Latest / Own More Doors / #89 Long Beach Homes Are Selling Fast. Condos Aren't. Here's Why

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#89 Long Beach Homes Are Selling Fast. Condos Aren't. Here's Why · Own More Doors

• 0:00
  SPEAKER_01: The single family home market 1.5 million and below, it is wild.
• 0:04
  SPEAKER_01: I mean, selling like hotcakes, almost pandemic level.
• 0:06
  SPEAKER_00: How does that make sense when the interest rates are up?
• 0:10
  SPEAKER_00: Apartment buildings are telling one story, single family homes are telling another.
• 0:14
  SPEAKER_00: Today we're breaking down which market is actually winning.
• 0:17
  SPEAKER_00: Hey everyone, Juan Weezar with Own More Doords Podcast.
• 0:21
  SPEAKER_00: I'm super excited to have Tori Kerrick with the Anderson group sitting down with us today.
• 0:25
  SPEAKER_00: Tori and I have been able to work together for the last couple of years with various clients where it's the perfect fit.
• 0:32
  SPEAKER_00: And I've been wanting to have Tori come in because they are the largest, the number one single family home realtors brokers here in Long Beach.
• 0:40
  SPEAKER_00: They have the largest team, highest producing, and I've been wanting to pick his brain on how's the market doing.
• 0:47
  SPEAKER_00: Tori, thank you so much for being here.
• 0:49
  SPEAKER_01: My pleasure, Juan.
• 0:50
  SPEAKER_01: It's an absolute journey working with you.
• 0:53
  SPEAKER_01: You're awesome in every step of the way and uh glad to be on the podcast with you.
• 0:56
  SPEAKER_00: Awesome.
• 0:57
  SPEAKER_00: Tori, so listen, you know, in the world of commercial real estate, when someone says how's the market, you know, my actual response is like, uh, hey, are we talking about single family homes, industrial, medical office, office?
• 1:09
  SPEAKER_00: Uh, are we talking about self-storage as land development?
• 1:11
  SPEAKER_00: Like, what are we talking about?
• 1:13
  SPEAKER_00: And it's weird, Tori, because you know, when people think real estate, I think for the most part, people think single family home market.
• 1:19
  SPEAKER_00: And so today we're going to do like a deep dive.
• 1:22
  SPEAKER_00: Like, how is single family home sales in the city of Long Beach?
• 1:26
  SPEAKER_00: And we'll take it from wherever, where, hey, are sales up, are sales down, how's inventory?
• 1:31
  SPEAKER_00: Um, is it a seller's market?
• 1:32
  SPEAKER_00: Is it a buyer's market?
• 1:34
  SPEAKER_00: Any intel that you could give us, we'd appreciate.
• 1:36
  SPEAKER_00: And then yeah, we'll kind of bounce back and forth with that what with what you're seeing and what I'm seeing on uh whether it's at the four unit level or the five plus level.
• 1:44
  SPEAKER_01: Got it, got it.
• 1:45
  SPEAKER_01: Yeah, you know, we're asked the same sort of question.
• 1:47
  SPEAKER_01: How's the market?
• 1:48
  SPEAKER_01: And it really depends based upon which segment of the market you're in.
• 1:52
  SPEAKER_01: So I tell people all the time it's a it's a uh a very different market based upon the category.
• 1:58
  SPEAKER_01: So if you look at the single family home market, 1.5 million and below, it is wild.
• 2:04
  SPEAKER_01: I mean, selling like hotcakes, almost pandemic level.
• 2:06
  SPEAKER_01: Uh, you've got multiple offers, properties are selling in a week.
• 2:10
  SPEAKER_01: Uh, things are moving very, very quickly.
• 2:12
  SPEAKER_01: Uh, when you go into the real high-end uh in in Long Beach, uh inventory starts to stack up.
• 2:19
  SPEAKER_01: It's a little slower, it's harder to move those properties, things take longer.
• 2:23
  SPEAKER_00: Tori, uh, where does the real high-end number uh start for you guys?
• 2:29
  SPEAKER_01: Yeah, you know, it's it's interesting.
• 2:30
  SPEAKER_01: Long Beach is all over the place, right?
• 2:32
  SPEAKER_01: We've got uh own your own that are 200,000, and then we have, you know, waterfront homes that are 10 million.
• 2:37
  SPEAKER_01: I'd say that the real high-end Long Beach kind of separates itself, two and a half to three million is when things start to really kind of bleed out.
• 2:44
  SPEAKER_01: Under that, things, you know, are moving more quickly, especially in that category, like I said, one and a half million and below.
• 2:51
  SPEAKER_01: Uh, what's what's really interesting though is the condo market.
• 2:54
  SPEAKER_01: The condo market is uh very saturated, very slow, uh, very different story that we're seeing there.
• 3:00
  SPEAKER_01: And I think it's important to dive deeply into that space because a lot of first-time buyers are attracted to Long Beach, and a lot of first-time buyers focus on condos.
• 3:07
  SPEAKER_01: And uh we've got a large housing stock of condos in Long Beach, and it's a very different uh set of circumstances that are creating some market dynamics there that really allow buyers to have some leverage in that space where they don't have in the single family lower price markets.
• 3:23
  SPEAKER_00: So, in in the condo world, I get it that that might be the stepping stone for a lot of people because the affordability, because it's just more affordable.
