Owner/Tenant Updates for California in 2024

Roommates moving in to new unit

The following is meant as a summary, not an in depth explanation of current updates (provided courtesy of California Association of REALTORS), to the Tenant Protection Act.  A real estate attorney or property manager, if you have one, should be consulted if you have questions about your particular situation.  It's really advisable to do so anyway, since in California tenant/owner laws are sometimes complex, and vary from county to county, and city to city:

    

     Beginning July 1, 2024,landlords may collect no more than one month’s rent for either furnished or unfurnished units in addition to first month’s rent. There is an exception for small landlords, defined as a landlord who is a natural person or LLC and owns no more than two residential rental properties with no more than a total of four units offered for rent. 

     Tenant Protection Act law tightens up the requirements for a landlord to terminate a tenancy under the Tenant Protection Act (i.e., California statewide rent cap and just cause eviction law) for no-fault evictions based upon owner move-in or substantial remodeling.  Additionally, an owner who violates the TPA by improperly terminating a tenancy or by raising rent beyond the maximum amount is liable for actual damages, reasonable attorney’s fees and costs (at the discretion of the judge), up to three times actual damages for willful violations and punitive damages. The Attorney General et al is authorized to seek injunctive relief. Effective April 1, 2024. 

    Prohibits local ordinances that penalize tenants and landlords for various types of law enforcement contacts, i.e., local “crime free” rental housing programs and ordinances. 

    Landlord must offer “ability to pay” in lieu of reliance on credit history and reports in assessing a tenant’s rental application when prospective tenant is receiving a government rent subsidy such as a Section 8 rental voucher.

    Allows a jurisdiction with local rent control to require an owner of a rent-controlled unit to allow a tenant with a permanent physical disability to relocate to an available comparable or smaller unit located on an accessible floor of the property and retain their same rental rate. 

     SB 712 prohibits a landlord from prohibiting a tenant from owning personal micromobility devices or from storing and recharging up to one personal micromobility (e.g., e-bike) device in their dwelling unit for each person occupying the unit, subject to certain conditions and exceptions.   

    This law tightens up the requirements for a landlord to terminate a tenancy under the Tenant Protection Act (i.e., California statewide rent cap and just cause eviction law) for no-fault evictions based upon owner move-in or substantial remodeling.  Additionally, an owner who violates the TPA by improperly terminating a tenancy or by raising rent beyond the maximum amount is liable for actual damages, reasonable attorney’s fees and costs (at the discretion of the judge), up to three times actual damages for willful violations and punitive damages. The Attorney General et al is authorized to seek injunctive relief. Effective April 1, 2024. 

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

What Happened in 2023 in the California Real Estate Scene

Graphic showing 2023 market data in California

 The 2023 housing market had ups and downs, but buyer competition remained, and prices continued upward for the most part, in spite of inflation, shrinking insurance availability, and increased mortgage interest rates.

Home sales slowed, but the housing market hasn't crashed. Mortgage rates went to 7 percent, prompting many homeowners to not sell, and those who did were sometimes offering incentives to the buyers.  Housing shortages are reflected in the December to December 23% decrease in new listings, and the overall 20% decrease in closed sales.  But median and average sale prices both increased.

For 2024, the chief economist of the California Association of Realtors, Jordan Levine, predicts continued price improvement, and sales volume improvement compared to 2023. Mortgage rates are already easing, which lowers the monthly mortgage payment amount, and perhaps will fall to the 6-6.5% range. To combat the inventory shortage, expect widening support  for accessory dwelling nits and the conversion of empty office buildings into residential space. Insurance carriers may continue to withdraw, and cause an increase in prices while forcing the buyers to look at outside carriers.  The California Fair Plan is a growing option, but comes at a higher cost for only basic coverage.  Buyers should do their  best to find as many insurance carrier options as possible.  A new down payment assistance resource directory may offer help for some buyers, contact me for a program that may work for you.

You're probably aware of ChatGPT generated information, and the discussions about using Artificial  Intelligence (it's not new, a Magnum P.I. segment in the 1980s had Magnum and his consultant friend talking about and referring to artificial intelligence and what they were discovering then what computers could do!) are now frequent in the real estate profession. Some property descriptions, marketing materials and social media posts are online from AI.

The median-priced home in California is now $830,620,  in Long Beach the December 2023 average sales price was $1,060,056 and for a condo it was $557,532--but that varies: the 90803 zip code average price for condos was $741,333.

With the softening of interest rates (remember, an 800+ credit score gets you the best rate, so take care of your credit), buying a home may be more possible for buyers and sellers alike.  Please contact me with any questions, sometimes all it takes is a conversation to help get you started.

 

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

Interested in Owning/Living in 2-4 Unit? New Lower Down Payment

Mediterranean duplex style

 New loan limits are in place for 2024, by both FHA (Federal Housting Administration) and FHFA (Federal Housing Finance Agency).  FHFA is the regulator of both Fannie Mae and Freddie Mac loans. The new conforming loan limit is $766,550, an increase of $60,000 over last year's limit.  For FHA loan, popular among first time buyers, the limit is $498,257.  But due to higher cost markets in some areas, in California, New York, the District of Columbia, Hawaii and other pricey markets, the limit for FHFA conforming loans in 2024 will be set at $1,149,825.  

