Who are we to believe these days? Some pundits say the market is in the tank; while the government is trying to convince us that we have seen the bottom and are climbing back. Well maybe the market is neither spiraling out of control nor has it bottomed out. Consider for the moment these housing statistics generated by Altos Research who tracks all California housing activity as well as selected cities throughout the Country.
Long Beach statistics as of November 22, 2009:
Median Single Family Home Price: $387,623
Market Action Index: 20.32 (denotes a buyer's market)
Average Days on Market: 169 days
Median Price Per Sq.Ft.: $279/sq.ft.
Housing Inventory: 986 properties on the market
These numbers would be meaningless unless you plot the trends. Median prices in Long Beach have steadly increased since March, 2009 (from a low of $330,000 median price). Currently the trend lines are flat which suggests that prices are leveling out at this moment (consider inventory levels and selling season being the holidays). The Market Action Index illustrates the balance between supply and demand - the closer the number goes over 30 suggests a seller's market. After rising dramatically in July, 2009 the number is decreasing slightly over the past thirty days. Average days on market is currently trending down - meaning it is taking less time to market and close transactions. Inventory levels are slightly moving upward over the past couple of weeks.
In summary the market seems to be taking a time out after a late summer of increased activity. This is consistent to the time of year. If you are considering buying or selling, consider me as your realtor of choice. Let me know how I can be of service to you by either contacting me via email at jim@peys.net or visit us at www.coastalcommunityhomes.com. Thank you!! Jim Peys
Sunday, November 22, 2009
MYSOCALTV MEDIA PLATFORM …
I have been on the road helping local Long Beach businesses create video content about their business and the markets they serve. The Long Beach Business Professionals Association which consists of approximately seventy (70) local businesses are helping create a media platform that will eventually consist of hundreds of channels. Each channel will serve a micro-market or niche consisting of communities that are formed based upon interests, geographic locations, businesses, community services, etc. Each separate channel (envision a TV channels on your cable box) will consist of videos, written blogs, and audio content that delivers relevant, timely, and quality information, news, entertainment and other material. The goal is to serve the needs of people who participate in our online communities via these channels. The media platform members will be encouraged to add content relevant to their channel (or niche) and ultimately enable conversations within the channel.
This media platform will be an ongoing project over the several few months. A work in process is turning into an interesting project because it affords me the opportunity to interview different residents, businesses and communities in the Long Beach area. So be on the watch for “MySoCalTv” which will be the media platform consisting of hundreds of interesting channels. Our goal is to serve the needs of the Long Beach area by delivering relevant, timely and informative news, entertainment, opportunities and community announcements to our members. This media platform will be FREE to our members.
So if you are interested in providing quality content about a niche community within the Long Beach, California area please contact me at jim@peys.net. We are actively looking for video, written and audio content that will deliver content to your community. I hope to hear from you! Additionally, I am interested in your feedback, insights and comments.
In the meantime, if I can be of service to you (or any of your friends) regarding your real estate needs, please feel free to contact via email (jim@peys.net) or visit us at www.coastalcommunityhomes.com. I would love to be of service to you or someone you know!! Jim Peys
Monday, November 9, 2009
WHERE IS THE REAL ESTATE MARKET HEADED …
Many people ask where is the real estate market headed, and have we bottomed out? If you bother tracking national news outlets they are divided as to the real estate market’s direction. Some are predicting that real estate is driving a slight national economic recovery; meanwhile other people are blogging about another reality. Who are we to believe? Unfortunately I don’t have a crystal ball, but based upon the insights of a few sources and a look at the local MLS statistics a few trends are noticeable. What we don’t know is if these trends are sustainable, and if so, for how long will these trends or factors impact the direction of the market.
A few factors to watch include the status of foreclosures (why … because a flood of foreclosures on the market tend to pull the market prices downward); Federal stimulus package changes (whether these policies really benefit the broader market is arguable; however the perception of these changes does cause market shifts); unemployment rates (locally and nationally will affect people’s ability to purchase and keep their homes); and longer term mortgage interest rates.
Before you can plot future trends you might want to understand where the market is currently. The following are a few relevant residential market data points on Long Beach (source – So.Cal MLS). The snap-shot (time period) for this information is taken between October 1st through November 5th:
Number of closed transactions: 220
Number of pending transactions: 143
Number of active listings: 528
Average days on market: 61
Inventory (measured in months): 8.65
Foreclosures (set for auction): 99
What do these numbers suggest? Typically when the inventory turn-over is less than 10 months that evidences a low inventory of product on the market, and a seller’s market. I would hardly call this a seller’s market; however the low inventory has helped stabilize the market and the price free fall that has occurred since 2007. If inventory continues to be tight and if interest rates continue to be low along with the buyer’s incentive through April 30th ($8,000) then we might see prices level out or even rise in a few micro-markets. This runs contrary to recent reports predicting a ten percent (10%) erosion in prices in 2010.
