Long Beach Real Estate - A Peek Inside the Business of Selling Long Beach Real Estate

Here on our Long Beach Real Estate site I usually write purely real estate related articles targeted at educating and informing buyers and sellers of Long Beach Real Estate. Today I would like to give you a little peek into the business side of things and explain how they can affect the sale or purchase of your Long Beach homes.

In a recently published post I disclosed the 2008 closed sales in Long Beach; 674 of them, through 4/30/08. While the chart shows the sales increasing each month, the sales figures are still very low. (Includes sales of homes, condos, lofts, co-ops, Oyos, 2-4 units and 5+ units as recorded on the MLS)

• Jan 130
• Feb 153
• Mar 179
• Apr 212
• Total: 674

These are difficult times for those of us surviving in the real estate industry. Going into this down market there were about 2900 licensed Realtors on record, there are currently about 1600 licensees active in the Long Beach area. Every market will support a certain amount of agents based on the closed sales of that market. Each agent needs a certain amount of closed sales in order to survive. Lets assume that 8 to 10 closed sales for the year are required for a Realtor to even survive this market; 674 closed sales would produce 8 to 10 sales for the year, for between 200 and 250 Realtors. Those sales are currently spread across 1600 current licensees, which would equate to less than ½ of a sale for each Realtor for the first 4 months of 2008.

In the real estate industry we have an 80/20 saying. It states that 20% of the agents do 80% of the business. 20% of 1600 agents = 320 which would equate to about 2 closed sales for the majority of the 20% still doing business.

So how are 1600 Realtors surviving a market with sales that will currently only support 200 to 250?

• Some have other income, or a spouse or significant other with income.
• Some have taken on Part or Full time jobs, while trying to juggle their real estate.
• Some have anticipated this market and made plans to survive it.
• Some are making enough sales to manage.

What of the 80%? That is 1280 agents, still active, for the last 4 months. How are they surviving with little or no sales? Well, they either have spousal support a trust fund or they have accepted salaried positions. Lets take a look at that. Real estate is a more than full time job; it is a commitment which permeates every hour of every day of our lives. Real estate transactions require a lot of attention on a daily basis. Escrow, title, lenders, inspections, appraisers banks and more need to be attended to, mostly during normal business hours. Buyers need to see properties around their schedules which often means after work or weekend showings. Sellers properties often need tending, flyers run out; keys go missing from a lock box or end up in another box on the same property. A pipe may burst on a listing with an out of town owner; anything can happen. How is an agent who has accepted employment elsewhere, with a set schedule, going to be able to deal with the schedule and responsibilities of a full time Realtor? How does that affect the buyer or seller? Has the agent even disclosed to the buyer or seller that they are not fully available? Do you know if your agent is available to conduct business, full time on your behalf?

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Posted on 2008-05-11 @ 9.15:57 pm by Laurie.Manny

Long Beach Own Your Owns-OYO-OYOs-Condo Conversions-Income Properties in Long Beach

Long Beach Own Your Owns - OYOs

What the Heck is an OYO?

Why would I want to own one?

Long Beach has been home to many Own Your Owns over the years. They can be found throughout Downtown Long Beach, Alamitos Beach, Bluff Park and into Belmont Heights; older, usually 2 or 3 story buildings tucked between newer and sometimes taller buildings.   Recent Condo Conversions have trimmed the numbers of available OYOs considerably. OYOs used to be a really good investment, selling for considerably less than Long Beach Condos, they proved to be a very desirable purchase. When they successfully converted to condominiums owners realized large profits.  Often condo conversion was the motivation for purchasing an Own Your Own. 

Many buyers ask about OYOs.  They want to know if they are the same as a condo, or more like a stock cooperative. 

OYOs are similar in ownership to condos in that they are both fee simple ownership with individual tax bills and deeds. OYOs are a pre-condominium form of ownership, mostly built in the 50s. They generally sell for less than condos and are occasionally candidates for condo conversion, if they qualify, at which time they increase in value dramatically. Often OYOs will not have sufficient parking to qualify for condo conversion. 

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Posted on 2008-05-05 @ 7.18:26 pm by Laurie.Manny

Emerald Villas - Downtown Long Beach - 555 Maine Avenue

Emerald Villas - Downtown Long Beach Condos

555 Maine Avenue

Downtown Urban Living

The beautifully appointed Emerald Villas Condominiums are a delight to visit.  Zen like gardens greet you in the main entry, which lead to a beautiful community pool, spa and barbeque in a lovely and lush, tropical setting. 

Quiet and peaceful is the tone here. 

A community rooftop deck sports a fantastic view of Downtown Long Beach.  Come home to a good workout in the community gym after a long day at the office.  Emerald Villas is located one short block from the beautiful Cesar Chavez Park and walking distance to:

• Pine Avenue
• East Village Arts District Outdoor Mall
• The Pike
• Rainbow Harbor
• Shoreline Village
• The Beach
• Area Restaurants
• Area Entertainment
• And more...
  

