Los Angeles County Housing Market for January 2022

• Single family house median price is up 13.6% since January 2021. 
• For 24 months there has been less than 4 months of housing supply, for the last year there's been less than 2 months supply, currently 1.2 months supply. 
• January 2021 there were 7,862 houses, currently 5,215 houses on market (active listings). 
• Days on market last January: 28 -- days on market; January 2022: 29 -- one day longer. (47 days in Jan. 2019).
  
• Average percent of original list price received this January was 102.7% (2.7% over list price).
• Number of showings per listing this January was 5.9-- last January it was 6.5 showings per listing. 
• Of 3,139 SFR sales in Los Angeles County this January, 17% were all cash.
• Only 2% of the 3,139 sales were contingent upon buyer's sale of a home.
  
• Median list SFR price was $860,000--median closed price was $895,000 for this January.
• Buyers see on average of 10.1 houses before going into contract, but the median is 2 showings.
  
•  (Data as taken from CRMLS)
  
  
  
  
•  Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Protecting Your Home: What About Earthquakes?

Long Beach house built 1922

Some aspects of climate change have brought more catastrophic events to different regions--in California earthquakes especially have long been present due to geologic features, such as the San Andreas Fault. Native Californians or others who've spent most of their lives in this state may have experienced past quakes to one degree or another:  further in the past was the 1933 Long Beach quake, more recently were Sylmar/San Fernando and the fall of the Oakland Bridge (Loma Prieta).  There have been many earthquakes in California, see the list at the link.   The major ones can be devastating, causing loss of life, displacement of homes, disruption in lives.  

There are things that property owners can do to at least minimize impact to themselves, their families, or their tenants.  One is obtaining earthquake insurance, and another is preparing your home's physical structure doing some simple things: foundation bolts and plywood bracing for certain older homes with cripple walls (when you bought your house the seller should have provided you with a booklet concerning this)--for a more extensive strengthening an owner might want to do a retrofit.  There may also be a grant available for such help--find out more at the California Earthquake Authority site for units over garages, mobile homes, hillside houses, post and pier homes, etc.  

There are over 500 active faults in California and most Californians live within 30 miles of an active fault. Based on a study in 2014, there is a 75% likelihood of one or more magnitude 7.0+ quakes striking Southern California in the next 30 years.

Homeowners can add earthquake coverage to their home insurance, and condominium owners, especially those in a multiunit multifamily style homeowners association which does not have a master earthquake coverage, may purchase their own coverage for the interior of their unit--it not only gives replacement value but can also provide living expenses for some time into the future.

Communities that have been struck by disasters can recover more fully and completely when its members have had the financial means to do so..... If you're a homeowner it would be advisable to take steps to protect your home. Don't be surprised if you live in  an older home (built before 1933) and your neighbors tell you their house isn't bolted, or they don't know for sure -- just think about how an unbolted house can jump off the foundations.  If you can't pay for those repairs yourself, what are you going to do? Here is a link to brace and bolt grants.

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

Not All Homes Are Selling Immediately in Long Beach--Opportunity?

Almost every day there is an article posted about the shortage of inventory, and I personally hear stories of fellow Realtors with buyers who are in heavy competition with others to find their next home.  It is very much a time of low inventory overall, and buyers may actually be racing each other to the next home viewing before quickly putting an offer. Many homes in the Long Beach area are going into escrow after just a few days on the market--especially in certain areas such as East Long Beach. 

Long Beach park

But not all sellers are moving as quickly as others.  There could be various reasons for this, but nevertheless, not everything is selling in 8 days.  At the top end of the market, a house on the Peninsula listed for $4,779,500 and facing the ocean has been on the market for 361 days, almost a year, although it's been in escrow 3 times, and is currently back on the market. The next lengthiest listing is a small bungalow house on the market for $469,000 for 208 days in the area between 10th and Anaheim. Another bungalow house near Atlantic Ave and 6th St (downtown area) is on the market for $505,000 for 157 days, another investor or first time buyer opportunity.  Four more homes located in Lakewood Village, Belmont Shore, Belmont Heights, Naples,  and downtown are still waiting for buyers, all having been on the market longer than 106 days.  Another 21 homes in all areas of Long Beach have been on the market between 85 and 32 days as of February 4th, prices ranging between $499,000 and $6.8 million+. The remaining 67 active listings have been on the market less than 30 days, which is indicative of general market conditions.  