What are the key indicators to watch over the next six months that will affect the real estate market? A large influx of foreclosures and short sales on the market. This will drag prices downward. The other two major drivers will be national and regional unemployment rates – high unemployment will jeopardize people’s ability to afford mortgages; and thus create more mortgage defaults. The last market driver will be the status of interest rates. There are rumors that the Feds will raise interest rates to prevent inflationary fears in 2010. Although, interest rates probably will stay at historic lows, don’t be surprised if rates go higher after the first of the year.
The best advice I have read lately recommends that investors and buyers pay attention to local market fundamentals AND to continue looking for ‘real value’ not ‘perceived value’ or hype. And as always, real estate is all about location, location, location and price. So if you or someone you know is considering buying or selling real estate in the next 30-60-90 days, please contact me at jim@peys.net or just visit us at http://www.coastalcommunityhomes.com. I would love to be of service to you!! Jim Peys
Saturday, November 7, 2009
Another Perspective On Social Media
Everyone is trying to understand the role of social media. Is it real ... its role ... how do you monetize the media ... how does it add value in your business. Many successful realtors and business people are quick to dismiss it. My gut tells me that social media is more than a noisy platform for the curious but something real, tangible and is where we all will end up at the end of the day. This will be the medium from which businesses engage in a conversation with people ... they listen and glean what it is people want.
I am interested in your feedback. Let me know what you think. How does social media impact your real estate and investment choices? In between thinking about this question, check out this video by Gary Vaynerchuk. Food for thought ...
I tend to agree with Gary's perspective. Social media is the business of doing business by engaging in a conversation with our friends, prospects and clients. It is about being interested AND not just interesting. About listening to what other people want and need. Just a thought!
If you or anyone you know is thinking about buying or selling real estate, let me know. I would love to help you. In the meantime, thank you for your input and consideration. Jim Peys
I am interested in your feedback. Let me know what you think. How does social media impact your real estate and investment choices? In between thinking about this question, check out this video by Gary Vaynerchuk. Food for thought ...
I tend to agree with Gary's perspective. Social media is the business of doing business by engaging in a conversation with our friends, prospects and clients. It is about being interested AND not just interesting. About listening to what other people want and need. Just a thought!
If you or anyone you know is thinking about buying or selling real estate, let me know. I would love to help you. In the meantime, thank you for your input and consideration. Jim Peys
Wednesday, November 4, 2009
Real Estate Auctions ... Real Opportunity ...
Have you ever watched a real estate foreclosure auction? If you have attended a public real estate auction at the County you probably noticed a few (in Los Angeles) buyers with headsets walking between the 'criers' tracking several properties. They seem comfortable with both the process and the people involved - a true 'regular' comfortable in their surroundings.
Yesterday, I visited my second real estate auction company in Los Angeles. I was granted an in-depth look into a highly successful real estate investment company who specializes in ONLY foreclosure auction acquisitions. They have been doing the same 'drill' for over twenty-seven (27) years in Los Angeles County. They spend over a million dollars a day investing in auction properties in just Los Angeles County (tracking over 1,500 residential properties per day). In the current market they typically buy in excess of 80 auction properties (residential and commercial) a month.
I was invited into the 'inner-circle' by an executive of a large nation-wide Title Company. They are encouraging me to establish an investor network in the Long Beach and South Bay areas of Los Angeles County. The goal is to match investors with auction properties that are being purchased between 62-65 cents on the dollar (discounted up to 38% of current market values). After completing my due diligence and considering my background in foreclosures, investor acquisitions and REOs; I am impressed with their experience, systematic approach and detailed due diligence. They have built an incredible machine that involves over 200 employees tracking auction sales in four locations within Ventura and Los Angeles counties.
What is the opportunity for investors? Well we are initially assembling three investor partnerships (LLCs) with the goal to raise an initial million dollars over the next sixty days. This initial fund will invest in three residential properties in the Long Beach area with the goal to 'turn-over' this capital three times during the first year. The estimated proforma projects a net profit between $50,000 - $70,000 per property per investment cycle. We are looking to acquire the properties, resolve the tenant issues, rehab the properties, market and sell the properties within 130 days from recordation of the trustee's deed.
Is it a good deal ... well that depends upon your individual investment criteria and your risk temperament. We believe that partnering with this auction investment company significantly reduces our investment risk. The golden rule is that you lock in your profits on the acquisition; consequently, partnering with the right acquisition model and organization will greatly reduce our initial risk. They have the manpower, expertise, experience and systems in place to eliminate lots of the front-end risk (not all for sure). Next we plan on controlling the tenant negotiations, remodel and sales of the properties in-house. We have the construction crews, management, lending, escrow, transaction coordination, accounting, marketing and sales pieces in-house fully operational. Our brokerage company has over 230 licensed agents who specialize in the local Long Beach area. So can we eliminate all the risk - absolutely not; however, we like our plan! Does this represent a real good opportunity - I think so.