• 3:31
  SPEAKER_00: But from what I'm seeing, there's a lot of complications with getting financing, and a lot has to do with hey, the building doesn't have enough reserves.
• 3:38
  SPEAKER_00: And Tori, I don't know about you, but I've not seen a building with enough reserves in the condominium, so I don't know where they exist.
• 3:44
  SPEAKER_00: Some of them don't qualify for FHA, most of them don't qualify for FHA, they don't qualify for VA.
• 3:49
  SPEAKER_00: And then, and then there's uh, you know, I'm seeing where where HOA's fees are going up.
• 3:54
  SPEAKER_00: I'm seeing where there's um special assessments because of the decks and all this stuff.
• 4:00
  SPEAKER_00: I mean, it's it's really difficult when you have a able, willing buyer who's ready to buy a condo, and really what's getting in the way, it's not so much them, it's it's the ability to get financing behind it.
• 4:10
  SPEAKER_01: Yeah, I mean, you're you're outlining the perfect storm that's creating the situation that's happening at condos right now.
• 4:15
  SPEAKER_01: Let me back up.
• 4:15
  SPEAKER_01: I think it's important to talk about uh months of supply.
• 4:19
  SPEAKER_01: And uh this is a very important element to understand for the different categories because it helps uh a would-be home buyer understand what kind of market that they're going into.
• 4:29
  SPEAKER_01: So uh the months of supply is essentially how long is it going to take to sell the available inventory that's on the market based upon current buying patterns.
• 4:39
  SPEAKER_01: And uh the output of that determines if it's a buyer's market, a seller's market, or a balanced market.
• 4:45
  SPEAKER_01: So, you know, a balanced market is five to six months of inventory.
• 4:49
  SPEAKER_01: Uh anything less than five months would be defined as a seller's market.
• 4:53
  SPEAKER_01: And anything six months plus is firmly in the category of being a buyer's market.
• 4:59
  SPEAKER_01: And so in the condo space right now, we're pushing six months of inventory across the Long Beach ecosystem.
• 5:06
  SPEAKER_01: If you dive deeply into specific zip codes like 90802 downtown, which is highly saturated with lots of condos, we're beyond the six months of inventory, which means based upon current buying patterns, it would take six full months to sell out all the available inventory if nothing else came to the market.
• 5:21
  SPEAKER_01: So when you look at that kind of data, it tells you who has the upper hand in the negotiation.
• 5:26
  SPEAKER_01: So everything that you just described a few minutes ago about what's going on with condos is why fewer of them are selling and while buyers have leverage.
• 5:35
  SPEAKER_01: So, you know, oftentimes we have buyers that that want condos for different reasons.
• 5:41
  SPEAKER_01: And uh we we educate them on the pitfalls, the downsides, the challenges, but we also talk about the upside, right?
• 5:48
  SPEAKER_01: And a big part of it is this leverage.
• 5:50
  SPEAKER_01: Um, there's one other piece I think that's important to share, and you mentioned this during your introduction: HOA dues.
• 5:56
  SPEAKER_01: You know, a lot of folks really want to keep those HOA dues low.
• 6:01
  SPEAKER_01: Uh, who doesn't want to pay less HOA dues?
• 6:03
  SPEAKER_01: But the conundrum is this the buildings with the lower HOA dues tend to be in the biggest of mess.
• 6:08
  SPEAKER_01: The building with the higher HOA dues tend to be in pretty good shape.
• 6:12
  SPEAKER_01: So again, you kind of have to make those trade-offs when you look at each individual building.
• 6:16
  SPEAKER_00: Tori, um, so you gave us a great example with the um with the condo market.
• 6:21
  SPEAKER_00: And can you do the same for the single family home market?
• 6:24
  SPEAKER_00: And you could break it apart if you're like, look, Juan, uh, a million and a half, you know, that it's different than to call it two and above.
• 6:30
  SPEAKER_00: But so that our listeners have an idea.
• 6:33
  SPEAKER_00: Well, how long, you know, like give us the same example for for what we would call single family homes.
• 6:39
  SPEAKER_01: Yeah, yeah, for sure.
• 6:40
  SPEAKER_01: Uh in the single family home market in Long Beach right now, one and a half and below, we're we're at about two and a half months of supply.
• 6:46
  SPEAKER_01: So firmly in a seller's market.
• 6:48
  SPEAKER_01: To give some contrast, during the pandemic, we're at about two weeks of supply.
• 6:52
  SPEAKER_01: So that just shows how crazy that market was and why it was just so wild.
• 6:56
  SPEAKER_01: Of course, that was driven by interest rates, right?
• 6:58
  SPEAKER_01: Interest rates were three or sub three.
• 7:00
  SPEAKER_01: And so that was fueling the market.
• 7:01
  SPEAKER_01: Things were flying off the shelves.
• 7:03
  SPEAKER_01: It's not that hot, but still, two and a half months of supply is really hot.
• 7:07
  SPEAKER_01: And so that's why in this market, in in single family homes, uh one and a half ish and below, you are seeing multiple offers.
• 7:14
  SPEAKER_01: You are seeing highest and best counteroffers.
• 7:16
  SPEAKER_01: You're seeing sellers have more of that leverage.
• 7:19
  SPEAKER_01: They're not doing many repairs, if any at all.
