3/03/2016

New California Disclosure to be Made by Condo Associations per AB 596

Is your HOA FHA-approved?
This was actually signed into law last August 12th by Gov. Jerry Brown, requiring condominium associations to disclose to their members whether their developments have been approved for FHA or VA financing. This is an annual disclosure along with the other HOA disclosures submitted 30-90 days prior to the end of the fiscal year.  AB 596 adds the requirement that, on a separate piece of paper in at least 10-point font, there will be statements saying whether or not the development has been certified by FHA or the Department of Veterans Affairs.

I believe I have posted before about the declining number of FHA (or VA) approved homeowner associations.  Why is this important?  Because the available number of buyers for a condominium increases accordingly.  There was a time when "spot" I believe I have posted before about the declining number of FHA (or VA) approved homeowner associations.  Why is this important?  Because the available number of buyers for a condominium increases accordingly.  There was a time when "spot" loans could be done, but no more.  The entire complex must be approved for FHA loan, that also applies for VA loans too.  But when a complex is approved for FHA, the VA requirements are similar.

To give an idea of how extreme the problem is, out of 228 complexes listed in Long Beach on Hud.gov, all of which were once FHA approved, 17 out of the first 25 on the list are expired; 20 out of 25 on the second set are expired.  That's 37 out of  50 complexes listed are unable to sell units to an FHA buyer. And so on.

One-quarter of the state's housing stock is located in common interest developments, and according to Bob Hunt, a California Association of Realtors director, fewer than 30% are approved for FHA financing, and even fewer for VA financing.  This situation does not have to exist.

Many association members are unaware of the status of their HOA, and many think it may be FHA approved because it was in the past.  The guidelines changed:  spot loans (per unit approval) was eliminated, and associations are required to renew their FHA status every 2 years.

If your association has a property manager, they should be able to help.  If not, there are lenders who are familiar with the application process and may readily give their assistance.  Please contact me for more information if you need it.

The important thing to realize is that many qualified buyers can buy with an FHA loan on 3.5 percent down payment, and obtaining a ready, willing and qualified buyer for a property can go much faster with FHA approved associations.


3/02/2016

Selling Prices as of February, 2016 for Long Beach/Lakewood Single Family Homes

Here are the median closing prices for several zip codes covering

The far west area of Long Beach (90810);
Belmont Heights/Shore and Naples areas (90803);
Carson Park-Long Beach and Lakewood (90808);
and Lakewood Mutuals (90712).

Prices are current as of the last day of February, 2016, from one year prior.


Median Selling Prices
90810  $379,900 | +17.2%
90803  $992,500 | +13.8%
90808  $644,500 | +17.2%
90712  $495,000 | +6.5%
   The Average Selling Prices* are a little different :
 90810  $362,000 | +11.8%
   90803  $1,162,165 | +24.6% 
90808  $648,131 | +7.9%
90712  $498,489 | -1.6%

*(median=midpoint price of all selling prices; average=sum of all selling prices divided by total number of properties sold)

1/28/2016

Law Enforcement Cracking Down on Online Home Rental Scams

Don't get fooled by a fraudulent "rental"
The rental housing landscape has been the target of fraudsters.

For instance, a legitimate "for sale" listing which shows up not only on the local REALTOR multiple listing service (MLS), and then (according to licenses) automatically fanned out to such sites as Realtor.com, Trulia, Zillow, etc., and also possibly manually entered by the listing agent into other sites such as Craig's List, is hijacked.

Actual listing agent information is deleted by person(s) attempting to misrepresent the listing, but the rest of the listing information, including photos, is resubmitted as a rental property with a new rental price, often one which does not support local neighborhood values, but gets the fraudster plenty of emails or phone calls.  The purpose of this is to get an unsuspecting renter to wire money to the "agent", before agreeing to see the property.  Of course, after they obtain money, there is no showing of the property--the fraudster may live on the other side of the country, or in another country.  This has personally happened to me, and to other area agents as well.  To get the false information and listing deleted online takes time and phone calls, including phone calls from renters who went to my listing to verify its existence, and then called me from the "for sale" sign.  Of course, it's not for rent, it's for sale.  Moral of the story:  Do not send money or personal information to see a rental.

