What Could the Potential Loss of Insurance Mean for a California Home Transaction?

Long Beach/Southern California Real Estate • June 1, 2023

It's not news that premiums have increased and that areas of wild fires have seen a pullback from insurance companies. The refusal by insurance companies is not just in climate zones, many  types of properties are now affected, including areas that are low risk of fire and flood.

If you're a buyer or seller and currently in a transaction, be aware that the buyer contingency in a standard California Association of Realtors contract allows for investigation of the property, including insurance issues that may prevent coverage.  This is very important that the buyer understand their contracts, and follow up completely on insurance coverage.  Under standard timelines, the buyer contingencies are removed assuming the buyer is satisfied with various areas of investigation. However, since lenders offering a mortgage want to see proof of insurance coverage prior to close of escrow, buyers are strongly advised to obtain an insurance binder or evidence of commitment to insurance coverage as soon as possible in the escrow period (the 1st day it opens), and not remove their buyer contingency until they know they will have insurance policy on that property. Otherwise, they may risk losing their buyer deposit under the terms of their contact with the seller.

Homeowner associations are seeing increases in their master policy premiums, changes in coverage limits, or a refusal to renew policies.  If an HOA master policy isn't renewed, then the mortgages of the condominiums owners are also at risk, since lenders want proof of that policy coverage for the common areas. Or, in the case of some associations, the increase in premium may be so huge it causes a special assessment: one HOA reported in the San Diego Union Tribune ended up with an $8,000 per unit cost for master policy insurance coverage.

If you're a homeowner with current coverage, do not let it lapse, because it may not be renewed.  The California Fair Plan may be an option for some residents and businesses; it protects the home for fire risk and will satisfy a mortgage company's insurance requirement, but it does not cover theft, flood, earthquake, hail, vandalism or personal liability (only special earthquake policy provides coverage for that). 

Insurance brokers are reporting challenging coverage searches for their clients, and are not always successful.  The one area of insurance so far not reporting a problem is renters insurance, which does not cover fire risk.  

If you are not currently represented by a Realtor in a transaction and are interested in finding out what the buyer contingencies are in a purchase transaction, please contact me via phone, text or email.

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

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New California Law Grants Foreclosure Extensions of Time When Listing and Selling a Property

By Long Beach/Southern California Real Estate • December 9, 2024
Back in September, 2024, the Governor signed a bill which would prohibit a foreclosure sale for another 45 days after a listing agreement is signed, and also prohibit a foreclosure for another 45 days after a purchase agreement with a buyer is executed. This is stating the issue simply, and as stated already, certain other guidelines must be followed. Several things must be done by the mortgage servicer, including:

Do You Have a Retirement Account?

By Long Beach/Southern California Real Estate • December 4, 2024

What Are Reasons to Buy, No Matter Whether Interest Rates are Unpredictable?

By Long Beach/Southern California Real Estate • December 2, 2024
View towards San Pedro One of my most popular posts was on the cost of waiting to buy, posted several years ago. And it's still an important reason to make a move -- Renting vs. Buying. Waiting for better interest rates can result in long term higher costs. Renting has zero equity growth and offers no tax benefits of homeownership.It's important to watch the shifts in the local market, and stay ahead of the changes, not behind them where you're playing catch-up.There's been talk of when the interest rates will drop -- but look at the local market--in spite of interest rates dropping and then rising again, the local single family market and condo market has still risen when comparing October 2023 to October 2024.  The demand is still strong, and that's helping the overall upward surge in prices. Here's a scenario from my post back in 2009, you can substitute in current asking prices and slightly higher interest rate, but the point is still the same:Let's make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 to go down 5% to $237,500, and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $79 per month. If you're a first time buyer (meaning you haven't owned property in the last years), look into the buyer programs offered through various banks.If you're holding back because you think interest rates will drop again, or again, just think about how you could be gaining equity, and saving on  tax deductions.  Not every home that's come on the market is selling, and reasons vary, but think again about your goals towards homeownership. Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What To Expect From Your REALTOR® if You're Buying or Selling An HOA Property

