May Housing Report for California
Jun 16, 2021 10:22 am | Long Beach/Southern California Real Estate
| May 2021 Sales and Price Report
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The market up until May has been at a dead heat for the buyers, but has been showing signs of a little cooling as some buyers may be taking a break. However, as the economy is now reopening, how the market may change is yet to be seen. The higher end of the market has surged:
"Robust demand of higher-priced properties contributed to the record-setting statewide median price. With million-dollar home sales surging more than 200 percent from May 2020, its market share is nearly double what it was a year ago when it was at 15.6 percent. More million-dollar properties were sold in the past couple of months than homes priced below $500,000."
Overall, the Southern California market grew by 33.1% increase in median price (surveyed from 90 California MLS systems) compared to May 2020. This was second only to the San Francisco Bay Area. The unsold inventory statewide still remains under 2 months supply (meaning it would take only 2 months to sell all properties at the current rate of sale--the traditional normal was 6 months before 2012). 49 out of 51 counties dipped more than 20 percent in the number of active listings compared to one year ago, however active listings were at the highest level in the last 6 months. The 30-year mortgage interest rate was under 3% in May compared to 3.23 percent average in May, 2020. The Los Angeles metro area median single family home price for May was $725,000, compared to $535,000 in May, 2020.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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Reopening Guidelines for California Real Estate
Jun 16, 2021 09:53 am | Long Beach/Southern California Real Estate
As of June 15, 0pen house and property showing restrictions are mostly removed--
no physical distancing, no cleanings, no posted rules for entry, and happily, no PEAD forms (required before showing each and every property). But unless entrants are fully vaccinated, masks are still required indoors. Additionally, sellers may impose their rules for property entry if they wish, i.e., require masks for everyone who enters. Door knocking and handing out flyers in the neighborhoods are once again permitted (unless of course one sees a sign to the contrary at the property). See more information at California Dept of Public Health.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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California April Sales and Prices, Higher Than Ever
May 22, 2021 11:58 am | Long Beach/Southern California Real Estate
Inventory, Inventory, Inventory. There's less of it, and yet.... not everything is selling within 7 days. If you are interested in selling or buying and would like more in depth information about the current market in Southern California for residential properties, just contact me via phone or text. Why there are fewer homes on the market has more than one possible answer, but this shortage has grown since 2012, back when 6 months inventory was more the norm, not 1.6 months.
Last September, Long Beach had 2 months supply of homes on the market, in April 2021 it was 1.1 months. And this is the time of year when we traditionally see much higher inventory. In the last 7 days, 79 homes and condos came on the market, but 77 closed in the same period, and 120 went into escrow. So the new listings are not keeping up with the overall sold volume. To help the situation for some reluctant sellers, the passage of Proposition 19 can assist for certain age 55-and-over sellers, or disabled, or natural disaster victims, who want to minimize a change in their property taxes if they choose to move. Or, if you plan on relocating, study in advance the areas that may be economic advantage to move to. And for certain sellers, a purchase with a reverse mortgage can be an option. Selling first before buying is the most optimal for sellers, but if you can't, you want to make sure that finding a new property is a #contingency in the contract with the buyer.
Buyers who are willing to accept a property that needs some work that fits in their budget may actually be able to find the right home. Some of those properties have been sitting on the market for a while longer and without the fierce competition of multiple bids. And feel free to use the property search tool on the site below.
For more market information about your area of interest, please contact me via phone, text or email.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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Buyers Feeling Squeezed in This Market, or "What is an Escalation Clause"?
May 20, 2021 02:19 pm | Long Beach/Southern California Real Estate
With multiple offers, lowered inventory, and 15 minute showings, buyers have been under considerable competition and pressure so far in 2021. In order to "weed out" the offers, sellers have been making certain requests, or buyers with several times losing out experiences have voluntarily been relinquishing their standard contingencies. How? By upping their offer price (even $100,000 over list price), shortening physical inspection time periods (i.e., 17 day to 10 days, or less), removing appraisal contingencies (putting their deposit at risk if they back out over a low appraisal), as examples. Another form of competition is an "escalation clause". This is where the buyer offers, or the seller counter offers, to automatically increase the price by a certain amount, say $1,000, over any other offer. Of course, without any other language added, the buyer could be forced into paying $1,000 over another bidder offering $50,000 over list price--can the buyer really afford that? Well, what if the buyer puts in a "not to exceed" a certain price? But now the seller know that buyer's maximum bid, and could use it as leverage to obtain higher amounts from other buyers. If the buyer offers a "floor price" or $1,000 over the highest offer, the buyer may end up paying a higher price if no other offer matches the buyer's floor price. To not blindly make offers using one of the above methods, the buyer should include language in their offer or counter offer that "the buyer receive a copy of the highest offer (upon acceptance) and that the buyer has a right to contact that other buyer or their agent to verify that they made a bona fide offer," or words to that effect.
But California Association of Realtors cautions buyers about making offers with escalation clauses, stating that the enforceability of such offers is not 100% assured, and the buyer is advised to obtain legal advice prior to making such an offer.
For a the complete Guide, please contact me by phone or email.
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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