Also, as of last November 18, 2023, FNMA is accepting 5% down payment on 2, 3 and 4 unit properties.  They must be owner occupied in at least one unit.  This lower down payment allows the purchaser to put more money towards standard purchase costs, property maintenance or reserve funds for the future.  To obtain qualification information, the buyer needs to contact an experienced loan officer for more information on all loan limits and financing. A buyer should also learn about owner/tenant laws, and more, assuming other units will be rented out, which of course brings in income on the property. This lower down payment is a huge benefit to buyers interested in residential multi-unit purchases.
For representation to purchase a property and assistance with all contract and disclosure aspects of buying, please contact me, a REALTOR since 1994.

 PROPERTY SEARCH:  Find multi-family units at this link and complete the form for residential income, select "active", and then under "property subtype" select (use control button) duplex, triplex, quadraplex, multifamily, and then click "Apply".  Long Beach and Lakewood, as of January 17 have approximately 48 active multi-unit listings in the MLS at all prices. Some listings may show a "Down Payment Resource" link to another site for financial information for the buyer, as well as directions, map location of property, and other tax and feature information.

This search box may be used in multiple areas for multiple types of properties. Please contact me for further information about areas.  The information you see at this link is directly from the MLS, however if you have questions or are looking for in depth assistance, please let me put my experience to work for you.

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

What’s Happening in the Long Beach Area Housing Market? Speeding Ahead?

Boat in Marine Stadium

It’s probably not a shock that the real estate market is softening. After a period of low-interest record rates, we’ve seen a significant increase in the average mortgage after multiple subsequent rate point hikes from the Fed as it tackles inflation. This has hampered both buyers and sellers.

This creates a lock-in effect. Homeowners like you probably hold a low-interest rate mortgage and are reluctant to sell in an environment with rising rates. Buyers also don’t want a high-interest rate, but buyers are still in the market. Mortgage companies offer alternatives to a 30-year fixed loan along with many ways the buyer and seller can work to buy down the loan to make the payments more palatable.

There are fewer listings on the market, and active buyers are still looking for the perfect home at the right price. Some homes are still selling within weeks, about 30% nationally. What’s the secret? Being ready for occupancy and pricing properties based on condition and comparable sales.

An excellent REALTOR can work with you to do the right things to make your home attractive to potential buyers. If you’re not interested in selling right now, you can sit tight because you’ve built equity in your home, and even in this unsteady market, that equity will likely not erode.

I’m always here to answer questions about the property value of your home and specific neighborhood comparables. Please use your favorite form of communication to reach out!

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #0118899

What is the Value of a REALTOR?

 A REALTOR is a member of the National Association of REALTORS, and in California, a member of the California Association of REALTORS and a local Board of REALTORS. Being a REALTOR member, among other things, means there is a Code of Ethics required of all members as set forth by the national Association and enforced at the state and local levels. When a seller or buyer hires a REALTOR agent, he/she hires an individual (who may also be part of a team) to help them through a very large financial and personal event of selling or buying a new home.  Sometimes, even though the client may view a presentation, the full duties and obligations of the REALTOR may not be fully expressed at the time. But in fact, there are upwards of 160 things a REALTOR does in most transactions, all as part of their agreed upon commission:

1. Pre-listing activities which include valuation, property analysis, research other relevant properties in tax record and MLS, answering preliminary questions from seller, setting up appointment, prepare listing presentation, and more.

2.Listing Appointment Presentation which includes market condition and projections, review agent's profile and credentials, power of MLS and web marketing, explain agency, review and explain all listing contract documents, net sheet, selling conditions in a tenant occupied property, staging, included property, and other possible factors.

3. When property is under Listing Agreement, there are multiple documents for review by and seller signature, required by state law and/or broker practice, repairs (which can also come up much earlier in the process), obtaining of keys, showings, to name just a few.

 To continue on, each of the following categories also involves many detailed steps: 4. Entering Property in Multiple Listing Service Database, 5. Marketing The Listing, 6. The Offer and Contract, 7. Tracking the Loan Process, 8. Home Inspection, 9. The Appraisal, 10. Closing Preparations and Duties, and 11. Follow Up After Closing.

Additionally, there are sometimes unexpected challenges that may occur which a REALTOR may have to spend additional time on - probate properties which require specific handling and working with the estate's attorney, or challenges to the buyer's loan due to sudden interest rate increases, additional negotiations to solve these problems, or property conditions discovered during the buyer's inspection. No two transactions are ever the same.

 So if you as a seller or buyer are wondering about your  transaction, ask your agent, it's important for the client to know and understand as much as possible!

And for a COMPLETE list of what happens, please feel free to contact me, because I have always found that the more prepared a client is in the beginning, the greater the communication and hopefully, satisfaction, will be.

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

Happy Holidays to All

 

 

 

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

California Lic. #01188996

Long Beach November 2023 Residential Market for Condos and Houses

 The November average sales price for a single family home continued up from November 2022 (on a monthly basis), as did the median price, by over 12%! However, the overall average decreased slightly compared to the same time last year.

Condo prices went up on both a monthly comparison and for the over all year compared to one year ago.

New listings for SFRs were down compared to November of last year, showing the inventory crunch (a pattern found in just about all markets); but for condos new listings were up, but pending sales and closed sales were down from one year ago.  And for both types of sales, the number of days on market are longer.

 The good news is that the 30-year interest rate has recently decreased, which makes a difference on the buyer's prospective monthly payment! So we hope to see more of this in 2024.

 For an estimated value of your property whether it's one, two, three or four units, please contact me. I can help you plan before you take any actual steps.

