Days on Market (DOM)

Days on Market (DOM) refers to the period of time a property is active on the Multiple Listings Service before a sold transaction occurs and the home sale becomes legally binding, with any stipulated conditions having been met by both the seller and buyer. Simply put: it’s a measure of how many days a home takes to sell.

Arguably the second most referred to real estate statistic, behind price, of course, days on the market is firmly eyed by run-of-the-mill buyers, veteran investors and industry insiders alike.

The faster properties sell (and the lower the DOM), is an indication housing is strong, supply is tight, and conditions are those of a seller’s market. Higher DOM tends to suggest a buyer’s market. As you see above chart, in Long Beach Ave. DOM is about 19 days. Please note this chart is for condominiums only. I love your comments, and please be sure to subscribe, as I add different real estate issue frequently.   

Long Beach, California Real Estate Market update for February 2018

As PWR " Pacific West Association of Realtors reports, The three most prominent national market trends for residential real estate are the ongoing lack of sufficient inventory, the steadily upward movement of home prices and year-over-year declines in home sales. Sales declines are a natural result of there being fewer homes for sale, but higher prices often indicate higher demand leading to competitive bidding. Markets are poised for increased supply, so there is hope that more sellers will take advantage of what appears to be a ready and willing buyer base.

New Listings were up 4.2 percent for Single Family homes and 4.5 percent for Townhouse-Condo properties. Pending Sales decreased 47.2 percent for Single Family homes and 51.3 percent for Townhouse-Condo properties.  You can see all Long Beach, California real estate numbers vs. last year numbers. 

The Median Sales Price was up 9.4 percent to $689,450 for Single Family homes and 8.2 percent to $446,000 for Townhouse-Condo properties. Months Supply of Inventory remained flat for Single Family units but was up 11.8 percent for Townhouse-Condo units. 

In February, prevailing mortgage rates continued to rise. This has a notable impact on housing affordability and can leave consumers choosing between higher payments or lower-priced homes. According to the Mortgage Bankers Association, the average rate for 30-year fixed-rate mortgages with a 20 percent down payment that qualify for backing by Fannie Mae and Freddie Mac rose to its highest level since January 2014. A 4.5 or 4.6 percent rate might not seem high to those with extensive real estate experience, but it is the new high for many potential first-time home buyers. Upward rate pressure is likely to continue as long as the economy fares well.

Downtown Long Beach Real Estate sale

The chart above shows the number of properties sold in downtown Long Beach area "90802 zip code" via the MLS. Increasing sales activity signifies an accelerating market while decreasing activity signifies a declining market. Note that sales activity may also change seasonally. Due to the amount of new construction and City of Long Beach emphasize to improve this district, it is highly recommended for investment. As the city of long beach truly believes, Well-detailed and crafted buildings are highly valued in Long Beach, and new buildings must contribute to this legacy.  To better understand the importance of Downtown LongBeach please read this report.
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City of Long Beach vs Los Angeles County Average Taxable property Values

As Assessor LA county reports, the total assessed value of taxable real estate located within the City of Long Beach is currently $54,043,738,933 (or, $54 billion). This comprises 106,569 properties, of which 79,689 are single-family residences (including condos), 17,312 are residential rental properties, and 9,568 are commercial or industrial properties. Year-over-year growth in Long Beach from 2016 to 2017 was 5.0%.

For the County of Los Angeles as a whole, the gross value of all taxable property is a record $1,473,759,940,499 (or, $1.47 trillion). The net value, which does not include exemptions but is also a record high for the County, is $1,416,125,372,989 (or, $1.42 trillion). This is a 6.04% increase in valuation over 2016 and represents the seventh consecutive year of growth.

The graph below compares average growth in the LA County with that of Long Beach for the period 2003-2017:

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HOW MUCH HOME CAN YOU REALLY AFFORD?

As a general rule, your monthly payment should be one-third of your monthly income. But, When it comes to providing pre-approvals for would-be homebuyers, lenders today are more careful than they were in the years leading up to the market crash 2008, and that means your financial picture will be more rigorously scrutinized to determine your credit-worthiness and develop your max approval amount. Trust me, that's a good thing. The last thing you want is to be house poor. Having a great place to live that you can't enjoy, furnish or even leave because you have no money left won't be fun. 
Consider your take-home pay - what actually goes into the bank after taxes, health insurance, and savings for retirement and college. Then add up all your monthly bills, not just debt but also things like utilities, phone, and groceries. You want to feel comfortable that you can cover all your household obligations while still meeting your other financial goals and keeping six months of expenses in an emergency fund.

That's why it's so important to consider all of your monthly expenses related to buying a home. Beyond the principal, interest, taxes, and insurance that the lender, there are other line items to weave in that will help you determine your purchasing power and also help you to be comfortable from month to month. Here few examples to consider: 
Increased commuter costs, Higher utility bill, Homeowner's Association, Home improvements, Landscaping

Why you should sell ASAP in 2018.

Photo by: Amir Zee 

We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record low number of homes for sale across California.

If you are planning to sell in 2018 and you want to sell your home quickly, and for maximum money, your window of opportunity may be rapidly narrowing. Here's why you should get moving ASAP.

1. Rates are still historically low, drawing buyers into the market. Interest rates are on the rise, and it's widely predicted that they'll reach 5% + before year's end. Buyers know that the longer they wait to buy, the more expensive it will be.

2. Inventory remains tight. Buyer demand is high. The housing shortage will likely get worse before it gets better. Realtor.com data predict inventory will remain tight in the first part of this year, reaching a 4% year-over-year decline by March. This year is your window of opportunity.

3. Home prices are still increasing, Realtor.com data suggest a 3.2% increase year over year, after finishing 2017 with a 5.5% year-over-year increase. You still stand to make a pretty profit if you sell this year, but the earlier you can list, the better off you'll be.
4. Millennials are ready to commit; As people move into their 30s, they're looking to move from renting to homeownership.More home buyers flooding the market can only mean good things for sellers—at all price points.

As always, your comment or questions is appreciated.