Another local scenario in the 562 area code is where another rental company with a different area code goes to vacant properties and puts up their own rental sign so that they will get phone calls off someone else's property for which they have no contract to lease or to sell.  Yes, they've been reported so they quit for a while, but after a while, the signs pop up again. 

This is a nationwide problem.  If you are a landlord, you should also take notice of this issue.
Always try to first verify the actual agent or owner of a listing, because this is happening just often enough to cause headaches for all concerned.

Below is an online article for the Freddie Mac Blog published today about this very issue, worthwhile reading for everyone on how to recognize and protect yourself from these schemes. 
Law Enforcement Cracking Down on Online Home Rental Scams: Law enforcement started the year by cracking down on fraudsters using phony online real estate ads to fleece would-be renters.

1/22/2016

December Average Sold Prices in Cerritos, Long Beach, Lakewood and Seal Beach

In Los Angeles County, the median priced home in November 2015 was $457,870 and $489,310 in December, 2015 for all of California.

In the chart below are average prices for Cerritos, Long Beach, Lakewood , and Seal Beach single family homes for the past 2 years through December 2015.  The four cities have increased between 12% and 20% in that time.  Current average price - Long Beach $611,735; Cerritos - $699,438; Lakewood $529,903; Seal Beach $1,070,400.

 

Average condominium prices are more similar for all four cities, ranging from $383,000 (Cerritos) to $312,000 (Seal Beach).

1/02/2016

November 2015 Sales Prices in California

California home sales volume and median prices for November, 2015:


Top Concerns for the 2016 Market



Although the Consumer Financial Protection Bureau states "no problem", many REALTORs are experiencing delayed closing with the new TRID (TILA/RESPA Integrated Disclosure) rules implemented October 3rd.  For about half of those responding to a survey, closings took up to 40 days to close.  While this may not be of concern to all-cash buyers, buyers obtaining financing and sellers in contract with those buyers may have to be prepared for taking extra time to close, at least while the industry is in the earlier phase of these new mortgage/escrow rules.

Some years ago FHA revised their rules on eligible condo HOAs--Since an entire association was required to become "FHA-approved", and for only two years at a time, the number of approved condos has declined severely.  This reduces the number of eligible buyers for a condominium severely and is a factor everywhere for FHA condo buyers.  Association members are advised to take up this issue with their boards -HUD provides a resource for current status - and apply for renewal.  Some lenders are willing to provide this service without cost, especially if there is an  active buyer for that complex.  Contact me for more information.  VA approvals for condos are also required for VA buyers, and these are another important source of condo buyers.   However, for buyers obtaining FNMA loans there are no restrictions on percent of owner-occupied units, a major qualifier on FHA loans. 

Tight inventories are still a factor nationwide, as buyers can attest to after they have experienced multiple offer situations.  Buyers who are fully approved and prepared to make realistic offers have more success, although the price range under $500,000 in many Southern California cities is competitive.  Below is a trend chart for "months of inventory" for Long Beach.  Neighboring cities are similar.  A 6-month supply (how long the inventory would last at the current rate of sale) is considered the norm, but has not been the norm for several years. The chart shows 1.5 months.


Tight credit standards continue to affect sales.  There was a time when a 700 FICO score meant smooth sailing, but the average FICO score on all closed loans in the third quarter was 723, the lowest level in at least four years, according to Ellie Mae. Two years ago, the average score for denied applications was 729.  In other words, keep up your credit score but minimizing debt and no delinquencies.

Low appraisals continue to be problematic.  This is a large subject by itself, but the short summary is: Find a good REALTOR to work with, whether you're a buyer or a seller, and avoid over-inflated pricing.

More Trends:

Cash sales continue to decrease; buyers are interested in walkable areas (check the WalkScore for your neighborhood), "green" homes, or older homes with upgraded environmental efficiency, are on the buyer lists in many areas, new home sales are up in some areas (however, older Southern California cities are less impacted by this demographic), rents may increase by as much as 8% in some areas, so buying at today's lower interest rates will still be cheaper than renting.

For a free property search, go to www.juliahuntsman.com Property search page.

Please contact me for a more specific home analysis for your property.  As a licensed REALTOR for over 20 years, I can help whether you have a home or investment property sell.

HAPPY NEW YEAR!

