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Long Beach Real Estate News

New FHA Loan Limits

 

Los Angeles County and Orange County FHA loan limits are rising January 1, 2009.  What does that mean to todays home buyers?  This means that Fannie Mae and Freddie Mac loans remain high through the end of 2008, buyers can qualify for higher loans on homes closing prior to the end of this year.  Once the New Year rolls around buyers will have less buying power due to the lower loan limits.  This is true for all residential loans, including; homes, condos and residential investment property under 4 units. 

 

Current FHA Loan Limits through 12/31/2008	Maximum Loan Amount
One Unit Limit	$729,750
Two Unit Limit	$934,200
Three Unit Limit	$1,129,250
Four Unit Limit	$1,403,400

Whats the big deal?  Lower maximums loan amounts means decreased buying power. 

FHA Loan Limits Effective 1/1/2009	Maximum Loan Amount
One Unit Limit	$625,500
Two Unit Limit	$800,775
Three Unit Limit	$967,950
Four Unit Limit	$1,202,925

 

Today is November 16, 2008.  It is still possible to find and close on a home or condo before the new lower loan limits take effect.  If you have been thinking about buying, were contemplating putting that purchase off until after the New Year and are in the price range that would be affected by the new lower FHA loan limits, you might want to consider getting out there right now while you can still take advantage of the higher FHA loan limits.  Remember, your escrow must close prior to 12/31/2008. 

 

Federal Housing Authority Home

Real estate is always a good purchase, now really is a very good time to consider purchasing a Long Beach Home, Condo or Income Property.  If you have been sitting on the fence call us today to discuss your needs and wants.  We are always here for you.  Call Laurie (562) 212-5420

 

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Long Beach Mortgage Rates Report: Fed Cut To Prompt Lower Mortgage Rates Into November?

We analyze mortgage rates by examining the mortgage-backed securities market and its reaction to economic data and events.  Today, the Federal Reserve cut the Fed Funds rate to an historical low of 1%:

The Fed funds rate target is now 1%, the lowest level in more than four years. In announcing its decision, the Federal Open Market Committee cited a drop in spending by consumers and businesses, and predicted that consumption may slow further due to tighter lending standards.

"The pace of economic activity appears to have slowed markedly," the FOMC said in a statement, "owing importantly to a decline in consumer expenditures."

Why's the economy in the tank?  You just aren't spending enough money, Joe the Plumber.  Of course, you can't borrow any either so you're hesitant about spending.   Hence, the Fed cut in rate.  Normally, a Fed cut should be followed by a RISE in mortgage rates but it looks like the mortgage-backed securities market anticipated the cut a week ago. 

Let's take a look the crystal ball (market chart):

See what's happening here?  Two weeks ago, we had a six day BIG drop, which caused rates to rise from 5.875% to 6.5%.  That drop was followed by a 5 day rally, which brought rates back down to 5.875%.  Then, we had a six day BIG drop, driving mortgage rates back up to 6.5% (today)...

...and I think the market overreacted which means I think we'll see lower mortgage rates into the beginning of November.

This is the kind of volatility we've come to expect.  Mortgage rates should drop to 6.25%, pause, then drop again to the 6% level or below.  No guarantees but November closings should get a peek at 6% or better rates soon.

 

Brian Brady is a Managing Director with World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751

http://www.longbeachrealestatehome.com/009148

Long Beach Real Estate News

This 2009 forecast, for the Long Beach real estate market is written by Brian Brady.

 

If bifurcation was the theme for the 2008 Long Beach real estate market, convergence Will be the theme in 2009. Both the bifurcation of 2008 and the Convergence of 2009 are closely tied to the ability to finance Long Beach properties. While prices were lower across Long Beach, this past year, the under $400,000 real estate market was extremely hard hit. Vanishing stated income and Sub-prime loan programs reduced the number of qualified buyers, driving prices dramatically lower in areas like California Heights, Lakewood Plaza/Rancho, Bixby Knolls, and the non-waterfront condominiums in Downtown Long Beach. In some cases, those prices are below the fundamental value, and offer a great buy for investors and owner-occupants alike.

