90815 Real Estate

 Home sales prices in the 90815 zip code of Long Beach showed some signs of stabilization in March, but remained considerably lower than they were a year ago. The 90815 zip code encompasses Los Altos, Park Estates, Artcraft Manor, the Plaza, Artcraft Manor, Bixby Hill and La Marina Estates.

Currently, according to the Multiple Listing Service (MLS) there are 97 homes active on the market in 90815, ranging in price from $380K for a two-bedroom home in Artcraft Manor to $1,749,000 for a four-bedroom Bixby Hill home. The average price per square foot for current listings is $422.

There are 28 homes "pending" or in escrow now in 90815, ranging from $379,900 to $1,695,000. The average price per square foot for pending sales is $379.

In the past 30 days, 15 homes have closed escrow in the 90815 zip code, ranging from $419,900 for a three bedroom/two bathroom Plaza Home to $3.1 million for a 5 bedroom, 5,000 sq. ft. home in Park Estates. The average price per square foot was $423 for the homes that sold in 90815 in the past 30 days.

If you'd like information or currently listed homes or want to know what your home is worth in today's market, email us at Info@ShowMeHome.com or call 562-961-1415.

Median Prices Up in Long Beach! A Market Update

After months of steep declines, the median sales price in Long Beach went up in March 2007 for the second month in a row.

To be sure, prices are still lower than their peak and the sales volume is still well below the peak, but the recent numbers are encouraging.

Homeowners who have been considering selling but were discouraged should take note of this opportunity. Spring and summer are traditionally the busiest selling seasons and prices are usually highest this time of year.

If you're interested in more information about prices in a specific neighborhood, email us at info@showmehome.com, logon to www.showmehome.com or call 562-961-1415.

Do Fed Interest Rate Cuts Mean Lower Mortgage Rates?

If you follow the news, you may be aware that the Federal Reserve has cut interest rates six times since September 2007. Many people assume that those interest rate cuts translate into good news for mortgage interest rates. But that's not the case. In fact, mortgage rates are higher now than they were three months ago.

Why is that the case? Because mortgage interest rates are actually tied to the performance of mortgage-backed securities, NOT the Fed. The Fed's role is to keep inflation in check and regulate the nation's financial institutions but it doesn't set mortgage interest rates. 

One of the tools the Fed uses to control inflation and economic growth is adjusting the Discount Rate and the Fed Funds rate. Movement with those rates can affect the Prime Interest rate, which in turn can affect rates on credit cards, home equity lines of credit or adjustable-rate mortgages. However, the long-term mortgage rates (ie your 30 year fixed rate) don't always correspond.

The chart below shows that mortgage interest rates have actually increased from March 2007 to March 2008, even though the Federal Reserve cut interests rates six consecutive times, slashing three full percentage points in the process.

Long-term mortgage rates are set daily by individual lending institutions and are based on the trading activity of mortgage-backed securities (MBS), which are traded daily. MBS are bonds that represent mortgages currently in place. For instance, let's say you have a 30-year fixed rate mortgage of $200,000 at an interest rate of 6%. That loan isn't worth anything right now, but over a 30-year period, it represents a profit of 6% or up to $12,000 every year for the bank that owns the loan, provided you make all of your payments.

Instead of waiting for the entire term of the loan to collect the profit, banks often bundle loans together and sell them. The bundled loans are sold to investors, much the way stock in a company would be sold. They are called mortgage-backed securities. The performance of these bonds is what lending institutions use to set their mortgage rates, along with supply and demand, financial and economic news including employment levels, political news and other factors.

Even though mortgage rates have gone up a bit in the past few months, they are still low from a historical standpoint. And with the many foreclosures on the market, there are some great deals. If you'd like more information about the current real estate market, please give us a call today at 562-961-1415.

2 On A Lot -- Great Opportunity in Long Beach

We just listed this two-unit property in Long Beach at 2909 E. 4th Street. It's a 4 bedroom, 2 bathroom home in the front with a 1 bedroom unit in the rear. In addition to the four bedrooms, the front house also has a family room and features wood floors.

There's a nice grassy back yard. A former nursing home, located near shops and transportation, this is a great opportunity. It's listed at only $599,000.

For more information or to take a virtual tour, visit www.ShowMeHome.com. To schedule an appointment to view the home, call 562-961-1415

Don't Forget! Spring Forward Tonight

DON'T FORGET...

Before going to bed tonight, change your clocks one hour forward.

While you're at it, this is a good time to change batteries in smoke detectors and CO2 detectors.

Ever wonder how and when Daylight Savings Time started?  It's been around since the time of Benjamin Franklin and has been a controversial subject.

Check out this website for lots of interesting information and anecdotes:  

http://webexhibits.org/daylightsaving/

LONG BEACH REAL ESTATE

Is The Long Beach Real Estate Market Showing Signs of Recovery?

