Despite low prices and bargain-basement interest rates, the recovery of the real estate market has been slow and somewhat spotty. Foreclosures throughout the state and in our local area remain high and many homeowners are upside down in their homes, owing more on their mortgages than their properties are worth.
The average price for single family homes went up a little last year in Long Beach. In 2010, the average sales price of a single family home was $417,670, compared to an average 2009 price of $393,063. Meanwhile, Long Beach condo prices are lagging. The average price Long Beach condos sold in 2010 was $229,612, compared to $259,846 in 2009.
In nearby Lakewood, the average price of a single family home went from $382,486 in 2009 to $396,015 last year; condos increased slightly, from an average 2009 price of $224,179 to $226,435 in 2010.
In Signal Hill, home prices showed a slight decline in 2010 – to an average sales price of $529,935, compared to $588,430 the previous year. Condo prices in Signal Hill went up slightly, to an average price of $315,301 from $294,711 in 2009.
What’s ahead for the coming year? It depends on who you ask. A recent article in the Los Angeles Times offered the following “expert” predictions:
- Richard Green, director of the USC Lusk Center for Real Estate, predicts that home prices will remain flat in California in 2011.
- Leslie Appleton-Young, chief economist for the California Association of Realtors, predicts prices will increase 2% in 2011.
- Bruce Norris, president of Norris Group in Riverside and a real estate investor, expects home prices to fall 5% in 2011.
- Emile Haddad, chief executive of FivePoint Communities Inc., expects home prices to “stabilize” in the coming year.
- Christopher Thornberg, founding principal of Beacon Economics and a former senior economist for the UCLA Anderson Forecast, predicts home prices will remain flat in 2011.
While most of the experts don’t anticipate major changes to property prices, interest rates are expected to increase, meaning that those people who’ve been waiting on the sidelines for the market to shift may want to consider making a move this year.
If you or someone you know is thinking about making a move in 2011, please call us now at 562-896-2456 so we can discuss timing and help formulate a strategy to best meet your needs.