Long Beach Real Estate-Long Beach Condos

Long Beach Real Estate News

New FHA Loan Limits

Los Angeles County and Orange County FHA loan limits decreased on January 1, 2009.  The FHA has now restored the higher limits in both Los Angeles and Orange Counties.  What does that mean to todays Long Beach home buyers?  This means that  buyers can qualify for higher loans on homes once again.  This is true for all residential loans, including; homes, condos and residential investment property under 4 units. 

FHA Loan Limits for other areas of California and other States can be found here. 

Real estate is almost always a good purchase.  Now is a very good time to consider purchasing a Long Beach Home, Condo or Income Property. Interest rates are very low and loans are available, both through FHA and conventional means. Conventional loans are becoming more expensive to attain.  Recently lenders have begun to demand 10% down payments forcing more buyers into FHA loans.  As the year moves on do not be surprised if the lenders increase that 10% to a higher number. 

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

Long Beach Home Buyer Tips

• Home Buyer Tips - Don't Make Any Major Purchases
• Home Buyer Tips - Things to Avoid Before Purchasing a Home
• Home Buyers Tips - Changing Jobs Affects Your Ability to Purchase a Home

• Long Beach Homes - Issues for 1st Time Buyers
• 1st Time Buyer Tips - Hire a Buyers Specialist When Buying Long Beach Homes and Condos
• Buying Fixer Upper Homes in Long Beach
• Long Beach Home Loans - Understanding Your Credit Scores

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges

 

Saving Money in Plain English

Another great video from our friends over at the Commoncraft Blog.  Teaching children what it takes to make the larger purchases in life, like their 1st home (in Long Beach of course), is best done while they are young, this is a great aid when your children are ready for this important life lesson. 

Long Beach Home Buyer Tips

• Home Buyer Tips - Dont Make Any Major Purchases
• Home Buyer Tips - Things to Avoid Before Purchasing a Home
• Home Buyers Tips - Changing Jobs Affects Your Ability to Purchase a Home

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges

 

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

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges

 

Long Beach Own Your Owns - OYOs

What the Heck is an OYO?

Why would I want to own one?

Long Beach has been home to many Own Your Owns over the years. They can be found throughout Downtown Long Beach, Alamitos Beach, Bluff Park and into Belmont Heights; older, usually 2 or 3 story buildings tucked between newer and sometimes taller buildings. Recent Condo Conversions have trimmed the numbers of available OYOs considerably. OYOs used to be a really good investment, selling for considerably less than Long Beach Condos, they proved to be a very desirable purchase. When they successfully converted to condominiums owners realized large profits. Often condo conversion was the motivation for purchasing an Own Your Own.

Many buyers ask about OYOs. They want to know if they are the same as a condo, or more like a stock cooperative.

OYOs are similar in ownership to condos in that they are both fee simple ownership with individual tax bills and deeds. OYOs are a pre-condominium form of ownership, mostly built in the 50s. They generally sell for less than condos and are occasionally candidates for condo conversion, if they qualify, at which time they increase in value dramatically. Often OYOs will not have sufficient parking to qualify for condo conversion.

OYO Financing

At this time there is very limited financing available for the purchase of OYOs. Few are selling, those that do sell are often all cash purchases, or seller financing. Traditionally FNMA and FHA have not supported home loans for OYOs. OYOs are difficult to sell which is a major drawback to purchase.

UPDATE: There is limited financing available for owner occupied OYOs, with strict guidelines:

• Buyer must purchase as their primary residence, no non-owner occupieds will be considered.
  
• Minimum 20% Down Payment is required - no exceptions.
• Mimimum FICO score is 640.
• Owner Occupancy rate in building must be 55% or higher. (If this standard is not met down payment requirement will be increased to 40% or more.)
• No stated income loans are available.

Condo Conversions

Many existing buildings, which have already been approved for condo conversion, have opted not to convert at this time. Current market conditions of Long Beach Real Estate and the high cost of conversion have made condo conversion cost prohibitive, at this time. This bodes well for our city as the number of conversions in recent years has bitten deeply into the cushion we have in our apartment vacancy rate. The conversions of recent years have removed many rental units from the market here in Long Beach. With the high number of foreclosures many families are in need of affordable rental housing, which is becoming increasingly difficult to find.

Income Properties

The silver lining in all of this is that landlords will profit; income property sales, which have been stagnant will begin to revive, rents will increase and vacancies will not be an issue. Hey, somebody always wins.

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges

 

Long Beach Real Estate Sales

1st Quarter Market Report 2008

The spring home buying season is in full swing here in Long Beach.  Prices have become very desirable, and many properties are in high demand receiving multiple offers.  Strong offers have become highly sought and are being accepted quickly.  All Cash, large down payments and little to no concessions by the seller have become the order of the day for the more highly desirable properties. 

First quarter average single family home sale price: $ 516,014. 

Average 70 days on market.

Long Beach Condo Sales are up as well. 

Average selling price for the first quarter is $356,026.

Average 66 days on market. 

The sale of Long Beach Income Properties is up a bit with 169 closing escrow in the first quarter. 

Average sale price:  $650,5227.

Average 91 days on market. 

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges