It’s that time again, the most wonderful time of the year! Are you ready to party like it’s 2019? And ring out this decade and go into 2020?
Well, first, it’s the time to give Thanks, as we are reminded to do as we approach Thanksgiving. Thank you, readers, for being a part of my newsletter about Long Beach and Southern California Real Estate. Thank you to those who have attended my seminars this year on estate planning, tax planning, real estate investing, building ADUs and other exciting topics that I hope you have found useful information in. And last but not least, thank you to my clients who have trusted me with the purchase of their home or the sale of their home. I hope I have earned your continued trust by doing a great job for you!
So as we approach year end, I’d like to share with you a market update.
The real estate market has indeed been an interesting one this year. A year ago, end of 2018, the real estate market had significantly slowed and was showing signs of putting on the brakes, with interest rates going above 5% for residential mortgages. In contrast, this year end has much lower interest rates, which started their downward decline in March of this year and has stayed low, causing much buyer interest and activity in our market, and markets across the U.S.
So at the end of this November, what we are seeing in the Southern California residential real estate market is again low inventory levels of homes, and increased buying activity. Especially in the entry level end, where first time home buyers are buying condos and houses to get out of the renting cycle, or condo owners are selling their condos in order to buy a single family home.
The other trend we are seeing is the sale of single family homes by homeowners wishing to move out of state. The last few houses I sold were owned by homeowners making the move to Texas, Colorado, Oregon, Idaho, and Nevada.
Single family homes are also being sold by families whose parents moving to assisted living and retirement facilities better able to provide for changing needs.
In conclusion, we go into the holiday season this year with an abundance of real estate activity happening in the area, when most people believe no one is moving. Nothing could be further from the truth! Especially here in Los Angeles and Orange Counties, where the sun is shining throughout the months of November and December, people are definitely looking at homes and considering their next move so they can be in the right home to start off 2020.
Here are a few numbers for you to take a look at what is going on in our marketplace in Long Beach, California:
In the city of Long Beach:
There are now currently 473 active residential properties for sale.
Of these, 228 are listed for $650,000 or more. 245 are listed for under $650,000.
In the past 30 days, 257 went under contract/became a pending sale.
Of these, 96 were at or above $650,000, 161 were priced below $650,000.
In the past 30 days, 243 homes closed escrow.
Of these, 100 were at or above $650,000, 143 were priced below $650,000.
In conclusion – we have 1.8 months of inventory on the market – very tight market – a seller’s market, and at the under $650,000 price point, we actually have only 1.5 months of inventory. At $650,000 and above, we have 2.4 months of inventory. If you look at even higher price points, such as over $1,000,000 price point, we actually have 4 months of inventory (86 active homes for sale, 22 under contract/pending the last 30 days).
Keeping on top of the market stats in our area tells me that the hot spots are homes priced under $650,000. This is my specialty! If you have a condo, house, or townhome that you are looking to sell, I have a proven plan to get you the most money available in this hot market. Call me today.
And if you are a buyer, take advantage of the miriad of distractions happening in the next few weeks that are distracting your competition – other buyers – and snag a great home that you’ve been having your eye on! I’ll show you how.
Have a happy holiday season, everyone! I’ll be here and working through the holidays, so please do not hesitate to give me a call for any questions or specific needs.