Long Beach Home Ownership - 1st Time Home Buyers and The American Dream

Long Beach Home Ownership - The American Dream

LONG BEACH REAL ESTATE

 

First Time Home Ownership

 

Downtown Long Beach HomesBack in the Spring of 2005 a young couple, Maria and Richard, contacted me.  They were very excited and were about to purchase their very first home in Long Beach

A young family, they had struggled to save $10,000 in order to make their dream of home ownership come true.  Their lender told them they were qualified to $325,000 with 100% financing.  They weren't looking for something above their means, just a nice little home in Long Beach with a yard they could work on and infuse love into; a place to raise their family. 

 

Maria and Richard shared a vision of their children playing in the yard, while Mom looked on through the kitchen window and Dad used his skills to improve the home.  Still an attainable dream, at that time.   We sat down and went through the available homes on the MLS together and discussed possible Long Beach communities they could afford; there weren't many, but this was still possible.  Prices were going up rapidly, they had to find a home and make an offer quickly or they would be priced out of homeownership forever.  There were only a small handful of homes in Long Beach still in their price range, the pickins were slim.


Downtown Long Beach CondosDowntown Long Beach was the last vestige of affordable homes at that time, so off we went, with just 3 homes in their price range.  2 were really yucky, we passed on them immediately.  The third was a lovely California Bungalow with the yard of their dreams on a corner lot.  This was a real find, priced at $325,000, the top of their range, and it was in fairly decent condition.  All of the original craftsman woodwork was intact, the floor plan was great, it was the perfect size and it was available.  Richard wanted to look around a little more so back to the MLS we went. 

 

With no other homes in Long Beach available in their price range we decided to search duplexes for them.  Off Maria and I went to drive by the candidates.  They were awful!  The bungalow was still available, Maria and Richard really liked it but still wanted to shop.  Problem, there was nothing left to show them in their price range.  The least expensive home in Long Beach at that time was $350,000, out of their range, and not as nice as that California Bungalow. 

 

Over the 3 weeks that we were looking around prices were escalating at a frightening pace, if they didn't buy in the next week or so they would only qualify to purchase a condo, home ownership in Long Beach was moving out of their reach.  Maria called and instructed me to write an offer on the cute California Bungalow they viewed the first day out.  It was gone and had been bid up in multiple offers.  Nothing decent sat on the market at that price for very long, the market was sizzling hot.  They had been priced out of the market forever.  Maria was heartbroken. 

 

Long Beach HomesWe talked about a possible condominium purchase, but the yard was Maria's dream.  Richard dreamed about tearing out walls and ceilings and using his talents to create a home for his family.  A condo did not fit their dream and they needed to stay in Long Beach.  They still live in a rental apartment without a yard today. 

 

There were many 1st time home-buyers on the market in the Spring of 2005, most in the same price range as Maria and Richard.  They were all priced out of purchasing Long Beach homes simultaneously and all descended on the available condos in Long Beach at the same time.  Condos sold as fast as they were placed on the market, most in multiple offers, some had over 35 offers on them.  It was wild! 

 

Over a period of about 2 months condominium prices in the Downtown Long Beach area alone had been driven up by about $100,000 per unit, it was incredible, the fix and flippers were having a field day.  Fix and flippers were offering over market, waiving inspections and appraisals, grabbing most of what was available, doing a fast makeover and re-selling them as fast as they could purchase them.  Their offers were irresitable to sellers.  When the buyers couldn't afford to purchase their lenders made arrangements for stated income loans and purchase they did.  Appraisers were bringing everything in at purchase price.  It was like everybody was on drugs or something.  I have seen the same buying frenzy on Ebay auctions.  Some people have to win, they don't care about overpaying, they just have to win. 

 

2 bedroom condo prices had leaped into the mid $400's.  This was too much for 1st time home buyers to pay, but pay and buy they did until they were priced out of the condo market as well. 1st time homebuyers could no longer purchase a Long Beach home or a condo. 

 

These same condos are now on the market and can be purchased in the low to mid $300 range, with a few even lower.  What does that tell you?  It tells me that it is a 1st time home buyers market right now. 

 

The American DreamHave you been dreaming about home ownership?  Now is a great time to buy your first home.  If you purchase a condo now you will gain appreciation at a more normal rate over the next 5 years as the market straightens itself out.  Approximately 5 years from now you should be able to sell your condo, take your earnings and buy that Long Beach home with a yard.  

 

Home ownership is the American dream.  What's your dream? What are you going to do about making that dream a reality?