• 7:22
  SPEAKER_01: You know, they there are a stack of buyers that want their property.
• 7:25
  SPEAKER_01: And so if that buyer doesn't want it, they can move on to the next.
• 7:28
  SPEAKER_01: And so it's a very different set of circumstances.
• 7:31
  SPEAKER_01: Uh, if you compare and contrast the condos uh ecosystem that we just discussed versus that single family ecosystem.
• 7:38
  SPEAKER_00: Tori, for someone listening and saying, wow, so if you're if you're in a certain price range, it's still a seller's market and they're and they're trying to figure out, well, how does that make sense when interest rates are up?
• 7:49
  SPEAKER_00: And in the last month they've gone up even further.
• 7:52
  SPEAKER_00: How does that even make sense?
• 7:53
  SPEAKER_00: I mean, you would naturally think interest rates went up.
• 7:56
  SPEAKER_00: Uh, there has to be a little flexibility, but it doesn't seem like that's the case.
• 8:00
  SPEAKER_01: Yeah, you know, it's it's a question we get often.
• 8:03
  SPEAKER_01: And uh I I think one of the things I come back to is it is looser than it was previously, right?
• 8:09
  SPEAKER_01: We just said that we're about two and a half months of supply.
• 8:12
  SPEAKER_01: So there there is less uh uh of the squeeze, but the reason, the really the the core reason that's driving this is inventory.
• 8:22
  SPEAKER_01: There's just not enough houses for sale.
• 8:24
  SPEAKER_01: And so, yes, there are less buyers buying because of the interest rates and because of the prices.
• 8:29
  SPEAKER_01: And so you would think, oh, well, supply and demand, there's less buyers buying.
• 8:32
  SPEAKER_01: So of course there's gonna be uh, you know, lower prices.
• 8:35
  SPEAKER_01: It hasn't worked out that way because inventory has followed suit.
• 8:38
  SPEAKER_01: So we're having less sellers bring their property to market.
• 8:41
  SPEAKER_01: And so it's really kind of leveled itself out where you have a slightly less buyers in the market because of the interest rates, but you have slightly less sellers moving because you know, there's still people that are in their homes that think I don't want to move.
• 8:54
  SPEAKER_01: Uh, I'm locked into a really low interest rate.
• 8:57
  SPEAKER_01: When I look at the cost of moving with my acquisition cost plus my interest rate, maybe we should just add on, right?
• 9:03
  SPEAKER_01: And so they're staying put.
• 9:04
  SPEAKER_01: And so there's less inventory available, and that's keeping inventory tighter, which means that even though there's less buyers, things are still hot.
• 9:11
  SPEAKER_00: Okay.
• 9:12
  SPEAKER_00: Um in in my world working with investors, I hear a lot of um uh I'm fed up with California.
• 9:22
  SPEAKER_00: Um, I don't like the direction that it's going.
• 9:25
  SPEAKER_00: And you know, I it's just really difficult to be a housing provider, and there's every year it gets a lot more restrictive.
• 9:32
  SPEAKER_00: Um, and I'm gonna sell so that I could take my investment out of state.
• 9:37
  SPEAKER_00: So from the investment world, I hear, and I don't want to say that everyone is in that boat, but there's a large percentage of people who have that narrative, and and I kind of hear the same things um kind of over and over again.
• 9:47
  SPEAKER_00: So when they say it, I'm like, okay, I I know where they're coming from, and they're most likely gonna want to list their apartment building.
• 9:52
  SPEAKER_00: Do you do you guys see a lot of that happening or not as much?
• 9:56
  SPEAKER_01: Not not as much.
• 9:57
  SPEAKER_01: I mean, it it happens on occasion.
• 9:58
  SPEAKER_01: We get folks who who fall into the same camp, but there are more people who are attracted to Long Beach.
• 10:03
  SPEAKER_01: There's just a of such an inswell of people who they they love what Long Beach is.
• 10:09
  SPEAKER_01: They love the weather, the diversity, the the interesting places to walk and shop and coffee and bike, uh, the the beach.
• 10:17
  SPEAKER_01: You know, there's a lot of draw to this area.
• 10:19
  SPEAKER_01: And I think what's really been helpful for us also is our prices.
• 10:23
  SPEAKER_01: You know, when you look up and down the coast in California, Long Beach is and remains the most competitive or the most affordable uh um ocean city.
• 10:32
  SPEAKER_01: And so we just get a lot of people that want to be here.
• 10:35
  SPEAKER_01: And again, because there's such tight inventory, it keeps things really hot.
• 10:40
  SPEAKER_01: Um, although they're much uh less hot than maybe some other markets where prices have just gone through the roof.
• 10:46
  SPEAKER_01: So um, you know, I think we do see some of that, but there's such a draw to Long Beach that there's more people coming in than leaving.
• 10:53
  SPEAKER_00: And a and are they coming in from, say, like uh more expensive cities like Los Angeles and Santa Monica?
• 10:59
  SPEAKER_00: Are are we drawing from those areas or where would you say that they are coming in from?
• 11:02
  SPEAKER_01: You know, uh there was a lot of that during the pandemic.
• 11:05
  SPEAKER_01: When people were able to work from home, there was a lot of folks who found Long Beach because they were just fed up with other communities or they found it to be much more affordable.