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

Holiday Events for December 2023

Looking for fun things to do in December? Here's a partial list of local activities!

 Dec. 7-9 - Rancho Voices: A Holiday Celebration - https://www.rancholosalamitos.com/events.html

 Dec. 8 - Homeschool Holiday - https://www.aquariumofpacific.org/events/info/homeschool_holiday

 Dec. 8 - Versa Style Dance Company - https://www.carpenterarts.org/event/versa-style-dance-company-0

Dec 8 - 17 - The Nutcracker - https://www.scfta.org/events/2023/american-ballet-theatre-s-the-nutcracker

Dec 9-23 - A Christmas Carol Long Beach Playhouse - https://lbplayhouse.org/event/a-christmas-carol-2023/ 

 Dec. 9 - Long Beach Symphony Holiday Swing - https://www.lbentertainmentcenter.com/events/long-beach-symphony-5/

Dec. 9 - 10 - Huntington Harbour Boat Parade - hhboatparade.org 

Dec 10 - Maker's Market Long Beach Museum of Art - https://www.lbma.org/mc-events/makers-market-2/?mc_id-420091

Dec 10 - Chanukah Celebration - https://2ndandpch.com/portfolio/chanukah-celebration/

Dec. 15-16 - Celtic Woman Christmas - https://www.scfta.org/events/2023/celtic-woman-christmas

Dec. 16 - Breakfast with Santa - https://2ndandpch.com/portfolio/breakfast-with-santa/ 

Dec. 16 - The Long Beach Nutcracker - https://www.lbentertainmentcenter.com/events/the-long-beach-nutcracker-2/

Dec 19-24 - How the Grinch Stole Christmas - https://www.scfta.org/events/2023/dr-seuss-how-the-grinch-stole-christmas!-the-musical 

Dec. 30 - New Year's Eve Party Queen Mary - https://queenmary.com/tours/new-years-eve/

 

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

Are You Considering Creating an ADU on Your Property? New Law Allows it to be Separate Property

New ADU law now allows Californians to create and sell as a separate property, whereas previously  they were only rental properties.

Accessory Dwelling Units have been allowed for several years now, and were created under state law.  

"ADUs come in all shapes and sizes — for example, a converted garage, a small home in the backyard, or, as often seen in San Francisco, an unused portion of the main house, said Assemblyman Phil Ting (D-San Francisco), who drafted the legislation.

"Under AB 1033, which was signed into law this week, property owners in participating cities will be able to construct an ADU on their land and sell it separately, following the same rules that apply to condominiums. It gives homeowners more options for building on their property, and “the hope is, it would create more homeownership,” said Ting."

The idea is that this may allow more affordable homeownership including existing owners who could move into a rear property while renting out, or selling, their existing home. 

This has been successful in several other states, and in California, each city will be opting in to the plan in order for it to be an owner option locally.  Interested parties need to go to their local government to discover current plans for this owner option, and follow the local guidelines to create an condominium-style ADU.  For a recent article on this ADU law, go to the link.

 

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

Rental Relief for Eligible Residential Landlords in Los Angeles County

 

Downtown Long Beach

Are you an owner of residential 1-4 units in Los Angeles County?  A program is now launched to assist landlords impacted by the COVID-19 pandemic and tenants who fell behind in their rents. 

Landlords may begin applying in mid-December and multilingual support will be available. This program is offered through Los Angeles County Rent Relief and administered by the Department of Consumer and Business Affairs. The program will offer grants of up to $30,000 per unit to eligible landlords for expenses dating from April 1, 2022 to now.

More information is available at www.lacountyrentrelief.com.

If you would like market information on your rental units for potential selling value, please contact me via text, email or phone call!

 

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

Long Beach Year-to-Date for Single Family Homes as of September 2023 (and LA County Information)

Year to Date Stats September 2024

 

 Long Beach Market, September year to date:  

• Existing home sales total 796 (down almost 30%)
• Monthly average of active listings total 94 (down over 26%)
• Active listings with reduced prices total 31.4%  
  

Sales to list price is 100% with the median price of $900,000.  There's still competition out there and at the same time sellers need to be realistic on pricing and offers for their local market.

As of 11/7/2023: there are 153 active listings of single family homes in Long Beach, with a median of 32 days on the market (yes, at this time of year timing is usually slower).

September Los Angeles County Inventory Report showing city prices and market information:

 

Contact me for your real estate needs!

 

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

New Real Estate California Laws for 2024

Here are some of the laws pertaining to real estate (although this is not all inclusive) that parties to a sale or purchase of a  home may want to know about.

 

• Property "flippers" must disclose recent repairs and renovations. This applies to residential 1-4 units, if property was closed within 18 months from prior sale, and renovations were performed by the contractor with whom the seller entered into a contract. For more complete information on this law, feel free to contact me, or review Assembly Bill 968.
• The Natural Hazard Disclosure statement now "expands the disclosures required by the Natural Hazard Disclosure Statement (NHD) to include High as well as Very High Fire Hazard Severity Zones (FHSZ) by explicitly highlighting three new subcategories of FHSZs. If the property is located in any of these zones, the defensible space and (for properties built before 2010) fire hardening disclosures would then be required."  Assembly Bill 1280.
•  ADUs (Accessory Dwelling Units) may now be sold separately as a condominium from the primary residence. Assembly Bill 1033

 There is now a permanent prohibition on requiring owner occupancy of a parcel containing an ADU.  Senate Bill 976

The California FAIR Plan Association (fair access to insurance requirements) plan will be extended to commercial properties by July 1, 2024, and the new law requires the Association to reduce the number of existing policies by allowing admitted insurers to offer homeowner policies to current FAIR Plan policy holders. Senate Bill 505

Allows a jurisdiction with local rent control to require an owner of a rent-controlled unit to allow a tenant with a permanent physical disability to relocate to an available comparable or smaller unit located on an accessible floor of the property and retain their same rental rate. Assembly Bill 1620.