In the last 6 months 1,096 single family homes sold at an average price of $981,930 ( in spite of one taking 403 days) in Long Beach with an average of 20 days on the market.  There are currently 169 single family homes in escrow at an average of 25 days on the market, with some areas selling especially quickly:  Stratford Square (1) has 7 average days on market; Los Altos (7) average 17 days; Lakewood Village (3) average 13 days; Ranchos/Lakewood Plaza (10) average 11 days; El Dorado Park Estates (3) average 16 days, and so on.  Practically all areas are selling under 30 days on average.

But for some houses, even though inventory is low and the average time on market is low, there can still be opportunity for some buyers.  Please feel free to use the property search at http://www.juliahuntsman.com, where you will find all the listings as shown on the MLS.  

Market Graphics

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

New Laws Affecting California Real Estate Starting in 2022

Naples Canal

Every year many new bills are signed into California law, and this year is no exception.  Not all have to do directly with real estate, but here are some of the ones that do:

AB 468 concerns emotional support animals (which are not the same as service animals).  While landlords must provide reasonable accommodation concerning emotional support animals per current federal or state law, there are now restrictions on how health providers may provide documentation, requiring specific language, in order to reduce emotional support animal fraud.  To read more about service animals vs. emotional support animals, go to Emotional Support Animal Fraud.

AB 491 Fair Housing Equal Access, a new law which states that in "mixed-income multifamily structures, all occupants must have equal access to common entrances, areas, and amenities as the occupants of market-rate housing units." (California Association of Realtors).  The purpose of this bill is to eliminate the "poor door" for certain occupants of designated affordable housing units who in some instances were not allowed to use certain entrances or common area features.

AB 938 Appraisal Discrimination: To combat this problem which has existed in some geographic areas (nationwide) , after July 1, 2022, Realtor contracts in California which also require the delivery of a Seller's Transfer Disclosure Statement (TDS), must contain specific language concerning unbiased valuation of properties which cannot be influenced by race, religion, marital status, pregnancy, and 13 other categories.

SB 392 Homeowner associations must "communicate with homeowners via email if that is the homeowner's preferred method of communication (for notices that are required to be delivered individually under the Davis-Sterling Act)." (California Association of Realtors). This is a time saver and a money saver for associations which may be spending hundreds of dollars annually on mailing costs for multi-page documents that are required by law to be sent to HOA members. The annual budget report, annual policy statements and notices regarding assessments or delinquencies, among others, are notices that must be delivered "individually," and thus, the homeowner may now require that they receive these notices via email.

SB 9 governing lot splits in otherwise single SFR zoned areas, is lengthy and should require in depth study by the interested party:

"This law requires a city or county to ministerially approve either or both of the following, (subject to exceptions and conditions):  a) A housing development of no more than two units in a single-family zone ("duplex").  b) The subdivision of a parcel zoned for residential use, into two approximately equal parcels ("lot split")." (California Association of Realtors).

Existing law governing zoning of units and/or Accessory Dwelling Units may help the end user achieve his/her housing dream, and in spite of media coverage on how SB9 will chop up neighborhoods, there are many requirements to be consulted with, so long term affect may ultimately be seen as one more tool for increasing housing, rather than a huge overwhelming impact on neighborhoods.

 Further laws concern redaction and disclosure (if known by the Realtor) of restrictive covenants AB 1466;  SB 60 governing short term rentals; Revocable transfer on death deeds (avoiding probate) SB 315;

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

The Shape of the Housing Market to Come

According to Tian Liu, Chief Economist at Enact, remote work is still driving the housing market buyer preferances.  COVID-19 has shaped the choices and home desires, and will continue to do so well into the future.  Homes are the complete center of people's lives as they assume the roles of work center, recreation center as well as family living center. According to a recent survey of 1000 Americans, 44% want to work from home without venturing elsewhere. Rental homes fall into the same category:  "According to Invitation Homes, a major single-family rental company, rents for new leases grew by 13.8% year over year in second-quarter 2021, while rents for renewals grew by 5.8% year over year. These figures represent significant increases in the value that people place on single-family homes." 

For younger buyers, when to buy is a timely question--for each of the past five years, 5.5 million people reach their 33rd birthday--peak homebuying years. Historically low interest rates have helped to push many of these people into the buyers market, rising last year from 2.65% to 3%. The higher rates anticipated this year may bring a correction to prices, or at least a slowing. 