• 11:13
  SPEAKER_01: You know, what what I'm seeing, we we we we service a lot of folks that are buying houses.
• 11:18
  SPEAKER_01: This year we'll probably do 250 transactions, and that's 250 people buying and selling real estate, right?
• 11:24
  SPEAKER_01: And in that, I'd say that that the number one driver for our business is first-time home buyers.
• 11:29
  SPEAKER_01: Uh, the Long Beach market tends to attract a lot of first-time homebuyers who um are coming here for all the reasons that I mentioned.
• 11:36
  SPEAKER_01: So they're they're younger, they they like everything that Long Beach represents, and they like the prices that Long Beach offers, and they are attracted to being here.
• 11:45
  SPEAKER_01: So even though we might be losing some folks that maybe, you know, have raised their kids here, they're empty nesters, they downsize, they move out of state.
• 11:52
  SPEAKER_01: There are so many young people and young families that are coming into this space that there's just more buyers than there are sellers.
• 12:00
  SPEAKER_00: You know, some of that um positive and excitement that you're talking about, like younger people coming into Long Beach, is what is what is driving the rental market.
• 12:10
  SPEAKER_00: And and then you have people that are like, you know what, I I grew up in, I don't know, like say Irvine.
• 12:16
  SPEAKER_00: And you know, I it's I want to be in a place that's more fun and eclectic and diverse.
• 12:20
  SPEAKER_00: And so then, and then we get this draw.
• 12:22
  SPEAKER_00: And then the other part that really helps uh Long Beach from a from like a rental standpoint is sometimes we'll get um a couple and then one person works in Los Angeles, the other person works in Orange County, and then it's always like because these are things like all the things you said are important drivers for for someone who's a housing provider and they have a four-unit building or an eight-unit building.
• 12:45
  SPEAKER_00: Um, is there still demand for it, which we know there is, but but it's good to know that there's a level of excitement bringing people in.
• 12:52
  SPEAKER_00: And yeah, proximity, affordability is still one of those things, but um, but those are all positive for the for for our city.
• 12:58
  SPEAKER_00: Great.
• 12:58
  SPEAKER_01: Yeah, I'm I I'm I'm happy to hear that there's some alignment there and it makes sense to me.
• 13:02
  SPEAKER_01: I wouldn't be surprised if a lot of your renters end up becoming our buyers.
• 13:06
  SPEAKER_00: I would hope that's the case.
• 13:08
  SPEAKER_00: Because sometimes I I feel like the rents are so high.
• 13:09
  SPEAKER_00: I'm like, why are people renting when they could have afford to buy?
• 13:13
  SPEAKER_01: We we look at that all the time with first-time buyers.
• 13:15
  SPEAKER_01: I mean, it's a it's a it's a very clear distinction.
• 13:17
  SPEAKER_01: You, you know, I it and I think a lot of folks who rent, it's it's a great place to come into the community that they want to live, but at some point they they determine that they want to plant roots and they also look at their circumstances and they say, gosh, you know, my rent's being raised month uh annually, or I can't do the things in the space that I want to do, and I've gotten a promotion, and it's time.
• 13:36
  SPEAKER_01: And so I it's a lot of what we do is just education with first-time buyers who are currently renters to say, well, let's look at what you're paying in rent.
• 13:42
  SPEAKER_01: Let's look at what that would translate to you in a in a mortgage and what kind of property you could afford.
• 13:47
  SPEAKER_01: And and again, back to this whole concept that a lot of first-time buyers are coming into condos in spite of all those challenges that we discussed.
• 13:52
  SPEAKER_01: They're coming into condos to get in the game, to build some equity, and then they move up beyond that.
• 13:58
  SPEAKER_00: You know, a a question that I'm that I'm sure you get a lot of is uh, hey, is investing in a condo a smart decision and and does it go up in value as a house would?
• 14:12
  SPEAKER_00: Because some people view it like it's like an inferior investment.
• 14:15
  SPEAKER_00: That's not the way that I see it, but like what's the response to that?
• 14:17
  SPEAKER_01: Yeah, it's a it's a very common question.
• 14:20
  SPEAKER_01: You know, my my response is that if you have the ability to purchase a single family instead of a condo, then that might be a more uh uh smart decision uh for for the reasons that you've mentioned.
• 14:31
  SPEAKER_01: But a big piece that I see a lot is especially with first-time buyers that want to get in the game, where they live is very important.
• 14:38
  SPEAKER_01: The community.
• 14:39
  SPEAKER_01: And uh a lot of people are attracted to Long Beach because they want white walkability, bikeability, they want access to these cool places that they can go eat and shop.
• 14:47
  SPEAKER_01: And, you know, in those communities, long uh condos tend to be the smartest option for them because they're the most that they can afford in in those uh neighborhoods.
• 14:57
  SPEAKER_01: And so, you know, I think it just goes to uh their desire, their their lifestyle, what's important to them.
• 15:04
  SPEAKER_01: You know, I I I would say uh it's important also look at the data.
• 15:08
  SPEAKER_01: So over the last year, even though we see a firm uh seller's market in Long Beach, and it's been trending that way more and more month upon month, uh still we've seen an increase in the median price for condos across the city of Long Beach year over year.
• 15:24
  SPEAKER_01: So in spite of the inventory climbing and buyers having some more of that leverage, we have not seen a decline in prices.
