Long Beach California Luxury Home Market Update

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Long Beach California is home to the West Coasts most affordable beach real estate.  Set in sunny Southern California we enjoy moderate temperatures year round, sweet ocean breezes and a resort atmosphere.  With our purchase prices so reasonable is it any wonder snowbirds are flocking here?  Palm Desert, 2 hours inland, is fantastic, but nothing compares to luxury oceanfront property and the beach is just more fun!

Long Beach has an endless array of entertainment to suit any lifestyle or age from water-sports to nightlife, theater and fine dining.  This is the perfect place to do everything, do nothing or to just go fly a kite!

Yes we have golf courses!  Long Beach is centrally located making access to all Southern California golf courses just a short drive.

Long Beach is conveniently located just 20 minutes south of Los Angeles International Airport (LAX), 20 minutes north of John Wayne Airport (SNA) in Irvine, and home to our own Long Beach Airport - which we love.  We are also just a 20 minute drive into Downtown Los Angeles - in case you were thinking about catching a Lakers game; attending a concert at the fabulous Staples Center or a performance at our beautiful Music Center.  Fantabulous and incomparable, 8 time Grammy award winner, Tina Turner
is performing at the Staples Center as I write this, had I known that ahead of time I would be there tonight singing along……..What’s love got to do with it? La la la… Gotta love that woman!

Did I say we were centrally located?  A 2 hour drive north will find you in beautiful Santa Barbara.  Head north just a little further and enjoy a day, or a romantic weekend, in wine country.  A leisurely drive south will take you into lovely San Diego.  Catch a Padres game or spend a day at the San Diego Zoo or perhaps SeaWorld with the family then head into the Downtown San Diego gaslight district for a delicious dinner and some relaxing down time.

Surfer? 10 minutes to surf city - Huntington Beach, where you will catch some of the finest waves on the west coast.

Long Beach is slated to become the new home of the largest movie studio in California.  A deal has been struck to take over the Boeing facility near the Long Beach airport. This will infuse new life into Long Beach and will certainly attract celebrities to our lovely waterfront homes and high rise condominiums.  How could they resist?  You never know who your new neighbor may be!

Did you know that Hollywood got its start in Long Beach?  Long Beach was known as the motion picture capital of the world until post World War I when Hollywood developed around the glitz of the era.  With its perfect Southern California climate, Long Beach afforded the perfect setting for the industry.  There were eight film houses, two stock companies,  roller-coasters and bath houses at the historic Pike, along the shore of Downtown Long Beach.  This was the home of the Balboa Amusement Production Company, the  world’s most prolific silent-film studio.  W. C. Fields and other stars lived in beautiful mansions in the Bluff Park neighborhood along Ocean Boulevard and First Street, many of which remain in the families to this day.

Speaking of historic districts, Long Beach has 17 of them, California Heights being the largest.  We love our historic homes here.  You can find out more about the history of Long Beach here as well.

Redevelopment in Alamitos Beach and the bustling Downtown Long Beach communities has birthed fabulous luxury high rise condominiums with endless ocean views, Manhattan style lofts and many fabulous new dining opportunities.

The luxury home market is generally a cash market.  Brian Brady’s 2009 Real Estate Market outlook predicts that disappearing jobs and financing will likely drive the price of luxury properties down in our waterfront and higher end communities.  While that is tragic for the owners of these Long Beach properties it is an incredible opportunity to purchase the Long Beach home, condo or vacation property you, the buyer has been waiting for.

The Long Beach real estate market has gone through several tumultuous years, this winter is certain to be a difficult time for sellers of Long Beach luxury homes, condos and income properties.  FHA loan limits, currently capping at $729,750 for single family home purchases are slated to be decreased to around $625,000 on January 1, 2009.  Decreasing buyer purchasing power is certain to affect prices in the mid-market range of $700,000 to about $1,000,000.

What does this mean for sellers?  If you are planning on selling, you should plan on closing your escrow before the end of the year and should price it to do so. It would be our pleasure to provide a home value assessment.

What does this mean for buyers?  This is an incredible opportunity to purchase your new home at an incredible price.