 

The Long Beach neighborhoods of Belmont Shore, Belmont Heights, Bluff Park, Alamitos Beach and Virginia Country Club might not fare so well in 2009, While I expect Long Beach homes priced below $500,000 to hold relative value next year, it's the homes priced over $700,000 and below $1,000,000 that are most vulnerable to vanishing financing. I discussed this very challenge in my 2009 San Diego Real Estate Outlook:

 

The key component to the housing recovery for San Diego remains in The ability for a home buyer to get financing. The US Treasury stepped In to provide financing for properties under $625,000, by:

 

(a) increasing the loan limits for FHA, conforming and VA loans to 115% of median price (expected Jan,2009)
(b) nationalizing Fannie Mae and Freddie Mac (guaranteeing the loan from default)

 

The luxury home market ($1,000,000 and above) is generally a cash Market. As such, credit availability affects those housing units far Less than the "rank and file" developments inhabited by those of us in The "working class". Expect SOME softness in the luxury home market but If the buyer likes the home, she'll either pay cash or have access to Highly specialized financing available to the only asset-rich.

 

After January 1, 2009, the government loan limits will be capped at $625,000 for Long Beach. This means that rates for loan amounts above that number will be as much as 2% higher than the government-backed Financing and downpayment requirements will be 25% or greater. If you're selling a home in that price range, the buyer pool is about to shrink in about 3 months.

 

Exacerbating this financing issue is the loss of jobs a recession may bring. Unemployment in California has spiked this past year. Job losses have been concentrated in the lower to middle income range in 2008 while the upper-income jobs have remained relatively safe. A recession will hit those upper-income jobs harder than the lower income ones. I said that 2008 is the year where the "rich will get not rich and the poor will get clobbered"; that certainly happened this year. 2009 will be the great equalizer as the higher-priced homes decline and higher-paid jobs disappear.

 

What then, should be your strategy for 2009? Investors should pay close attention to the lower-end of the real estate market for fantastic buys. Long Beach real estate is a great investment and opportunities to own a property that offers positive cash flow are evident today in the under $500,000 market. There will be some great opportunities in those mid-priced homes, next year as well as the $700,000 to $1,000,000 drops below the financing caps.

 

If you're planning on selling a Long Beach home in that $700,000 to $1,000,000 price range, better to list it today rather than to wait until after the new year. Veterans can buy up to $729,000 with no money down. FHA buyers can buy up to $729,000 with 3.5% down. Conventional buyers can buy to that limit with as little as 5% down...today. Next year, that all goes away.

 

Brian Brady is a Managing Director with World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751

 

http://www.longbeachrealestatehome.com/007626

If you're closing your loan after Friday, I left you unlocked.  I told you that the fundamentals of the economy would bring rates lower after the bailout was announced.  Long Beach mortgage rates were at 5.875%, today they're at 6.5%.  What's in store for the rest of the month? Eric Holloman of Rate Link offers this two-minute research report about why "headline risk" should be replaced by economic data as a determination of mortgage-backed securities pricing.  If he's correct (and I think he is), the next three days will be important for the direct of mortgage rates through the end of the year. I'm still recommending that you float your mortgage rates; I believe we'll see rates come back down under 6% within the next 7-10 days.  If the economic data suggest that we are NOT headed for a recession, Long Beach mortgage  rates will stay in the 6.25-6.75% range.  If the data are as indicative of a downturn as I think they will be, lower rates should be on the horizon.  As always, keep checking back. Brian Brady is a Managing Director with World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751

http://www.longbeachrealestatehome.com/009145

Alamitos Beach Condos Market Update

Ocean Boulevard Corridor Condo Sales

2008 Long Beach Real Estate Sales

 

January 1, 2008 - September 29, 2008

 

Active

 

There are currently 57 Ocean Blvd Corridor Condos For Sale in Alamitos Beach, many with fantastic waterfront views, some with city lights views.

• 22 condos are priced under $500,000
• 23 condos are priced between $500,000 and $1,000,000
• 11 condos are priced at between $1,000,000 and $2,000,000
• 1 condo is priced at $2,399,0000
  

 

• Average Price:  $732,822 down from 9/29/2008's  $788,490
• Average Days on Market:  remains at 100 days since our last update on 9/29/08

 

Long Beach CA Ocean Blvd Condos For Sale

 

 

Pending

 

