Why NOW is the Best Time to Buy

The following information has been provided by Dick Gaylord who is the 2008 President of the National Association of Realtors®. He also happens to be a praticing Long Beach Real Estate Broker.


"Are you looking to buy a home, but not sure if now is the right time? Forget about what you have read in the national news media – stop for just a couple of minutes and consider these five reasons why NOW just might be the best time to buy here in Southern California.

1. High Inventory. That means you have lots to choose from and sellers are motivated to give you the best deal possible.
2. Lower Prices. In the Los Angeles-Long Beach area, median prices have declined from where they were at this time last year. However, signs indicate that the market is stabilizing, which means prices are likely to rise again next year.
3. Favorable Interest Rates. It’s a good bet that interest rates aren’t going to fall any further either. As the Federal Reserve contemplates a rate hike this fall, now might be the best time to lock in a low interest rate on a new mortgage.
4. Affordable Financing. The federal government recently raised the loan limits for FHA and conforming loans through the end of 2008. That means qualified buyers can get an affordable mortgage on a home priced as high as $729,750.
5. A Great Investment. In addition to the financial benefits of homeownership, studies show that homeownership offers important social benefits, such as safety and security. You can’t put a price on that.

I’ve been in the real estate business for more than 30 years, and I am a top producer here in Southern California. I can honestly say that I have never seen this kind of real estate market – every market really is different.
So, don’t rely on national headlines to tell you when it’s a good time to buy or sell. Go to www.HousingMarketFacts.com for the latest local information and to find a Realtor® in your community who can help take you from “dream” to “home” TODAY! "

It's definitely some great food to chew on and I recommend checking out the website he recommended so you can see some of the statistics that are occuring here in the market. The media has a tendancy to use overall market numbers instead of highly localized data so take some time and have fun looking through the data.

Long Beach Real Estate Market...What A Ride!

Ah...yes! This video was sent to me by my father and it completely reminded me of how I've sometimes felt the past seven months. I truly believe we've hit very close to bottom here in Southern California with regards to Real Estate. When you can reach up and touch bottom you know there's only one way to go and that's up.

Sellers should keep in mind there's a lot of smart money waiting on the sidelines ready to step into Real Estate right now. Summer months are ahead and for buyers the interest rates are still at 40 year lows and there are great buys to be had.

Real Estate Professionals should stay positive because there are really no more reasons to be negative. If your listing agent hasn't recreated their business and adapted to the market dump them NOW! Check back here frequently for the latest tips and if you need some help give us a call at (866) 469-8485!

This is a six minute video and by the end your stomach will be close to flying out of your mouth and your nerves will be a bit tight. What a ride we've experienced and will continue to experience through 2008. Enjoy life for what it is and remember you're exactly where you're suppose to be right here and now. Learn, grow and achieve!

Happy Hunting to all.

Bixby Knolls Real Estate October Update

Long Beach has many different areas of the city and truly each area is unique and has it's own character. Every Friday we will be doing an update not only in writing but a video update of either an area of the city or the entire real estate market in the city of Long Beach so make sure to tune in every Friday to see what area has been highlighted. This Friday we are highlighting the area of Bixby Knolls and the Virginia Country club.

October 2007 for Bixby Knolls and the Virginia Country Club

1. New Listings - 35 (22 single family homes, 13 condos)
2. In Escrow - 5 - (Pending 4, 1 Backup)
3. Total Active Properties as of Today - 190

Our Video Update highlights the area of the Virginia Country Club.

October & The Pumpkin Patch

As we near Halloween the corner of PCH (Pacific Coast Hwy) and 2nd st is home to the Pumpkin Patch. This fantastic carnival and place to buy pumpkins appears every year on the 1st of October. It also stays around to be transformed into a Christmas tree lot. This is the southern most corner of Long Beach and on the border of Los Angeles and Orange County. We put together a brief video so you can see the edge of the carnival and how the southern california fires are affecting the Long Beach sky.

Home Sales Decline - What will happen next?

If you didn't get a chance to take a look at the business section of the la times on Wednesday the 26th of September the article "Home Sales Take Sharp Tumble" gives several reasons why the housing numbers are down and what is happening nationally and locally.

