Brokers see market activity picking up in second quarter of year after soft February.

Brokers see market activity picking up in second quarter of year after soft February 

Although the number of residential properties sold in Long Beach this February is lower than in any month in the past two years, real estate experts say they have reason to believe market activity will rise significantly in the second quarter of 1991.

According to results compiled by the TRW reporting service, there were 285 residential sales in the city in February of 1991 compared to 420 sales in 1989 and 454 in 1990, which brokers point to as a slow year.

Most attributed February's low sales figures to the Gulf war, but say that since the end of the war consumer confidence has improved in turn boosting market activity.

Proof of that increased interest is that "sellers are receiving multiple offers," said Greg Berkemer, executive vice president of the Long Beach District Board of Realtors. In addition to brokers, title and termite control companies he said, claim to have become very busy.

Post-war consumer confidence coupled with low interest rates are expected to boost sales of residential property, single family homes in particular, said Berkemer. The board's listing service reported 191 single family home sales this February compared to 174 in the same month last year. The number of condo sales are half that of homes, at 77 in February 1990 and 70 this February.

Another reason for increased activity is that sellers are more flexible on their asking price, Berkemer said. Moreover, he added, buyers are saying "I better buy before the market turns around on me."

TRW figures confirmed average home prices have leveled off instead of rising. Last February average home prices were $205,384, vs. $200,471 this year.

TRW also reported that the total value of properties sold at foreclosure sales have drastically increased: from $200,000 worth of property in February 1990 to $2.2 million in February this year.

Within the past month Bob Stallings, president of the Long Beach District Board of Realtors, and also a broker, said he has noticed interest in medium bracket homes, those priced around $250,000. The bulk of homes in this bracket, he said, are located in East Long Beach and Lakewood.

Higher-end homes, on the other hand, priced at between $400,000 and $3 million, have experienced the largest drop in prices, Stallings said. More expensive older homes, he said are located in Bixby Knolls, Los Cerritos, Belmont Shore and Alamitos Heights.

Richard F. Gaylord, owner of Choice Pacific Properties in Long Beach, said he believes "condominiums are the affordable alternative. Median condo prices are at $128,000 versus single family homes at $188,250, as reported by the Multiple Listings Service.

According to the Long Beach Chamber of Commerce, the city's population last year of 435,000 has only slightly increased and is expected to remain steady. This means that there will be neither a shortage or glut of residential property due to population fluctuations, brokers said.

According to Berkemer, the number of listings, last year at 4,000, has not changed dramatically. Gaylord said he has seen few construction starts due to the land shortage in the area and doesn't expect that construction starts to be a factor affecting the market. Although there has been 6,000 layoffs at Douglas Aircraft Co., brokers say the area's economy is diverse enough to absorb those unemployed.

The new light rail line also seems to have had no effect on home buyers. Stallings said usage has not increased to the point of becoming a factor affecting residential real estate in the area. The only project that is expected to increase jobs and the city's population is Disney's amusement park to be completed within the next 10 years.

PHOTO : Building: February homes sales were lower than any month in the last two years