Long Beach and Southern California

Just Sold, Stoneybrook Condo in Long Beach CA

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 06 Nov 2009 10:58:47 -0600

Stoneybrook is a large development, built in 1970 but converted to condos about 20 years ago from its original life as a large multi-building apartment complex.

This 693 sq. ft. 1/bd 1/ba condominium with monthly HOA dues of $323 sold for full price at $210,000, one of the lowest sales in Stoneybrook in the current market. These are great one-bedroom floors plans because the bathroom is off the hall, and the balconies are full length across the entire width of the unit. Seen here is the lovely view from the balconey of the neighboring area of the complex. The common area features swimming pools, a beautiful recreation/clubhouse facility, and beautifully landscaped grounds with lawn, trees and creeks. Each building has its own secure parking area, and the common area has been upgraded with a new security entry and new entry gate. This unit was upgraded with newer tile flooring, recessed lighting, and newer kitchen cabinets, and also features air conditioning (even though its less than a mile from the shoreline). It currently rents for $1300/month.

As a short sale, this went fairly fast as short sales go, with the seller's package submitted to the bank before July 1 and escrow closing on November 4th. The buyer came in with 20% down, conventional loan.

For more information on units in this area (zip code 90814, 90803), please go to www.juliahuntsman.com to see all area listings.

For an evaluation of your condo, please contact me via e-mail, phone or through my website with your information. I have sold many condos, and can help you buy or sell yours.

Long Beach CA Residential Inventory Down by Almost Half

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Sat, 10 Oct 2009 09:35:45 -0500

The September graph, shows for a one-year period, the number of for sale residential properties throughout the City of Long Beach (single family houses, condos and lofts). In September 2008, there were 2,265 properties on the market; in September 2009, there were 1,247.

The overall Long Beach months supply of inventory in the same period decreased from 7 months in September 2008, to 2 months in September 2009. In other words, at the present rate of sale, all existing inventory would be sold in two months.

For finding (all of Southern California plus) Long Beach, Cerritos, Lakewood, Bellflower, Seal Beach, Huntington Beach and Los Alamitos properties on the MLS, go to www.juliahuntsman.com to "MLS Property Search"

What Will Gustavo Dudamel Do For Your Neighborhood?

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 09 Oct 2009 21:25:15 -0500

Last night's live broadcast of a free performance of two major orchestral works performed by the Los Angeles Philharmonic at Walt Disney Hall conducted by the 28-year-old Gustavo Dudamel brought in a new wave-an electrifying wave of music and awareness that will pour over and affect even the most ordinary, the most musically uninitiated. This new conductor of the L.A. Phil, a former child prodigy who has already been professionally conducting orchestras for over 10 years, is a product of the music education program of his native Venezuela, known as El Sistema, and is the life work of Jose Antonio Abreu, a musician and Dudamel's mentor. Venezuela's state of musical affairs, 30 years ago, in the words of Abreu, was similar to how arts is and has been treated in this country:

"Music and art education were at that time confined to families who could afford to buy instruments. I felt that music education and art should be part of the patrimony of the whole country. From the beginning, I had the idea of inserting strong teachers in classrooms in sectors with dire social needs.

"In those cases, it's not just the lack of a roof or of bread, it's also a spiritual lack - a loneliness and lack of recognition. The philosophy of the system shows that the vicious circle of poverty can be broken when a child poor in material possessions acquires spiritual wealth through music. Our ideal is of a country in which art is within the reach of every citizen so that we can no longer talk about art being the property of the elite, but the heritage of the people."

Venezuela has had all the problems of children of poverty who are deprived with few opportunities for enlightenment. Does that sound familiar? Due to the initial and continuing work of Abreu, government backing and funding of $29 million supplies the funding for a program that involves children everyday in learning classical music from 2 pm to 6 pm, the prime hours our children are left alone without supervision and to get into possible trouble.

Other countries, including the UK, are introducing similar programs. California, its legislators and its schools, need to stop pushing away music education and the arts, they need to stop viewing them as a secondary and insignificant form of unnecessary learning. The mutuality in the Venezuelan system, the emphasis on achievement involving "team" support with parental involvement, providing a lot of opportunity to be the best you can, not necessarily a prodigy, seems to be producing confidant and high achievers in the Venezuelan system whether inside of or away from the field of music. In the words of Jose Antonio Abreu, we too have many children with a lack, a lack of recognition, a lack of identity, and whose loneliness is preyed upon by those who lead gangs and recruit for them, where the end result is crime and more money spent on a large prison population. The study and performance of music and the arts is not for the isolated few, it should be an opportunity for everyone. Right now, gang involvement is an equal opportunity factor in every public school for most, if not all, children in this country, with a tremendous social and financial cost to its citizens. This country, and California, now needs to give other forms of learning and advancement equal opportunity to its masses. It needs its own El Sistema.

While there is no space here to include a full discussion of the postive effect of music on learning, and on the brain, be rest assured it does. The study of music encourages and requires physical and mental coordination, enables poor readers to read better, requires certain math skills, and then gives that music student a worthy goal for which to strive. Wouldn't you like to have that child growing up near you, knowing he or she is living with a productive purpose and the means to do so?

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Posted By Julia Huntsman to Long Beach/Southern California Real Estate at 10/09/2009 05:28:00 PM

Thinking Green: Painting Roofs White

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Mon, 21 Sep 2009 17:57:42 -0500

In a visit with one of my past clients today (who painted his roof white after his house closed escrow over 10 years ago), it came as a revelation that California has passed a law effective July 1, 2009, that residential roofs on new construction, both flat and sloping, must be re-roofed with a white or light material. Actually, the law for a white flat roof has been in effect since 2005. See this article provided through the California Energy Commission.

The argument is of course for energy savings, and reflects a practice long used in ancient societies that populate hot climates where light or white clothing is standard practice, and whitewash is used on all structures. The cooling effect has long term energy savings implications, especially for the Western states, and especially for California where energy conservation is fast becoming an outright demand. A California Energy Commission board member states that it has long been known that white-roofed buildings stay cooler in hotter weather:

"painting urban surfaces in warm parts of the world white or a light color could offset the carbon emissions of all 600 million of the world's cars for 18 to 20 years - at a savings equivalent to at least $1 trillion worth of CO2 reductions."

"It turns out that they cool the air outside of their walls, too. On a typical summer day, Los Angeles is 5 degrees warmer than surrounding areas, and studies have consistently shown that by far the largest factor in this discrepancy is the absorption of solar heat by dark roofs and pavement - a phenomenon known as the "urban heat island" effect."

So far, this law affects new construction, but doesn't it make sense to apply these principles to existing structures wherever possible? Rethinking guidelines for some of the historic homes which favor darker colors might be in order.

What Would 4,560 More Properties Mean For Your Listing's Competition?

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 21 Aug 2009 10:08:25 -0500

There is a great deal of talk lately about the upward climb in sales, that maybe we're seeing the bottom of the market, and that prices are down from this time last year, but it's the 5th straight month of sales increases, and the best sales record in several years . . . so maybe prices are stabilizing, or even headed up a little? That's happening in some places, and yesterday's great REO panel of experienced brokers even said it's impossible to underprice a property today because it will get multiple offers and sell for more.

But take a look at the Credit Suisse chart at the right and the pink part of the graph--the reset of the "option adjustable rate" loans. Those are the loans where the "start rate" of 1% were thought by many borrowers to be their permanent loan rate, and not the introductory rate which if always paid at that payment level (and most people did that), meant the remainder of the interest of the real interest rate was added on to their principal loan amount and thus increasing it. It was one more way to end up "under water" on the home value, and end up as a loan modification customer, a short sale candidate, a bankruptcy claimant, and/or as a foreclosure recipient. And then, most importantly, notice that the reset periods do not decline until well into 2012.

Along with the recent sales increase is declining inventory: In Long Beach today there are 877 active residential listings in the MLS, and there are 753 in escrow. Also, as of 8/18/2009, there are 1910 Notices of Default filed, 1224 Trustee Sales filed, and 1426 REO properties, not on the market yet, making a total of 4,560 properties not yet on the market. (Some of the NODs may have successful loan modifications, but there is also a separate study of the percentage of loan mods that end up failing and do end up in foreclosure.) These figures are for Long Beach alone--similar profiles could be drawn for cities throughout the State of California.

Tied in with this is the talk of "shadow inventory" and the rumors that banks will flood the market with all of their pent-up inventory at once. But that is unlikely to happen in such an overt way, despite the hope of many prospective buyers who believe a $400,000 house might eventually sell for $25,000. Received yesterday in my e-mail from DSnews.com:

Perhaps it's "government pressure to clean up balance sheets," or the thawing out of home sales, the need for capital, or the growing pool of players in the mortgage-backed assets market. Whatever the motivation, more banks are beginning to unwind their positions in toxic residential loans.

See this story about a Milwaukee-based bank that sold 800 troubled Arizona mortgages to an undisclosed investor, thus clearing $297 million of bad loans from its balance sheets. Will this trend catch on with major banks who decide to sell off in bulk to cut their losses? There seems to be more interest now by investors willing to acquire properties associated with "toxic loans".

The current shrinking inventory may be a combination of things: the loan modifications, the foreclosure moratoriums which have been delaying filings, and the ultimate decisions by banks as to the handling of foreclosed properties, plus the "catching up" with loans in default for months and that are yet to go into foreclosure. Those involved with the REO market believe that over time, perhaps as soon as in a few short months, the inventory will once again increase greatly, continuing to affect housing market prices, and the real estate market will not fully recover from the effects of the subprime market until 2012-2014, as indicated by the chart above.

So what should equity sellers do? Take advantage of this period of time, and realize that now, when there is less competition and many cash buyers (accounting for one-third of the multiple offers on many REO properties), may be a better time to sell than a year from now, when you could end up being a short sale if your equity continues to decline with the market. In some areas short sales and bank-owned properties already dominate the inventory; in the last year certain zip codes that seemed immune to these issues are now common, such as:

In 90803, 23% of the 177 active and pending listings are distressed sales
In 90802, 68% of the 280 active and pending listings are distressed sales

and in the future, if the local and statewide foreclosure statistics are any indication, distressed sales will impact equity sales even more severely than they are now.

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Posted By Julia Huntsman to Long Beach/Southern California Real Estate at 8/19/2009 02:32:00 PM

How to Be Beautiful with a Dry Garden in Long Beach California

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 14 Aug 2009 15:14:02 -0500

We love lawns, we love lush green semi-tropical plants, and we love them in dry, desertous Southern California because they grow so well here in this temperate and sunny climate.

But did you know? Lawns and outdoor landscaping consume as much as 49% of our water use in the Long Beach area. If you've seen my past blogs on the subject, you know that Los Angeles and other Southern California cities, including the other desert areas, have been concerned about water use for a long time--for decades, as a matter of fact. Yet, we persist in our East Coast style of landscaping brought here by our forebears. This becomes more expensive with the passing of time--Long Beach is scheduled to raise its water rates this fall, although residents have done well so far in reducing water consumption by 10% through the current city-mandated watering schedule restricting outdoor use to 3 days per week at certain times.
Lawns in particular had a purpose in the past, and it wasn't related to beauty. Lawns derive from the green pastures once kept by owners of cows, because back when we were a more agricultural, less industrial society, financial status and its production could be measured by the amount of land people owned, their crops and their animals. Cows needed green grazing areas, so the more cows one owned, the more pasture was required, and this over time became the foundation for our attachment to lawns, long after the cows disappeared from the average homeowner's life.