So if you are interested in hearing more about this incredible opportunity ... contact me at jim@peys.net. For additional information and insights into this and other real estate opportunities visit us at: www.coastalcommunityhomes.com. Otherwise, if I can be of service to you or your friends just let me know. Thanks. Jim Peys
Yesterday, I visited my second real estate auction company in Los Angeles. I was granted an in-depth look into a highly successful real estate investment company who specializes in ONLY foreclosure auction acquisitions. They have been doing the same 'drill' for over twenty-seven (27) years in Los Angeles County. They spend over a million dollars a day investing in auction properties in just Los Angeles County (tracking over 1,500 residential properties per day). In the current market they typically buy in excess of 80 auction properties (residential and commercial) a month.
I was invited into the 'inner-circle' by an executive of a large nation-wide Title Company. They are encouraging me to establish an investor network in the Long Beach and South Bay areas of Los Angeles County. The goal is to match investors with auction properties that are being purchased between 62-65 cents on the dollar (discounted up to 38% of current market values). After completing my due diligence and considering my background in foreclosures, investor acquisitions and REOs; I am impressed with their experience, systematic approach and detailed due diligence. They have built an incredible machine that involves over 200 employees tracking auction sales in four locations within Ventura and Los Angeles counties.
What is the opportunity for investors? Well we are initially assembling three investor partnerships (LLCs) with the goal to raise an initial million dollars over the next sixty days. This initial fund will invest in three residential properties in the Long Beach area with the goal to 'turn-over' this capital three times during the first year. The estimated proforma projects a net profit between $50,000 - $70,000 per property per investment cycle. We are looking to acquire the properties, resolve the tenant issues, rehab the properties, market and sell the properties within 130 days from recordation of the trustee's deed.
Is it a good deal ... well that depends upon your individual investment criteria and your risk temperament. We believe that partnering with this auction investment company significantly reduces our investment risk. The golden rule is that you lock in your profits on the acquisition; consequently, partnering with the right acquisition model and organization will greatly reduce our initial risk. They have the manpower, expertise, experience and systems in place to eliminate lots of the front-end risk (not all for sure). Next we plan on controlling the tenant negotiations, remodel and sales of the properties in-house. We have the construction crews, management, lending, escrow, transaction coordination, accounting, marketing and sales pieces in-house fully operational. Our brokerage company has over 230 licensed agents who specialize in the local Long Beach area. So can we eliminate all the risk - absolutely not; however, we like our plan! Does this represent a real good opportunity - I think so.
So if you are interested in hearing more about this incredible opportunity ... contact me at jim@peys.net. For additional information and insights into this and other real estate opportunities visit us at: www.coastalcommunityhomes.com. Otherwise, if I can be of service to you or your friends just let me know. Thanks. Jim Peys
Tuesday, November 3, 2009
Monday, November 2, 2009
The Opening Up Of The MLS ...
Hold on change is in the air ... Inman news reports that the FTC has ordered a Detroit MLS to open up its policies and allow greater access. The FTC has concluded that the MLS web site policy and related requirements impose a "significant impediment" to consumer access to listings represented by limited-service brokers. The Internet is nipping at the edges of how traditional realtors market their service and create value. An industry that grew up "hording" information and making a living by being "gate-keepers" is changing at neck break speed caused by the evolution of the Internet, social media and the demands of the market place.
The real value of a realtor will be measured by how effectively they interpret the massive amounts of property data; define the needs of their customers; and create an environment whereby sellers can engage with qualified and motivated buyers. This is a dramatic shift for realtors who historically created the market for property owners and manipulated price fluctuations behind the scenes. The next few years will be interesting by how quickly and professionally the industry and individual realtors adapt to these market pressures. Stay tuned!!
If you are looking for a realtor who understands the demands of this market place, or you just have questions and want to explore your options, then email Jim Peys at jim@peys.net. Let me know how I can be of service to you or a friend! For additional information and an array of free real estate tools visit http://www.coastalcommunityhomes.com. Thank you!!
The real value of a realtor will be measured by how effectively they interpret the massive amounts of property data; define the needs of their customers; and create an environment whereby sellers can engage with qualified and motivated buyers. This is a dramatic shift for realtors who historically created the market for property owners and manipulated price fluctuations behind the scenes. The next few years will be interesting by how quickly and professionally the industry and individual realtors adapt to these market pressures. Stay tuned!!
If you are looking for a realtor who understands the demands of this market place, or you just have questions and want to explore your options, then email Jim Peys at jim@peys.net. Let me know how I can be of service to you or a friend! For additional information and an array of free real estate tools visit http://www.coastalcommunityhomes.com. Thank you!!
Subscribe to:
Posts (Atom)
Posts