International buyers are flocking to the United States to purchase real estate at our current depressed prices, there is limited financing for foreign nationals, most are purchasing with all cash.  Long Beach prices have become very attractive to these buyers. You can start your search for Long Beach homes here.  VIP service is provided with the ability to set up custom searches with an automatic email alert system.

If you are interested in purchasing a Long Beach luxury oceanfront home or a high rise luxury waterfront condominium, this winter is the time to make that purchase. It would be our pleasure to assist you.

Long Beach California City and Relocation Resource Guide

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Long Beach California Luxury Home Market Update

Long Beach Real Estate Sales-Market Update: October 5, 2008

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Long Beach Real Estate Sales-Market Update: October 5, 2008

Through September 30 2008

The Long Beach real estate market closes sales for the month of September with the average purchase price down 16% from year end 2007.  The average sold price of residential real estate in Long Beach for year end 2007 was $543,770, end September finds the average sale price of residential at $454,208 with a small increase in the number of days on market; that is a decrease in average sale price of $89,562, which is substantial. The volume of Long Beach home and condo sales has dropped this month after steady growth throughout the year.

1/1/2008 thru 9/30/2008

• 1745 Residential Long Beach Properties sold; homes, condos, coops, lofts, OYOs
• 2008 Average Long Beach Residential Sale Price $454,208
• 2008 Average Residential Days on Market:  79
  

1/1/2007 thru 12/31/2007

• 2614 Residential Long Beach Properties sold; homes, condos, coops, lofts, OYOs
  
• 2007 Average Residential Sale Price $543,770
• 2007 Average Days on Market:  66

The government bailout, meant to stimulate the economy and real estate market, seems to have had an opposite effect across most of our nation. Prices are down to a very affordable level, interest rates have remained low, loans are still available and there is plenty of inventory to choose from.  100% financing and most government assisted down payment plans have dried up, stated loans are toast as well, the FHA is offering loans with 3.5% down payment at very reasonable interest rates (if you qualify), which is very reasonable - its really not a bad time to buy.  Ask the wealthy why they are out buying 2nd, 3rd and 4th homes; vacation homes are selling- they are a good investment right now.  They are buying because it is smart to buy low and sell high.

Today I spent time reading on one of my favorite national real estate social networks.  Fellow Atlanta Realtor, Jim Crawford asked the question “Has your market slowed to a crawl or died?” Realtors from across the nation have steadily been reporting in with the skinny from their real estate markets.  In a nutshell, the impending bailout, the actual bailout and the impending election seem to have buyers frozen in place for the last several weeks.  Fear seems to be ruling the day.

Waterfront and ocean close homes and condos in Long Beach are experiencing average sale price of about $635,000, 88 DOM, for 2008 thru end of September, with approximately 350 closed sales.  Compared to 2007’s average sale price of $665,155, 74 DOM, about 650 closed sales for the year. While these highly desirable Long Beach homes and condos are selling well above the average for our city, they are down, although prices are holding near the beach a lot better than they are further inland.

We try to keep our Long Beach neighborhood real estate market reports updated monthly or bi-monthly, as time will allow.  These are a great resource for buyers and sellers of Long Beach properties, and contain valuable statistics to better assist in your real estate decisions.  We know those decisions are important ones and want you to have the most current information at your fingertips.  If the information you require cannot be found here, please do not hesitate to ask.

• Downtown Long Beach Real Estate Sales-Market Update
• Alamitos Beach Homes Market Update-2008
• Alamitos Beach Condos Market Update-2008
• Bluff Park Historic District Neighborhood Market Report
• Belmont Heights Neighborhood Market Report
• Belmont Shore Real Estate Market Report-2008-Belmont Park-Naples Island-Marina Pacifica
• California
  Heights Historic District Homes 2008 Market Report
• More Long Beach Real Estate Market Reports>>>>>>>>>>.

Potential buyers are shopping and are looking for a great deal.  Today’s buyer wants to see a lot of properties before making a final decision.  Often the very deal they are seeking will come across early in their search.  Reluctant to write an offer until they assure themselves that they have acquired the very best deal available on the market, they are hesitating too often and losing that deal only to find there isn’t another on par with it available.  Many Long Beach buyers give up their home search disillusioned at what their dollar will actually purchase.

