Foreclosure in 90802>Question Details

Leo, Home Buyer in Trabuco Canyon, CA

I am looking at investing in property in Long Beach Ca (zip code 90802). Sell prices have been falling over

Asked by Leo, Trabuco Canyon, CA Thu Nov 8, 2007

last 2 quarters. So, I have several questions: 1) Have sell prices bottomed-out in this zip code? 2) If not, what is a good price to pay today per sq foot for a town home in this zip code (90802)? 3) What % change ( or -) do you think homes sell prices in this zip code will show in the next 3 months - next 6 months - next year? Thanks for your taking the time to answer my questions..

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I would strongly caution you against buying now, Leo.

Although the realtors on this site will attack me for the following comment, this would be a terrible time to buy in the 90802 zip code, unless you must buy now (because of a 1031 exchange, for example). Inventory has increased, sales transaction volume has slowed dramatically, and notices of defaults and foreclosures are increasing substantially. All of these things will put downward pressure on pricing for years to come.

The reality is that prices will most certainly be lower next year, likely lower in 2009 and possibly even lower in 2010. Real estate cycles take many years to play out and we are at the very beginning of a down cycle. I disagree with Karoline who says that it does not matter what price you pay if you are looking to hold on for the property for 5 to 10 to 15 years. Let's say you buy now for $500,000 and prices drop 20% (actually, Forbes in a recent article estimated a 26% anticipated decrease from June '07 prices by 2010 for Los Angeles county) over the next couple of years. You would have lost $100K in future equity by having not waited. Additionally, you would be paying property taxes and interest on the $100K.

Best of luck, and if you want an objective opinion, don't waste your time listening to cheerleading realtors, who are often overly optimistic about the real estate market.
2 votes Thank Flag Link Sun Nov 18, 2007
According to California Ass. of Realtor's Economists, Long Beach has declined in value about 17% which is above most other Southern California Coastal markets. The suspicion is it will not decline much more. Inventory is up due to less number of sales, so now would be considered a buyer's market in some parts of Long Beach. Once the market hits a trough and rebounds, most will not realize it until it is on it's way up and once again becomes a Seller's market. I would suggest shopping now to find something that suits your budget.
1 vote Thank Flag Link Thu Nov 8, 2007
Hi Leo, I'm very well acquainted with this area as I have sold property in it over the last 10+ years. Are an investor or looking for a personal residence? To be honest, I'm not sure if there is a big market price decline in this area, and townhomes are not at all common in this zip code, you are looking at condos, and there is a wide variance in pricing of condos depending on ocean view luxury building or small 1 bedroom in a 12 unit building further back from the shoreline. Prices may continue to soften, but local neighborhood factors very much come into play here. It's very hard, for me anyway, to predict any future change in prices for a given area, but what I can do is provide you with a list of solds for the last quarter for the type of property you're most interested in. Please contact me directly or visit my website to search properties for 90802 that are actively on the market.
1 vote Thank Flag Link Thu Nov 8, 2007
Leo, you can check for yourself on my website. Long Beach has a lot of forclosures and you can get a great deal. You can get an advantage by searching the Multiple Listing Service go to my website and you can search for available properties in and around Los Angeles County. My website: reoLicensedSpecialist.com or if you email me, I can put you on a daily alert of properties that are in your price range and the fit your criteria only. This service is free to you.
0 votes Thank Flag Link Sat Jun 21, 2008
Leo, It's been six months since your question. Are you still in the market to buy? Now there are multiple offers happening, not only in Long Beach, but I am also working with buyers in the Westminster, Garden Grove and Lakewood (Lakewood has taken off) Let me know if I may be of any service to you. Lesley Harris (562) 673-0943 - I would be happy to help!
0 votes Thank Flag Link Wed Jun 18, 2008
Hello Leo:
A lot has happened since November, 2007. If you are still looking for investment property, income property, or second residence, let me know. It is a buyers and investors market out there, including in 90802.

Debra Enos
(562)852-4663
http://www.DebraEnos.com
MyRealtor@DebraEnos.com
0 votes Thank Flag Link Tue Jun 17, 2008
Hi Leo, Call me, this one may work for you. I have a duplex (3 bed and 2 bath) each plus a house with a separate parcel next to it with 1 bed, 1 bath. The property is located in the area of your interest. This is a bargain.

Charita King - 562-276-8681
0 votes Thank Flag Link Tue Jun 10, 2008
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