So let's get the good news out there so it doesn't look like all bad news. Despite the fact that the median home price is down in most areas of the country Los Angeles County had a 2.6% increase in the median home value. That's right, despite everything that is going on the median value of homes in Los Angeles County rose. So why is that? Well Los Angeles County continues to have job growth and the Southern California climate and job market tend to be desirable places to be. This is good if you are in Los Angeles County. Let's be clear though that there are some areas of the county that are seeing pricing pressure and it doesn't mean that sellers can ask 2.6% more for their home than their neighbor got last year. It does mean that homes are still selling though. In fact homes continue to sell nation wide.

So the bad news. The amount of inventory of unsold homes continues to grow. The inventory amount is called months of inventory and means how long it would take to sell all the existing homes on the market if no new homes came on. Currently according to the article there is 11.8 months nation wide. At 12 months or more of inventory it is considered a buyers market. This means that at least there is favor to buyers being able to negotiate better terms for themselves. Now this is a nationwide number. In Long Beach there are areas of the city that have 12 months of inventory such as downtown long beach and there are areas of the city such as Belmont Shore that have less than 8 months so it depends on what area you are looking in.

Now the article points out that most groups predict it will more than likely continue to get worse before it gets better. So what does that mean if you are thinking of selling. I believe it means you should consider selling your home sooner rather than later or at least know that when you do sell you may be competing against more properties on the market and there may be pricing pressure on your home as well as it may take longer to sell.

So if you are a buyer should you wait? Well that is where you have to look at where the interest rates are now and where they are likely to be next year. More than likely next year the rates will be up from where they are today. That means even if prices adjust down you will be paying more per month for the same home. Homes or condos with loans at or under $417,000 in southern California can be purchased with conforming loans and will not be affected to a great degree. Right now as a buyer you have the ability to get a great interest rate near a 40 year low as well as nice property. Check out the post on "Getting the Price You Want" to see how you can start negotiating now.

So all of this means that the market will continue to adjust but there is still a great opportunity out there for first time home buyers and sellers who need to move up.

Belmont Shore Real Estate Sales for August 2007

If you live near the water in Long Beach you may live in the communities of Belmont Shore, Naples, or Belmont Heights. These communities feature homes and condos of all shapes and sizes. But that isn't what this post is about. This post is all about the numbers and what has been happening in those areas. So let's take a look at sals figures for August!

All stats were taken from the SoCalMLS system which covers the Long Beach area. If a property was sold without going through the MLS it will not be reflected in these figures.

August 2007 for Belmont Heights, Belmont Shore, & Naples

1. New Listings - 59
2. Total Active Listings at the end of the Month of August - 212
3. In Escrow Properties - 15 (9 Pending, 6 Backup)
4. Closed Sales - 10

So what does this all mean? Well it means that things are still selling near the water. In fact buyers have some great choices. Now if you think you will be getting an ocean front home for $200,000 I am sorry to dissappoint but sellers have shown flexibility with buyers who want to buy their homes and aren't just fishing for an offer.

A Long Beach Event You Can't Miss

An event that is coming up shortly is the Long Beach Triathlon. There will be over 1,300 athletes participating in this event. It raises money for aids education. So why are we telling you about this event now when it is not until September? Well so you have time to sign up. So let's go over a few details about this event.

1. The bike distance is 11 miles
2. The running distance is 3 miles
3. The mile swim is a half mile

Now before anyone gets scared this is all very doable. If you start walking or even jogging today you will be just fine. Remember it is not about how fast you finish(for some it is) but it is the fact that you do it and finish. We have already signed up and hope others do as well. This will only be the second one of these events that I have done so we will see what happens. More information can be found at http://www.pacificsportsllc.com/LongBeach/LBAthleteInfo.html. We hope that you sign up and let us know if you are going to be there!

One last thing there is a great site www.Active.com. You can literally find hundreds of great events in the area and out of the area to choose from.

How many California Foreclosures will there be?