Personally I blame the media and the bubble bloggers.  Many buyers have an unrealistic idea of what their money will actually buy.  $300,000 will not buy a home that is worth $500,000, it never did.  What is available in the $300,000 range are mostly bank foreclosures and the homes mostly need work.  It is unrealistic to expect to find a completely remodeled, turnkey home available in that price range foreclosure or otherwise.  Does it happen?  Yes, rarely.  So 100 buyers sitting on the sidelines waiting for that 1 home to come available and when it does they don’t want to offer more than the asking price, they are usually working with a 3.5% FHA down payment and in sweeps an investor with all cash who closes the deal in 10 days.  Most of today’s buyers are unequipped financially to handle the upgrades and repairs necessary on foreclosed homes, which can be substantial; that is why the bank is selling them in AS IS condition.  Lets keep in mind that $300,00 for homes in Long Beach is really a great price when they are available.

Read Also:

• Long Beach Homes-Issues for 1st Time Home Buyers
  
• Buying Fixer Upper Homes in Long Beach

Long Beach Real Estate - Closed Sales

January - September - 2008

2008	Homes	Condos	Lofts*	Co-ops	OYOs	2-4 Units	5+ Units	TOTAL
JAN	72	40	2	1	0	9	6	130
FEB	94	32	2	1	1	17	6	153
MAR	107	48	2	1	0	17	4	179
1/4 ttl	273	120	6	3	1	43	16	462
APR	137	56	1	3	0	21	6	224
MAY	164	59	1	4	0	28	7	269
JUN	160	60	1	2	4	24	8	259
2/4 ttl	461	175	3	9	4	73	21	746
YTD Subttl	734	295	9	12	5	116	37	1208
JUL	183	67	1	0	1	31	8	291
AUG	181	74	0	1	4	26	3	289
SEPT	139	63	0	1	0	22	4	229
3/4 ttl	503	204	1	2	5	79	15	809
YTD Subttl	1237	499	10	14	10	195	52	2017
OCT
NOV
DEC
YTD TOTAL

* Lofts include Loft Live and Work spaces

For a little perspective, here is a comparison of the last 4 years for the same time period.

Long Beach Real Estate - Closed Sales

January - September - 2005 - 2008

YEAR	HOMES	CONDOS	LOFTS*	CO-OPS	OYOs	2-4 UNITS	5+ UNITS	TOTAL
2008	1237	499	10	14	10	195	52	2017
2007	1380	714	18	12	17	258	68	2467
2006	1795	924	15	15	56	464	84	3353
2005	2304	1184	9	19	120	664	239	4539

* Lofts include Loft Live and Work spaces

Disclaimer: Statistics are as represented in the SoCalMLS and are not the representations of the author.The numbers represented above are only as good as the information input into the SoCalMLS by the listing agents. If (in my opinion, may be the case) some listings of lofts, co-ops and OYOs were input as condos, then they are reflected as condo sales here. Often listing agents will represent these as condos in the MLS in order to stimulate traffic as many buyers agents will not look at the other categories. As crazy as this sounds it is true and sales have occurred as a result of utilizing this tactic. Therefore the information in these categories is very likely not a true representation of the actual sales, but the grand total of these and the condo category would correctly reflect the total of all - as represented by the SoCalMLS.

Contact Laurie to begin the search for Your Long Beach Home.

Long Beach Homes For Sale

• Long Beach Homes For Sale $300000 to $400000
• Long Beach Homes For Sale $400000 to $500000
• Long  Beach Homes For Sale $500000 to $700000
• Long Beach Homes For Sale $700000 to $900000
• Long Beach Homes For Sale $900000 to $1200000
• Long Beach Luxury Homes For Sale $1200000 to $2500000
• Luxury Homes For Sale in Long Beach California $2.5 Million and up