Landlords may collect no more than one month’s rent for either furnished or unfurnished units in addition to first month’s rent. There is an exception for small landlords, defined as a landlord who is a natural person or LLC and owns no more than two residential rental properties with no more than a total of four units offered for rent.  Assembly Bill 12

Vacation Rentals: Beginning July 1, 2024, AB 537 prohibits a place of short-term lodging, as defined, from advertising, displaying, or offering a room rate that does not include all fees or charges required to stay at the short-term lodging, except government-imposed taxes and fees. Assembly Bill 537

Listing Agreements. This law prohibits: 1) exclusive listing agreements lasting longer than 24 months from the date the agreement was made; 2) renewing an exclusive listing agreement for longer than 12 months from the date the renewal was made; and 3) recording or filing an exclusive listing agreement of any duration.  Applies to residential one to four properties, condos and manufactured homes. It also deems any licensed real estate professional who violates these prohibitions as having violated that person's licensing laws.  Assembly Bill 1345

 There are numerous additional laws concerning tenants/ owners, housing laws, short term rentals, and more.  For the complete summary, please contact me via text, email or phone call.  I will be happy to help!

   

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

Purchasing Power Calculator for Use by California Buyers or Sellers for Houses and Condos.

 

Interest rates are climbing again, today they are up to 8%, the highest rate in decades. While buyers should realize there are other things to keep in mind about buying besides the interest rate, such as the chance to build equity, sellers also need to keep in mind how interest rates are affecting asking prices in some areas, and what to expect in an offer from the buyer.

To see the impact on both sides of the transaction, the Purchasing Power Calculator gives an immediate picture of monthly payment, number of properties available, reduction or increase in asking price, and information gathered from California counties' markets. 

Buyers should keep in mind that interest rate is also impacted by credit scores, type of loan, and other factors. The purpose of this calculator is to give an immediate picture of choices, both housing inventory-wise and financially.

Just click on the link to see the calculator.

For more assistance, please contact me via text, email or phone call.  For a  property search, go to my website.

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

Annual Cost vs Value for Los Angeles Area Home Remodel - 2023 Report

 

Remodeled kitchen white counters

The annual summary on cost vs. value for home projects is out for 2023. This is an interesting guideline for what homeowners might expect for return on projects, it is not, however, equally applicable to all properties or to all cities in the Los Angeles area.  Homeowners and prospective buyers will vary according to perceived value and personal preferences, architectural style, neighborhoods, or construction era of home. Notice that some installations, i.e., vinyl windows, do not deliver the return they once did as they become more common and an expected feature in the market.  Also, availability of supplies in the market may affect some features if they are considered more "prized" to obtain.  Also interesting is that midrange cost remodels offered a better return than much more expensive upscale remodels of kitchens and baths.

The following information is provided by Zonda Media through "remodeling by JLC" magazine.

Garage Door Replacement - one of best returns on lowest cost: $4781 with 99.9% return

Steel Entry Door Replacement - $3859, 68%

Vinyl Siding Replacement - $16,321, 105%

HVAC Conversion, Electrification - $18,311, 103%

Minor Kitchen Remodel - $28,509, 88%

Midrange Major Kitchen Remodel - $82,391, 43%

Upscale Major Kitchen Remodel - $164,841, 30%

Bathroom Addition Midrange - $60,708, 30%

Bath Remodel Midrange - $26,342, 67%

Vinyl Window Replacement - $22,455, 67%

Go to remodeling by JLC for the complete report.

When a home is appraised for value by a licensed appraiser, comparisons to other nearby properties are made based on similar condition, upgrades and features.

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

Halloween Events for Long Beach

 Halloween Kitty and Orange Moon

Local Halloween events around town:

Halloween Family Night Aquarium of the Pacific - October 20th

Long Beach Festival of Flight, Long Beach Airport - October 21

Howl-O-Ween Festival, El Dorado Nature Center - October 21

Halloween Carnival- Signal Hill Park - October 28th

Fairfield Family YMCA Trunk or Treat - October 27th

Historical Cemetery Tour - October 28

Halloween Scarium of the Pacific - October 28 and 29

Phantom of the Opera - October 22

Haute Dog Halloween Parade - October 29th

Trick or Treat on 2nd St - October 31st 

Lakewood Parks Halloween Carnivals - October 31st

Trick or Treat on Main Street Seal Beach - October 31st

 These are just some of the fun events around Long Beach, Signal Hill and Seal Beach. Take your family, partner or friends!

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

California Housing Market Prediction for 2024 - New Increase Projection

CAR Convention 2023 Front Entry

The annual conference was held last week in Anaheim, along with the traditional annual market prediction for the next year by the California Association of Realtors Economist Jordan Levine.

The entire report is available for anyone who would like a copy--here are 3 main takeaways from the presentation:

•     Existing, single-family home sales are forecast to total 327,100 units in 2024, an increase of 22.9 percent from 2023’s projected pace of 266,200.
•     California’s median home price is forecast to climb 6.2 percent to $860,300 in 2024, following a projected 1.5 percent decrease to $810,000 in 2023 from 2022’s $822,300.
•     Housing affordability(percent of households who can afford the median price home) is expected to remain flat at 17 percent next year from a projected 17 percent in 2023.