The news has spread there will be foreclosures in the state of California. First of all foreclosures happen in any market. There have been many news reports that California foreclosures are up 200%. Well what they fail to mention in that amazing headline is the fact that they have been extremely low in the last several years as a result of the market that existed here. So just how many California foreclosures will there be? Well that is the millionaire dollar question. We will try to answer it as best we can.

First what we believe won't happen:

• Foreclosures will not be 50% of the overall market - Unemployment is still very low and the government seems to be doing an adequate job to assist the lending institutions.
• Homes will not sell for 50 cents on the dollar - Let's be clear about this. If you were thinking that you were going to pick up the million dollar ocean front home for 50 cents on the dollar please know that just isn't going to happen. The economy is still going forward and certain areas are still selling within days and that includes the ocean front properties.

What probably will happen

• Foreclosures and/or short sales will make up at least 5% of the market - now that is still a large number of homes.
• 10% off of what the bank owns will be common - let's be clear we don't mean that the market will fall 10%. What we do mean is some people were able to finance their homes above the actual value of the property and the banks will be taking less than they financed for. In some cases the value will be far greater than 10%.

So just how many California foreclosures will there be? Well there will be a few. If you are serious about buying you can find a deal besides a foreclosure. If you still would like to sell you can still do that as well it just means you have to make sure to understand what is happening in your neighborhood.

Sales Statistics for July 2007 for Eastside & Circle Area

As we mentioned in our last post we are going to continue to post the stats for the different areas of Long Beach. Today we thought we would cover the East Side and Circle Area of Long Beach. We have actually identified the area that real estate professionals and the MLS define the East Side and Circle area. You can visit it over at www.LovelyLongBeachHomes.com.

So what did July look like for this area? Well here we go.

• Active Properties - 151
• In Escrow (Pending & Backup) - 41 (31 pending & 10 backup)
• Closed - 3
• Expired 16

So when you look at it this area did better than many areas of Long Beach for the month of July. Long Beach California real estate is moving well in certain areas of the city. While other areas only had 10% of their properties go into escrow this area of the city had nearly 30% of the properties into escrow and only about 10% of the market expired. More posts to follow on what is happening on long beach California real estate.

June Home Sales in Long Beach CA

Well it is important that we be able to track the history of what is happening. After all if we don't learn history we are destined to repeat it right? So let's take a look at the sales data for June. Shortly the July numbers will be available so we will have a really good idea of what is happening.

All data is taken from SoCalMLS which is the area that services the Long Beach area. Properties not listed for sale in the MLS or sold private party without going into the MLS system will not be reflected in these figures.

Sales figures are for residential sales. No commercial properties (properties above 5 units, vacant land, or other commercial property are not included in these figures).

June 2007 Sales Data

• New Listings - 466 new
• Active Listings at the End of June - 1,520
• Properties that went into Escrow (Pending and Backup) - 110 (35 Backup & 75 Pending)
• Closed Sales - 273
• Expired - 143

So if you look at the data it would look like there were very few new properties that went into escrow and many that were closed out from a fairly decent May. It appears that the sellers who want to sell are still putting there homes up. I have a feeling that July numbers will tell a different story so stay tuned for that.

Are condos selling in Long Beach CA?

You know this is a fair question as the real estate market continues to change. So if you own a condo, which many do, is there a market for the kind of property that you own? We believe the answer is still yes and that there are some great opportunities for both buyers of condos and the sellers. Now let's get into the data of what happened in May to see what is going on with long beach condos.

The statistics come from the long beach mls system that we use. So without further delay here we go!

1. Number of Sold Condos: 19
2. Number of Condos into Pending Status: 58

So what does all of this mean? Well of the 239 that sold last month only 19 were condos. That is 12.6% of the sold inventory for the month. 26.2% of the pending status properties were condos. This is a much better number. As interest rates continue to rise condos, which tend to be vastly more affordable, have appeal to them.

Condos for the short run appear to be not selling as fast as homes but their affordability is a great option for first time home buyers. So if you own a condo in Long Beach CA and you want to move up to a home it is probably a good time to do it. If you are worried about the price of your condo and want to sell just to sell make sure you get all the facts first!

Belmont Shore Real Estate - Any buyers available?

