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