What Homeowners in Long Beach Need to know About the Real Estate Market These Days

Unless you’ve been disconnected from social media or the news, homeowners in Long Beach and the surrounding areas are aware that the real estate market in Southern California is shifting…in a good way. 

We see the housing market is finally getting back to a more normal, healthy and balanced place.  The intense and somewhat chaotic seller’s market over the past few years seems to be in the rearview mirror and negotiation between sellers and buyers is on a more even playing field.

Here are the main 3 reasons why:

Inventory is Rising

     
As the number of homes coming to the market increase, the leverage home buyers are gaining grows stronger.  According to Realtor.com’s most recent data for Los Angeles County, the number of listings are up 3.3% from last year and homes are staying on the market longer.

Nationwide, we are seeing the number of homes for sale increasing to a more normal level.  This allows buyers more options and, in turn, more leverage. 

Inventory levels and growth do vary from neighborhood to neighborhood.  There are certainly neighborhoods in Long Beach, Los Angeles County, Orange County and Riverside County that still have very tight inventory.  In those areas, multiple offers are still the norm.

Pricing Your Home Correctly is More Important Now Than Ever Before

With a higher number of homes on the market, buyers are already showing the willingness to skip over homes they feel are overpriced.  So, in today’s real estate market, pricing your home to sell is the secret to selling quickly and for the most money.

Pricing a home just a little over market may result in backtracking or reducing your asking price to attract the ideal buyer(s).  In fact, data today suggests that 1 in 5 sellers are reducing their price more than once to get it into escrow. 

Adjusting the price of a listing is an indication that home sellers are still anchored to an initial home value that isn't realistic in today's shifting real estate marketplace.

Being Flexible Will Go Along Way These Days

Circumventing the normal course of the escrow process (sale of a property) has all but disappeared.  Waiving inspections, appraisal and/or loan or even tightening timelines in the majority of neighborhoods in Southern California is no longer required of home buyers in order to secure a property.  In this environment buyers are able to negotiate credits, help with closing costs and even repairs. 

Final Thoughts

I tell my clients that we are not in a "bad market", just a different one.  Today's Southern California real estate landscape requires sellers to come to the realization that buyers are gaining negotiation power. I let them know that negotiations are part of the process and that concessions are not losses. They are tools to help get the transaction across the finish line.