• 15:30
  SPEAKER_01: Now, this is citywide.
• 15:31
  SPEAKER_01: If you look in specific areas or zip codes, you might see things shift a little bit.
• 15:35
  SPEAKER_01: Uh, but by and large, it's one thing that I share with folks is in spite of this inventory, I think it all goes back to uh the good buildings in the great areas still trade for a higher amount.
• 15:47
  SPEAKER_01: I mean, people want to live in these neighborhoods, and condos tend to be a really good choice for buyers that want to be in those areas.
• 15:53
  SPEAKER_00: What is the median price for condos?
• 15:56
  SPEAKER_01: Uh we look at it every month.
• 15:58
  SPEAKER_01: Right now in the city of Long Beach, just under 600,000.
• 16:02
  SPEAKER_01: Single family home is uh 1.2, uh, which is wild to me because I remember it used to be like in the 700s.
• 16:09
  SPEAKER_01: Yeah.
• 16:10
  SPEAKER_00: Yeah.
• 16:11
  SPEAKER_01: So it's the single family home has certainly been on a strong escalation, especially post-COVID, uh, and they remain so hot, you know, for the reasons that you mentioned.
• 16:20
  SPEAKER_01: A lot of people want that security and stability of being in a home, controlling their entire destiny, not being tethered to an HOA, regulations around balconies and insurance.
• 16:30
  SPEAKER_01: I and I understand all that.
• 16:31
  SPEAKER_01: But again, I think we just have to look at the ecosystem and recognize a lot of people are attracted to Long Beach because they're younger and they like the things that Young Long Beach offers them.
• 16:40
  SPEAKER_01: And a lot of the coolest neighborhoods are filled with condos that are at a strikable price.
• 16:45
  SPEAKER_00: Tori, um, I know you guys offer a lot of workshops and meetups, and you know, you guys have them at cool restaurants and different things that I've seen.
• 16:53
  SPEAKER_00: Um, if you have a first-time home home buyer, do you do you guys ever say, hey, maybe we should look at a duplex and triplex or maybe even a fourplex, uh, thinking that, hey, once we factor in in the rents, uh, it might be less than even living in a condo.
• 17:10
  SPEAKER_00: Is that something you guys do as a as a company or is that a focus?
• 17:13
  SPEAKER_00: All the time.
• 17:14
  SPEAKER_01: All the time.
• 17:15
  SPEAKER_01: If if someone has the ability and the interest to build their wealth through real estate, this is such a smart move, as you know, right?
• 17:23
  SPEAKER_01: Because you can get the tenants to help pay that mortgage, and then you can also hang on to that asset and parlay it into your next move.
• 17:29
  SPEAKER_01: Uh, and so we're trying to stretch people's mindsets consistently.
• 17:32
  SPEAKER_01: I mean, one of the things that we often bring up is I know you're saying that you want to live by the beach, and these are the neighborhoods that are really important to you, but have you considered some of these other areas where you might be able to get units or you might be able to get the single-family home that you've been talking about?
• 17:47
  SPEAKER_01: And it we walk people through that journey to really explore the pros and cons of these different communities and and uh start expand their mindset.
• 17:56
  SPEAKER_01: I think sometimes people are so hyper-focused on a specific outcome, and a really great broker takes the time to expand their consciousness into areas that they hadn't otherwise considered.
• 18:05
  SPEAKER_01: So that way when they do make their their final decision, they feel like, okay, I've explored everything and this is the right one.
• 18:12
  SPEAKER_01: To me, there's nothing worse than a buyer getting into a space and thinking, wow, shoot, I don't know if that made sense.
• 18:18
  SPEAKER_01: I should have done something else.
• 18:19
  SPEAKER_01: Right.
• 18:20
  SPEAKER_01: Right.
• 18:20
  SPEAKER_01: I mean, there's no lemon law in in real estate.
• 18:22
  SPEAKER_01: You can't just like give your property back if you decide you don't like it.
• 18:25
  SPEAKER_01: And so it's it's an informed decision that should take consultation, reflection, exploration.
• 18:31
  SPEAKER_01: And that's what we're here for.
• 18:32
  SPEAKER_01: I mean, so much of this journey takes time.
• 18:35
  SPEAKER_01: And uh, I know that that's one of the things that we're really known for is guiding people through the process, holding their hand, never any pressure.
• 18:41
  SPEAKER_01: Like, let's explore all the things, including units.
• 18:43
  SPEAKER_01: And that's why I'm really grateful that we have a partnership because clearly all of your listeners know you are the guy and the company that run doors in Long Beach.
• 18:52
  SPEAKER_01: And so it's great when I can partner with you, as we've just done with uh the Epstein family to explore kind of what you know their first purchase might look like.
• 19:01
  SPEAKER_00: Right, right.
• 19:02
  SPEAKER_00: Um, Tori, how do you how do you handle the situation where I mean, everyone in the single family home market, in the apartment market, in the commercial market, it doesn't matter.
• 19:12
  SPEAKER_00: Everyone is waiting for interest rates to drop.
• 19:14
  SPEAKER_00: And then some people, some people on the selling side will say, I don't want to sell because it's probably not the best time to sell, or that there's a perception that that might be the case.
• 19:23
  SPEAKER_00: And then even on the buy side, I don't want to buy because I'm waiting for interest rates to get lower.