You know right now if you own belmont shore real estate and you need to sell you are in for an interesting ride. Now let me be very clear. One can always sell real estate it just depends on what price you are willing to take for your property that decides on how many days your property is going to stay on the market. So what is happening in Belmont Shore in Long Beach, CA. Well let's look at the numbers and see what they say! All of the numbers below come from the realtor MLS that serves the area which is SoCalMLS.

As of Today 05/30/2007

• Total Active properties in Long Beach: 1,894
• Total Active in Belmont Shore: 91 - 4.8% of the properties available in Long Beach
• Total New Listings in May in Belmont Shore: 30
• Total New Listings that went into Escrow (Pending or Backup) -2
• Months Supply (Active in area\Amount into escrow) - 45.5 months!

Now I can see what is going to happen. I am going to get some hate e-mail on saying that there is 45 months of inventory in Belmont Shore. Now the area I am using in the MLS also includes Belmont Park and Naples. So in fairness these numbers come from these three areas that are very close to each other. These areas also have many high end properties in excess of 1 million dollars. These homes tend to average longer days on market. So I don't think that there is really 45 months worth of inventory. I would tell the high end buyer that they have a few choices out there. 1 million doesn't buy what it used to but it buys quite a bit.

So what does this all mean. It means that as interest rates continue to increase it is not as easy as it used to be to afford that executive home. So take caution with your pricing high end luxury seller. And to the buyers of these homes we say enjoy the selection but don't expect to get a 1 million dollar home with the ocean view for 50 cents on the dollar!

Where are the buyers in Long Beach?

Now I don't want people to freak out when they read this. In fact there are buyers in Long Beach CA. In fact there are buyers in all areas of this country. The trick is are they are the price that you need them to be at if you are a seller? So today I thought I would cover Downtown Long Beach and the activity we have seen there in May so far. I will break down the other areas of Long Beach as we go on until we get to the end of the month.

All of the numbers below are what has happened since May 1st and are taken from the realtor MLS. So here is what happened so far.

• Total Active in Long Beach as of today: 1,876
• Total Pending in Downtown: 28
• Total Backup in Downtown: 14
• Total Closed in Downtown: 6
• Total New Listings in Downtown: 95
• Total Active in Downtown: 411
• Downtown Percentage of Long Beach Market as of Actives: 21.9%

So what does this all mean for the downtown long beach market? Well it means we have 10.2 months supply of property available. Now this is getting close to that 12 month mark where people consider it a buyers market but not there yet. It does mean, in my eyes, that sellers want to be agressive in price. Especially since new properties are being built in downtown.

The percentage of the Long Beach market may seem high, only time will tell. This will play out as we report on what is happening in other areas. We will say that there are some nice choices available for buyers in the downtown area. Some areas in Long Beach do not have as many choices. I would say if you were a buyer right now who wanted to be in downtown you will have a few choices. Be warned though as the best deals still go quickly!

Let us know what you think!

Who should home owners pick for insurance?

You know normally we wouldn't write an article about home insurance. It doesn't tend to be a topic that people really want to know about or think about that much. However we thought it would be important to know that Allstate will no longer be offering new home owners in california insurance policies for their homes. Allstate press release.

So why would we write on this? Well first of all you apparently aren't in good hands with Allstate. According to www.inman.com Allstate requested a 12% increase on rates in California. I don't know about you but when was the last time you got a 12% for doing exactly the same job. The new insurance commissioner of the state of California is really coming down on companies for doing this and hurting the consumer.

What I can recommend is that you make sure you you have adequate insurance and that you use someone you can trust. I don't normally do this but I can recommend a company that is reliable. Their information is below.

Landmark Insurance Agency
5406 Lincoln AveCypress, CA 90630
800-696-4285

Ask for Jason McKelvey. I get nothing out of referring Jason other than knowing he takes care of people He insures my assets as well as many friends and family. He has not asked for this endorsement because he is that kind of guy. Trust me he won't leave you like Allstate is apparently doing.

Please feel free to weigh in on your thoughts.

How many homes were sold in April in Long Beach?

You know often it helps to know what is going on in the local real estate market before you decide you want to buy or you want to sell. We thought we would let everyone know what is going on in the Long Beach Real Estate market so you can make the decision that works best for you!

