Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
For Orange County, existing house sales were up in July from last year, but in Los Angeles County sales were down by about the same amount. In both counties, the number of active listings was down over 40% from last year. And in both counties the median price increased over 4% and 6% from July, 2019.
What is driving the upward price trend? Lower inventory and continuing buyer demand for homes.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
Realtor.com just came out with its study of the 10 hottest zip code markets in the U.S., based on turnover and number of views of the property. (See links below.)
At the top of the list is Colorado Springs, followed by the rest which are located outside of California.
But overall, the pandemic market has not lowered prices, nor kept buyers from buying.
Locally, zip code 90803 (Long Beach, Naples, Belmont Shore, etc.), one of the most expensive certainly in Long Beach and elsewhere, had an average sales price of $1,473,357 ending in July, but turnover has slowed somewhat for that price range, over 80 days average, 60 days median, on the market before going into escrow.
By contrast, east Long Beach including Park Estates and Los Altos areas was a median of 10 days on the market, 27 average days on market, at average sales price of 870,877.
Going to west Long Beach, to 90810, the average sales price was $519,045 and houses sold on average in 21 days,
Going to north Long Beach, to 90805, the July average sales price was $539,559 with average days on market at 15 days.
So with lower priced markets that are more affordable, the days on market is gradually shorter.
Overall, the entire City of Long Beach finished July with only 2 months supply of inventory, continuing the demand for more listings to accommodate the buyers who are looking and constantly competing with each other in this market. Nearby cities of Cerritos, Bellflower, and Lakewood are in the same low inventory crunch, less than 2 months of inventory.
Compare the Long Beach prices (lower compared to other coastal cities) to the hot zip codes in the Realtor.com study: https://www.realtor.com/research/hottest-zip-codes-2020/ where the median list prices are under $644,000!! And yet, buyers throughout Southern California are looking for sellers who want to sell.
Will homes sales continue to defy expectations? Here's more from chief economist Lawrence Yun with National Association of Realtors, Defying Expectations
If you or someone you know is interested in selling, I can show you how to get your house on the market and get it sold.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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."
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.
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.
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.
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.
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.
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.
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.