Today, we need to fit in with our natural climate conditions, as well as the current water shortage upon us. Beautiful Long Beach Landscapes right into saving money while creating beautiful gardens using native plants. The photos above are "before" and "after" of one house selected by a Long Beach landscaping program. Another great source is at BeWaterWise for landscape and planting ideas.

For more information, go to http://www.juliahuntsman.com/gardening-landscaping-for-home.html

Third Straight Month of Rising Sales

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 31 Jul 2009 11:48:49 -0500

The National Association of Realtors reported that sales of previously owned homes increased at a faster-than-expected annual pace. Existing home sales increased at a 3.6% rate and had its third straight monthly gain.

This is the first time since early 2004 that we have had three straight months of increasing sales and points to the housing market continuing to heat up. They also reported that inventories of existing homes were down 0.7%. With inventories declining and home sales increasing, now is the time to jump into the market before these low home prices are history.

Which leads to another topic that has been making the rounds: that there is a "shadow" inventory held by banks which when released onto the market, will bring prices down even further. Not so fast, say some mortgage brokers I've talked to. It's very unlikely that large amounts of such inventory will be released simultaneously by banks. For one thing, major lenders are in the process of negotiating many loan modifications and would probably not release major inventory onto the market in any one area which could additionally depress prices significantly further, and their existing mortgage loans. It could also depress equity sellers' values causing some of those to go into short sales or default if prices declined due to a flood of REO inventory.
The fact is, the $300,000 price range is and has been very competitive for investor buyers, and almost impossible for first-time owner occupant buyers for months now.
As the sales activity has indicated, what we need are more reasonably priced listings on the market. Sellers, are you listening?

Go to www.juliahuntsman.com for MLS property search.

Now We're Getting Spammed

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Sat, 18 Jul 2009 11:12:18 -0500

Just was sent a comment onone of my blog posts that is more than one year old. I don't need inappropriate comments, i.e., anyone advertising their links to replica watches and loan rates and whatever else. Does Active Rain have any preventions for such comments?

How Does an Owner Cope with the Rising Water Level?

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Wed, 24 Jun 2009 19:01:18 -0500

If you live in California, and Southern California in particular, your property may be near the coastal areas and at or near sea level--and therefore closer to the water table levels. At certain times of the year there are annual high tides, i.e., the one seen almost up to the asphalt level of Pacific Coast Highway through Huntington Harbour.

Houses with basements, or more likely crawl spaces under the raised foundation, may show signs of moisture or even flooding. This is dealt with by creating sumps--or holes in the ground to collect water--and installing sump pumps. The pumps may be set up with connectors (i.e., a hose) to carry the water off the property, via drains, or whatever method complies with local codes.

While a buyer should obtain professional assistance about the best type and system to install, if you're buying property almost level to the water, don't be surprised to find out you may have to deal with this.

In more extreme cases, you may want to find out about subsidence and call in another expert. You will want to review the natural hazard disclosure reports, and even local flood zone reports available online through FEMA. Also, be aware that if the property is in a specific FEMA flood zone, additional insurance may be required before your lender will fund your new loan, or otherwise require you to obtain the additional insurance if you already own the property. You may be able to obtain an elevation certificate issued by a qualified surveyor if your property sits at a high enough elevation.

For more information about contacting appropriate professionals, please feel free to give me a call.
Julia Huntsman, Broker Associate, www.juliahuntsman.com Long Beach/Southern California Real Estate

Are You Thinking About Selling Your Property As a Short Sale?

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Mon, 22 Jun 2009 22:31:00 -0500

Although the terms "short pay" or "short sale" are heard frequently, some people are still asking what they mean: It means the property owner owes more on his/her property than it can be sold for, or sold for after paying all the standard closing costs. In other words, the seller is "under water". Briefly, the mortgage holder(s)--there may be more than one loan on the property--must agree to accept the lower payoff amount, which means the bank is losing money on the seller's outstanding loan amount. The owner must "apply" for that approval by submitting financial information and a written statement about the reasons for their situation. As more and more properties are involved in this situation, some banks are finally, at long last, gaining some level of efficiency at dealing with all the short pay applications. Guidelines for the seller include submission to the bank of a signed and dated financial worksheet (usually in a standardized format), and signed and dated hardship letter, as well as a copy of the listing agreement, and letter of authorization for the party helping you with your short sale to communicate with the bank about your loan.

The sale generally must be an "arms-length" transaction; you cannot sell to someone you have a close personal relationship with, i.e., family member, personal friend, even a neighbor.

Different banks have different approaches about when to best receive submission of the seller's package for approval; and these approaches have changed from one time period to another, even in the last several months, so it may be difficult to know what to expect. Some mortgage holders will want the seller's package up front; other banks seem to respond faster when an offer has been obtained and is sent with the seller's package so that the seller's package does not "sit" at the bank and get lost.
The contract terms between the buyer and seller is negotiated as if it were a normal sale, but it's important to note that all disclosure about the short sale status must be given, and the buyer must in almost every case be willing to wait at least 60 days for the entire process. Even though the bank is not the seller, its role is key in whether the property gets sold and for what price. And, the bank will want an accounting of all costs of sale, and may not approve certain costs in order to preserve its bottom line. Banks have also been known to "approve" in advance a certain amount as the selling price, hoping that a buyer will be found at that price and they will therefore lose less money, but the market may decline, so the actual selling price may be less the longer it takes to find a buyer, or the approved price may not be realistic for the specific area of the property.