So what did happen in April in Long Beach. Let's take a look at the numbers.

• Active properties at the Beginning of the Month: 1,102
• Active properties at the End of the Month: 1,661
• New properties that came on the market: 571
• Number of properties sold in the month: 204

All of the above numbers were taken from the MLS system that covers the Long Beach area which is SOCALMLS. All of the above numbers are for residential properties only and do not include income properties which are properties classified as 2 or more units.

So what does all of this mean for the Long Beach Real Estate Market? I think it means that we currently have 8.14 months supply of properties available. Remember that under 6 months is considered a sellers market and between 6-12 months supply it is considered a balanced real estate market. So we are doing pretty well. Each area is different in Long Beach but we will break that down in future posts. For now let us know what you think.

5 Things to Ask a Buyers Agent

Last post we covered the 5 best things to ask a listing agent. Today we wanted to cover the 5 questions you should ask when interviewing a buying agent. We are defining a buyers agent as a real estate agent who focuses their time on helping clients purchase homes. They should focus over 90% of their time on this task and preferrably not help sellers at all. This will help ensure that you get someone who focuses their craft on negotiating for the best interest of buyers and not sellers.

1. Are you specialized in an area? - A buyers agent with experience will focus on 1-2 areas that they are experts in. This will help you to get as maximum value from their experience within an area. If they say they cover many areas then you may not get the detailed area information that you would need to focus on the best neighborhoods that meet your criteria.
   
2. How many families have you helped each year? - The average real estate agent helps only 4-6 people each year. Purchasing a property is a detailed process so you will want to have someone who has experience negotiating tough issues so you can get the best deals. Top agents in an area will generaly help 12-24 familes each year. You will want to ask questions to see what different types of properties they have helped people purchase (condos, homes, multi-units) to ensure their expertise matches up to your goals.
   
3. Will you refer me a lender? Do you get any compensation for that? - Getting a referral from you buyer agent can be very helpful because the process can run smoothly if they work together often. Be careful that compensation is not happening though as this can sometimes mean you are not being steered in a direction that is best for you. You can also ask them for more than one referral. If the buyer agent objects to that be warned.
   
4. How will you will help me pick properties to view? - An experienced buyers agent should help you decide what best meets your needs through a consultation. A consultation can generally take 30-60 minutes and will include much more detail than just how many bedrooms and bathrooms you would like. This is your time to explain your vision of what you would like to find. You will also want to get access to the MLS so you can have a view of all of the properties that are out there. Ask to make sure that you will see listings from every brokerage, not just theirs.
   
5. What do you do during escrow? -Escrow can be a time where many agents don't give you guidance and expect you to figure out what is going on. Ask if they will have a dedicated transaction coordinator and what inspections will be scheduled. You will also want to find out if they are going to help you with paperwork. Make sure that you are going to get regular updates on the escrow process. The minimum update you should expect from your agent is once a week and preferrable twice a week. Also ask what form the updates will come in whether that be e-mail, fax, mail, or phone. It is preferred that you get an update in writing. You should also get an update from the lender have you chosen in writing a minimum of once a week during escrow.

We hope that these questions help you select the long beach realtor that is best for you. Please remember to ask these questions as it is one of the biggest purchases of your life!

5 things to ask your Long Beach Real Estate Agent

You know often we are asked what people should ask a real estate agent before they hire them. People often choose a real estate agent because they are a friend, a referral, or they say someone they saw on a park bench. This is one of the biggest decisions in ones life so we recommend when choosing a Long Beach Real Estate you should ask a few questions to make sure you are trusting the right person. For today we will cover how to select the right listing agent. A listing agent is an agent who sells your home and may not be the best person to help you buy. For questions to ask a buying agent we will write a separate blog on that.

