SFR

The thing to remember about statistics showing data drawn from December to December (as these diagrams show) is that the market is usually slower, lower, etc., at the end of the year compared to the middle of the year, so comparisons from December to the following August could show a little differently.

Sales volume is up in Los Angeles County, while the number of active listings is down, but the median and average home prices continue up--meaning that there's decreasing inventory with sales prices driven upward.

Closed Volume
  $7,812,678,480 | +27.4%;
Average Price
  $1,004,807 | +9.4%;
Active Listings:
  7,787 | -35.1%; (13,579 in June)

  

Orange County 2019 Review for SFR

In the meantime, in Orange County, sales volume is also up percentage wise, but the total dollar amount is approximately half of Los Angeles County (OC is about one-third the population of LA County).  The average single family home price compare in both counties.


Closed Volume
  $3,307,614,666 | +36.5%
Average Price
  $1,092,343 | +1.9%
Active Listings
  2,963 | -34.6%  (5,846 in June) 

Take note:  In both counties, months supply of inventory dropped over 35%, to less than 2 months, and at the peak in May, inventory supply was not over 4 months supply.  In both counties, houses sold within 2% of the original asking price, so overall housing market prices are holding steadily.

For an evaluation of your home, condo, or residential unit property, please contact me by phone, email or text for for information on your property.

Data provided by InfoSparks, CRMLS.

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

Some New 2020 Laws in California That May Affect You

2020 New Laws in California

Over 800 new laws were passed into law effective January 1, 2020!

AB5 - Affects independent contractor status of many occupations.  Certain workers were exempted, or "carved out."  Realtors were one such group exempted and still maintain their independant contractor status.  Truckers, as you may know, were not, but are fighting that status in the courts. Realtors are one of the exempt classifications.

AB 1482 - Certain notices to ALL tenants should be sent out already, and new CAR forms contain the appropriate notices.  There are ambiguities in this statute, ie., "region" vs "area" for calculating CPI, which will require time to work out. However, all landlords should be providing, as of January 1, 2020,  an advisory about the tenant rent cap and just cause provisions.  If the landlord is exempt, for example, because the rental property is a single family home or a condo, the exemption does not apply if the tenant has not received the advisory.  As a Realtor, I may give an advisory form to my client for their tenant, but otherwise landlords should contact their property manager or find the appropriate advisory on the internet. This information should be given immediately to tenants. Some cities have additional rent cap laws which may be more restrictive, however, Long Beach recently completely rescinded its law and is now following state law. Property managers, owners and interested parties are advised to independently research this law, one of the most restrictive in the nation, through their own counsel.


AB 1110 - Rent noticing where AB 1482 does not apply to a property and there is a month-to-month tenancy.   A 90-day notice is required if landlord increases rent by more than 10% of current annual rent.

AB 68,670, 881 - Accessory dwelling units.  Limits on what cities can impose.  HOAs must allow construction of ADUs, cities cannot prohibit laws against ADUs (but there are requirements to follow for construction). ADUs in HOAs would not reasonably be considered for apartment style multi-family structures, which typically have a common parking garage and balconies. It would have to be an HOA with single family lot with a garage, for example; the owner is also advised to check governing documents in their HOA.  If you have a question about ADU requirements in the area you live in, I advise checking your local city's website for all their posted information.  If you still have questions, or believe you are being given wrong information in regards to the state law, contact me for further help.

SB 329 - No discrimination allowed based on source of income, i.e., child support, Section 8 housing income, or other public assistance, for example.So if between two applicants the Section 8 applicant has, for example, a better credit score, than another, a landlord may not discriminate against the Section 8 applicant simply because of Section 8.

SB 969 - Garage Door battery backups - effective 7/1/2019 - If a new automatic door is installed, or an existing opener is replaced, a battery backup installation is required in event of power outage.

California Consumer Privacy Act - Privacy Act Advisory provided through CAR forms.  Relative to real estate transactions, a party may come into contact with a "big company" as defined in the Civil Code may be collecting information about which the consumer may have the right to opt out, but with certain results. Such companies may include the MLS, which uses photographs and sales information about your property. An advisory form is now in effect describing to the consumer their right to be notified which is given to clients of Realtors.  Others wishing to obtain similar consumer information may contact me for the Legal Q&A on this topic.

Employment laws:
SB 530 - Workplace sexual harrassment training required. New harrassment laws also include abusive conduct, not just sexual harrassment.  This is, in fact, because agents work broadly in the field which is their entire workplace, so would also include client behavior towards an agent or broker.  This is meant to address repeated insults, or hostile and offensive behavior.

