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!

5 ways to show your home in a buyer's market

In today's competitive environment when buyer's have options there are some steps that sellers should keep in mind when their homes are shown.

1. Don't be present - Buyers generally won't feel comfortable looking around a property if the seller is home. They want the freedom to open up closets and see what the property really has to offer.
2. Don't show the home your own home - Should be obvious if you follow step 1,but just in case you are home :) - A seller who thinks their upgrades are unique and that they require 45 minutes to show their home is HURTING themselves. Let the property speak for itself and let the buying agent do their work to show the property.
3. Allow for Previews or Broker Opens - Sellers should make their properties available to the broker community so they can see the properties without their buyers and report back to the buyers they are working with. These are generally done during the week so buying agents can become more familiar with the inventory and show prospective buyers later.
4. Clean - Sounds obvious but a clean good smelling home will do wonders to help buyers fall in love with your property.
5. Avoid Clutter - Buyers don't always have the vision to see what a property could look like. Avoid the clutter so they can see there is plenty of room in your property.

These tips may sound obvious, but in this market paying attention to the little details can make a difference between your home selling in under 40 days or being on the market over 180 days.

Long Beach Mid Month Report

OK we are halfway through October and the kids are getting excited about Halloween. So is the real estate market scary? Well let's take a look at what is going on and see if it is or isn't.

Mid Month Report for Long Beach CA Real Estate

• Number of Units in Escrow - 81 (39 Condos, 42 homes)
• Days on Market Year to Date Average - 72
• Days on Market for October -69
• Average Price for a Condo on the Market - $390,000
• Average Sold Price for a Condo -$376,000
• 43 of the properties that went into escrow went in under 60 days of being listed for sale.

So what does all of this means. Well here is what we thing of all of these statistics which were pulled from the realtor MLS system that covers Long Beach.

• The average condo being sold is more affordable than the average one listed. There are 330 active condos under $300,000 so there are affordable choices out there. Don't let averages fool you!
• If sellers aren't getting an offer or enough showings within the first 30 days they may want to revisit their price with their real estate professional as you want to be in escrow within the 60 day mark.
• Days on Market (the average time a property spends on the market prior to receiving an offer) is lower for October. We have the serious buyers and sellers out there wanting to make deals work.

So is the market really scary? Well we don't think so but beware trying to wait too long before responding to buyers requests or a buyer offer.

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.