 Insurance as many already know is a big issue for homebuying.  In a housing survey for 2023, rural area buyers had the most challenge--32% of those buyers reported difficulty obtaining insurance. The lowest percentage of buyers having problems were for city downtown areas (12%), city outside of downtown (14%), and suburb buyers (15%). 

The share of international buyers in California on the increase again after reaching its lowest point in 2020, but still not at the highest point share of buyers (almost 8%) in 2013. 

Owners over the age of 65 are the highest share of homeowners in the state: 50%; the age group 25-34 years represent 13% of all homeowners.

All cash buyers are approximately 27% of the market in 2023, up from 10% in 2005.

Sellers are holding on to properties longer than ever: they have low interest rates on mortgage, lower property taxes, may have a capital gains hit if they sell, wondering where they can go, so they remodel and stay many times. 

About 45% of the population in Los Angeles County owns a home, compared to 73% of San Mateo County, and 5% of Kings County and Imperial County. 

Inventory months of supply (time to use up all homes on market if no new ones came on the market) remains one of the larger challenges, it hasn't increased since August of 2022, still at 2.3 to 2.4 months overall.

• Existing, single-family home sales are forecast to total 327,100 units in 2024, an
  

 

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

Things to Know About Open Houses in California

Did you know that California agents must observe certain protocols or rules about holding open a property?

For instance, usually the person you meet on the open house property is a licensed agent, but on occasion there may be an unlicensed assistant there who may greet the public, hand you a flyer or brochure or schedule a appointment with the real estate agent. But only a licensed agent may show the property, discuss terms and condition of a sale or the features of the property, location of schools or amenities, or engage in other conduct which could induce the open house attendee into signing a contract. Unlicensed assistants may not engage in any solicitation or negotiation with visitors to the open house.

The open house visitor should see the licensee's license number on advertising flyers and brochures with the agent's name, and on open house signs which bear the agent's name and brokerage name.  But license numbers are not required on generic style signs which only say "for rent" "open house", "for lease" which do not bear an agent name or brokerage name.

Licensees cannot discriminate on the basis of a protected class, including have children. Unless it's a Senior Housing community which is for those aged 55 years and older where anyone younger would not be allowed to own.

And, the Department of Real Estate strongly advises against a licensee leaving an open house unattended, so if you see a note when you arrive stating an invitation to come inside, but the agent leaves a note they'll be back shortly, you may want to return when the agent is there.  An unattended home might be an invitation to a problem.

If you are thinking of selling and want an experienced Realtor's advice before you put your home on the market, please call, text or email me! I'll be glad to answer your questions.

 

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

Statewide California Home Sales Facts for July, 2023

 

July California Sales and Price Report

Market Information - median  day to sell  down by 2 days; sales to list ratio is the same; price per square foot down by $2; 30-year fixed rate up over 1%....

Information from the California Association of Realtors about sales statewide:

• The median number of days it took to sell a California single-family home was 16 days in July and 18 days in July 2022.

• C.A.R.’s statewide sales-price-to-list-price ratio* was 100 percent in July 2023 and 100.0 percent in July 2022. 
• The statewide average price per square foot** for an existing single-family home was $409, down from $411 in July a year ago. 
  
• The 30-year, fixed-mortgage interest rate averaged 6.84 percent in July, up from 5.41 percent in July 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

 

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties. 

Thought for consideration: while interest rates are challenging for buyers, many are able to negotiate a buydown from the seller. For more information about how a buydown can help you, please contact me via text, phone or email.

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

California Property Tax Portability Calculator under Proposition 19

Craftsman bungalow home in Long Beach

If you are contemplating selling in California and relocating, you may be able to save money on your property taxes if you are 55 years of age or older, severely disabled, OR whose home has been substantially damaged by wildfire or natural disaster.  You may transfer the taxable value of the primary residence to a new replacement residence anywhere in the state, within two years of the sale, and up to three times, or as often as needed if your house was destroyed by fire.

The Property Tax Portability Calculator at the link below (courtesy of California Association of  Realtors) estimates the amount of annual property taxes that a home seller could save as a result of porting their current property tax base to a new property under California's Proposition 19. This measure was passed in November 2020 and became effective in 2021.

See C.A.R.'s Quick Guide for more information about Proposition 19. 

Claims are made through your local County tax assessor's office.  The link for information at Los Angeles County Assessor is here.

Tax Portability Calculator 

 

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

Higher Home Prices and Higher Interest Rates, But Homes Still Sell

The National Association of Realtors data shows home prices increased in 60% of the nation's largest metro areas, while 30-year mortgage interest rates hover around 7 percent in the Freddie Mac survey of rates.

New inventory on the market is hampered by homeowners with mortgages at 3 percent rates and below who do not want to sell and move into a higher interest rate market which would of course increase their costs on monthly payments.

As an example however, twenty-three (23) out of thirty (30) single family residences as listed in CRMLS which sold in Long Beach in the last 30 days--from the date of this post--closed with buyer financing, including conventional, FHA or VA loans. Five properties closed all cash, and two listings did not indicate cash or mortgage.  So those buyers are obtaining loans, and they are obtaining home insurance as required by the lender (another challenge for some buyers in this market). A total of 100 single family residences sold in Long Beach in the previous 30 days, so the pool of 30 above would indicate that approximately 76% of homes are successfully closing with financing.  Insurance tips here

 If you are interested in an evaluation of your property, please call,  text or email me. I am here to help.