Long Beach Condos For Sale

• Long Beach Condos For Sale $1,500,000 and higher
• Long Beach Condos For Sale $1,000,000 to $1,500,000
• Long Beach Condos For Sale $900,000 to $1,000,000
• Long Beach Condos For Sale $800,000 to $900,000
• Long Beach Condos For Sale $700,000 to $800,000
• Long Beach Condos For Sale $600,000 to $700,000
• Long Beach Condos For Sale $500,000 to $600,000
• Long Beach Condos For Sale $400,000 to $500,000
• Long Beach Condos For Sale $300,000 to $400,000
• Long Beach Condos For Sale Under $300,000

Long Beach Income Properties For Sale

• Income Property For Sale in Long Beach California-5+ Units
• 2 to 4 Units For Sale in Long Beach California
• Triplexes For Sale in Long Beach California
• Duplexes For Sale in Long Beach California

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Long Beach Real Estate Sales-Market Update: October 5, 2008

Bluff Park Historic District Neighborhood Market Report - Long Beach CA Real Estate Sales

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Bluff Park Historic District Market Report

Homes, Condos and Income Properties

Long Beach CA Real Estate Sales - 2008

Updated: October 4, 2008

The Bluff Park Historic District Boundaries are:

• East 2nd Street to the North
• Loma Avenue to the East
• East Ocean Boulevard to the South
• Junipero Avenue to the West

• Bluff Park Historic District Map PDF

Bluff Park Historic District
is a small, very upscale neighborhood which contains some of Long
Beach’s most dignified homes. The historic district includes a variety
of architectural styles, including Greene and Greene, American
Craftsman, California Bungalow, Spanish Revival, Prairie Style,
American Colonial Revival, Tudor and Mediterranean, constructed between
1903 and 1949.

Bluff Park is home to The Long Beach Museum of Art.
Built in 1912 the stately Craftsman building is the former Elizabeth
Milbank Anderson house; it is located on the bluffs at 2300 E. Ocean
Bl. Bluff Park is also home to a Buddhist monastery that once was a
Roman Catholic convent.

Back in the 1930’s Long Beach
was known as the motion picture capital of the world until post World
War I when Hollywood developed around the glitz of the era. With its
perfect Southern California climate, Long Beach afforded the perfect
setting for the industry. There were eight film houses, two stock
companies, roller-coasters and bath houses at the historic Pike, along
the shore of Downtown Long Beach. This was the home of the Balboa
Amusement Production Company, the world’s most prolific silent-film
studio. W. C. Fields and other stars lived in beautiful mansions in the
Bluff Park neighborhood along Ocean Boulevard and First Street, many of
which remain in the families to this day.

Bluff Park is one of Long Beach’s most coveted neighborhoods.

Read Also:

• Long Beach California Beach Communities
• History of Long Beach California
• Long Beach CA Historic Homes and Districts
• THE MILLS ACT

Bluff Park Historic District Homes - Sales 2008

There are currently 8 Homes in Bluff Park Historic District For Sale, ranging in price from $750,000 to $3,499,999.

• Average Price: $1,505,874
  
• Average Days on Market:70

1 Bluff Park Historic District Home is Pending in escrow

• 2919 E 1st Street, a 4 bedroom 3 bath home, 2,859 sq ft, listed at $1,199,000

4 Homes in Bluff Park Historic District have closed escrow in 2008.

• Average Price: $835,500
• Average Days on Market: 24

RES	Status	Address	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	A	2401 E Ocean	6	6/5	S	4	5,000	2008	$3,499,999	89
2	A	2424 E 2nd	2	1/1	1	2	1,285	1910	$750,000	110
3	A	24 N Redondo	2	2/1	1	2	1,390	1916	$825,000	93
4	A	3535 E 1st	3	3/1	1	2	1,638	1919	$1,050,000	1
5	A	3039 E 2nd	4	4/3	2	2 D	2,438	1946	$1,125,000	199
6	A	2511 E 1st	5	5/1	2	1 D	3,414	1918	$1,498,000	30
7	A	2311 E 1st	5	3/1	2	2 D	2,800	1908	$1,599,000	32
8	A	3421 E Ocean	3	3/2	2	2	1,823	1936	$1,700,000	2
9	B	3513 E 2nd	3	2/1	1	2 A	1,662	1911	$699,000	134
10	P	2919 E 1st	4	3/1	2	2	2,859	1922	$1,199,000	81
11	S	2424 E 2nd	2	1/	1	2	1,285	1910	$650,000	5
12	S	2609 E 2nd	2	2/1	2	1 D	1,848	1909	$682,000	6
13	S	32 Kennebec	3	3/1	2	1 A	1,628	1911	$785,000	77
14	S	115 Paloma	4	3/	2	1 D	2,433	1913	$1,225,000	9

