Long Beach Economy: Tourism and Trade

"Although the Long Beach Area Chamber of Commerce is projecting a subdued California economy in terms of job growth due to federal policies, high energy prices and a weakening housing market, it does anticipate a stronger Southern California performance. “I’m optimistic about the Long Beach economy,” said Brandon Kline, vice president of public policy and government affairs for the chamber."We have strong performances in international trade, technology, aerospace and tourism. . . . Even though California may have subdued economic expansion next year, I think our local regional economy here in Southern California will thrive because of those things. So, despite that slowdown, our highly diverse business structure is going to enable us to perform at a high level.

"Indeed, the hospitality and tourism sector is poised to continue to do well in the coming year, although substantial growth will be very limited, according to Kyser. “Tourism will probably hold at a high level, and that’s because, literally, we’re running out of hotel capacity,” he explained.

"One “reliable growth engine” marked by Kyser is the international trade sector . . . “International trade is going to be an interesting sector to keep our eye on,” Magaddino agreed, pointing to the significant impact of the weakening dollar on exports. . . . What we’ve seen is continued decline in the dollar, and that makes our exports much more competitive on a global marketplace."
Now is the time to buy, whether you're investing or looking for a home for yourself. Go to
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California: The Sixth Largest Economy in the World

So wouldn't you know the house prices would be higher here as well.

California Housing "Fast Facts" from California Association of Realtors:
Calif. median home price - November 06: $555,290
(Source: C.A.R.)

Calif. highest median home price by C.A.R. region November 06:
Santa Barbara So. Coast $1,083,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region November 06:
High Desert $332,340 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)

Mortgage rates - week ending 12/28:
30-yr. fixed: 6.18%; Fees/points: 0.4%
15-yr. fixed: 5.93%; Fees/points: 0.4%
1-yr. adjustable: 5.47%; Fees/points: 0.6%
(Source: Freddie Mac)

People Want to Know

The California market has been holding steady at $545,000 to $550,000 median price, which is a 1.4 percent increase over November 2005. This median includes sales of single family detached homes, per report of 12/21/2006 for November, 2006. The sales time has approximately doubled statewide, and although local figures may vary with some properties selling within 30 days, that's often a fairly true picture of the Long Beach area as well. The median L.A. County single family price is about $590,000, an increase from $583,000 last November. Many of you are interested in the Long Beach area condo pricing, which varies greatly according to location, view, and building amenities. Prices may range from $350,000 and up according to proximity to the ocean and size. Please contact me if you want more information on this or go to
www.juliahuntsman.com and search properties in the 90803, 90814, 90802, 90815 zip codes to get an idea.

A Stabilizing Market for 2007

Try to believe it...the market may actually be stabilizing and that is the prediction in more than one quarter as the slowdown in real estate is said to be affecting the national economy. Local market snapshots indicate a pickup in sales in certain areas. For 2007, sellers who are serious sellers should get their properties sold by pricing them right, so that buyers believe it's the right time to buy.

Mortgage Applications Hit ONE-YEAR High

Applications to buy a home rose 8.7 percent as of 12/13/2006 over the prevous week, and were the highest since January of this year. Lower mortgage rates encouraged refinancings, but also encouraged new buyers to think about taking advantage of lower rates, even though they rose recently.

Monthly Dataquick Summary for Southern California

While Los Angeles County area sales volume is down by about 18 percent compared to last year, the monthly mortgage buyers committed to during November was still in the $2200-2300/month range. This picture is still similar to the ones from other quarters: The Southland has continued to hold its own in pricing--Los Angeles County's median price (including single family homes and condos) has increased by 2 percent from November of 2005. For zip code breakdown information, go here and check your favorite area.

The Real Estate Market: It Depends on What You're Talking About

A 3rd quarter report based on a federal survey of Fannie Mae and Freddie Mac mortgages basically reflects several scenarios which have all been tackled in the media--the market is up, down, way down, or still there. Depending on which scenario you're looking for, you can find one (but various analyses of the West Coast bear this out repeatedly):

Without question the most impressively documented scenario is that many large metropolitan markets -- including some that experienced high gains during the boom years -- are still hanging in there and registering net appreciation, albeit at lower rates.

Examples include Fort Lauderdale (10.3 percent annualized quarterly gain), Naples, Fla. (10.8 percent), Los Angeles (7.4 percent), metropolitan Washington (3 percent), New York City and its northern New Jersey suburbs (3 percent), Seattle (14.8 percent), Miami-Miami Beach (14.7 percent), Chicago (5.2 percent), Orlando, Fla. (6.5 percent) and San Antonio (9.9 percent).

Click this article for a look at all scenarios.

Why Are Interest Rates Staying Low?

In a word, more or less, it's foreign investors in bonds. Mainly from Japan and Hong Kong, who comprise about 52% of all Treasury values. The demand for U.S. Treasury bonds has kept their prices up, and mortgage interest rates down (the first affects the second). Foreign investors find stability here they don't find in their own countries, and for you the buyer, that means your 30-year interest rate is about 30 percent lower than it might be otherwise. Read the article for more on this relationship, and remember that it's giving you still a very great opportunity to buy as mortgage interest rates stay much lower than predicted for the last few years.
See a property search at my other website.

More Consensus That Worst May Be Over

Investment firm analysts and the Federal Reserve Chairman Ben Bernanke are among those that are ready to think about an improvement in the market. All the bad news in the media may have helped to create a self-fulfilling prophecy about the market, and so now good news in the media may help to get buyers and sellers into a better mode. To be sure, some properties have been overpriced, but a healthy economy does not usually create the setting for a bad housing market. Click on the link for the Los Angeles Times article.

California Median Home Price Up

The October report from Dataquick puts the California residential median home price at an increase of .2 percent from September and 2.9 percent from one year ago. Remember, Dataquick's median home prices combine single family houses and condominiums, which results in a lower median price than the California Association of Realtors figures which separates the two categories and results in a higher median price. But the figures show that while sales volume is down, prices are holding with stable down payments and a slight decrease in the monthly mortgage payment compared to what buyers committed to last month. For a property search, got to www.juliahuntsman.com.