 

 

Related Posts
Uh, Oh! I'm in BIG Trouble
Long Beach Luxury Homes For Sale $1,200,000 to $2,500,000-Long Beach Real Estate For Sale
Long Beach Real Estate Attractive to European Investors
Mortgage Independence Day
Belmont Shore & Belmont Heights-Long Beach City Council Considers Mansionization Ordinance


http://www.longbeachrealestatehome.com/000D30

Laurie Manny
Long Beach Realtor

(562) 212-5420

mls wizard


Main Street Realtors
Belmont Heights

244 Redondo Avenue
Long Beach California 90803

value wizard

 

Long Beach Real Estate Blog

Long Beach Real Estate Website

featured listings

contact


Posted on August 18, 2007 01:22:58 by Laurie.Manny
digg me Reddit newsvine del.icio.us Technorati Stumble Upon Toolbar
Print Laurie.Manny Email 14 feedbacks »
Comment from: Jennifer Fivelsdal [Visitor] Email · http://www.jfivehomes.com

Laurie - I have seen this scenario played out time and time again.  But as you rightly pointed out there is  an opportunity now for First Time Buyers to get in the market now that property price is dropping.  With mortgage not as easy to obtain the Realtor and mortgage broker need to work closer to identify the right mortgage product to help these buyers realize their dream.

PermalinkPermalink August 18, 2007 07:10:33
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
Jennifer,
This was a heart wrencher. What a shame for 1st time buyers to miss the opportunities in today's market. You are right, while mortgages are tough, they are attainable. This is a dream that can happen.
PermalinkPermalink August 18, 2007 07:13:47
Comment from: Missy Cajulk [Visitor] Email · http://activerain.com/missycaulk

Are the condo's all that came down ? Not the home prices ? I'm sure you'll find them something, Laurie.


It is a great opportunity for first time home buyers.

PermalinkPermalink August 18, 2007 07:29:03
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
Hi Missy,

Home prices have come down also, but 1st time home-buyers qualified for under $400 are not able to stretch the purchase price high enough for a home. They can however purchase a great condo now, where they could not before.
PermalinkPermalink August 18, 2007 07:41:50
Comment from: Maggie Dokic [Visitor] Email · http://www.theblogthatatemiami.com

Laurie, these stories are heartbreaking and altogether too common.  There is definite opportunity out there right now.  I hope this young couple takes advantage of your sage advice!

PermalinkPermalink August 18, 2007 09:51:45
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
Maggie, Now is a great time for a 1st time home-buyer with good credit to purchase. 100% loans are still available, this dream can happen.
PermalinkPermalink August 18, 2007 13:09:02
Comment from: Kaye Thomas [Visitor] Email · http://beachcityrealestateinfo.blogspot.com

When looking at the overall market in the LA area Long Beach has some of the best buys around.  Smart buyers will take advantage of lower prices and plan to plant themselves for at least five years. 

PermalinkPermalink August 18, 2007 20:47:08
Comment from: George Souto [Visitor] Email · http://activerain.com/gsouto

Laurie, there is a good and bad in every market condition.  Thing are either bad for the Buyers, or they are bad for the Sellers.  Our job is to be able to get people into homes in what ever condition exists at the time.

PermalinkPermalink August 18, 2007 21:46:11
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
Kaye, I agree. Here in Long Beach we have some of the most affordable beach front and beach close property on the West coast. An approximate 5 year plan is definitely in order.
PermalinkPermalink August 18, 2007 21:55:54
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
George, That is true George. The under $400 market is easing up, there are more choices now for the 1st time home-buyers, they can find a better condo now at a great price. It's a great time for them to buy.
PermalinkPermalink August 18, 2007 21:57:38
Comment from: Chris Tesch [Visitor] Email · http://www.ChrisTesch.com

Laurie, it's awesome that first time homebuyers won't be out in the cold now!!!  A healthy market is where just about anyone can afford basic homes!

PermalinkPermalink August 19, 2007 00:07:57
Comment from: Mary Pope-Handy [Visitor] Email · http://www.PopeHandy.com

Laurie, I have had a few stories like this too. The ones who don't buy fast enough in a quickly rising market make a permanent decision by virtue of stalling. It's VERY sad to see. I have a few that never bought too. 



Hopefully those folks will take advantage of the current market and not "wait until it hits bottom" - after which it rises fast all over again.



Great post!



Mary

PermalinkPermalink August 19, 2007 00:59:29
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
Chris,

I agree, it is great when the market can accommodate 1st time home buyers.
PermalinkPermalink August 19, 2007 02:01:52
Comment from: Laurie.Manny [Member] Email · http://www.longbeachrealestatehome.com
Mary,

I never forgot this couple. I felt so bad for them. Maria would call me on and off every few months and just cry. This market won't help this couple, they could afford a condo right now, but the dream of a house is probably over, unless their financial situation changes. I doubt the market will go back to that level.
PermalinkPermalink August 19, 2007 02:04:01
Comment on this article
Poor Excellent
  Line breaks become <br />


  Remember me


  Allow users to contact you through a message form.
Captcha image.

Please enter the characters from the image above. (case insensitive)

This post has no comments awaiting moderation.

 

To begin your search for the perfect home or to sell your home in the Long Beach area, begin your journey by calling Laurie Manny at (562) 212-5420.