A = Active B = In escrow, accepting Back Up Offers P = Pending in Escrow S = Sold DOM = Days on Market

8/8/08 Bluff Park Historic District Home located at 2609 East 2nd St Closed Escrow. 8/8/08 is considered by the Chinese to be a very lucky day. The number is coveted for addresses, phone numbers and bank accounts. A single 8 on a piece of property lends a sense of high status among the Chinese, as they know top dollars were paid just to obtain that number. Lucky 8 is so lucky, that the Beijing Olympics opened on 8/8/08 at exactly 8:08:08 PM.

Recently Sold

Bluff Park Historic District Closed Sale 8/8/08

2609 East 2nd Street Long Beach, CA 90803 2 Short Blocks to the Beach Craftsman Home 2 Story 2 Bedroom 2 Bath 1,848 Square Feet 4,785 Sq Ft Lot 2 Car Garage + Driveway Beautifully Landscaped Great Floorplan Formal Entry Hardwood Floors Plantation Shutters French Doors to Rear Deck Private Back Yard Formal Dining Room Office (3rd Bdrm?) Den (4th Bdrm?) Front Porch Large Wood Burning Fireplace High Coved Ceilings with Detail Basement Lots of Storage

Buyer Represented by Laurie Manny (562) 212-5420

Offered at: $679,000 Sold at: $682,000

Tale of the Sale

Bluff Park Historic District Condos-Coops-OYOs - Sales 2008

There are 9 Bluff Park Historic District Condos For Sale ranging in price from $330,000 to $825,000.

• Average Price: $596,744
• Average Days on Market: 96

1 Bluff Park Historic District Condo is accepting Back-up Offers

• Listing Price: $359,000
• Days on Market: 212

13 Bluff Park Historic District Condos have closed escrow in 2008.

• Average Price: $438,692
• Average Days on Market: 98

1 Bluff Park Historic District Condo gave up after 497 days on market and leased

• 2 bedroom, 2 bath,1,008 sq ft, lease amount: $2,000

ES	Status	Address	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	A	2131 E 1st 405	2	2/2	3	2	1,334	1975	$330,000	2
2	A	2121 E 1st 307	2	2/1	3	3	1,264	1972	$420,000	9
3	A	2601 E Ocean 608	1	1/1	1	1	672	1973	$424,900	235
4	A	3401 E Ocean 203	2	2/2	3	1	1,020	1973	$479,900	110
5	A	2999 E 1st 6	2	2/2	3	2	1,481	1966	$624,500	229
6	A	2999 E Ocean 430	2	2/1	1	1 D	1,510	1967	$669,000	142
7	A	2999 E Oean 310	2	2/2	1	1	1,510	1967	$774,900	94
8	A	2999 E Ocean 1830	3	2/1	3	2	1,510	1967	$822,500	8
9	A	2601 E Ocean 505	3	2/2	1	2	1,134	1973	$825,000	37
10	B	2101 E 2nd 404	2	2/1	1	2	985	1968	$359,000	212
11	S	2662 E 2nd G2	2	2/1	1	1	1,298	1966	$451,000	56
12	S	2222 E 2nd 10	0	1/1	1	0	424	1955	$165,000	100
13	S	2204 E 1st 4	1	1/1	2	1	714	1962	$248,000	51
14	S	100 E Loma 203	1	1/1	1	0	768	1971	$311,000	13
15	S	2131 E 1st 202	1	1.5/	3	0	979	1975	$325,000	105
16	S	2500 E 2nd 207	2	2/1	3	1	1,190	1968	$358,000	32
17	S	2302 E 2ndH 2	2	2/1	1	1	1,233	1964	$415,000	77
18	S	2601 E Ocean 810	1	1/1	1	1 D	680	1973	$400,000	364
19	S	2100 E 2nd 305	2	2/	1	1 A	1,132	1966	$425,000	136
20	S	2204 E 1st 9	2	2/	1	1	1,193	1962	$460,000	28
21	S	2319 E 2nd 3	2	2/2	1	2 A	1,167	1980	$420,000	50
22	S	3101 E 2nd 4C	3	2/	1	1 D	1,481	1963	$475,000	251
23	S	3305 E Ocean 201	3	3/3	2	2	2,300	1986	$1,250,000	5
24	L	2601 E Ocean 407	2	2/2	1	1	1,008	1973	$2,000	497