The Obama Administration will soon be issuing short sales guidelines and standardized forms--the outcome for all lenders to participate is yet unknown. It is hoped these guidelines will prevent future unrealistic negotiations among all parties, and faster treatment of short sales to assist stabilizing the real estate market.

As more loans entered into 2-3 years ago come up for their reset dates, the short sale process will continue to be a "staple" in the market, making a more uniform process mandatory. Some areas are completely dominated by either short sale/pre-foreclosure properties on the market, or bank-owned properties that have already been through foreclosure.
Any seller contemplating this as the only possible way to sell their property should also seek any legal and tax advice at the same time, especially if also contemplating bankruptcy.
Short sales generally have less impact on one's credit (assuming there are no or very few missed mortgage payments) than does a foreclosure, which will stay on the credit report for a much longer period of time and be a more severe "hit". Even with the FICO hits of missed mortgage payments, a short pay may be preferable for several reasons, including that the IRS has allowed debt forgiveness on mortgage amounts involved in the short sales. Foreclosure carries a longer period of impact on one's credit, something to think about when FICO scores are used in insurance applications, employment promotions, and of course, credit application.

There are many related and complex issues with these situations, and much confusing information which seems to change or modify on a monthly basis, and even legal and tax advisors are not totally familiar with impacts on credit scores in these two situations. For the most accurate information and opinion, contact a reliable loan professional who is in contact with borrower's credit reports on a regular basis.

More recently, per National Association of Realtors website:
On May 14, 2009, the Obama Administration announced its upcoming Foreclosure Alternatives Program, expected to launch in late July. Among other things, the new program:

Establishes financial incentives for servicers, sellers, and second lien holders to encourage the completion of short-sale transactions.

Requires that a timeline, of no fewer than 90 days, be set to allow a homeowner to sell a home, without threat of foreclosure action.

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Posted By Julia Huntsman to Long Beach/Southern California Real Estate

What's For Sale in Long Beach CA Under $300,000

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Wed, 17 Jun 2009 15:10:36 -0500

This is a popular price range for many 1st time buyers, the group of people who are among the most active and largest group of buyers looking on the market now.
In 2007 in Long Beach, there were less than 350 residential condos, own-your-owns, coops, and single family properties in this price range. Last fall, the inventory doubled to more than 700 listings in this group.
As of June 16, the MLS is showing 430 properties in this category: 185 active listings are single family homes under $300,000 in various zip codes (but not 90803 or 90814). In a sampling of the first 25 on the list, 19 of them are short pay or REO properties. In the last 25 on the list, 23 out of 25 are short pay or REO properties.
For condos, co-ops and own-your-owns (lofts excluded), there are 241 condos, etc., with about the same percentage of REOs and short pays: 21 out of first 25 on the list. The difference with condos is that they also represent many areas of town, including 90803, 90815, 90814. But not all condo opportunities are alike: Be prepared to face monthly HOA dues of as much as $600 for Marina Pacifica, where there have been several such sales. The price may be low, but the monthly payment must be able to accommodate the association expenses.
For the buyer who is heading out on a home search with their REALTOR, and with a valid mortgage pre-approval in hand, be prepared, because due to shrinking inventory, lower sales prices, and many other first-time buyers, you may have severe competition and deal with many multiple offers on the property you would like--some houses in particular have seen over 30-50 offers--and only one will be chosen. And, a frustrating fact is that that buyer may be an investor with lots of cash, or all cash. Also, the qualified FHA buyer, with 3.5% down payment, may have a much harder time competing, not just because of their lower down payment, because FHA offers must be appriased by an FHA appraiser who is required to report on certain property conditions according to government guidelines.
If the FHA buyer is considering a condo, which will probably be somewhat less competitive than a house, there are still HOA requirements to be met under FHA guidelines. Ideally, the buyer will select a property in an association that is already FHA-approved under the HUD guidelines. (Ask me, I can help you find out.) Otherwise, the buyer must hope for a "spot" approval, and that may have a more uncertain outcome until the transaction is further along in escrow and underwriting approval is obtained.
So what can the buyer do in this situation? Try to find a property that will work for you and with your loan, maybe a property that is getting less attention from other buyers. It may be your golden opportunity. It may require patience, it may require imagination, and it may not have granite countertops in the kitchen to start, and it may require some compromise on some of your criteria, but in the end if you want to be a homeowner, you have to start somewhere, and the gains could be very great in the end.
For a specific list of properties to be sent by e-mail, please contact me, OR go to http://www.juliahuntsman.com/ to see various current property searches from the MLS.

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Posted By Julia Huntsman to Long Beach/Southern California Real Estate at 6/16/2009 03:33:00 PM

What's For Sale in Long Beach CA Under $300,000

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Wed, 17 Jun 2009 14:55:41 -0500

Appraisals and Why You Should Care

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Thu, 11 Jun 2009 20:01:28 -0500

You might think "HVCC" refers to a heating system, but no, it refers to property appraisals performed under the new Home Valuation Code of Conduct. This Code came about through the New York State General Attorney Andrew Cuomo's agreement with FNMA and Freddie Mac and the Federal Housing Finance Agency, those agencies that create the rules for loans that buyers need.

What it means for the buyer and the seller both is that conventional loans obtained for single family homes fall under this new appraisal code. (Not for FHA loans.) Appraisals have always been important: the lender did not want to loan on a property which did not match a true market value. Diligent Realtors have always advised sellers to price their properties realistically, and advised their buyers of a realistic selling price according to local market comparables, in essence, the property had to be sold twice, once to the buyer and again to the lender. The subprime market blurred this picture for quite a while, but sometimes the cure is just as bad as the problem.