For buyers who need assistance in the current market, I'm also here to help, using my 28-plus years of Realtor experience.

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

Closed Sales Volume in California, Southern California and Long Beach

May, June and July of 2023 down 18% in Southern California sales volume for single family homes, better than last December's volume which was down 46% (see the orange bar for Southern California).

Home sales volume bar graph statewide

Southern California home sales volume has been "below the line" for over two years, along with all areas of the state.

High homes prices and unfavorable rates continue to have influence for buyers, of which 41% believe prices will continue to climb. Those who believe it's a good time to sell continues at the rate of 64%, so inventory not loosening up much on the sell side. 

Although there's been a crunch on obtaining purchase home insurance in certain areas, the local market is still seeing buyers successfully closing their escrows.

In the last 30 days, 97 single family homes (average price $1,136,577) and 69 condominiums (average price $592,000) sold in Long Beach.

If you would like to find out more about selling, doing a 1031 exchange, or just find out more about the market in your area, please contact me via phone, email or text.  And please feel free to do a property search on my website.

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

Insurance - California Homeowner Policies - Tips on Finding and Keeping

Insurance is the Key!

Several companies have stated they are not issuing new policies to new customers, and some existing customers are receiving cancellations.  Below are some advisory tips whether you are in escrow and need insurance for a new purchase, or you're in an existing home and have received a notice.

 If an insurance company is not going to renew your policy, you must receive notice 45 days before the expiration date. If you didn't receive the property notice, the California Dept. of Insurance may be contacted at 1-800-927-HELP or online at www.insurance.ca.gov. Look for renewal provisions in your policy to see what you might qualify for under certain conditions.

Contact your insurance company immediately to see if there are fire-hardening steps you may  take to change the company's decision about non-renewal.

If you don't have an insurance agent, check online with the Department of Insurance in the Consumers Section to help you find an agent, and check if the agent works exclusively with one company or has access to multiple carriers. 

 Check the Residential Insurance Contact List on the DOI website for a list of admitted insurance companies.

Ask questions of the insurance agent: Does it cover current cost of rebuilding per current construction codes? Does it cover replacement cost value? Will the policy cover cost of rebuilding to pre-loss condition? Cover demolition and debris removal? Coverage on temporary rent and expenses while home is being rebuilt? What loss causes are not covered? 

Non-admitted carriers, i.e., surplus lines, do not have CIGA protection, but may be a solution for you. Investigate financial strength of a non-admitted carrier at A.M. Best.

As a last option, try the California FAIR Plan, which only covers fire and smoke. However, if you currently can find no other carrier, this Plan will provide you with coverage required by most mortgage company to keep your loan, or get a new one. It was designed to be a temporary option only, but this may be gap coverage until you are able to obtain a policy with more coverage. 1-800-339-4099. A Differences in Condition policy can be obtained separately to cover theft and liability.

IF YOU ARE IN ESCROW OR ABOUT TO BE:  Do not delay the search for home insurance. Begin immediately. Some insurance companies are using a monthly pool amount to issue policies, so if you qualify and are told you will get insurance, your transaction must close on the date you give to the insurance company, or otherwise if it's delayed in closing, you will lost your place in line, get rolled over to the next month where you start over again--the seller may not go along with this unless it was agreed upon in writing, and given the competitive nature of the housing market, there may be another buyer in line with an offer.  So do nothing to delay your closing date if this is how you are advised you're getting insurance coverage.  

Thanks for California Association of Realtors for the above information.

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

Dark Sky Illumination Trend Addresses Adverse Effects of Light Pollution

 

Dark Sky Anza Borrego Desert - Credit: John Loo via Flickr (CC)

Dark Sky Illumination Trend Addresses Adverse Effects of Light Pollution: 

Light pollution disturbs nature and can cost billions. Communities and cities are increasingly aware of the negative effects of light pollution and are passing ordinances to curb the problem. This affects how homeowners light their yards, and real estate professionals who know the ins and outs are better equipped to help their clients.

Have you looked at a nighttime photo map of the U.S. showing major cities with clusters of lights?  According to the article at the link, "Over the last 25 years, light pollution has increased by at least half and is growing about 10% annually, according to the International Dark-Sky Association (IDA), a Tucson, Ariz.-based organization focused on reversing the issue."  

Christmas lights, LED landscaping lights, expanding population in cities needing nighttime lighting, commercial displays, are all sources of increased light pollution.  It doesn't just block out our view of the nighttime sky, it impacts "plants, animals, insects, fish and people by affecting their natural rhythms and habits."   Further, " 'About 20 to 50% of the light that shines into the night sky is said to be lost due to fixtures being unshaded, which results in an estimated economic cost of about $3 billion, says Brian Liebel, Director of Strategic Initiatives at IDA. “We all pay that cost, either directly through utility bills or in the prices of goods and services, into which infrastructure costs are rolled.' ”

Tips by the IDA that property owners may want to consider are:

• All light should have a definite purpose. Before installing any, homeowners should weigh reflective paint or self-luminous markers instead of permanently installing outdoor lighting.
• Light should be directed only where needed, which is made easier with a shield and by aiming the light beam, so it points downward.
• Low light levels limit the amount of light.
• Light should be used only when it is needed rather than left on 24/7; that is why motion detectors and timers are useful.
• Light colors should be carefully selected and preferably warmer colored rather than blue-violet. “The blue scatters the light more in the night sky and increases the level of light pollution,” Libel says.