Rapid home price growth has also been fueled by the lag in new home construction. Many homes for which permits have been issued are anticipated to be completed in 2022, growing the inventory significantly and impacting the sellers market into a more balanced one.  Buyers are cautioned to be realistic in their home appreciation expectations if they buy now--historically homes have provided modest appreciation in value.  Like many other investments, they should look to the long term.

https://www.scotsmanguide.com/browse/content/the-pandemic-continues-to-shape-the-housing-market

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

Long Beach End of Year Housing Stats

Willmore, Long Beach

Best wishes for a Happy New Year!

In spite of the lowest inventory ever (at end of November Long Beach was at .8 months, meaning inventory had about 3 weeks of life at that point), 2021 saw more sales in houses and condos in Long Beach than 2020 did, as of December 31, 2021.

2020 = 2,073 SFR sold; 1,027 condos sold. (CRMLS sales)

2021 =2,281 SFR sold; 1,320 condos sold. (CRMLS sales) 

 (These figures do not account for the off-MLS sales, many of which have been later flipped for sale on the MLS, or have sold as "pocket listings" (a practice addressed under the Clear Cooperation Policy of National Association of Realtors), however, the vast majority of residential sales are recorded in one of the nation's approximately 500 MLS systems of which REALTORS are members.)  

Right now, condominiums represent a strong buying opportunity for first time buyers--in Long Beach active condo listings have a median price of $482,444, and an average list price at $679,259; single family homes in Long Beach have a median price of $929,990 and an average list price at $1,358,262.

For more information about 2021 buyers and sellers, see NAR's annual report summary.

Where did sellers move to in 2021?  Top destination states were Florida and Billings, Montana, while California fell into the outflow category, except for the City of Beverly Hills, which was the fourth highest city in the country ranked for inflow of residents (and the only city in California), according to the migration report at MoveBuddha.

For more information about current market listings, whether you're a buyer looking for a property to buy, or you would like to know more about market selling prices in your area, please contact me or visit my website at www.juliahuntsman.com for the ability to search for all listings on the MLS--updated daily.

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

December Housing Prices in the Local Long Beach Area

First, the inventory for single family homes and condominiums remains low, but now it's "extremely" low.

Long Beach November stats-2021

 In November, the inventory for houses decreased  33% compared to one year ago, 181 homes for sale compared to 272 one year ago; inventory for condos in Long Beach decreased 51% from the prior year, from 276 to 134.  The average sales price for a house in Long Beach was $951,203, and the average price for a condo was $552,356.  Compared to November 2020, prices increased 9% for SFRs, and 17% for condos.  And, it's also obvious that listings do not spend much time on the market before selling. And, over the last 12 months, in spite of decreasing inventory, the sales volume in both categories is up.  (Information data per CRMLS as of December 5th, 2021.)

 Currently, as of December 15th, in Long Beach there are 182 houses and condos listed actively or "coming soon" for sale in the MLS, with 75 of those being condos, or 41% of the current listings in Long Beach are condos--the lowest price condo is a studio listed at $205,000 featuring 343 sq.ft, the highest price condo is $2.699 million (11 Temple Ave) featuring 4300 sq. ft, so a huge price range, but the graph indicates more the condo price norm in Long Beach.  

Overall, the market is still reflecting the price surge that took place after the start of the pandemic, both locallly and nationally.  Nationally, 2021 is the best sales year since 2006.  The conventional and FHA loans amounts have been (or with FHA, will be soon) increased to meet the higher prices in the West.  If you want to sell, where can you move to?  The southern states and cities of Tucson, and Dallas area are two cities that are predicted to be active in the 2022 market, and other  regions in the southern half of the country. The national price increase may rise about 5%, and interest rate hikes may occur 1 or 2 times, per National Association of Realtors. 

If you would like information on where you can fit into the current market, please contact me, and remember you can always search for listed properties on my website listed below.

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

Some California Real Estate Laws for 2022

Every year a plethora of new laws comes into effect, the following are some of them which should be of interest to the consumer and professional in the real estate industry:

Appraisals -      After July 1, 2022, every contract for sale of real property shall contain a notice that all appraisals shall be unbiased, objective, and not influenced by any illegal considerations, including "race, color, religion (including religious dress, grooming practices, or both), gender (including, but not limited to, pregnancy, childbirth, breastfeeding, and related conditions, and gender identity and gender expression), sexual orientation, marital status, medical condition, military or veteran status, national origin (including language use and possession of a driver’s license issued to persons unable to prove their presence in the United States is authorized under federal law), source of income, ancestry, disability (mental and physical, including, but not limited to, HIV/AIDS status, cancer diagnosis, and genetic characteristics), genetic information, or age."  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB948