To counter the effects of the subprime market, effective May 1, neither lenders nor their staff are allowed to select the appraiser, nor are they allowed to have "substantive" communication with the appraiser or the appraisal management company (AMC) which now is the new level of bureaucracy managing the assignment of appraisers. The new system may have started more problems than it ended.

Some assigned appraisers may not be familiar with an area--coming from a different county even--have no particular vested interest as to the outcome of the appraisal, consumers are being advised their appraisal will cost about $100-$150 more and they may have to lock in their rates for a longer period of time, which will also cost them more. If the consumer changes lenders, they must pay for an additional appraisal. The AMCs pay low fees, thus attracting only the inexperienced appraisers, some of whom are failing to adequately appraise a home. See The Wall Street Journal's article on this.

The AMCs are unregulated, and do nothing the reduce fraud (the reason they were established in the first place), and transactions are being cancelled in some instances, at a great cost and inconvenience to both the buyer and seller. One professional association estimates that HVCC will cost consumers 2.8 billion dollars a year in extra fees.

These issues make an already form-and-disclosure-intensive transaction even more challenging and difficult under increasingly stringent legal and professional standards, especially in California which has the reputation of being a very litigious state. But I'm sure professional in Michigan, for instance, probably feels the same way.

Now is the time to know your market, and be prepared to address a possible appraisal gap as a "Plan B" to closing escrow, which could mean that if the difference is not too great between appraisal and contract price, that buyer and seller split the difference. Not great, but it could be an option to not meeting the closing date.

Julia Huntsman Long Beach/Southern California Real Estate

The Cost of Waiting to Buy: Revisited

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Mon, 08 Jun 2009 19:33:23 -0500

Six months ago (they've passed quickly), I covered this topic via an article by Pat Zaby complete with payment scenario.

Last week's upset in the Treasury bond market , a more complex subject, ultimately sent mortgage interest rates up, with higher payment impact, that the earlier post referred to:

"Let's make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 to go down 5% to $237,500, and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $79 per month."

Or putting it another way, some buyers who qualified before last week may now have lost as much as 10% of their original buying power. In fact, some mortgage professionals feel that because of the current economic forces driving the purchase of bonds vs. mortgage-backed securities, the edge on low interest rates--below 5%--is gone, and maybe gone for good. If you're just starting in the market, figure it's the luck of the draw. But if you've been looking for a very long period of time, or renewing your search after being away from it for a long time, your loan information probably needs to be updated.

One brighter spot is that the procedure is being put in place for the imminent start of a statewide (California) down payment assistance program offering a "silent second" for first time homebuyers (up to 3% of purchase price, income restrictions apply, FICO score over 680) and which may be used in conjunction with the FHA 3.5% down payment. If you're in that category, you might still be ahead if you fit this program.
See my earlier post on waiting to buy.

If you're in the market to buy or sell, visit me at www.juliahuntsman.com, or call me.

Long Beach CA, Naples, Condo-New Listing

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 29 May 2009 10:35:06 -0500

Cheerful one-bedroom plus den unit is great for the first-time buyer or a second home--close to

Alamitos Bay and ocean breezes. This unit with a more contemporary look has been upgraded to include bamboo flooring; newer faux marble pattern kitchen and bathroom counters; double-paned windows, upgraded electric outlets, newer lighting fixtures. Breakfast bar for convenient eating area. Bathroom has large walk-in tiled shower with clear glass enclosure; recessed lighting in den. Lots of cupboard space in kitchen and bathroom, plus linen closet in hall. Large walk-in closet in bedroom. Den has separate doorway, add a closet and it could be enclosed to make a second bedroom, also makes a great office or formal dining room. Water views from common area, rooftop deck.
See this unit on http://www.juliahuntsman.com. Offered at $329,000.

Properties are Selling in Long Beach 90803

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Tue, 05 May 2009 10:38:21 -0500

The buyers have gotten in the Spring action mode in Long Beach's 90803 zip code--and for some buyers, there are issues of multiple offers in certain parts of Long Beach within days of the property coming on the market. This is a result of the combination effect of sellers pricing their property correctly, presenting it well (even staging it, that's been betting the fastest offers), and buyers who are pre-approved and motivated to buy.

In a quick review of the MLS, in the 90803 zip code (Naples, Belmont Heights, Belmont Shore areas), there are 101 active single family home listings waiting for a buyer, and there are 30 single family homes currently in escrow, list price between $425,900 (Island Village) to $3,350,000 on the water with a boat dock (Naples)--days on market ranged from "0" to "395".

In the same area are 54 condos waiting for a buyer, ranging from $189,000 to $1,095,000 in complexes such as Marina Pacifica, Village on the Green, Bixby Village, Spinnaker Cove, and in areas of Naples, Bluff Park, the Peninsula, and Belmont Heights. There are 19 condos in escrow, ranging up to $669,000 in asking price, having been on the market from 3 days up to 364 days.

For motivated sellers, believe it or not, we need more inventory. If you would like a market analysis of your home or income property, at no obligation, there's nothing to lose by talking over the current value of your home. I can even send you market comps via e-mail, plus other valuable market information.

Prices are still low, and motivated buyers should check out their financing options now. Don't forget about your $8,000 tax credit!

To find more properties on the market, go to www.juliahuntsman.com, into the MLS property search which is updated through the MLS, so you will get current information on which listings are on the market.

Making Home Affordable for the Homeowner

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Thu, 23 Apr 2009 20:13:17 -0500

President Obama's $75 billion program for homeowners now has the first six banks or participants, per the Los Angeles Times:

Chase Home Finance, part of JPMorgan Chase & Co., will receive up to $3.6 billion, the largest amount among the six companies. The other recipients: Wells Fargo & Co., GMAC Mortgage Inc., Citigroup Inc.'s CitiMortgage unit, Select Portfolio Servicing and Saxon Mortgage Services Inc.