Please see the entire article at the link. And view the International Dark Sky Association site.

If you would like a home consultation because you are thinking about selling, please contact me by text, email or online. I have a lot of experience which I can put to work for you.

 

 

Long Beach Houses: What's on the Market And for How Long

Beautiful corner lot home

The market seems to be back to multiple offers and buyers feeling a lot of stress, unable to get into contract with a seller. It's true, there's low inventory, and higher interest rates.  

But not all properties are selling within a few days of coming onto the market. However, many of the home sitting on market are in the higher price range, over $1,000,000.  

The record holder on the active market in Long Beach right now is a single family in the 90803 zip code listed at $3,149,000, on market for 350 days as of July 11th--it doesn't appear to have been in escrow according to MLS data.  

The next highest time on market is a house listed at $829,000 in the 90804 zip code, on market for 336 days as of July 11th.  It was reduced from $929,000, and doesn't reflect that it's ever been in escrow.   

The next property is back in the 90803 zip close to the water listed at $3,749,000, on market for 243 days, also never in escrow per the MLS data. 

Another home in North Long Beach, completely redone on the interior is listed at $795,000, on market for 148 days.  

Then Bixby Highlands has a listing $1,099,000, on market for 127 days, never in escrow.

And so it goes through a list of 124 active properties, with the lowest house starting at $469,000, the highest list price being $6,999,000.

In Long Beach, in this group of 124 all active SFRs in the city, the average list price is $1,522,138 with an average of 41 days on the market.  There are 64 listings under $1,000,000, roughly half of the total group.

Currently, there are 109 SFRs in escrow , with average of $1,162,566 and an average 35 days on market.

So in spite of the overall inventory shortage, there's more active listings than are getting into escrow.

If you would like help buying or selling, please contact me for local area information of your property, and local listings on the market. I've had 28 years of experience helping both buyers and sellers.

 

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

Housing Affordability for California Buyers, Up or Down?

Housing affordability brightened somewhat in the 1st Quarter of 2023 since interest rates have dipped, see several areas below for comparisons.  The first three columns are the percentage of homebuyers who could buy the median priced home*:

Regional/State Chart for home prices in California

*Above chart from CALIFORNIA ASSOCIATION OF REALTORS® Traditional Housing Affordability Index First quarter 2023

 These figures exist for all counties, but four major areas are selected above, plus statewide figures for single family home and condos.

As has been widely stated, inventory is down, therefore total sales volume is down, 2023 units are projected to reach 279,000 units, down from the 342,000 units sold in 2022. Will home prices decrease as predicted (in blue print)? The public will have to stay tuned on both prices and interest rates:

"C.A.R. also announced it has revised its 2023 Housing Market Forecast and projects existing single-family home sales to reach 279,900 units in 2023, a decline of 18.2 percent from the 342,000 units sold in 2022. While home prices in general are expected to improve in the second half of the year, the California median home price is projected to decrease 5.6 percent to $776,600 in 2023, down from the annual median price of $822,300 recorded in 2022. The updated projection on the statewide median price, however, is an increase from the estimate of $758,600 forecast last October. C.A.R. also projects the 30-year fixed mortgage interest rate to average 6.3 percent for the year.

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

Buyers Want to Know: About Area Schools

Many times a buyer may be searching in an area without much familiarity with it.  And they're hoping their Realtor can provide them with an "orientation" to the area, and describe the nature or quality of local shopping, proximity to freeways, or schools.  Schools are usually important to parents because they want to ensure their children (or child) is receiving a good education in a good learning environment.  

But what Realtors specialize in is listing and selling property, and while they may have certain personal knowledge and experience with area resources, they cannot personally or professionally vouch for area standards, nor attempt to define what is "good", "not good" or "excellent" for their client. But what a Realtor can do is point their client to resources that help a buyer complete the buyer's investigation of their potentially new neighborhood, so that buyers may determine for themselves what is satisfactory or not. 

The following links are found on one or more State of California websites, and are there for anyone to use!

California Distinguished Schools

California School Dashboard

School Accountability Report Card 

Charter Schools in California

There are other sites which rate schools, but before you make up your mind about a school based on a certain rating, take the time to research it more indepth and consider what is really important to you. Compare other schools to the one you may be considering, and also research online about the current educational issues for students statewide. 

Hopefully, you will find the right neighborhood for you faster, if you start your search for factors important to you early!

Please contact me by text, email or phone call for help with property values and what it takes to buy your next home!

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

What Could the Potential Loss of Insurance Mean for a California Home Transaction?

The news about State Farm not writing new policies is part of a larger story.  

It's not news that premiums have increased and that areas of wild fires have seen a pullback from insurance companies. The refusal by insurance companies is not just in climate zones, many  types of properties are now affected, including areas that are low risk of fire and flood.

If you're a buyer or seller and currently in a transaction, be aware that the buyer contingency in a standard California Association of Realtors contract allows for investigation of the property, including insurance issues that may prevent coverage.  This is very important that the buyer understand their contracts, and follow up completely on insurance coverage.  Under standard timelines, the buyer contingencies are removed assuming the buyer is satisfied with various areas of investigation. However, since lenders offering a mortgage want to see proof of insurance coverage prior to close of escrow, buyers are strongly advised to obtain an insurance binder or evidence of commitment to insurance coverage as soon as possible in the escrow period (the 1st day it opens), and not remove their buyer contingency until they know they will have insurance policy on that property. Otherwise, they may risk losing their buyer deposit under the terms of their contact with the seller.