By Long Beach/Southern California Real Estate • November 20, 2024

Los Angeles Area Cost vs Value for 2024 Remodeling Jobs

By Long Beach/Southern California Real Estate • November 6, 2024

Long Beach Real Estate Market, October 2024

By Long Beach/Southern California Real Estate • November 5, 2024
Long Beach Sales October 2024 In October, the average sales price of a single family increased by 1.1% since one year ago, to $1,089,651.The median SFR price for October was $940,000, an increase of 4.2% from one year ago.For condos, both the median and average prices also increased, by 1.5% and 1.6% respectively, $559,000 and $619,000 respectively.  The inventory of homes for sale increased also, an encouraging sign for buyers, by 3.1%, but at a total of 270 homes for the entire city, that's not such a very large number compared to other cities in some states. Note the small print at the bottom, that the sales price showing does not account for down payment assistance or seller concessions.  Many people may not know this, but seller concessions, i.e., repairs, seller contribution to buyer costs, are noted in the MLS separately when the property closes.  So an appraiser notes these concessions and subtracts that figure for the net amount of the sale price of the property.  And, broker compensation has always been calculated into final sales figures, so knowing that amount is of significance to all parties as well.In the coming 2025 year, increased inventory, lower interest rates and a strong economy will create a more viable real estate market.  Supply and demand are always the key driving factors, so greater supply helps both buyers and sellers.If you would like to know your home value, even if you're not sure about selling, but perhaps for insurance purposes, or any other reason, just  contact me or use the property search on my website to review the market in your area.  Go to https://www.abodes.realestate/mls-property-searchJulia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

September Sales Data Graphic for Long Beach California

By Long Beach/Southern California Real Estate • October 21, 2024
 Seller Guide GraphicSeptember 2024 sales data in Long Beach California shows a climbing 3 year price trend using price per square foot for single family homes, an increasing number of days on the market and more homes selling under list price as over list price. Properties on the market longer than 5 weeks amounted to 65% of the listings. Price per square foot is more commonly used in commercial listings, but here it's an additional way of showing the overall price increase in single family homes.The average price of a single family home in Long Beach in September was $1,105,665 the condo average was $571,828.Yes, there are homes lower than $1,000,000, and it's even possible to use FHA financing (3.5% down payment) in the higher brackets. Please contact me if you are interested in finding out more! Or go to my website below to use the property search which has the latest information from the MLS. Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Are You Voting on California Ballot? You Should.

By Long Beach/Southern California Real Estate • October 15, 2024

New California State Law Requires Buyer Broker Agreement as of January 1, 2025.

By Long Beach/Southern California Real Estate • October 3, 2024

CALIFORNIA ASSOCIATION OF REALTORS Market Forecast for 2025

By Long Beach/Southern California Real Estate • September 27, 2024
Summary of Yearly Housing Sale DataThe annual report by the REALTOR trade group was publicly reviewed last Wednesday at the Long Beach meeting at the Convention Center by CAR economist Jordan Levine. What do people want to know first? How much more will houses cost next year.Here are 3 main points from the CAR economist report for 2025:Existing, single-family home sales are forecast to total 304,400 units in 2025, an increase of 10.5 percent from 2024’s projected pace of 275,400. California’s median home price is forecast to climb 4.6 percent to $909,400 in 2025, following a projected 6.8 percent increase to $869,500 in 2024 from 2023’s $814,000. Housing affordability* is expected to remain stable at 16 percent next year after slipping to a projected 16 percent in 2024 from 17 percent in 2023.There's much more to this 2025 annual report, which can be shared on request.If you would like to discuss your home value, please feel free to contact me for conversation.  Or, try out this automated home valuation program which will also send you email updatesJulia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996
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