AB2770 - Protection for reporting victims of sexual harrassment.

AB 51 - Employer no longer can require waiver of rights to arbitration by employees.

SB 1412 - Criminal background checks limit sealed or expunged material.






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

Snapshot Market Review of Long Beach Nov. 2019

Long Beach in November

According to data from CAR, there were fewer active listings in November compared to one year before, but an increase in sales compared to one year before., and an increase in median price.  But there's also one-third of the active listings with reduced prices, suggesting that more sales occur from reduced prices! Although this chart doesn't reflect a breakdown, the higher priced luxury listings are lagging and are more likely to have price reductions,  compared to the non-luxury listings.

The Report for Los Angeles County shows similar trends: increase in home sales, increase in median price, decrease in active listings and similar percentage of inventory with reduced price.

Los Angeles County in November

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

Market Prices for November in Long Beach, Huntington Beach, Lakewood, Cerritos, plus Three Counties

Looking for Remodel ideas?

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

Average prices for single family homes in Orange County are still showing a slow downward trend since May, 2019, while Los Angeles County is still up from earlier in 2019, and San Bernardino County's average is continuing to the highest average in the last 5 years! This is a buying opportunity for many right now.

The average days on market for the four cities is between about 20 and 50 days.  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 68 active single family homes (as of 12/3) listed over $1,000,000 in Long Beach, the average days on market is currently 91.  There are currently 36 properties in escrow, average of 104 days on market.  If you have a listing over $1,000,000, it might be taking a little longer to sell than earlier in the year, but also not unusual for this time of year.

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

November, 2019

Long Beach
$734,340 (down from October)       Avg Days on Market :18 (down from Oct.)

Lakewood
$606,335 (down from October)       Avg Days on Market : 22 (down from Oct.)

Cerritos
$811,173 (up from October)            Avg Days on Market :39 (up from Oct, down from July)

Huntington Beach
$1,143,086 (down from 18 month high)   Avg Days on Market : 50 (highest since Feb. 2019)

Los Angeles County
$955,098 (down from July and October)  Avg Days on Market : 37

San Bernardino County
$383, 071 (September was highest avg of last 5 years at $392,195)  Avg DOM : 27 (down from Feb.)

Orange County
$1,040,012 (down from May)                  Avg Days on Market : 29 (up from May)

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

The graphic above may give ideas on remodel projects if you're thinking of selling.

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

Are Long Term Homeowners Staying in Their Homes Just To Spite Their Kids?

The baby boomer generation takes a certain amount of flak for not moving on and selling their current home that they've lived in for so many years, and the younger generations equally so for supposedly not being interested in buying.  Lowest mortage rates still do not seem to be incentive enough for bringing buyers off the shelf. There's a lot of labeling that goes on as people search for answers, and a lot of misinformation and misunderstanding.  The economics of the housing market is a compilation of factors over time, and doesn't amount to just any one thing, like being too selfish to sell, or too disinterested in buying. Tax issues, for example, are putting a squeeze on long term owners, known as the SALT cap, mixed with being faced with being forced to move up to higher prices in California, if they stay here. For these and other reasons, the fact is that owners are staying put about twice as long as the average stay about 15 years ago.
And, there's even a current projection now, that in spite of the long term squeeze on inventory, the future may bring so many houses on the market from the baby boomer generation that there may not be enough buyers from the later generations to take up the slack.

For sellers who do decide to sell, and find a less expensive market to move to, it's wise to be practical in pricing.  Still, home sales in California continue to show mild growth overall, since mortgage rates continue to be favorable for buyers.

If you are interested in finding your home's value, please contact me.  I have been helping buyers and sellers achieve their goals since 1994.

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

"Pocket Listings" Just Can't be Pocketed Anymore

The National Association of Realtors has just voted to ban this practice, a rule that is long in coming.

Called the "MLS Clear Cooperation" policy, it calls for all listings taken by Realtors for their sellers to be entered into their member MLS within one business day of marketing the property to the public.
The current rule, to be effective January 1, 2020 and implemented May 1, 2020, is as follows:

 Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.  (MLS Statement 8.0, NAR Handbook on Multiple Listing Policy)

The implementation of this rule is considered to be in the consumer's best interest, which means his/her property is exposed on the multiple listing service to a broad audience of prospective buyers and their agents, rather than the creeping practice in many highly competitive markets of keeping listings restricted to certain groups, and not known to the general public. This practice is completely contrary to the entire purpose of the multiple listing services across the country which exists for broadcasting of available properties and brokers cooperating with each other on the buying and selling of bona fide listings.  This new rule does not mean at this point that a seller cannot take a listing and then get a little more time to prepare before allowing buyers to view their home, it does mean that the property may not be marketed as described above until it is placed into the MLS (multiple listing service) to which the Realtor belongs. Doing so actually gives the consumer the most exposure on the market. To illustrate, in San Francisco, the share of homes selling as pocket listings increased 68% between 2010 and 2018. By keeping properties off the open market, and thus fewer prospective buyers, sellers ran the risk of losing offers. 