• 19:27
  SPEAKER_00: Like, how do you bridge that gap with with on the sell side, on the buy side?
• 19:32
  SPEAKER_01: You know, for me, it always goes back to the data, right?
• 19:35
  SPEAKER_01: So it's a very consistent question that we get from buyers sellers and also real estate agents on our team.
• 19:41
  SPEAKER_01: No, no one's buying, no one's selling.
• 19:43
  SPEAKER_01: You you know, all it takes is is a five-minute review of the data, and you see that there are a lot of people buying and a lot of people selling.
• 19:49
  SPEAKER_01: And so uh the the argument is completely false.
• 19:54
  SPEAKER_01: I I mean, people are always moving.
• 19:56
  SPEAKER_01: So on the seller side, life events occur, right?
• 19:59
  SPEAKER_01: People retire, people graduate, uh, folks' jobs get transferred, death occurs, babies.
• 20:05
  SPEAKER_01: I mean, all these things happen that that require folks to move.
• 20:09
  SPEAKER_01: And so there's always homes for sale.
• 20:11
  SPEAKER_01: To to address the point of, well, I'm just gonna wait for interest rates because we hear this a lot, especially with cost conscious first-time buyers.
• 20:17
  SPEAKER_01: I mean, a lot of our first-time buyers are looking at their monthly budget and they want to stretch it.
• 20:21
  SPEAKER_00: With savvy investors, we hear the same.
• 20:22
  SPEAKER_01: So I mean, this across the board.
• 20:24
  SPEAKER_01: Yes.
• 20:24
  SPEAKER_01: So, and I'm sure that your answer is the same as ours.
• 20:27
  SPEAKER_01: Let's look historically at the data at what happens when those interest rates drop and how prices bounce.
• 20:32
  SPEAKER_01: So, even though we might be waiting for those interest rates to drop because now our affordability can expand, now I can purchase a more expensive home.
• 20:41
  SPEAKER_01: Well, your purchasing power may not overcome the increased competition and the rise in prices.
• 20:47
  SPEAKER_01: So we've seen so consistently, and the most recent uh iteration was of course during COVID, when interest rates were so incredibly low, it's 10 offers, 15 offers, 20 offers, it's 50,000, 100,000,$200,000 above ask to get the house.
• 21:03
  SPEAKER_01: And so it really levels itself out.
• 21:05
  SPEAKER_01: Now, none of us have a crystal ball, of course, but we've got to believe that once this economy stabilizes, that we can come back to interest rates that that are in maybe the sub-five space for for or sub-six space rather for um single-family homes.
• 21:20
  SPEAKER_01: And maybe it makes sense right now to strike, get into your place, and if and when interest rates drop in the future, refi.
• 21:27
  SPEAKER_01: But there's less competition now, so why not take advantage of the moment instead of wait for rates to drop and now you're competing with a lot more people?
• 21:35
  SPEAKER_00: Tori, um, interest rates are different for uh for us on the commercial side.
• 21:40
  SPEAKER_00: Uh they're actually slightly lower, uh, only because they're short term.
• 21:44
  SPEAKER_00: What is the interest rate right now for someone looking to buy a condo single family home to live in?
• 21:49
  SPEAKER_01: Yeah, it's a it's a great question.
• 21:50
  SPEAKER_01: It's been moving quite a bit, certain certainly during this turmoil in Iran, uh bouncing all over the place.
• 21:55
  SPEAKER_01: But we're we're at about six and a half percent on average right now, and that's without any buy.
• 22:02
  SPEAKER_01: And I would say that the market's still moving really nicely at six and a half.
• 22:06
  SPEAKER_01: Once you eclipse seven, things really hit the brakes.
• 22:09
  SPEAKER_01: Psychologically, for a lot of buyers, once you get beyond the 7% rate, things really slow down.
• 22:14
  SPEAKER_01: We saw that post-pandemic when inflation was so high and and and the rates were pushed up.
• 22:20
  SPEAKER_01: Things really shut down, the number of sales and number of people moving.
• 22:23
  SPEAKER_01: But also interestingly, psychologically, as soon as you get under 6%, you know, five and three quarters, uh, the market catches fire.
• 22:31
  SPEAKER_01: So interesting.
• 22:32
  SPEAKER_01: We're at this really interesting place where the breaks aren't on the market, but it's also not super hot.
• 22:37
  SPEAKER_01: It's it's a steady stream of business.
• 22:39
  SPEAKER_01: Lots of people are buying and selling, but things are happening.
• 22:42
  SPEAKER_01: Um, but again, I think if you wait for those rates to come down in the in the fives, gosh, if we were lucky enough to get below the fives again, I mean it's gonna be bananas because again, we have an inventory issue.
• 22:55
  SPEAKER_00: There's not enough houses for sale.
• 22:57
  SPEAKER_00: When someone asks you, hey Tori, when do you think?
• 22:59
  SPEAKER_00: I know you don't have a crystal ball, no one does, but when like I don't know, Tori, like at the beginning of the year, I I thought by now we would have had a better interest rate.
• 23:07
  SPEAKER_00: So yeah, but that was just a gut feeling, or maybe it was just me like hoping, right?
• 23:11
  SPEAKER_00: But I I was kind of shocked when they went up.
• 23:13
  SPEAKER_00: What do you what are you expecting?