More banks and companies will be added in the coming months. The Making Home Affordable program can be found at FNMA and Freddie Mac sites for those with FNMA or Freddie Mac loans. By clicking on the above link, the homeowner can find out eligbility for the program. This program is for owners who are not able to meet current refinancing loan requirements, who bank is participating and who who have FNMA or Freddie Mac loans.

This plan is to help people who are current on their mortgage payments to refinance and take advantage of today's lower interest rates. Under this plan, Fannie and Freddie will be allowed to refinance qualified homeowners up to a 105% loan-to-value of the CURRENT VALUE of the home. It's well worth your time to keep checking on whether or not your current mortgage and your bank, now or in the future, will be one that qualifies for this plan.

The plan helps owners at risk of foreclosure by offering government assistance to help offset the cost of modifying loans of qualified homeowners into affordable mortgages allowing them to keep their homes. There are several different ways to achieve this: rate reduction; extending loan term, or allowing principal forbearance or cramdown. The unpaid balance must be $729,750 or less for owner occupied primary residence of 1-4 units, a first trust deed, current monthly payment exceeds 31% of gross monthly income, are among the requirements. Go to
http://www.financialstability.gov/makinghomeaffordable for a self-assessment tool.

If you are thinking of selling, or you need more information about whether or not you can modify your loan, or are eligible for a short pay, contact me directly or go to http://www.juliahuntsman.com/ .

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Posted By Julia Huntsman to Long Beach/Southern California Real Estate at 4/23/2009 05:30:00 PM

More Demand, More Sales--More Sales, More Buyers and Sellers

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Tue, 21 Apr 2009 16:12:34 -0500

In spite of the billions of dollars spent and given away to Freddie Mac, Fannie Mae plus numerous other banks and institutions, in spite of the many government loan modification programs and federal homeowner help programs, loan streamlining programs ... but so many buyers are still reluctant to buy. Yes, there are more limitations on types of loans available, basically buyers have a choice between 3.5% down payment (FHA), 10% and 20%+ down payment loans (conventional). There are some first time buyer programs, there are still VA loans, but most buyers are going to fit in the middle of the distribution curve on the first 3 types of opportunities.
There needs to be even more incentive(s) if there is to be a return to a real estate market where there are properties closing escrow with move-up buyers. Why, especially in California which is still a higher-priced market than other states, should only first-time buyers under a certain income level be eligible for the $8000 tax credit? Why not make it available to anyone who purchases a home? or an investment property? I've been meeting people lately who have certain assets, sense that the bottom of the market may be getting closer but they're still unsure, and this credit might give them the incentive to finally make the move off the fence.

Another suggestion has been to put a moratorium on the capital gains tax for future sales of residential property purchased in 2009 and 2010 which might encourage these capable but indecisive buyers to finally make a move into the market. Yes, a strong increase in sales has been occuring in 2009, but it's also at the lower end of the market. Think of the buyer who might otherwise put an offer on a high end property if these other incentives were in place.

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Posted By Julia Huntsman to Long Beach/Southern California Real Estate at 4/21/2009 01:22:00 PM

Long Beach Selling Trends as of March 3, 2009

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Mon, 06 Apr 2009 20:58:59 -0500

Sellers, are you still thinking about moving? Buyers, Has your idea of a new home taken root? You might find this interesting:

The overall picture for Long Beach from February 7-March 3, 2009, is that the inventory for residential properties continues under 6 months, meaning that it would take that amount of time for the current number of listings to sell before all properties would be sold, or off the market. Inventory supply for the current period climbed up to 4.6 months (from 3.5 months from the prior month).

In the pool of eight areas--Lakewood, Cypress, Cerritos, Los Alamitos, Long Beach, Signal Hill, Rossmoor, and Seal Beach--Long Beach is in the middle in terms of inventory supply, with Lakewood having the lowest amount at 2.3 months, and Seal Beach at the highest with 11.9 month. Just a reminder: a classic real estate "benchmark" is that 6 months of inventory is the turning point for a buyer or seller market, thus by definition the first 6 in the list are in a seller's market at this time.

But is that true for all price ranges in Long Beach, and all neighborhoods? No, overall, residential properties under $700,000 have less available inventory, with the $400,000-$600,000 going the fastest at 4 months and less.

Areas with the longest months' supply is Belmont Shore/Heights/Naples (90803) at 8 months, and downtown/Ocean Blvd. (90802) at 6.6 months. The other major zip code areas in the city were less than six months, with Carson Park/El Dorado Park Estates/other east Long Beach areas (90808) having the least amount of inventory available at 2.4 months. Does this correspond with selling price? Well, the 90808 zip code area, with the least amount of inventory, sold in the upper half of price-per-square foot range at $331, while 90813 sold at the low end of $203 per sq. ft.

For a copy of the complete report via e-mail, please contact me with your information, and I'll be happy to send it.

In comparison to this time last year, Long Beach was second highest in terms of inventory supply at 8.7 months, second only to Signal Hill, and all price ranges except one was over 6 months. In this period 2008, Long Beach was second highest in price per square foot at $409, and is now 3rd highest at $348 per sq. ft.

Yes, it's very much a "pricing reality" message for sellers, and a "get moving" time for motivated buyers who would like to avoid the multiple offer situation as much as possible.
Currently, in terms of number listings, there are 71 single family residences listed in 90808, and 86 condos and single families in 90813 (parts of downtown further inland from the shoreline).
To find more properties on the market, go to http://www.juliahuntsman.com for an easy property search.