1. What kind of Guarantees do you have? - This is an important one. Agents should put something in that guarantees a level of service or a level of communication so that you know they will be held responsible. Remember you are paying them quite a bit of money. Remember if they Guarantee isn't in writing it doesn't exist.
2. What is the average Days on Market the homes you sell stay & how is that compared to the average agent? - Be wary if an agent can't answer this. You want an agent who is above average. If they are below average you could possibly get far less for your home than you might with someone else.
3. What is your marketing plan? - Make sure the agent has more than a 5 point marketing plan. You want to know the dollars you are paying are toward selling your home so make sure they give you a marketing plan that has some length to it.
4. Can I fire you at any time & will that be in writing? - Any agent who doesn't want to work under a little pressure shouldn't be your agent. DO NOT get stuck in a 6 month contract without a way out. Make sure it is in writing that you can fire them for any reason.
5. How many homes have you sold? - Make sure an agent has experience in selling homes. In fact if you are choosing an agent to sell your home it is preferred that they only work with sellers as in general that means they have help to find buyers. Find someone who is specialized.

Next time we will give you the questions to ask your buying agent so you get the home at the right price!

Want to Stop Foreclosure? Read this now

Unfortunately there are times when people get behind in their mortgage and they are facing foreclosure by the bank. We really want to make sure to let everyone know that banks do not want to own real estate. They really love lending money for people to purchase real estate but they have no desire themselves to actually own it. So we came up with some steps that we have helped people with in the past to make sure they can avoid foreclosure.

1. If you get behind on your payments and you are having trouble with catching up then call your bank immediately and speak with them. Make sure you speak to someone in loss mitigation and make sure they have you on record that you called them.Explain your situation.
2. Banks are run by people to and they understand that things happen. In fact they can be more understanding then you think. The bank may give you multiple options such as a payment plan, or a loan modification, and if you have to sell and you do not have enough equity then they may consider a short sell.
3. Short Sale - this is when you have to sell your home but do not have equity in your home in order to pay all associated fees that are incurred during a sale.
4. Contact your local realtor immediately! - Get opinions of the value of your home from such websites as http://www.globaltrusthomes.com/home_value.shtml. This website gives you an instant value of your home.

Remember that banks don't want to own your home. They really do understand and want to help you out. Please remember that even though things seem bad they will be worse if you don't call and speak with your bank. They want to work things out so give them a call and see what kind of options they can give you.

What happened in March in Long Beach?

It is always important to take a look back every month and see what happened in the market space. When buyers and sellers are looking out a property it would help to know how all real estate in Long Beach is performing. Performance of real estate in long beach can be looked at many different ways. We like to look at how many new properties came on the market in Long Beach and how many properties were sold during the month.

If a market has inventory growing at a pace that is too rapid for the market could absorb there may be an economic issue in the market place. For the month March we had a 27% increase in the number of properties that came on the market. This is not terrible considering we are entering spring time.

• We still had a very healthy 265 properties close during the month and 189 properties going into escrow.
• Number of properties that went into a Pending Status - 189
• Number of Properties that Closed: 265
• Number of Properties that Expired 135
• Total Active as of today: 1589
• Total Active at the start of March 1252
  

As a whole things in Long Beach are moving in a positive direction. One might want to think otherwise as a result of the data above but the market continues to have sellers selling and buyers buying.

3 Things to do before you sell your home!

These three things will help you prepare your home for sale and will end up making you more money on your sale of your long beach home or long beach condo.

1. Price your long beach home or long beach condo correctly - This is truly the #1 mistake that we see from sellers. Make sure that before you decide on a price of your property you consult your realtor to see what is on the market. Right now in long beach real estate it doesn't matter what things sold for last year it matters what they are selling for now. Don't price your home based on the neighbor who has had his or her long beach home listed for 98 days. You want it based on what is in escrow now or what has sold within the last 90 to 120 days maximum.
2. Make sure your house is clean - This may sound obvious but you need to have your long beach home or long beach condo clean like a very important person is coming over. Make sure you have all items put away, candles or other items to make it smell better, and make sure there is fresh paint if at all possible.
3. Don't be present when people are viewing your property - let your realtor have a lock box or let people in. People do not feel as comfortable talking about a property if the owner is there. Whatever you do try and not be present or at the very least don't comment or hover while prospective buyers are viewing your home. It will help you sell your long beach home or long beach condo much better.

These 3 tips cost sellers the most money and it is about netting the most at the end. We wish you the best of luck.