The Long Beach real estate market continued its transition in 2009, with foreclosures and short sales continuing to dominate the scene. Low interest rates and an attractive tax credit fueled buyer demand, but inventory remained low.
Sales of homes in Long Beach went up about 30% last year - from 2759 single family homes in 2008 to 3662 in 2009, according to the Multiple Listing Service (MLS). However, prices of single family homes continued to decline - from an average of $423,569 in 2008 to $393,600 in 2009. Condo prices also declined, from an average price of $316,947 in 2008 to $259,410 last year.
The California Association of Realtors (CAR) projects that 2010 will bring a slight increase in prices (3.3%) as buyers snap up foreclosures and other properties at the market's low end. However, the association also projects that the number of sales will decline slightly due to the end of the $8,000 first-time home buyers' tax credit.
The credit, which was extended last year, will expire this spring. To take advantage of the credit, buyers must be in escrow by April 30th and close by the end of June. Existing home-buyers may also qualify for a $6,500 tax credit when they purchase homes in that same timeframe.
If you are thinking about buying a home, time is of the essence if you want to benefit from the tax credit. And for sellers, listing your home early in 2009 means you'll be able to capitalize on the high demand. If you're considering a home purchase or sale, call or email The Shannon Jones Team today and we'd be happy to provide you with a no-cost, no-obligation consultation.
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