Long Beach Home Tour and Slideshow

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Wed, 01 Apr 2009 19:17:37 -0500

For more information about Long Beach, and local sales information, contact: Julia Huntsman, Broker Associate All California Brokerage, Inc. 562-896-2609 www.juliahuntsman.com

Sales Trend Is Getting Stronger in Long Beach Area

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Fri, 27 Mar 2009 19:48:08 -0500

If you saw the post from earlier in the month, you read about the strong decline inventory in Long Beach for February 2009 to 6 months and under, especially compared to the same time last year (data courtesy of RealDataStrategies and the SoCalMLS). The chart at the right shows the upward movement (although I don't believe "median price" data is necessarily applicable to all local areas or neighborhoods due to many other conditions). There's additional news around about some 2008 markets actually increasing over 2007, per Anthony Carr's post at Realty Times, including:

"Texas - 3.6 percent, South Dakota - 3.6 percent, Montana - 2.6 percent, Mississippi - 1.7 percent, Utah - 1.5 percent, New Mexico - 1.3 percent".

This data comes from a Bloomberg.com report using data by FirstAmerican CoreLogic, based in Santa Ana, California.

And, per Dataquick's March 19 report for California statewide sales, the increase has been going on here for the last 8 months, while the median price remains stable:

"An estimated 29,225 new and resale houses and condos were sold statewide last month. That was down 0.8 percent from 29,458 in January and up 42.5 percent from 20,513 for February 2008. Sales have increased on a year-over-year basis the last eight months."

Dataquick's report for February for Southern California: "Sales have increased on a year-to-year basis since last July."

"The market is so tilted away from normal mainstream activity that it's impossible to generalize or predict based on the atypical patterns we're seeing. That means that normal demand and supply is building up. The floodgates could open once mortgage credit starts to open up," said John Walsh, MDA DataQuick president.

Further, in the Long Beach area, February of this year is reportedly 3rd highest in sales after October and November of 2008. And today, Freddie Mac states mortage rates are near or at the bottom, and any further reductions would be "incremental". Rates for 30-year fixed mortgages are at 4.85%, the lowest in its history of surveys which began in 1971, "down a full percentage point from a year ago", and rates for a 15-year fixed mortgage dropped to 4.58%.

With constant repetition in the media about foreclosures and the hard times of many, it's hard for buyers to believe that by waiting, they can be waiting too long for their area. If the current decline in housing inventory persists, the competition scenario is likely to emerge at some point in time in certain areas, in fact it already has for some properties judging by the show of hands at last Thursday's broker meeting from agents dealing with multiple offers for their clients.

Homebuyer's Remorse and Does It Go Away?

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Mon, 23 Mar 2009 16:17:26 -0500

I'll get straight to the answer: Yes, if you work at it, in about 6 months (for many people). It starts going away after you begin to get used to your new monthly payment, fall out of love with the property and see it through normal clear lenses, and realize that in fact you did look at other houses, but you chose the one you're in. The operatives words here are: "you chose the one you're in", because after all, in California in particular, there are many contingencies, many opportunities to review disclosures and reports and ask questions, review the seller's disclosures and approve or disapprove them, plus have a full contingent 17-day period in which to cancel without losing more than the cost of your physical inspection. (You did get one, right?)

Yet people like to play a little game, and somehow minimize, or even erase, their part in the decision-making, or worse yet, lie to themselves: "The self-interested devil made me do it." Well, we all do a little of that at one time or another, it takes the pain away, but if you're really grown up about yourself, you finally and quickly wake up and stop kidding yourself.

Webster's dictionary defines remorse as: "A gnawing distress arising from a sense of guilt for past wrongs." So how can you minimize this period (because it's bound to happen to one degree or another)?

Did you buy this property after you thoughtfully considered your needs and desires, or did you buy it to please someone else?
Did you take the time during escrow to really review your documents and ask questions?
Did you drive the neighborhood or talk to neighbors?
Did you try to get married, throw a debutante party, go abroad for at least two weeks and then come back and work 100 hours a week?
At the close of escrow, did you still feel this was the right property for you?
Did you review your loan documents and ask your lender questions?
Have you ever handled a monthly payment in your current amount, and did you review that amount carefully prior to close?
Did you feel that you did enough homework about your purchase, or could you have done more?
Did you work out a budget for yourself taking into account your new purchase, i.e., property taxes, homeowner insurance, monthly maintenance and bills.
Did you consult with your tax accountant so that you can realize the full benefit of all your federal and state tax deductions, including mortgage interest and property taxes?

So you bought this for yourself, and you did love it at the close of escrow, you knew what your monthly payments would be and you believe you did all your homework? One more important thing: It's important to be emotionally ready to own a home, because there is a responsibility that you don't have as a renter. Otherwise, what you have is the common phenomenon known as buyer's remorse--refer back to Webster's definition and the involvement of guilt.

This remorse goes away, usually after you get through your first year and learn about the financial plusses of having bought a property where you may build equity over time, having numerous tax advantages, and knowing you cannot be evicted by a landlord. For a little more perspective, read this New York Times article on homebuyer's remorse.

Perfect Location for a Condo--Near the Ocean and Bay in Long Beach

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Tue, 17 Mar 2009 16:20:38 -0500

This is really one of the best buying opportunities areas there is, and walking distance to bay and beachfront in Naples.

This one bedroom could really be a two bedroom (with the closet already in place), or the den could remain as office space or TV area, or even a dining room. At $339,500, it's competitively priced with condos in the Marina Pacifica, but without the very high HOA fees.