This beautiful Downtown Long Beach Condo Complex is convenient to all shopping, dining and entertainment in the Downtown Long Beach area and is convenient to all freeways. 


Emerald Villas Condos has 123 units, most of which are 2 bedroom, 2 bath units, with several 3 bedroom, 2 bath units.  The units have great floor plans and all contain air conditioning, fireplaces, balconies and in unit washer/dryer hook-ups. 

2008 Statistical Information for the Emerald Villas Condominiums

There are currently 3 condos available for sale at the Emerald Villas, 2 are pending and 1 has closed escrow in 2008. 

Available units can be viewed here: 

Emerald Villas Condos For Sale-555 Maine Ave-90802-Downtown Long Beach Real Estate

(Live feed from the SoCalMLS)

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Posted on 2008-04-06 @ 6.15:40 pm by Laurie.Manny

Long Beach Real Estate Sales-Foreclosures-Bank Owned Properties-Market Statistics

Long Beach Real Estate Market Statistics

Sales 2001 - 2007

January 1, 2008 - March 21, 2008

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There are currently approximately 133 Long Beach properties selling per month (closing escrow)

352 ÷ 2.66 = 133

2245 ÷ 133 = 16.8

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352 Long Beach Properties have closed escrow ‘SOLD’ in 2008.

133 Average sales per month.

There are currently 2245 Long Beach Properties for sale.

It will take almost 17 months with no new properties entering the Long Beach Real Estate market to sell the existing inventory of properties for sale. Homes, condos and income properties in Long Beach are being placed onto the market daily adding to our existing inventory and increasing the length of time it will take for the current real estate market to absorb these new properties for sale.

The numbers tell an interesting story, one that I recall all too clearly. As single family homes became financially unattainable to first time home buyers in 2005 and 2006, many purchased Long Beach Condos instead, it was better than remaining in rent and gave them badly needed tax write offs. The above chart shows a significant decrease in single family home sales in 2006 and again in 2007, as condo sales remained strong into the latter portion of 2007 when they too began to taper off.

You will notice the sharp decline in closed sales in the first quarter of 2008, its not that the buyers have not been out shopping, many have been. Many just have not been able to wrap themselves around exactly what it means to get a deal. I dont know if it is the media or a misguided idea of what a deal is in todays real estate market. Others are realizing that the after purchase costs of badly needed upgrades on many of the homes are beyond their reach.

Long Beach Homes-Issues for 1st Time Home Buyers

Prices on real estate for sale in Long Beach are currently all over the place, it is a bit messy, which indicates a good hard look at the comparables before deciding what to offer on any given property. Some homes are priced to sell at the price offered, some sellers have priced their homes based on fantasy and wishful thinking. While it cant hurt to place a reasonable offer on one of these homes, the sellers are often not very responsive. Many buyers have decided to offer low, whether the listing price is fair or not. This is a sure way to not get your offer accepted. There are many good buys on the real estate market in Long Beach right now and the smart buyers and cash heavy investors are picking them up.

Real Estate Investors with a lot of cash have entered the market. Prices are finally dropping to the price range they have been waiting for. This is making it more difficult for buyers who intend to purchase with loans and occupy the homes to get their offers accepted. We placed an all cash offer for a bank owned Alamitos Beach Condo about a week ago, there were multiple offers, one was higher than ours. We opened escrow on that condo on Monday. The bank knew they would not have any problems with a lender that might not be able to perform, may disappear or may discontinue their current loan programs.

Bank owned properties are beginning to appear in larger numbers and a better selection of homes is now available. Buyers have started getting a little excited now that homes they actually want to buy are finally starting to become available, they are writing offers and are often being rejected because the investors are liking these homes too, are placing all cash offers and are walking away with the prize. Multiple offers are occuring on the better properties that are being made available which is making that potential purchase more competitive now, and less incentives are available on these purchases. Some of these properties sell quickly for around asking price, with no incentives.

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Posted on 2008-03-22 @ 3.59:32 pm by Laurie.Manny

Downtown Long Beach Duplexes For Sale 90802 90813

Downtown Long Beach Duplexes For Sale

90802 & 90813

Are you looking for a Downtown Long Beach Home and finding them just out of your financial reach?  Have you considered a duplex?  Yes they often cost a bit more than a single family home, but the rental income can make the difference between being able to afford a home or not.  There are actually a few very nice duplexes available at this time, for very reasonable prices.  

The lender will consider the rental income and increase the amount you are qualified for making it possible for you to purchase. 

If you think this idea might work for you, it would be my pleasure to assist you and explain how this is a real possibility for you.

Listed below are all available Downtown Long Beach Duplexes.  Some of them are in the Willmore Historic District, a few of them are actually very nice and the prices aren't too shabby either:

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Posted on 2008-02-21 @ 12.29:47 pm by Laurie.Manny