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Long Beach Business Journal: Real Estate Markets in Limbo

February 16, 2010

Real Estate Markets in Limbo
Long Beach Business Journal
By Stacy Lawrence

...Gary Painter, director of research at the USC Lusk Center for Real Estate, is unsure how the inventory of distressed properties will impact the market.

"There are still a number of properties that are underwater," Painter says. "That's the biggest uncertainty. Exactly what are homeowners going to do with their properties? Is there going to be loan modification? Or, are people going to attempt short sales?

Homeowners struggling to pay their mortgage are deciding what road to take, while prospective homebuyers and those looking to trade up are preparing to enter the marketplace and take advantage of the tax credit.

"I expect there to be more action in the [middle- to upper-end] segment of the market than maybe we've seen in the last year," Painter says. "There are people looking to upgrade."...