A = Active

B = In escrow, accepting Back Up Offers

P = Pending in Escrow

S = Sold

DOM = Days on Market

Read also:

Long Beach Own Your Owns-OYO-OYOs-in Long Beach - The
OYO-Own Your Own form of ownership is a constant source of confusion
for many buyers of Long Beach real estate. Here you will find a simple
explanation.

Long Beach Own Your Own-OYO-Owners Are Organizing for Condo Conversion - If you are an OYO owner this article from Local Long Beach Resident and Own Your Own owner Deb Dobias is a must read.

Long Beach Stock Co-operatives - Stock co-ops are another misunderstood form of ownership. Here you will find a simple explanation.

Bluff Park Historic District Income Properties - Sales 2008

There is 1 income property for sale at this time in the Bluff Park Historic District.

• 4 units, $899,000
• Days On Market: 26

3 Bluff Park Historic District Income Properties Sold in 2008, ranging in price from $1,599,000 to $1,615,000

• Average Price: $1,604,666
• Average Days on Market: 69
  

RIN	Status	Units	GSI	Cap	GRM	Net Inc	Address	Yblt	Bldg SF	Price	DOM
1	A	4	$50,400	0%	17.84	$0	2725 E 2nd St	1913	1,670	$899,000	26
2	S	5	$104,940	6.25%	15.24	$100,000	3065 E 2nd St	1968	6,050	$1,599,000	131
3	S	5	$124,200	0%	13.52	$0	15 Loma Ave	1936	8,190	$1,615,000	53
4	S	8	$130,200	5.15%	13.44	$90,200	3417 E 2nd St	1964	7,435	$1,600,000	24

*All statistics are as represented by the MLS and are not to be intrerpreted as the representation of the author.

Call Laurie today to view any Bluff Park Historic District properties (562) 212-5402

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Bluff Park Historic District Neighborhood Market Report - Long Beach CA Real Estate Sales

Bluff Park Historic District Homes Tour Video - Long Beach California Real Estate

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Bluff Park Historic District Homes Tour

Bluff Park Historic District
is a small, very upscale neighborhood which contains some of Long
Beach’s most dignified homes.  The historic district includes a variety
of architectural styles, including Greene and Greene, American
Craftsman, California Bungalow, Spanish Revival, Prairie Style,
American Colonial Revival, Tudor and Mediterranean, constructed between
1903 and 1949.  

 

Bluff Park Historic District Neighborhood Market Report

 

 

Bluff Park and Belmont Heights Homes for Sale

• Bluff Park and Belmont Heights Homes For Sale $800000 and less
• Bluff Park and Belmont Heights Homes For Sale $800000 to $1200000
• Bluff Park and Belmont Heights Homes For Sale $1200000 and higher

 

 

Bluff Park and Belmont Heights Condos For Sale

• Bluff Park and Belmont Heights Condos For Sale $300000 to $400000
• Bluff Park and Belmont Heights Condos For Sale $400000 to $500000
• BLuff Park and Belmont Heights Condos For Sale $500000 to $600000
• Bluff Park and Belmont Heights Condos For Sale $600000 to $800000

 

Bluff Park and Belmont Heights Income Properties For Sale

 

 

 

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Bluff Park Historic District Homes Tour Video - Long Beach California Real Estate

Long Beach Own Your Own-OYO-Owners Are Organizing for Condo Conversion-Breaking Long Beach Real Estate News

