Alex, Home Buyer in Los Angeles County, CA

I'm looking for a realistic picture of the market in East Long Beach. Do you predict that prices of single?

Asked by Alex, Los Angeles County, CA Sun Aug 3, 2008

family homes will continue to decrease through the end of the year? Or increase?

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Answers

9
I can tell you my experience in 90814 over the past 2 months. I have made offers on two houses - the appraisals came in at shockingly lower values. The first was 150K lower than asking price on a house under 500K and the other 60K lower on a 650 K house. Both sellers and agents are very slow to face the reality that the appraisers are seeing. With rising interest rates, the inevitability of middle class job losses due to the California budget crisis, and second wave of the housing sunami looming (which will effect middle to high end houses rather than low end like the previous subprime crisis), the objective observer is well supported to expect housing prices to continue to fall. I guess if I made my iving out of selling houses, I would try to spin it to argue that prices had bottomed out - or that houses near the coast would be immune to the economic pressures effecting housing prices everywhere else - but appraisers clearly do not agree.

If you want to get an objective evaluation of housing price trends - read what the ecomomists and financial analysits have to say - not real estate agents. Agents have too much vested interest to be objective.
1 vote Thank Flag Link Sun Jun 14, 2009
When interest rates go up, it may very well drive prices down further. The laws of supply and demand are pretty set in their ways. It will also eliminate most buyers from the market because as the interest rates go up your purchasing power decreases. Also, and most important, if more large lenders collapse lending standards will tighten. We will likely see lenders demanding large down payments or refusing to fund loans.

If that happens, and there is a very good chance that it will, many buyers will not be able to come up with the large down payments.

All of which make now a good time to buy. Prices are at their lowest in many years, interest rates are low and homes can by purchased with little money down.

Laurie Manny
Prudential California Realty
562-212-5420
Web Reference: http://www.lauriemanny.com/
1 vote Thank Flag Link Mon Aug 4, 2008
Alexandria, LB neighborhoods hard hit by foreclosed properties and short sales will likely continue to see some prices drop. Not all LB neighborhoods have been hard hit by foreclosures and short sales, in these areas prices seem to have stabilized. Of course anything can happen to change that.
1 vote Thank Flag Link Mon Aug 4, 2008
Alex, contrary to popular opinion, it is difficult to say but prices may already have increased in ELB. I review the statistics for the city every single week with my team and for the last two months the average price increased in Long Beach. Our inventory has declined from over 2400 homes/condos for sale in late 2007 to just barely over 1000 as of right now. Ask any agent and there is very little to show our clients. Multiple offers and bidding wars are the norm for basically every home under 600k. This is supply and demand. The demand has increased exponentially and supply has dwindled to only 4 months supply of homes.

The government is doing everything they possibly can to keep rates low and will probably be successful for the time being.

How long these conditions will last is anyones guess. I can make these statistics available to you if you would like.
0 votes Thank Flag Link Fri Jun 5, 2009
in long beach there are 83 bank owned properties for sale at present. I think that the prices will stay without much drop or spike. I will say that for the rest of the year in Long Beach you can expect prices to stay where they are. Good Luck
Web Reference: http://bennychavez.com
0 votes Thank Flag Link Wed May 27, 2009
When interest rates go up that will force prices even lower. If interest rates don't go up, the prices will continue to plunge, because of high inventory levels. Wait to buy, it will save you thousands.
0 votes Thank Flag Link Thu Aug 7, 2008
I've appraised many homes in this area as I am also a state licensed appraiser. send me your email address and I'll send you some info
Web Reference: http://www.centuryside.com
0 votes Thank Flag Link Mon Aug 4, 2008
Alexandra,

Are you talking about down by the water or further inland? Are you talking under $1.0 million or over. In Long Beach market demographics change neighborhood by neighborhood, and within neighborhoods by price point. Without my crystal ball (and I am sure you have heard this from every realtor you speak with), it is difficult to say if pricing will continue to drop. In some of these neighborhoods, like the Peninsula, we have not seen a signficant drop in values. In fact two properties closed recently, one in May and one in June at over $1000 per square foot. On the flip side, as interest rates rise, prices have to fall over 10% to make up for every 1% increase in interest.

All that being said, there are some great deals to be had in Long Beach. I live and love it here in the waterfront area and there is no place like it (in my opinion). So, look at your overall strategy. Include how much of the home price you will finance, how long you plan to stay, how soon you need to be moved, etc. Also, look at the trends in the neighborhoods and price ranges you like. Than work with someone who will negotiate a great deal for you. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Mon Aug 4, 2008
Hi there Alexandra. No one knows for sure. Nobody has a crystal ball. All I can tell you is the facts.
1. The affordability index has jumped 18 points in one year to 44%
2. At the end of the second quarter of 2006 homes were overvalued by 35%, today in So cal the are undervalued by 5.2%
3. If the interest rates do go up to what many experts predict 7% , this will outweigh most of any possible drop.

The homes prices will either go up, stabilize or go down. But either way a good question to ask yourself is how long do you plan on living there. This will make a big difference.

Hope this Helps
Michael Barron
Realtor/MBA
First Team Real Estate
michael-barron@sbcglobal.net
(714) 552-6817
0 votes Thank Flag Link Sun Aug 3, 2008
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