Long Beach Home Buyer Update March 25, 2008

Spring Real Estate season has begun in Long Beach. The clocks have been changed, it is light out into the evening hours, making it easier to show properties after the work day, and buyers are liking this springs Long Beach housing prices. 

Prices are way down, foreclosed properties (bank owned) are being placed for sale on the MLS daily and investors are buying. Sellers are realizing they have to compete with short sales and forclosures on price.  There are some very nice homes for sale on the market here in Long Beach at the moment, and buyers are shopping. 

Many real estate sales in Long Beach are being made to out of area buyers.  After searching in areas that remain unaffordable to them, Long Beach has proven to be a great option in its ability to provide great housing at affordable prices. 

Until recently buyers had the luxury of time when they found a home or condo they were interested in, this is no longer always true.  We are currently working with many Long Beach buyers.  In just the last 3 weeks 6 of our buyers decided to think on it for too long and lost the homes they wanted to write offers on - to buyers who were quicker than they were to write the actual offers.  Many buyers have been looking on and off for quite some time and have been conditioned to the slower winter market, it is different now.  Strategy is important. 

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Posted on March 24, 2008 17:00:01 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.

I had a conversation with a selling agent from one of the asset management companies handling foreclosures yesterday and inquired about their criteria when considering multiple offers on their bank owned or foreclosed properties. He went on to explain that while they are in counter with early offers, the offers are coming in steadily and are lined up in the que. Often the early offers are being accepted without even looking at the offers in the que, even though there are often better offers sitting there. When I questioned why, he simply stated that they have so many properties to deal with they just dont have the time, they are being pressured to get the offers accepted and get them off the table to deal with others. He also said that sometimes they go through all of the offers and counter a good portion of them, that it doesnt always make sense - even to him. Its looking like the early bird gets the worm - sometimes.

If you are a serious buyer, are looking for a foreclosed home to occupy as your primary residence and are interested in the better properties coming onto the market you will need to move quickly, make swift decisions and make your best offer right out of the gate. While even this will not guarantee that your offer will be accepted, it certainly will put you in the best position possible.

If you are interested in purchasing bank owned or foreclosed properties, call Laurie at (562) 212-5420 to begin your search.

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Posted on March 22, 2008 12:59:32 by Laurie.Manny

Long Beach Mortgage Rates Report: March 21, 2008

Posted on March 21, 2008 07:20:16 by Brian.Brady

New FHA Loan Limit For Long Beach Homes

Updated 10/10/2008:

FHA loans are available to a maximum loan of $729,750 with a minimum 3.5% down payment (up from 3% as of 10/1/08) until January 1, 2009 when they are currently scheduled to drop the maximum loan amount to $625,000, this could change. 

FHA Lending Limits for LOS ANGELES COUNTY (LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN AREAS): 

• Single Family Home or Condo: $729,750
• Duplex:  $934,200
• Tri-plex:  $1,129,250
• Four-Plex:  $1,403,400

Jumbo Loans are currently requiring approximately 30% down payment and start at $729,000, also currently scheduled to drop concurrently on 1/1/09 to $625,000 unless something changes between now and then. 

What is the new FHA loan limit for Long Beach?

I was a guest on Real Estate Radio USA, yesterday, hosted by Barry Cunningham and Barry Johnson.  I talked about the impact of the higher conforming and FHA loan limits and how it might shore up the "desperate" real estate markets.  Real Estate Radio USA is a provocative and engaging program for real estate professionals and airs daily from 1PM-3PM (Pacific Daylight Time).  Listen to my interview here.

Sorry to keep you in suspense with the little self promotion there.  The new FHA loan limit for Long Beach is $729, 750.  FHA loans can be useful for Long Beach home buyers because:

1- Only 3.5% downpayment is required.  Some Long beach homebuyers have had to put as much as 10% down to obtian financing; the FHA loan can solve that problem.

2- Credit scores are not used in the underwriting process.  You still need to pay your bills but a loan can be funded if your credit score fell because of incorrect information on your credit report.

3- FHA loans don't have a "declining market adjustment".  Many Long Beach home buyers have been caught by surprise, when trying to obtain a home loan, and have had to put an extra 5% down.

4- the FHA 203-k loan program allows for "rehab or repair" financing.

Interested in buying a home in Long Beach but unsure about how to finance it? 

Call Brian Brady at (858)-777-9751

Posted on March 13, 2008 01:59:09 by Brian.Brady

Alamitos Beach Luxury High Rise Condos Market Report-Ocean Boulevard Corridor-90802 January-February-2008

Alamitos Beach Luxury High Rise Condos Market Report

Ocean Boulevard Corridor

January - February 2008

Alamitos Beach luxury high rise condos on the Ocean Boulevard Corridor are slowly beginning to come back to life.  This year got off to a slow start with only 4 very small condos actually selling.  There are currently 9 condos in escrow and buyers are out again shopping Alamitos Beach condos for sale. 

We have a specific highly qualified buyer seeking a high rise condo, on the Ocean Blvd. corridor, who has not quite found what they are looking for.  If you have a 3 bedroom condo - or a 2 with a den, not currently on the market, around 1600 sq ft or more, on the sand in Alamitos Beach, with a direct ocean view, we would like to speak to you.  Preference is an upper corner unit with an unobstructed east/south facing view in excellent condition.  Our buyer wants to purchase now.  Call today if you are thinking about selling, if you have the right unit, we may be able to make this relatively easy for you.  Contact Laurie at  562-212-5420. 

There are currently 57 ocean front and luxury high rise condos for sale in Alamitos Beach, on the sand. 

3 ocean front and luxury high rise condos in Alamitos Beach are in escrow and accepting back-up offers. 

 6 ocean front and luxury high rise condos in Alamitos Beach are Pending in escrow.