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Breaking Long Beach Real Estate News:

Long Beach Own Your Own (OYO) Owners Are Organizing for Condo Conversion.  Back in May the Long Beach Real Estate Home Blog published an article on OYO’s.  So many buyers were inquiring about this form of ownership it made sense to publish an article, explaining this form of ownership, to be found on the Internet.  Well it has been found, by several thousand Long Beach and potential Long Beach residents who have indeed read it, including many frustrated Long Beach OYO owners.  Several days ago I was contacted by the lovely Deb Dobias, a Long Beach OYO owner who is a major contributing force in the quest to organize OYO owners to push state and local officials to loosen the reigns and convert the last of the existing Long Beach OYO’s to condos.  Deb went on to explain what these owners have been up against and the efforts they have put forth.  We invited her to write an article here and are very pleased that she accepted our offer. 

 

It is our sincere hope that the District Weekly, Curbed LA, the Grunion and Downtown Gazettes, the Press Telegram, the Los Angeles Times and the Orange County Register will also pick up this article or will contact Deb and assist in this noble effort with an article of their own to help these troubled OYO owners. It is our further hope that both California state and local officials will get out of the box and make this happen. 

Please understand that many of these owners are in deep trouble.  They cannot sell their Own Your Own (OYO) homes because there is little or no financing available.  Due to the problems plaguing this form of ownership many owners have rented their units out and have moved on.  In doing so they have decreased the level of owner occupied units in the remaining OYOs which has eliminated any chance for a Long Beach buyer to obtain financing to purchase. 

 

In July 2008 the Long Beach Real Estate Blog offered the communities of Long Beach a place to be published.  This is another in a series of articles by Long Beach residents.  Do You Want to be Published?

 

 

 

OYO
Conversions - An
untapped resource for Affordable Housing

Author:  Deb Dobias

 

The City of
Long Beach Housing is under-served in providing affordable housing to
“first-time home buyers” and seniors on fixed incomes. “While Long Beach Housing Trust” continues to
build new projects for affordable housing, low income or fixed income buyers
are still unable to have enough funding to pay the down payment. Building costs
keep the price of these “Affordable” Long Beach homes high.

Purchasing Own
Your Own Apartments (OYO) in Long Beach is a means to becoming stakeholders and being
able to afford to buy apartment homes for reasonable sums.  OYOs were the pre-cursors to Condos, usually
built before the 1960s.  Long Beach has a large number of these
charming, well-kept, usually small buildings. 
Most Long Beach OYOs, even after Condo Conversion, would sell for less than newer
“Affordable Housing”; this could
significantly add to the City’s Affordable Housing.  Best of all, making it possible for people to
buy these affordable Long Beach homes would leave the Housing Trust funds for more
housing in Long Beach.

Little Problem…

 

Someone
who wants to buy a Long Beach OYO usually cannot get financing like Condos can.  When a bank does offer loans, it usually
requires a high owner-occupancy in the OYO complex.  For the past few years, only Long Beach investors could
cough up the cash to buy these places, so owner-occupancy is often low.

 

Which causes more problems…

 

• One lady in our building got sick and
  couldn’t work for a while.  Our building, a Long Beach OYO,
  had some serious maintenance issues so we had to levy some special assessments,
  which she couldn’t pay.  The City of Long Beach has Rehab Loans for low-income owners of houses or Condos, but not for
  OYOs.  This poor lady wound up having to sell
  her OYO home for a very low price and move in with family.  Had we been able to convert, she could have kept
  her home.

• Many Long Beach OYO owners are elderly.  Reverse mortgages are not available to OYOs in Long Beach.

• No home equity loans are available to
  OYOs.  This often causes owners to vote
  against maintenance assessments or to avoid maintaining their own units.  These are older buildings, so this affects
  Long Beach neighborhoods and tenants as well as owners.

 

• A lady who lived in her OYO home told me that she wanted to take out an
  equity loan so she could invest in another property.   Renting that property would help her to pay
  bills when she retires.  She has
  excellent credit and owes nothing on her OYO.  
  She cannot do this simply because her OYO complex can’t prove who lived
  there in 1982! 

