What Did You See in 2013?

Today I wanted to give you a recap of 2013 in the Long Beach market and what we can expect moving forward into 2014. 2013 began as a buyer’s market due to the cushion of inventory that was being addressed by investors. Shortly after the first quarter, we had a lot of hedge funds coming primarily into the Blackstone and began to scoop some of the short sales and R.E.O.’s. After this, the market transitioned to favor the sellers and by mid-summer, it felt like it was 2006 again. It was quite common to see multiple offers, homes that were selling prior to listing, removal of all contingencies and non-refundable deposits. As we moved into fall, the market still favored sellers as inventory remained low.

Interest rates started out historically low again and by summertime, we saw them bump up. The rise in interest rates and low inventory created a hold in the market; it seemed that buyers didn’t know what to expect and that brought the market to a screeching halt. This hold felt very similar to when the tax credits expired in 2011, although fall showed the market pick up in the sub-$500,000 market.

I believe 2014 will start out very similar to the fourth quarter of 2014. Inventory is still down and I do expect interest rates to rise and this will keep the market quiet. Sellers will most likely hold off from putting their homes on the market until after the New Year and I don’t think we will see an influx of inventory in February; the market will remain steady and quiet.

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What Can You Do to Prepare Your Home for Sale?

Today I wanted to talk to you about preparing your home for sale in today’s market. First impressions are key; curb appeal is an important place to start because buyers judge a property within the first five seconds of pulling up. You want to make sure the grass is green, the yard is manicured and color is enticing the buyer to come into the home.

Also, decluttering is first and foremost the easiest to take care of in a short amount of time. You want to present countertop space, remove clutter in the corners and even hide things in the corner or the garage (preferably out of the house completely). Clutter only takes away from the bones and beauty of the house. If you have oversized furniture or the architectural design does not match the furniture, we have two professional stagers that arrange your house to maximize space and natural light.

Thanks for checking out my blog! For more information, give us a call at (562) 513-7845. Thanks and have a great day!

Long Beach Real Estate Market Update – December 2013

In the final month of this year’s fourth quarter, the Long Beach real estate market is experiencing yet another twist. After a strong seller-controlled marketplace where inventory was slim-pickings and buyers were eager to jump on still low interest rates, we are now starting to see a more balanced market.

Here in the midst of the 2013 holiday season, we are seeing yet another change in what has been one of the most interesting real estate years that we have had in quite some time. In fact, for the longest time our inventory levels remained at very low levels. Buyers had been scrambling to get into homes while sellers continued to enjoy being on top (a welcome change!).

Housing Inventory Increases Across Long Beach Marketplace
Lately things have turned and we are starting to see inventory levels increase again. Sellers that were once hesitant to put their home on the market back in 2007/2008 when the real estate outlook was dim are now re-entering the scene at a time when things seem more promising. These are the homeowners that were not in any dire need to get out of their properties yet had planned to sit on their homes until things eased up a bit. That time has come and we are seeing it show up with more sellers listing homes now despite the typical slow holiday season. A lot of these listings are sellers that were not willing to let the down market affect their financial stability five-seven years ago. The caveat to this, however, is that much of this inventory is coming in overpriced.

Prices Artificially Inflated Based on Summer Activity
One thing we’re seeing happening at the current time is many agents are advising sellers to price their homes higher than current market value. The strategy might be that agents are considering the trajectory of where the market is going however they are clearly ignoring where our market sits right now. The problem with that is that right now our prices have flat-lined and when you have a leveled out market with overpriced listings you start seeing price reductions which is exactly what we are starting to see now. A stronger strategy is to price a home well and price it right the first time around. Depending on the motivation, a seller is better served by positioning the property within the marketplace to sell quickly without wasting time on those inevitable price reductions.

Interest Rates Rise; High-End Markets Slowing Down; Season Slow Down
In other news, we did see interest rates go up and down for a while there but they seem to have settled into a steady incline (yet slow enough for comfort). With the holidays around the corner most housing activity will slow down almost to a halt for many markets, particularly the higher end price points.

If you would like more information or an in-depth look at your neighborhood call us at your convenience 562.513.7845 or tour our website www.katogroup.com for a host of valuable information. We look forward to hearing from you!