The work and final submission of this new rule did not happen in a vacuum, there is a 130-person Multiple Listing Issues and Policies committee for consideration, and if approved, the proposal moves on to NAR’s 900 member board of directors for final ratification.



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

Another Interest Rate Cut to the Federal Funds Rate

What does it mean for home buyers and owners when the Federal Funds Rate is lowered?   (More information is on Investopedia about the Federal Funds Rate, which is what banks charge other banks.) This Funds rate doesn't directly impact mortgage rates, which are hard to predict and are more closely tied to mortgage-back securities and 10-year Treasury notes, but the Fed rate can impact adjustable rate mortgages and home equity lines of credit, and credit cards.

So in this larger picture are still historically low rates for home buyers, which means increased purchasing power because of the lower rates, refinancing to eliminate mortgage insurance or to get a lower rate, consolidating debt, or utilizing home equity to fund home renovation.  So if you were pre-approved 6 months ago, for example, but haven't made a move yet, go back to your loan officer to renew your buying potential, it may have improved!

If you are interested in selling to move up or move on, or looking to purchase a home, please contact me for more assistance!



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

California Association of Realtors Housing Market Forecast for 2020

Here is a summary of the 2020 California Association of Realtors Annual Report presented at the annual trade show in September, 2019 in Los Angeles:


Talk of recession:  Housing is not going to be the cause, but it could be due to global economics, trade wars, geo-political crisis, and/or stock market correction.  It could happen sometime in the future, there is no timetable.

According to a 2018/2019 Google Consumer Poll, 46% of 300 people thought it was a good time to sell.

According to CAR's 2019 Housing Survey, though, 47% of properties in escrow fell out because the buyer decided not to buy, the next highest number was 6% representing people who did not qualify for a mortgage on buyer's terms,  down to 1% for seller deciding not to sell.

Unemployment is at the lowest rate in 50 years, with Los Angeles County and Orange County at 4.5% or lower.
Interest rates are at historic lows, will remain lower in 2020, per this report.

Nonfarm job growth in California is lower than 2015, under 2%, unemployment lower than 2015, the population is almost 1 million higher than 2015, and population growth at .5% is lower than in 2015.
The highest sales volume is in the $500k to $749k range in California, with 46% of house sales taking place in Southern California, although sales growth in all regions is down compared to previous year.

The California median single family home price for existing homes was at an all time high in August of 2019, at $617,410.  The SFR inventory supply improved only at the upper end of the market, so prices over $1 million and $3 million increased 4.5% and 10.8%, respectively.   Houses under $299,000 decreased by 17.5%, with inventory decreases in price ranges all the way up to $999,000.

Overall, for the last 15 years California's sales are mostly flat, in spite of a strong economy, low interest rate, and low population growth.

Why?  Well, because fewer permits were issued :  in 1988 over 255,000 permits to build were issued, while in 2018, just over 114,000 permits were issued, while the population grew about 12 million in that time period.  Limited land, density resistance, project review delays are all possible contributors to this condition.

In spite of rates dropping, buyers mortgage applications are down, and the projection is that by 2025 California will be a majority renter state.  Los Angeles and Long Beach already fall into the 60% plus range for renters out of the total population.

The market is not as competitive as in previous years, less than half of sales received multiple offers, compared to 2013 when about 70% of listings received multiple offers. Outmigration to other states continues, 750,000 people have left since 2010, with San Bernardino and Riverside Counties being popular relocation spots, and there are fewer investor flippers in the market, and fewer investors are selling their properties.

Sellers are staying put, average time in a home is now 11 years, much longer than in 2005 when it was about 5 years in the home.

And so where are we in the end for 2020?  Here's the summary chart:  The California median price is predicted to be $607,000 for a single family home (statewide) with a 2.5% increase in price growth, far lower than 2017.

 

For the complete report in pdf format, you may download here: CAR Housing Report  by looking for the link to the report on my Market Trends Page.


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