Its Time to Purchase Your Own Home – Long Beach California Real Estate

The Long Beach Real Estate Home Blog is proud to welcome guest author Bruce Mulhearn.

Bruce T. Mulhearn is viewed as one of the most profound thinkers and analysts in the real estate profession.  He obtained his real estate license in 1960.  In addition, he is a recipient of numerous professional designations from the National Association of Realtors including Graduate Realtors Institute (GRI), Certified Residential Broker (CRB), and Certified Residential Salesman (CRS).

A native of Newcastle-Upon-Tyne, England, he has been a U.S. citizen since 1964.  He is recognized nationally for his contributions as one of the foremost instructors in the industry.  He is president and founder of Prudential California Realty, Mulhearn Group, which opened in 1967 and has grown to 21 offices with some 800 sales associates and is ranked as one of the top 100 real estate firms in the U.S.

“It’s Now Time to Purchase Your Own Home!”

Crystal balls are in short supply.  Depending on which periodical, newspaper clipping, or sound bite you receive, speculation on the future runs rampant.  Nobody can provide an exact picture of the future with any degree of accuracy.  One thing that’s for sure-the housing crisis varies dramatically depending on what part of the country you live.

On a national basis, California, Arizona, Nevada, and Florida have been hit the hardest with value reductions; however, in retrospect, these are the four states that had by far the most appreciation within a five-year period from 2000 to 2005.

When a headline screams out, “Median Price in California Drops 30% in One Year,” that in itself is startling.  The median price in California has fallen to $339,000.  That’s the steepest monthly decline in two decades.  But in return, it draws in a tremendous amount of first-time buyers who now see the homes as affordable.   They are no longer priced out of the market.  What we’re seeing are prices in 2008 that reflect the same price in 2004.  At the height of the market in May 2007, the median price was at $484,000.

Overall in California, property values increased in that five-year period approximately 114%.  In the past 12 months, according to Data Quick, yes, the property values have decreased 30%.  This can be misleading.  In the urban areas of Los Angeles and the other seven Southern California counties, the amount was closer to 20%.  However, in the high desert, Inland Empire, and parts of Riverside County, the rate of depreciation was sometimes in excess of 40%.  In these Inland and high desert markets, there has been-in some cases-an over correction, and now they are having multiple offers coming in from investors and first-time buyers in the lower price ranges. 

The Inland market for Southern California, which has been hit the hardest-in all likelihood will post the highest sales this year than all other areas.  In addition, residential income property in this market too has its great benefits because of a number of people who have lost their homes through foreclosure-needing a place to live.

In the month of May, there were a total of 33,000 homes sold in California down 11% from a year earlier, but 38% of those resale homes were foreclosed properties.  FHA financing has really skyrocketed.  Buyers can get into homes with a 3% down payment up to a loan amount of $729,000.  There’s an old cliché, “There’s no reward without risk.”  Obviously in life anything that we do provides some risk, but I truly believe this is the time to purchase.  Interest rates are extremely low, there’s a large inventory of homes to choose from, and many anxious sellers-including the banks. 

Author:  Bruce Mulhearn 

Posted on July 8, 2008 by Laurie Manny