Editor’s note: This is the sixth 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 don@lbpost.com.

10:36am | The entry-level market for homes is “hot,” says Keller Williams Realty agent Robin Auwerda, who was born and raised in the Netherlands. Auwerda has also spent a good deal of time paying attention to foreclosures in Long Beach, says despite tough competition from all-cash buyers, there are some good deals on distressed properties to be had. North Long Beach and the Traffic Circle are a few good places to start looking for deal-seekers, he says.

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) Ultimately I have to create my own market. Meaning that I have to stay up to date on inventory, average price point in the markets that I specialize in and interest rates. Staying in contact with a lender that knows the business. I am up front with my clients and let them know they are in the business of buying or selling a home and they should take the facts of the market today in account when writing an offer of offering their property for sale.

Q) Which sectors are hot, and which are not? (luxury, middle-range, entry-level, condos)

A) Entry-level is a hot market. Many people that have been renting are now finding out that the amount in rent they pay can actually pay for a home they will own. Interest rates are incredible and home prices at a level that they should be if you follow history. Luxury is somewhat slower however even there you find movement due to the low interest rates.

Q) Where in Long Beach, or surrounding areas, can one find any deals?

A) The Traffic Circle area and North Long Beach have deals. North Long Beach is seeing quite a few short sales and REO’s. A deal is not just a low price in my opinion, it is also a fair market value in a neighborhood that in the last couple of years has evolved in a nice family friendly part of the city. Great examples are North Long Beach and a good part of Wrigley.

Q) Where in Long Beach, or surrounding areas, should buyers avoid?

A) That is in my opinion a little bit of a trick question. People should buy where they feel comfortable enough to raise their families and where they can afford the price point. On the other hand it goes back to location, location, location. Areas like Poly High and the Westside may be a lesser long-term investment for home owners than the rest of Long Beach.

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) Foreclosure deals, as in bank-owned deals, are around, however the price point is not always very much lower than a standard sale. I have noticed recently that coming in low on such properties and holding firm on price actually has the bank lower the price by up to 10 percent of the list price. Don’t be afraid to negotiate but keep in mind that there are numerous cash investors out there.

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) To be honest, I have seen many foreclosures in pretty decent shape and they are off the market pretty quick. Lots of those properties are purchased by investors who flip them and bring remodeled homes to the neighborhoods. 

Q) Is the bottom here, near or in another year (or more)?

A) The bottom is wherever it is. The market has been pretty stable for a while now. It goes down a little when there are short sales and REO’s coming on the market and goes up slightly when those same properties are bought by new owners or flipped by investors. The interest rates make for an active market and keeps things moving.

Q) Any good deals out there on the market?

A) In my opinion North Long Beach is where it’s at. But don’t forget about the 90808 ZIP code. Great neighborhoods and homes start under $400,000.

Bio:

Robin Auwerda
Keller Williams Realty
Certified Pre-Foreclosure Specialist
Long Beach resident