9 Alamitos Beach Condos on Ocean Blvd. are pending in escrow.

• 2 One Bedrooms Condos: 1 @ $229,000, 626 sq ft; 1 @ $357,000, 732 sq ft
• 3 Two Bedrooms Condos:  1 @ $299,900, 1,104 sq ft; 1@ $549,000; 1 @ $979,000, 1,550 sq ft
• 4 Three Bedroom Condos: 1 @ $549,900, 1,542 sq ft; 1 @ $629,900, 1,282 sq ft; 1 @ $799,000, 1,330 sq ft; 1 @ $1,649,000, 1800 sq ft

 

• Average Price:  $671,300 well up from last months $382,225
• Average Days on Market:79 which is well down from last months 153 

 

Back Up Offers

 

3 Alamitos Beach Condos on Ocean Blvd. are in escrow accepting back up offers:

• 1 bedroom, 1 bath,706 square feet; $230,000
• 1 bedroom, 1 bath, 700 square feet; $245,000
• 1 bedroom, 1 bath, 814 square feet; $499,999

 

• Average Price:  $324,999 well down from last months $797,999
• Average Days on Market:  100 well up from last months 62

 

Closed Sales:

 

40 Alamitos Beach Condos on Ocean Blvd.  have closed escrow this year (2008) to date:

 

• 25 Under $500,000
• 13 Between $500,000 and $1,000,000
• 2 over $1,000,000

 

• Average Price:  $535,878 which is about the same as last months average $532,077
• Average Days on Market:  77 up slightly from last months 69

 

Cancelled

40 - Alamitos Beach Condos listed for sale on the Ocean Blvd. corridor were taken off of the market. Average Days on Market: 144

Expired

51 - Alamitos Beach Condos on the Ocean Blvd. corridor, listed for sale, expired in 2008, Average Days on Market: 159

 

Hold

4 Alamitos Beach Condo Owners have placed the sale of their homes on hold.

Leased

5 Alamitos Beach Condos have been leased.

• 1 bedroom, 880 sq ft, $2,500
• 2 bedroom, 1,542 sq ft, $2,800
  
• 2 bedroom,1,368, $2,750
  
• 2 bedroom, 2,245, $4,900
  
• 3 bedroom, 1,400, $3,500

 

• Long Beach CA Ocean Blvd Condos For Sale

• Alamitos Beach Luxury High Rise Condos Market Report-Ocean Boulevard Corridor-90802-January-December 2007
  

 

Long Beach Relocation Resource Guide

 

• Relocating to Long Beach California-Resource Guide

 

 

Alamitos Beach and Downtown Long Beach Condos and High Rise Condos For Sale

 

• Alamitos Beach Condos For Sale $400000 to $500000
• Alamitos Beach Condos For Sale $500000 to $600000
• Alamitos Beach Condos For Sale $600000 to $800000
• Alamitos Beach Condos For Sale $800000 to $1000000
• Alamitos Beach Condos For Sale $1000000 and more
• Alamitos Beach-Downtown Long Beach-Ocean Blvd Condos For Sale-Long Beach Real Estate For Sale
• Downtown Long Beach-Alamitos Beach-Ocean Blvd Condos For Sale
• Emerald Villas Condos-555 Maine Ave-Downtown Long Beach Condos For Sale
• Sunset Pointe Condominiums-640 W 4th St-Downtown Long Beach Condos For Sale
• Golden Gate Square Condos-730 W 4th St-Downtown Long Beach Condos For Sale
• Ocean Gate Square Condos-720 W 4th St-Downtown Long Beach Condos For Sale

 

 

Alamitos Beach and Downtown Long Beach Homes For Sale

• Alamitos Beach and Downtown Long Beach Homes For Sale $500000 and up
• Alamitos Beach and Downtown Long Beach Homes For Sale $300000 to $500000
• Alamitos Beach and Downtown Long Beach Homes For Sale Under $300,000

 

 

Prefer Luxury Waterfront Long Beach Homes with room for a boat?

Try Spinnaker Bay.

 

Or perhaps the Belmont Shore and Naples areas:

• Belmont Shore and Naples Condos For Sale
• Belmont Shore Naples Homes For Sale in Long Beach CA $2000000 and up
• Belmont Shore CA Homes for sale under $1000000
• Belmont Shore-Naples Homes For Sale in Long Beach California $1000000 to $2000000
• Marina Pacifica Condos for Sale Long Beach CA
• Bay Harbour Homes For Sale Long Beach California

 

 

http://www.longbeachrealestatehome.com/009104