• 23:15
  SPEAKER_00: Or when you're, you know, you have a large team and they're coming to you for advice.
• 23:18
  SPEAKER_00: Like, Tori, what do we tell our clients?
• 23:20
  SPEAKER_00: Like, when will it improve?
• 23:21
  SPEAKER_00: Well, when I I go back to your example.
• 23:24
  SPEAKER_01: I mean, you you weren't you weren't just operating on gut.
• 23:26
  SPEAKER_01: Every economist was saying, I mean, economists who studied housing, the majority of them were saying this is gonna be the year.
• 23:33
  SPEAKER_01: If you looked at all the big national organizations that monitor real estate, they expected exponential growth in our industry because they anticipated a softening of those interest rates.
• 23:41
  SPEAKER_01: And then we've come into this global turmoil, right?
• 23:44
  SPEAKER_01: I mean, there's there's been these ongoing wars and our involvement in these wars and the impact on oil and inflation.
• 23:50
  SPEAKER_01: I mean, all these things are big drivers of interest rates.
• 23:52
  SPEAKER_01: And so none of us saw this coming.
• 23:54
  SPEAKER_01: And so the thing that I hang on to is that there has been this pent-up demand post-pandemic.
• 24:00
  SPEAKER_01: A lot of people bought and sold during the pandemic.
• 24:02
  SPEAKER_01: We stole a lot of future sales during the pandemic because there was so much occurring.
• 24:06
  SPEAKER_01: And, you know, people can only hang on so long in their current housing situation before they're fed up.
• 24:12
  SPEAKER_01: You know, they have another baby and all of a sudden that house is just feeling really small.
• 24:15
  SPEAKER_00: Yeah.
• 24:16
  SPEAKER_01: Or they get married and all of a sudden that condo living experience doesn't make sense if they're gonna have their first kid.
• 24:21
  SPEAKER_01: Uh, you know, life changes and evolves.
• 24:23
  SPEAKER_01: And I feel like beyond the interest rate, it's more about people's places in life and what's in inspiring them to get moved.
• 24:31
  SPEAKER_01: But I think coming full circle back to your question, when are things going to soften?
• 24:36
  SPEAKER_01: I think when we can just see some more stability in the financial markets.
• 24:40
  SPEAKER_01: I mean, I I'm certainly no expert, but the one thing I do know by watching them as I do is that I can't really make sense of it all.
• 24:48
  SPEAKER_01: It's like one day we're stable, the next day we're not.
• 24:51
  SPEAKER_01: And the financial markets do not like instability, and and we just need some stability to soften those rates.
• 24:58
  SPEAKER_01: But again, that's the conundrum.
• 25:00
  SPEAKER_01: Once the rates soften and drop, it's gonna be crazy.
• 25:05
  SPEAKER_00: We've had the benefit of um having all these um, you know, they're calling us Space Beach, and we have all of these companies we have never heard of, but they're but they're opening up here in Long Beach, they're bringing jobs, they're bringing capital, they're bringing resources, uh, which is terrific.
• 25:23
  SPEAKER_00: Um we had uh, you know, the SpaceX news a couple weeks ago and people, uh the people who got in early, you know, instant millionaires.
• 25:32
  SPEAKER_00: Are you are you seeing a big drive with with uh with SpaceX and all this stuff happening?
• 25:37
  SPEAKER_00: Is there are there more people coming because because the employ the employer moved here?
• 25:42
  SPEAKER_01: Yeah, it's a really good question.
• 25:44
  SPEAKER_01: I don't have any hard data on this, it's just more anecdotal.
• 25:46
  SPEAKER_01: People that we meet at open houses, people that approach us to buy property.
• 25:51
  SPEAKER_01: Uh, it feels like this is more of a thing.
• 25:53
  SPEAKER_01: So I I mean, I just met a couple uh about a month ago.
• 25:56
  SPEAKER_01: They're coming into SpaceX, 20 million bucks.
• 25:59
  SPEAKER_01: They that one of them worked there from the ground up and and is coming into like a big payday in August, and they're looking to buy a bay house.
• 26:06
  SPEAKER_01: Uh and so there's some new made millionaires who are gonna spend some money in Long Beach, which is pretty exciting.
• 26:11
  SPEAKER_01: And there's a lot of high-paying jobs that have come here.
• 26:14
  SPEAKER_01: Uh, you know, this is what we're we've all been told.
• 26:16
  SPEAKER_01: The only thing that I can track this to is if you look at the single family median home price and it's it's consistent, March.
• 26:23
  SPEAKER_01: You know, I this has got to be rooted in high-paying jobs because you look at a lot of these monthly payments on on these homes, it's a lot.
• 26:32
  SPEAKER_01: They're high.
• 26:33
  SPEAKER_01: They're a it's a lot.
• 26:35
  SPEAKER_00: I yeah, I got my house back in uh I'm gonna say 2000.
• 26:40
  SPEAKER_00: I whatever.
• 26:40
  SPEAKER_00: I've been there for 10 years, and and I I don't know that I would rebuy it with what it's worth now just because I'm like, thank God my payment's so small.
• 26:49
  SPEAKER_00: Now I get it.
• 26:50
  SPEAKER_00: Now, Tori, when I bought that, I was scared and I wonder, and I and and to myself, I didn't tell my wife this.