 Restrictive Covenants - Per California Association of Realtors, this law requires real estate brokers or agents, who have actual knowledge of possible unlawfully restrictive covenants in a declaration, governing document or deed that is being directly delivered must notify the owner or buyer of such and the ability of the owner or buyer to have it removed through the Restrictive Covenant Modification process.  https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1466

Home Inspectors - A plumbing contractor may inspect a sewer lateral pipe connecting a residence or business to a sewer system and also offer to or perform repairs if the consumer is provided a specified disclosure before authorizing the home inspection. SB484

Duplexes and Lot Splits in Single Family Zoning - Many city and/or county rules affect this new law, but two units in a single family zone may be permitted, and subdivision into two parcels.   SB9

Emotional Support Animals - Per California Association of Realtors,  AB 468 requires a person that provides an emotional support dog to give notice to the recipient or buyer that the dog does not have the special training required to be a guide, signal or service dog; and requires a person that provides a certificate, tag, vest, leash or harness for an emotional support dog to give notice to the buyer that the material does not entitle an emotional support dog to the rights and privileges afforded to a guide, signal or service dog.  

Additionally, AB468 prohibits a health care practitioner from providing documentation relating to an individual’s need for an emotional support dog unless the health care practitioner complies with specified requirements, including: 1. Holding a valid license; 2. Establishing a client-provider relationship with the individual for at least 30 days prior to providing the documentation, and, 3. Completing a clinical evaluation of the individual regarding the need for an emotional support dog.

Revocable Transfer on Death Deed - extended to 2032.  This deed may allow avoidance of probate, and allows a homeowner to transfer to a named beneficiary 1-4 residential unit property upon the owner's death without a probate proceeding. Two witnesses are now required to sign the deed. Stock cooperatives are excluded from the types of property that may be transferred via RTODD but agricultural land with up to four residential dwelling units are now included. The user is advised to seek legal advice before utilizing this deed.  SB315

These are just some of the real estate-related laws  coming into effect, more concern updates to Proposition 19 (exemptions on property tax reassessment), penalties on property tax ,  PACE liens and seniors, fire hazard zones and home hardening update, foreclosure sales and owner occupants, delivery of notices in homeowner associations, plus more.  For more complete information on these new laws, please contact me for a separate obtaining of informational printouts.

 

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

Loan Limits Have Increased!

 “With California’s home prices climbing so significantly during the pandemic, C.A.R. (California Association of Realtors) commends the FHFA (Federal Housing Finance Agency) for recognizing the record-setting home price increases and raising maximum conforming loan limits in high-cost markets to $970,800,” said 2022 C.A.R. President Otto Catrina. “Conforming loans provide safe and affordable mortgages to California’s homebuyers across the state. If loan limits were not allowed to increase every year to keep up with home prices, first-time and moderate-income  homebuyers across the state would not have access to affordable mortgage capital, which reduces homeownership opportunities for those who need it the most.”

California Association of Realtors reminds us that "The conforming loan limit determines the maximum size of a mortgage that government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically have tighter underwriting standards and sometimes carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable."

The Long Beach average home price in November was $951,203.

 

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

November Active Listings Report in Five So Cal Counties

No housing market crash for 2022, at least not in terms of price (believe it or not!).

But there is a huge continuing problem between supply and demand-- very limited supply and huge demand brought on by very low interest rates. In beginning of 2019 there were the most homes (40,000 homes) on market since 2012, but lowered interest rates that year started off low inventory in 2020 (29,000 homes) with a big dip after the pandemic, and then the lowest inventory in years in 2021 (17,000 homes), and will continue this way into 2022.  We should have more than double the inventory we have right now, per last year's inventory levels.  The five counties in Southern California are all down in total home inventory between 3% and 5%, with Orange County at its lowest inventory ever (just over 1700 homes on market right now--on (l1/12/221)**

(Julia's Update Note:  Active listings in the MLS on 11/15/21:  San Bernardino County:  2515 single family homes; San Diego: 1550 single family homes; Orange County: 1182 homes; Los Angeles County: 5000+ homes; Riverside County: 2856 homes.)

Interest rates will probably stay under 3.5%, and it will still be a seller's market.  As long as rates stay low, the market will favor sellers, a trend that may well continue all through 2022.  Home values will continue to rise. And see the CAR 2022 Market Report Summary, an upward increase of 5.2% is predicted with total downward trend in number of sales for next year.

Calif Assoc of Realtors 2022 Market Report

 

** Information thanks to Steven Thomas and his weekly Facebook streaming Market Report every Friday)

 

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