Stalemate in Long Beach Real Estate?

With 358 sales year to date for the first quarter of Long Beach you may wonder what is going on here in the 5th Largest city in California. The reality is that properties are still moving (although volume is obviously less) but why is the volume different? There seems to be a sort of stalemate out there occuring and it seems that often it doesn't really have to happen!

After speaking with many real estate agents throughout the city and speaking with many different buyers I thought it would be helpful if I provided some of the feedback from all sides involved (buyers, sellers, and agents).

Buyers are saying:

• The prices will continue to come down


• I will wait until they do another price reduction


• There are foreclosures selling at 50 cents on the dollar

Reality

• Maybe prices will come down, maybe they won't, it all depends on the level of motivation of the seller. Inventory levels aren't as high as the early 1990's so I wouldn't hold your breath


• Why not write the price you want for the Long Beach home or condo you have your eye on? If you wait for a price reduction someone else might get it :)


• Really? Look at the stats. Foreclosures are generally listed at about 10% below retail and if the area is super popular they often get multiple offers. Also, they acount for less than 5% of total inventory.

Sellers are saying:

• I won't lower my price
• Do more marketing to bring the buyers to my property
• Let's wait and see

Reality

• If you don't price your home or condo at the last sale (or below) you probably won't see activity. "Testing the waters" these days to see if you can get your price is a waste of time. If you want to sell price it in the top 1% of your area.
• The fanciest flyers, websites, or blog, can't sell an overpriced home. I mean, would you pay $250,000 for a Toyota Camry? Of course not, so just because you put granite on your counter tops doesn't mean cool pictures of it will make the buyers will over pay for your home.
• If you want to "wait and see" if the market gets better you might be in for the long haul. The market is now a much more "normal" market so you better be prepared to price your home well and make sure it is in excellent condition IF you actually want to sell.

Long Beach Agents are saying:

• There aren't any qualified buyers out there
• "No one" is buying
• My seller is unreasonable

Reality

• Ok, so the loan programs have changed. There are still great loan programs where buyers can get closing costs and purchase a property for as little as 1% out of their own pocket, they are out there, you just have to find them.
• People are buying! Everyday people relocate or decide it's their time for their first purchase. Help them with information and confidence.
• Really? Maybe your seller doesn't have the information they need to make an informed decision. Give them the stats so they can see if they want to sell it's possible, they just can't get 9 offers if their home is overpriced.

So, long and short, if you want a property and it seems overpriced, write the price you want a see what happens! Be prepared for rejection or going through many counters offers, that's ok, it's part of the game. There are some great choices of real estate throughout Long Beach if you take the time to look. Have fun and happy hunting!