This week, our real estate team opened more escrows than we have in months. When I spoke to our escrow officer, I learned their company had experienced the same kind of sudden pick-up in business.

With the announcement of new FHA loan limits, buyers suddenly have easier access to financing with flexible underwriting criteria and low down payment options. Certainly, everyone predicted that that would help prompt a recovery in our sluggish market.

But from where I sit here in the trenches in Long Beach, CA, there seems to be something else in the air. For more than a year, we've been hearing from a number of buyers that they're waiting until the market hits bottom. What we're hearing now is that they think this may be a good time to buy.

I think they're right.

Check out this graph that shows pricing trends in Long Beach, CA:

As you can see, local median prices were in an almost vertical decline for months, but are in the process of shifting again.

Of course we can't predict what will happen in the coming months and unfortunately I don't have a crystal ball, but if I were waiting for the bottom, I don't think I'd sit on the sidelines anymore either.

LONG BEACH REAL ESTATE

Open House This Saturday, 1-4 p.m.

ROSE PARK SOUTH, Long Beach, California 90814 

LONG BEACH REAL ESTATE

OPEN HOUSE

SATURDAY, MARCH 8, 2008

1-4 P.M.

We will be holding open the main unit of this beautiful, super-clean duplex near the beach this weekend.

The main unit is 2 bedrooms, 1 bathroom with about 1400 sq. ft. It has hardwood floors and a fireplace plus an eat-in kitchen that opens to a private patio.

It's near shopping, restaurants and the beach.

The second unit is a 1 bedroom, 1 bathroom unit over the garages.

For more photos and additional information on this property, visit our website at:

www.ShowMeHome.com.

If you register on the website, you can search all available listings on the MLS and receive automatic daily emails with properties in your price range and desired area.

Price Reduced! Short Sale -- Seller Must Sell!

4322 Patero Way, Long Beach CA  90815

We just reduced the price of this spacious 3 bedroom, 2 bathroom home in the Artcraft Manor Area to $475,000.

This home features a fireplace, hardwood floors and an upstairs master suite with a walk-in closet and bay window. There's an attached garage, inside laundry and a spa in the back yard.

This home features 1,416 sq. ft. on a 6,000 sq. ft. lot and was built in 1943 according to the tax assessor's office.

This property is a "short sale" and all terms of the sale are subject to third-party approval.

For more photos and a virtual tour, visit our website at www.ShowMeHome.com.

LONG BEACH REAL ESTATE

LONG BEACH HOMES FOR SALE CA

Time to Buy! FHA Loan Limits Increase!

For those waiting for the perfect time to buy, now may be the time to jump off the fence. Last month, we saw prices begin to stablilize in Long Beach and Lakewood. This month, we've seen the pace of sales pick up locally. And by now, anyone interested in buying has probably heard the big news -- FHA loan limits were increased.

Beginning today, HUD will offer temporary FHA loan limits ranging from $271,050 to $729,750. Both Los Angeles and Orange County qualify for the highest limit based on median prices here.

""Many families all over the U.S. will benefit from this access to credit, and increasing these loan limits will inject much-needed liquidity into the housing market," FHA Commissioner/Assistant Secretary for Housing Brian Montgomery was quoted as saying.

The change was benefit of The Economic Stimulus Act of 2008, which permits FHA to insure loans on amounts up to 125 percent of the area median house price, when that amount is between the national minimum ($271,050) and maximum ($729,750). The new minimum and maximum loan limits are based on 65 percent and 175 percent of the conforming loan limits for Government-Sponsored Enterprises in 2008, which is $417,000. The FHA used a combination of existing government data sets and available commercial information to determine the median sales price for each area, and released the data approximately two weeks after the President signed the stimulus bill. The change in loan limits are applicable to all FHA-insured mortgage loans endorsed after HUD publishes the increased loan limits today, and it lasts until December 31, 2008.

By increasing loan limits nationwide, FHA hopes to help stabilize housing markets across the country. In January 2009, FHA's maximum loan limit will return to $362,790, unless the U.S. Congress approves bipartisan legislation to permanently increase loan limits as part of the FHA Modernization bill, which is still awaiting final approval on Capitol Hill.

LONG BEACH REAL ESTATE

Is spring coming early or is the market changing?

When I sold my Long Beach house last fall, I was sad that the hundreds of bulbs I've planted over the years would be blooming in someone else's garden. Of course, I was also pleased to be finally closing escrow in this down market, I went out and bought myself some more bulbs.

I planted those bulbs in my new yard and set in for the cold winter. OK, so I'm in sunny Southern California but we're wimps here so it feels cold to us. And the real estate market, well it's been cold for sure.

This week, daffodils came up in my new yard and three offers on longtime listings came over my fax machine. I'm thinking maybe the winter is over. I know the calendar says spring doesn't come officially until March 21st but I'm hoping this is a sign it's coming early this year! Hope blooms eternal, and daffodils, well you can always plant them someplace new!