• 26:56
  SPEAKER_00: I hope I could afford this new mortgage.
• 26:58
  SPEAKER_00: Because it was scary, right?
• 26:59
  SPEAKER_00: Because it's always scary, no matter how many times you've done it, it's just still a scary thing.
• 27:02
  SPEAKER_00: Yeah, but now you fast forward 10 years and it's like, oh my gosh, I can't believe how low my mortgage is.
• 27:07
  SPEAKER_01: Yeah, yeah.
• 27:07
  SPEAKER_01: You know, and I none of us have the crystal ball, but I I I read something recently that I just hung on to.
• 27:13
  SPEAKER_01: Life is short by the house, right?
• 27:14
  SPEAKER_01: It's like we're all waiting for the perfect time, but you never know when the perfect time is until you look in the rearview mirror.
• 27:19
  SPEAKER_01: Yeah, and you, you know, with with this really beautiful market that we're in in Long Beach, it's there's so much going for it.
• 27:25
  SPEAKER_01: You know, yeah, it's got its challenges for sure, but if you believe in the future and the hope and the promise of the city, I I feel like it's a great time to get in.
• 27:33
  SPEAKER_01: And it's gonna feel like a stretch and it's gonna feel scary, but uh take the bite, right?
• 27:39
  SPEAKER_01: And and the other thing that I think is really important is you know, just just getting in the game.
• 27:45
  SPEAKER_01: Yep.
• 27:46
  SPEAKER_01: Like it, it's there's so many folks sitting on the sign sideline saying, I wish I would have got in on this date.
• 27:51
  SPEAKER_01: Like this would have made sense for me then.
• 27:53
  SPEAKER_01: But guess what?
• 27:54
  SPEAKER_01: I believe that 10 years from now, they'll be saying the same thing about right now.
• 27:58
  SPEAKER_01: Correct.
• 27:58
  SPEAKER_01: Yes, they will be.
• 28:00
  SPEAKER_01: So I I feel like that's the consistent theme with real estate is you just have to get in the game.
• 28:04
  SPEAKER_01: So back to this whole condo thing.
• 28:05
  SPEAKER_01: It's like our condos ideal?
• 28:06
  SPEAKER_01: Maybe, maybe not, but just get in the game.
• 28:08
  SPEAKER_00: Yeah.
• 28:09
  SPEAKER_00: Control and appreciating asset, uh, something that is scarce.
• 28:13
  SPEAKER_00: And whether it's a condo, a house, a duplex, your your first investment property, all of it is going to make sense, especially here in Long Beach, here in Southern California.
• 28:22
  SPEAKER_01: Yeah, yeah.
• 28:22
  SPEAKER_01: I mean, they're not building property all around us, there's no land to do so.
• 28:28
  SPEAKER_01: And so simple all of us have taken an economics class in high school, like the most basic economics lesson, right?
• 28:34
  SPEAKER_01: Supply and demand.
• 28:36
  SPEAKER_01: There's not enough housing to support the supply that exists.
• 28:39
  SPEAKER_01: And so why not get in on that?
• 28:42
  SPEAKER_00: Tori, um, I'm gonna give you the final word.
• 28:46
  SPEAKER_00: Um, I do want you to let us know.
• 28:48
  SPEAKER_00: Um, like if if if you're listening, you're looking to buy a home, uh Tori, Tori and the Anderson group is the company to go with.
• 28:56
  SPEAKER_00: I mean, I've I've had the opportunity to go on listing appointments, uh, do transactions, and work alongside Tori and the team, and they're tremendous.
• 29:03
  SPEAKER_00: I have tremendous respect for their professionalism, their knowledge.
• 29:06
  SPEAKER_00: I mean, you could hear it.
• 29:07
  SPEAKER_00: He knows what he's talking about.
• 29:08
  SPEAKER_00: If someone wants to work with you guys, uh, what's the best way for them to get a hold of you?
• 29:12
  SPEAKER_01: Yeah, you know, Google us and you'll find our website.
• 29:14
  SPEAKER_01: Uh on the website, you can get all my information.
• 29:16
  SPEAKER_01: I welcome a direct phone call text.
• 29:19
  SPEAKER_01: Uh we're just here to be of service.
• 29:20
  SPEAKER_01: I feel like the the home journey, whether you're buying and selling, starts with the conversation.
• 29:26
  SPEAKER_01: It really just starts with a simple conversation.
• 29:27
  SPEAKER_01: It's it's uh an exploration of your needs, your wants, your timing, and some education.
• 29:32
  SPEAKER_01: And that's really where we want to spend time with you so that if and when you get to the point of making a decision, you feel informed and empowered.
• 29:39
  SPEAKER_01: That's that's our whole push and journey is just to provide service and education so that you feel like you're in control and that you are in control.
• 29:48
  SPEAKER_01: Awesome.
• 29:49
  SPEAKER_00: Tori, thank you so much uh for spending your uh some time with us.
• 29:52
  SPEAKER_00: We'll definitely have you back.
• 29:54
  SPEAKER_00: And uh it's it's been great working with you.
• 29:56
  SPEAKER_00: And I just look forward to our continued partnership.
• 29:58
  SPEAKER_00: Thanks, Warren.
• 29:59
  SPEAKER_00: You're great.
• 29:59
  SPEAKER_00: Thank you.