Homeowner associations are seeing increases in their master policy premiums, changes in coverage limits, or a refusal to renew policies.  If an HOA master policy isn't renewed, then the mortgages of the condominiums owners are also at risk, since lenders want proof of that policy coverage for the common areas. Or, in the case of some associations, the increase in premium may be so huge it causes a special assessment: one HOA reported in the San Diego Union Tribune ended up with an $8,000 per unit cost for master policy insurance coverage.

If you're a homeowner with current coverage, do not let it lapse, because it may not be renewed.  The California Fair Plan may be an option for some residents and businesses; it protects the home for fire risk and will satisfy a mortgage company's insurance requirement, but it does not cover theft, flood, earthquake, hail, vandalism or personal liability (only special earthquake policy provides coverage for that). 

Insurance brokers are reporting challenging coverage searches for their clients, and are not always successful.  The one area of insurance so far not reporting a problem is renters insurance, which does not cover fire risk.  

If you are not currently represented by a Realtor in a transaction and are interested in finding out what the buyer contingencies are in a purchase transaction, please contact me via phone, text or email.

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

Saving Money with Sustainable Home Upgrades

1970s photo of an 1865 house

Property owners of both residential and commercial properties know that it's becoming more critical to understand "green" features during a time of rising utility costs and changing weather conditions. When the house at the right was built, there was no electricity, no indoor plumbing for bathrooms, no telephones, maybe a water pump in the kitchen. By the time my great aunt and uncle bought it in the 1950s, there was indoor plumbing and electricity -- people had to keep up with the times and what was current then. Now, 70-plus years later, there are new features, but still, not all homes that were new in the 1950s have the most current features of a new "smart" home completed today.

Buyers want to know what cost-saving features a new home may have -- in a high-cost environment they also want economic efficiency. Many agents say their clients are evaluating environmental risk during the purpose process.

Realtors are faced with evaluating such features when assisting a seller determine a list and sale price for a property.

The National Association of Realtors 2023 REALTORS® and Sustainability Report is based on a REALTOR member survey about sustainability issues facing the industry, click on the link for a summary of that Report.

Included in the Report are what clients found important: "home features that clients listed to their agent or broker as very important included windows, doors, and siding, proximity to frequently visited places, and comfortable living space."  An important thing to know for buyers and sellers is whether or not the MLS listing a property features categories for "green" features -- in my case in Southern California and beyond, the local MLS (CRMLS) does have such categories, and are listed as: energy generation, energy efficiency, sustainability, water conservation, and walk score, power production, and green energy verification. Such features may lessen the environmental footprint and reduce monthly energy costs.

Green Home Features List for Clients in NAR 2023 Report

"The NAR survey shows that 17% of REALTORS® say a high-performance home—one with improvements made to increase health, operational efficiency and durability—saw an increase from 1% to 10% of the dollar value offered compared to a similar, non-performance home. That could equate to thousands of dollars." "What’s more, energy-efficient home projects could save homeowners up to $2,500 a year on their energy bills, according to a recent survey of 1,000 consumers conducted by Thumbtack, a home services website. For example, installing energy-efficient lighting or smart thermostats could trim yearly energy bills by up to $200 and $100, respectively, the report shows." Article by Melissa Dittman Tracy, NAR REALTOR Magazine, It's Becoming More Critical to Understand Green Features, May 3, 2023. Go to Title 24 link for more information about  energy efficiency standards in California. For more information on the features in your home, please contact me via text, email or phone!

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

Snapshot of Single Family Home Market in Los Angeles County and Long Beach - March 2023

The Los Angeles County update for

Los Angeles County Market Update

March 2023.
 

Median Price for Single Family home: $718,370

Home Sales are Down - 30%

Unsold Inventory - 2.2 Months down 22%

Median Time on Market - 19 days

 

 

 

 

 

 

 

 

Long Beach Market for March 2023

Long Beach Market Update

Median Price for Single Family Home $916,000 - Increase over 2%

 Home Sales are Down - 35%

 Active Listings  Down - 21%

 Median Days on Market - 12 days

 Sales to List Price - 100%

 Active Listings w/ Reduced Prices - 30.4%

 Overall, time on market continues to drop, and supply is tight as new listings decline from last year.

California's 50 of 51 counties experienced a sales drop compared to a year ago, with 35 counties dropping more than 30% in sales volume, with weather having a major impact.  Median price statewide for March was $791,490, compared to the $851,130 median price for March of 2022. California Association of Realtors reports:

"California’s median home price grew for the first time in seven months in March, increasing 7.6 percent from February’s $735,480 to $791,490. March’s price also was lower on a year-over-year basis for the fifth consecutive month, declining 7.0 percent from the revised $851,130 recorded last March. With home prices rising more sharply than the normal seasonal pattern last year, the market could see larger year-over-year price drops as it moves through the spring home-buying season."

Even with interest rates higher than last year, prices locally in Long Beach remain strong, while inventory is low and buyers are still competing with each other. If you would like to get an estimate of value for your home, please contact me. Getting a home estimate is a good planning tool, even if you are not sure you're selling right away.  While there are online estimates of value available, automated valuation systems do not select for certain property features, and may vary greatly with one another. Ask a professional.

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