This is a lovely unit with Pergo-style flooring, new paint and enameling, lighting, and a new microwave in the black tiled-floor kitchen. The location is steps to the Alamitos Bay and only a few minutes drive to Belmont Shore, Naples shopping and the Marketplace and Marina Pacifica malls. It really can't be beat!

Call me for more information on seeing this unit, at 562-896-2609 or e-mail me. For more about this condo, click on 5959NaplesPlaza.

Save on Your Monthly Payment with First Time Buyer Programs in 2009

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Mon, 09 Mar 2009 20:55:23 -0500

The timing is right, and financial opportunity is here, ... in the form of buyer programs, they are also called mortgage assistance programs.
A basic requirement is that the buyer be a "first-time buyer". If you haven't owned any property in a long time, that may also qualify you.
These programs are invariably sponsored by a local city, or Los Angeles or Orange Counties.
Another feature is there may be a "silent second", which means there is no monthly payment due until a certain date, or the property is sold, depending on the program. These are down payment assistance programs provided through qualified entities.
There may be income restrictions and household size maximums, geographic area buying restrictions in some programs, or current residence requirement restrictions, and U.S. citizenship or permanent resident status is required.
Principal residence (no income investments) of a single family home, condominium or townhome.
NOTE: No 100% financing--buyers must have "skin in the game", although on one program the buyer contribution is only 1%, most are up to 3% and 5% down payment levels, depending on FHA or conventional loan requirements, and must be from the borrower's own funds.
The exciting news is that if the buyer falls into a program's guidelines, there could be a difference of several hundred dollars a month difference in the monthly loan payment vs. a loan without an assistance program.
So who has these programs?

The City of Fountain Valley offers up to $150,000 in the form of a "silent" second, with an annual gross income starting at a maximum of $70,600 for a single buyer, up to $133,200 for a household of eight.
Orange County has a Mortgage Assistance Program offering up to $40,000 for a "silent" second; income starts at maximum of $52,100 for a single buyer. Good in 15 cities including Seal Beach, Stanton, Cypress, La Palma, Los Alamitos, plus unincorporated areas.
The WISH Downpayment Assistance Grant provides up to $15,000 for each household (funds available on first come, first serve basis). Must purchase in Orange County.
Orange County Housing Trust has up to 25% of the purchase price (no more than $115,000), for downpayment assistance. Purchase must be in Orange County.
City of Bellflower Downpayment Assistance Program offers up to $40,000 in a "silent" second, with a single buyer income no higher than $42,450, going up to a maximum of $80,050 for a household of eight.
City of Long Beach offers a program currently "on hold" but still taking applications.

For more assistance in finding a home in 2009, and getting financial program help, please contact me.

The 411 on Tax Credits for Energy Efficient Water Heating vs. Solar Water Heating

Julia Huntsman, Broker Associate, e-PRO (All California Brokerage, Inc.) — Wed, 25 Feb 2009 19:15:26 -0600

This is a such a good article, I decided to post it here!

Via Stephanie Edwards-Musa, Realtor ® Spring/Woodlands, TX Real Estate (Prudential Gary Greene, Realtors ®):

The Stimulus Bill, it's rather confusing. I have previously posted some of the Positive Sides to the Bill and this is part 3 of my Energy Efficiency Tax Credits in the '09 Stimulus Bill.

If you have been following my Webinar Series through 'Turning Houston Green' on Greening the Existing Home, you know that this Saturday, Michael Strong and I will be going over Water and Lighting Fixtures. Part of this will be in regards to Energy Efficient Water Heating Solutions which includes Tankless and Solar Water Heating.

In doing our research, we noted that the Stimulus Bill changed the Tax Credits for this also. Because the changes go through 2010, we think it is important for people to understand what it is you can actually get with your Tax Credits. Be an educated consumer so that you can make the most of you upgrades.

So, here's the 411:

Tankless Water Heaters - Whether you get one that is Gas or Electric, it still needs Electricity. Why? There is an actual start for these babies to kick in and start heating your water. So, with a Gas Tankless Water Heater, it still uses ELECTRICITY to start up. THEN uses the Gas to heat the water. This means that during a power outage, you will STILL NOT HAVE HOT WATER. Because of this, Tankless Hot Water Heaters fall under the Energy Efficiency portion of the Stimulus Bill.

What does that mean to you? You can get a Tax Credit for 30% of the purchase UP TO $1500 on ALL of your Energy Efficient Improvements - (such as windows which will be another post) Max. That's It. $1500.

Now, Solar Water Heating:

This is considered to be Renewable Energy. No electricity or gas is really required. That means that you are solely using electricity derived from a Renewable Source, in this case THE SUN. During a power outage you WILL HAVE Hot Water. (not that the power outage has anything to do with, just making a point)

For these reasons, it falls under a completely different category. Actually, it falls under the same category as GeoThermal and traditional Solar Panels.

What does this mean to you? You can get a Tax Credit for 30% WITH NO CAP!!

Personally, I would use the Energy Efficient Tax Credit for Windows, Insulation, etc. and maximize by upgrading to Solar Hot Water. You can only get a Maximum One Time Tax Credit of $1500 for Energy Efficiency, yet there is no cap on Solar/Renewable Energy right now.

With a typical cost of $5000 for Solar Water Heaters - That would give you an ADDITIONAL $1500 Tax Credit if you are making other Energy Efficient Improvements to your home.

Just a little food for thought. To sign up for our Webinar Series on Saturday for more details on the Benefits of Energy Efficient Water Fixtures in your home, you can register here.

***Source: Pages 125-127 of the Division B Tax, Unemployment, Health, State Fiscal Relief and Other Provisions from the Department of Energy Website***

***Photos: These are from Houston's First LEED Certified Home Built by Greenhaus Builders***