tag:blogger.com,1999:blog-5140004705538204727.post4351068821244008023..comments2023-12-16T04:08:06.419-08:00Comments on Real Estate in the LBC: Too Good to be True?el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5140004705538204727.post-9279233126971909282009-07-27T16:56:28.570-07:002009-07-27T16:56:28.570-07:00el bee, I think you are correct that a large perce...el bee, I think you are correct that a large percentage of recent conversions will revert to rentals (not just in LB but thru-out SoCal). Many of the recent conversions were halfassed attempts to gussy up ordinary apartment buildings (hardwood floors, new kitchens, crown molding, fresh paint and not a whole lot else). In addition, a large percentage of condos are already rentals (this has been true for decades). <br /><br />Suburban condos/apartments in east LB (like this one) have been well occupied for the last 10-12 years, and I expect they'll be well occupied again after a couple of years of adjustment. <br /><br />What I can't figure out is the downtown LB condos. That area was poorly occupied prior to the speculative boom, and I don't know what sort of tenants the recent developers were going after. Maybe it worked as a value play if east LB condos were going for $400K +. But if east LB condos are going for $200K, I'd guess a lot of the downtown condo developments are economic disasters, either for the developer or the buyer, depending on how far along they are.Oldtimerhttps://www.blogger.com/profile/06149644650543356416noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-9720214342396536112009-07-27T12:30:06.179-07:002009-07-27T12:30:06.179-07:00Oldtimer,
Great point about the non-nuclear famil...Oldtimer,<br /><br />Great point about the non-nuclear families. <br /><br />I agree that LB condos serve a good-sized niche. Maybe because the detached housing stock in Long Beach is so small/old, many don't look at condos as a "step down" from houses? Just a guess.<br /><br />My concern is the sheer number of condo conversions completed during the bubble. I'm sure plenty will convert to rentals, but it does seem like there is a lot of condo stock out there.el beehttps://www.blogger.com/profile/14187665973956068496noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-72326579364447676942009-07-27T12:19:50.844-07:002009-07-27T12:19:50.844-07:00Jen,
"Multiple offers also puts them in a po...Jen,<br /><br />"Multiple offers also puts them in a position to refuse escrow concessions like fixing damage, cleaning, and funding a home warranty plan (to name a few)."<br /><br />I never really thought about that. Very interesting.el beehttps://www.blogger.com/profile/14187665973956068496noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-21873974872591725952009-07-27T12:11:58.466-07:002009-07-27T12:11:58.466-07:00"is this a glimpse into the future of Long Be..."is this a glimpse into the future of Long Beach real estate, where spacious, top-floor, mildly-upgraded condos sell for the low-200s per square foot?"<br /><br />It could be, or it could be a stop-over on the way to normalized condo pricing in LB. I'd guess that you won't see prices drop to much less than mid-to-high $100s per foot (decent areas).<br /><br />Historically, condos were the entry-level purchase of choice for better neighborhoods. Nicer than surrounding apartments, and around 1/2 to 2/3 the cost of nearby homes. I know many former DINKs and high-income singles that bought condos as their first home. The old condo strategy was to pay down the mortgage, get modest appreciation, and build your equity nest-egg to trade into a single-family house when you were ready for a family. High-income singles would often rent out extra bedrooms to ease the mortgage or accelerate the amortization (I know several guys that did this - general experience was that it was a pain in the ass unless you got lucky with the roommate). <br /><br />I don't know of anyone who tried to raise a family in a condo (they're fairly sterile and anonymous), but with moms working longer and having kids later, and LB's decent amount of non-nuclear families (gays, lesbians, divorcees, etc.), condos continue to serve a sizable niche.Oldtimerhttps://www.blogger.com/profile/06149644650543356416noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-12836181752040190582009-07-27T11:14:35.366-07:002009-07-27T11:14:35.366-07:00Here comes the sun..... here comes the sun....
a...Here comes the sun..... here comes the sun....<br /><br />and I say, IT'S ALRIGHT! (cue music)Mike in LBCnoreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-32589724131695886932009-07-26T19:02:49.532-07:002009-07-26T19:02:49.532-07:00My Answer to Your Question: This is the future of ...My Answer to Your Question: This is the future of Long Beach Real Estate.Qualified to Represent...http://nowhere.bol.comnoreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-34010271626570804492009-07-26T14:25:40.481-07:002009-07-26T14:25:40.481-07:00Can it be? The beginning of the slide into the &qu...Can it be? The beginning of the slide into the "abyss"... or a we like to call it.. Realistic Home Prices....<br /><br />I won't be holding my breath.Carlhttps://www.blogger.com/profile/07595452272222717964noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-46113831705180915062009-07-26T10:47:23.108-07:002009-07-26T10:47:23.108-07:00I have seen the future and it is a unique shade of...I have seen the future and it is a unique shade of rational.<br /><br />YikesboyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-59095468905648771562009-07-26T08:51:23.506-07:002009-07-26T08:51:23.506-07:00I think you're right about it getting bid up--...I think you're right about it getting bid up--it looks like a classic bank effort to get a million offers and push up the listing price. Multiple offers also puts them in a position to refuse escrow concessions like fixing damage, cleaning, and funding a home warranty plan (to name a few). But even in that case, it's bad news for the $400K+ crowd (and the appliances even come with this unit!).<br /><br />But on the note of multiple offers, I still don't understand where this demand is coming from. Are there really that many DINKs and well-off singles looking to buy in Long Beach? While 1300 square feet would make raising a family in this place less hellish than in other available properties--it doesn't solve the bedroom problem. It seems to me that there's an oversupply of two-bedroom properties relative to the population of families that can reasonably expect to be served by two bedrooms for a while. And yet people are still overpaying for slightly desirable two-beds... it doesn't make any sense to me.Jennoreply@blogger.com