12/16/2015

Some New California Laws for 2016

California laws 2016
New CA laws for 2016
One of the more interesting new laws for 2016 allows transfer of deed without going through probate court.  As a transfer-on-death deed, it allows a homeowner, effective January 1, 2016, to transfer to a named beneficiary a one-to-four unit residential property without going through a probate action.  The property cannot already be part of another will or trust, but must be separate and apart.  So if you have not included a property in your trust, or you don't have a will or trust yet, but you want a property that is yours to go to someone automatically upon your date of death, you may do so by this Transfer on Death Deed, sign and notarized and recorded within 60 days.  It is revocable in case you change your mind.  This a form deed accompanied by 24 FAQs explaining it. The law lasts through January, 2021.  Assembly Bill 139.

There are a number of laws involving no penalties for water use and lawn appearance during a drought.

Extended indefinitely is the victim's rights law to terminate tenancy, where he or she or a household member was a victim of an act of domestic violence, sexual assault, stalking, elder abuse or human trafficking and that the tenant intends to terminate the tenancy.  The time to give notice has been reduced from 30 days to 14 days.  Assembly Bill 418.

Senate Bill 655 pertains to new mold/habitability standards pertaining to landlord/tenant law. A change from current law, this new law  now provides that a lessor (landlord) is not obligated to repair a dilapidation relating to mold, as specified, until he or she has notice of it, or if the tenant is in substantial violation of the duty to keep the property clean and sanitary, and thereby substantially contributes to the existence of the mold. This law authorizes a landlord to enter a dwelling to repair a dilapidation relating to mold.  There are current definitions about substandard housing, and "this law specifies that visible mold growth, as determined by a health officer or a code enforcement officer, is a type of inadequate sanitation and therefore a substandard condition. However the presence of mold that is minor and found on surfaces that can accumulate moisture as part of their proper and intended use would not constitute a substandard condition."

For a complete list of 2016 laws which also address consumer protection, HOA regulations and drought conditions and FHA disclosures, disclosure required by AirBnB rentals, to name a few, please contact me.  I will be happy to forward them to you.
Lic #01188996




12/14/2015

VA Loans Are Still a Very Good Option for Military Service Members

Benefits for Nation's Heroes
VA loans offer no down payment, competitive interest rates, easier credit standards, and easier loan qualification guidelines. Other loans may be harder to get due to an applicant's frequent moves, but this is not a problem with VA loans.   Interest rates may be .05 to 1% lower than a conventional loan.

These loans are offered to current or former service members who have served for a certain period of time and can obtain a Certificate of Eligibility.

Service members may also obtain USDA loans (not common in metropolitan areas), FHA loans and other conventional loans.  But often the advantages to a VA loan, for those who qualify, are so good they can't pass it up.

VA loans are used both on new purchases and refinances. There is no private mortgage insurance (PMI) found on other loans with low/zero down payment, which saves money from the beginning.

The Department of Veterans Affairs guaranteed 630,000 loans in 2013, an all time high.  To find a qualified VA lender, please contact me, or go to a company such as Veterans United Home Loans.  Not all lenders are well-versed in VA loans, so it pays to get a personal referral to someone in your area.  Please feel free to contact me.

12/03/2015

Affordability in the California Housing Market

With the improvement in the California housing market since the "bottom of the market" in 2009, affordability has changed.

California's housing affordability index is at 29 percent, meaning 29 percent of California's homebuyers can afford the median-priced home of $487,420, which is a statewide figure.  The required income is just over $98,000.  To compare, 38 percent of the California population makes an annual income of $78,000 or more.  While not all single buyers may fit this profile, couples able to use both incomes to qualify are more likely to suceed, especially in the lower-priced condo market in certain cities.

In spite of this affordability declining over time, it appears to have stabilized in the 30% range.  Has it affected sales volume? Apparently not, because sales volume has increased 5.7% since the same time last year.
Downtown Long Beach

Will gradually increasing interest rates affect California's housing market?  Hopefully not, if the economy and labor markets continue to stabilize or grow.

What is the Long Beach median single family home price doing?  Here are the latest citywide figures:




 Long Beach condo price for the citywide median price of under $350,000
is posted below:

12/01/2015

Cost vs. Value - What Improvement Projects Pay Off?


Sometimes the lower cost improvement may pay off best, especially if the seller is considering fixing up to sell.  See this article for more information on how less is more.
Web Statistics