Long Beach Real Estate Market Statistics- March 2008 - Absorption Rate

Long Beach Real Estate Market Statistics - March 2008

Absorption Rate is a good way to get a really clear picture of the Long Beach real estate market and is a great tool to use to assess your competition when listing your Long Beach properties.  The numbers reflected below indicate a highly competitive and strong buyers market, one in which the right price is detrimental to the potential sale of your Long Beach Homes, Condos and Investment Properties. 
 
A six month supply of homes indicates a normal market; less than 6 months would indicate a Sellers Market, over 6 months indicates a Buyers Market. 

Read more »

Posted on March 04, 2008 04:22:18 by Laurie.Manny

Can I Lose My Long Beach Home Because Of a 7-Year ARM?

In today's Long Beach Mortgage Rates Report, I highlighted a 7-year ARM.  The post drew this comment:

You suggest a 7 year ARM? What happens if home values don't fully recover in 7 years? I dont want to be stuck owing more than what my home is worth when my rate resets.

Great question.  It shows how The Media is disseminating poor information about this mortgage crisis.  A 7-year ARM is a fully-amortized loan (which means it will be paid off in 30 years) with a fixed rate and fixed payment period for the first 84 months.  For a loan funded in March, 2008, that means the first payment will be in May, 2008 and will not change until April, 2015; let that sink in....2015.

At the end of 7 years, the loan turns into a one year ARM, amortized for 23 more years.  The new interest rate is determined by adding the index and the margin together.  Most ARMs are based on the LIBOR index, which today is about 3.5%.  Most ARMs have a margin of 2.75.  That means that if this loan were to adjust today, the new rate would be about 5.75%...not so bad, huh?  As you can see, rate rests aren't that awfully bad.  In fact rate resets are accounting for less than 2% of the foreclosures in California.

The following Question and Answers are not part of the original comment but frequent questions I hear daily.  My answers may appear to be flippant; they're not intended to be. 

WARNING:  HARD-CORE TALK ABOUT THE REAL ESTATE DECLINE AND MORTGAGE CRISIS

Read more »

Posted on March 03, 2008 14:26:41 by Brian.Brady

Long Beach Condos For Sale Under $200k-February 2008

Looking for a Deal?

Long Beach Realtors keep hearing buyers saying that they want "A Deal".  Many investors have been sitting on the sidelines waiting for the Long Beach real estate market to drop low enough to swoop in and pick up a few great rental properties that will generate income. 

There are 29, 2 bedroom condos for sale in Long Beach, UNDER $200,000.  Many have been on the market for a long time, as is witnessed by the days on market (DOM) in the chart below; and are now price reduced into the very affordable range. 

For renters or first time home buyers this is an opportunity to own that has not existed in Long Beach for many years. 

For Long Beach investors, with a down payment of around 20%, many of these Long Beach Condos will produce the rental income you have been waiting for.

Most of these Long Beach Condos are either bank owned, forclosures or short sales. 

Do you want to make a deal?

Read more »

Posted on February 28, 2008 06:15:40 by Laurie.Manny

Mortgage Pre-Approval On Weekends

When you and Laurie Manny are looking at homes, on the weekend, banks and mortgage brokerages are closed.  Most of the lending professionals are at the beach; I'm no different.  I work hard during the week and enjoy the rest and recuperation the weekend affords.  You might find that it is increasingly difficult to get pre-approved for a loan, for your Long Beach home, after 5PM on Friday.

"I need a loan approval and I need it now!", you think.  "I have an offer to make"

 Here are four steps to securing a loan approval by NOON tomorow, regardless of what day it is:

Read more »

Posted on February 24, 2008 13:49:11 by Brian.Brady

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:

Read more »

Posted on February 21, 2008 12:29:47 by Laurie.Manny