2:29pm | Editor’s note: This is the fourth installment in a series of question-and-answer sessions with Long Beach real estate experts — Realtors, mortgage brokers, bankers, economists. There’s a lot of information about the national real estate market out there, but it’s tough to find good local information on residential real estate — until now.
Experts in the greater Long Beach real estate scene are invited to submit themselves as a Real Estate Q&A candidate regardless of whether they have good or bad things to say about the local market. Interested parties should send an email to [email protected].
When it comes to real estate associations, Phil Jones is a joiner. The Coldwell Banker Coastal Alliance partner is a director and immediate past president of the Pacific West Association of Realtors, he currently serves as a director for the California and National Associations of Realtors and he is also a member of the National Association or Realtors’ President’s Circle.
Q: There’s a lot of uncertainty in the market. How do you deal with that, and how do you get your clients to deal with that?
A: It’s a difficult task made more challenging because of the “paralyzed politics” in D.C. It creates more uncertainty, of course. However, we’ve seen significant stabilization and improvement in our marketplace. What the media is reporting should improve in the second-half of the year.
Q: Which sectors are hot, and which are not? (luxury, middle-range, entry-level, condos)
A: We have seen improved activity in the upscale markets for sure, but the main strength is in the mid-range single-family residences.
Q: Where in Long Beach, or surrounding areas, can one find any deals?
A: There are excellent opportunities just about anywhere. Historically low interest rates and good values are a good combination. Smart, investor money has been buying very actively for the last 18 – 24 months.
Q: Where in Long Beach, or surrounding areas, should buyers avoid?
A: I wouldn’t limit myself to any particular area.
Q: Speaking of deals, where are all these foreclosures deals we’ve all been waiting for? Are they happening, or going to happen? If so, where and when?
A: There’s been discussion about “shadow inventory” since January of 2009 or sooner. Banks have stated to our industry leadership that they are “managing” their REO (real estate owned) inventory very closely and they do not intend to flood the market with these properties because it’s not in their best interests to negatively impact property values. They have already written off most of the losses, as well.
Q: When the last spate of foreclosures hit Southern California, it negatively impacted many communities, creating blight in the form of unoccupied homes and uncared for communities. Are you seeing this in Long Beach? If so, which communities?
A: While there has been some of this in our area, it isn’t as widespread as it once was. Our city has been active in their efforts to prevent neighborhood deterioration.
Q: Is the bottom here, near or in another year (or more)?
A: I believe that here in the Long Beach area we’ve seen the bottom. Real estate is very location-sensitive. In general, the media has fueled much of the angst about real estate with a reliance on outdated and inaccurate comparisons. The primary example is the comparisons of this year to last year. Last year, we had in place the federal and state tax credits which promoted an artificial shift of business to the first six months of last year that affected both sales figures and median prices.
We will soon start to see data that will reflect the reality of the real estate market, and it will be largely very positive because the comparisons will become “apples to apples” for the first time this year. Furthermore, we need to recognize that national or regional reports usually don’t accurately reflect what’s happening in our communities surrounding Long Beach.
Q: Any good deals out there on the market?
A: Yes, absolutely!