 

 

Why can’t OYOs just convert to Condominiums?

 

California has an outdated law that prevents many OYOs
from converting.  This law requires that
an OYO complex prove that they were at least 75% owner-occupied in 1982. 

Why? 
Since OYOs are already individually owned, there is a section of laws
that allows OYOs to convert in a different way than rental buildings.  Part of this law was written to prevent
developers from owning OYOs, then converting them to condo for profit more
cheaply and easily than converting a rental building.  They figured this 1982 owner-occupancy
requirement would close that loophole. 
Twenty-six years later, this law not only doesn’t serve its intent but
very few people can come up with that kind of proof because no one keeps
records that long.

 

 

We
tried to fix it. 

 

Long story short -
the City of Long Beach won’t grant exceptions to this because it’s a California State Law.  We couldn’t get the California State Law corrected via
an Omnibus Bill sponsored by Senator Lowenthal because a Tenants Rights group
objected.  The next step is to try to get
separate bill sponsored by a legislator.

 

 

Wait.  Why would a Tenants Rights group object?

 

Understandably,
they worry about the large number of rental buildings that have been converted
to Condos in Long Beach.  When they do that, it boots
people out of their Long Beach homes and makes fewer rental apartments available so the
rents are higher.  When it comes to OYOs,
though, it’s a matter of converting units that have already been individually
owned for 50 years.  Who owns these
places won’t change with conversion. 
Some OYO owners may sell their unit/s after conversion; many of those would sell
whether they are converted or not.

 

 

Conversion
helps tenants, too!

 

 

Rental Availability 

 

OYO’s in Long Beach provide an
approach for “Mom & Pop” owners to enter into the investment/rental market
which can continue or increase the availability of rental units.   Once loans are made available, these new
rental unit owners will be motivated to maintain and upgrade their units.

 

 

Maintenance 

 

Of course,
maintenance isn’t a tenant’s job since they are paying rent.   Because there is no financing available to
OYO buildings, owners have less money available to them for maintenance and
upgrades.  It lowers the quality of life
for everyone.

 

 

Owning your own  

 

 

There’s a guy in my OYO building who has
rented his unit for 23 years through 3 changes of ownership.  He wants very badly to buy his place, and
could afford it now, but there is no financing available. 
His landlord charges as much rent as the market will bear, which is
typical.  His housing costs would
increase at a much slower rate if he could own his home.

 

The new legislation would ease the condo conversion issues so
that there are loans available for these “self owned
apartments”.   There are great loan
programs out there for first-time home buyers in Long Beach, some with no down payment.  The new proposed legislation will help these
kinds of Long Beach properties get the financing needed to make them available to those of
us who need affordable housing. 

For more info on
this law and our efforts to correct it, visit our website. 

www.OwnYourOwnCondo.org

Contact us with
your comments, questions, or if you can help us to change this law.  We are gathering a list of OYO buildings for
the sole purpose of helping change the law. 
If you own an OYO home, please add your building to the list!

Deb Dobias

Deb@OwnYourOwnCondo.org

 

We
have supporters from the following OYO complexes,
as well as Realtors and HOA Property Managers.

Our list is growing. This list only partially covers
the Long Beach area but we are expanding our search. 
Please contact us to add your name to our list of
supporters or if you can help us change this law.

700 E 1st St

Ocean View Apts or Ocean Gardens.
1311 E 1st

2225 E 2nd street

The Montclair
1250 E 3rd

1250 E 4Th St

1280 E 4Th St

Clarendon OYO Apartments
1739 Appleton

Palm Garden Apts.  
617 Cedar

354 Chestnut Ave

Welles Apartment HOA
325 Elm Ave

Princess Apartments
82 Lime Ave

Lime Ave OYO
 337 Lime Ave

Villa Aqua
1101 E Ocean Blvd

 

 

 

*Disclaimer:  The opinions and statements in this article are not necessarily the sentiments or opinions of the Long Beach Real Estate Home Blog, its author’s, owner, or any affiliated persons or entities and we accept no liability for them.*

 

 

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