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.  

Guide to Multiple Seller's Offer Negotiations

It’s possible you as the seller, may be faced with multiple competing offers to purchase your property. Here are four simple and common strategies to deal with the situation. 

1. you can accept the “best” offer;


2. you can inform all potential purchasers that other offers are “on the table” and invite them to make their “best” offer; y


3. You can “counter” one offer while putting the other offers to the side awaiting a decision on your counter-offer;


4. “counter” one offer and reject the others.


Realize that each of these approaches has advantages and disadvantages. Patience may result in an even better offer being received; inviting buyers to make their “best” offers may produce an offer (or offers) better than those “on the table” – or may discourage buyers who feel they’ve already made a fair offer resulting in them breaking off negotiations to pursue other properties. Ultimately you as the SELLER should make the decisions, however, are yours to make.
Working with an experienced real estate agent who will guide you through the negotiation is priceless.

What should I do before selling my home in California?

There are so many reasons you may decide to sell your home. Relocation, Release Equity, Housing Market Conditions, Size Requirements Change, Change in Relationship Status, Changes in the Neighbourhood and many others reasons. No matter what the reason is, you should get ready. You need to maximize the value of your house. The following three steps will help you to get prepared to sell. Then, to be prepared to make a great impression on potential buyers and do the deal.

* Clean and declutter: It may sound obvious, but the importance of cleaning and decluttering cannot be overstated. Here are some ideas to make this process nearly painless.
Get rid of clutter before cleaning. This is the time to purge your house of unwanted and unnecessary items. In addition to donating items to charity, you might consider giving them away through Craigslist or neighborhood sharing groups. Recyclers are often willing to pick up and haul away large metal items for free. The goal is to make your house a clean slate before you get down to cleaning.
Deep clean your house. This step will probably involve the most significant time investment. Get the whole family involved if you can! Think of this as a pumped-up spring cleaning. Pay particular attention to kitchens and bathrooms, and clean the inside and outside of your windows — this makes a striking improvement in the overall appearance of your house.
Organize closets, cabinets, and drawers. In this case, out of sight is not out of mind. Many potential buyers will open cabinets and closets because they are thinking about storage space. If your storage areas are clean and organized, it will send a signal to buyers that you take care of the house.

* Make DIY repairs: Take care of these problems before you show the home for the first time. These are all fixes that you can do yourself.
Fix any leaking faucets and running toilets.
Replace caulking around tubs, showers, and sinks.
Freshen up or repair grout as needed.
Repair walls and repaint them in a neutral, generally pleasing color that complements your home.
Fix cracked or broken windows.
Replace or repair damaged window screens.
Replace burned-out light bulbs.

* Go for curb appeal: First impressions are a big deal. You want potential buyers to be charmed by the outside of your house, so they look forward to coming inside. Extend your pumped-up spring cleaning to the exterior of your home, too.
Trim bushes, shrubs, and trees. Make sure vegetation isn’t touching your roof or siding.
Repair broken downspouts and gutters.
If it’s appropriate for your yard, apply new mulch, river rock, and/or pea gravel. This can do wonders for your landscaping and provide immediate curb appeal.
Clean and repair concrete areas, such as driveways and walkways. Be sure to eliminate any oil or grease stains, and clean out any weeds coming up through the cracks.
Dress things up a little bit. If it’s seasonally appropriate, put out some pots of annuals, which will maintain their color for the season. Freshen up your doorstep with a new welcome mat. Make sure the house numbers are natural to see, and in a style that complements your home.

With just a moderate amount of effort, you can make your house beautiful and welcoming, both inside and out. I will glad to meet you and help you with this improvement. With no fee and obligation, I inspect and let you know what other easy fix you can do. I welcome your comments and ideas.