Recently updated guidance shows that consumers should prepare for interest rates to remain elevated for longer than initially anticipated as the economy, and labor markets in particular, continue to outperform expectations and keep inflation above the target range. Homebuying demand, though still grappling with reduced affordability as rates remain above 7%, saw a modest increase last week, but market trends over the past 2 months suggest that buyers and sellers are beginning to negotiate more with most measures of competitiveness having eased slightly, but consistently, over the past 8 weeks.

Unemployment claims show labor market still tight: In addition to a strong jobs report for August, which showed a net increase of 23,100 new nonfarm jobs, the latest weekly data showed that Californians were filing new claims for unemployment insurance at the lowest rate since October of 2022. Last week, 35,040 new claims were filed with the state’s Employment Development Department—roughly 1,500 fewer claims than were filed the week prior, which is more than 28,000 few UI claims than were filed during the second week in January. Although tightness in the labor market has been a source of upward pressure on inflation, remaining at or near full employment has helped broader macroeconomic growth perform above expectations over the short run.

New California Association of Realtors forecast shows stronger sales and prices in 2024: Last week, C.A.R. released its housing market and economic forecast for 2024, which predicts a modest increase in both home sales and in home prices next year. Although the state is not expected to return to the elevated levels reached during 2021, existing single-family transactions are expected to rise to nearly 330,000 units. This would represent a 22.9% increase from a projected 266,100 units this year. Home prices, which continue to be driven higher by a dearth of available inventory, will continue to rise in 2024, with the median price expected to reach $866,300 on an annual basis—a 6.2% increase from 2023 and slightly higher than the original projection for last year. The recovery is likely to remain subdued, but both inventory and sales should pick up in the second half of the year as rates begin to dip slightly.

Mortgage applications rise slightly after 8 consecutive declines: Demand for homes continues to come in well below the 15-year highs reached over the past two years, but new mortgage purchase applications perked up slightly last week despite rates trending higher. The overall index rose 12% last week, bucking the 8-week slide that began in July. Despite this modest bump, September as a whole is coming in 12% below August and more than 25% lower than September 2023. There remains growing interest from investors, second/vacation home sales, and from international buyers, but first-time buyers remained challenged by decreasing affordability while repeat sales are locked into their current homes by low rates on their existing mortgages and an increasing number of long-time homeowners facing potential capital gains if they were to sell their existing residence.

Fed signals higher for longer strategy at latest FOMC meeting: The Federal Reserve’s Federal Open Market Committee (FOMC) met last week and voted to keep their target interest rate the same at 5.5%. Although this was the expected outcome by oddsmakers, policymakers did signal that they may have to keep rates higher for longer in order to ensure that inflation is tamed. The ‘dot plot,’ which is an estimation of where policymakers think rates need to be in order to achieve their dual mandate of full employment and price stability, showed that rates will need to remain elevated longer than was anticipated when they made their last set of projections at the end of June. Three months ago, consensus expectations amongst voting members called for a 4.5% Fed Funds Rate in 2024, which equated to a 100 basis-point reduction. The new average for 2024 of 5% means the Fed Funds Rate is currently scheduled to come down roughly half as much next year as originally signaled.

California market softens slightly ahead of winter amidst rising rates: The latest on California’s housing market shows that sales have not dipped back to the lows reached during the winter of 2022, which rates initially rose above 7%. However, transactions did dip below 260,000 units for the first time since January. Additionally, pending sales suggest a sluggish next few months as new escrows dipped by more than 23% from 2022’s relatively lackluster pace in August. In addition, competition has eased slightly as we approach the winter months as the number of homes being reduced has been rising in recent weeks while the percentage of homes selling above their listing price on the MLS has been falling. The rebalancing has been slight, with homes sold above asking price down from 52% in June to 46% last week, but it has been consistent for the past 3 months. The market remained characterized by too little inventory, but as the typical homebuying season has ebbed, homes are taking slightly longer to go pending and buyers and sellers are beginning to negotiate more.

If you would like to discuss if now is a good time for you to buy, sell, or invest in a home or investment property, please feel free to contact me.

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For Sale

251 Elm Ave. 

Long Beach 90802

2 Bed+Den | 4 Bath | 1,750 SF | $900,000

OPEN HOUSE 

Sunday 12:00-3:00 pm

This exceptional modern townhome at The Huxton built in 2018 boasts 2 bedrooms, a den/great room, and 4 baths spanning 1,750 square feet. The large rooftop deck off the top-floor den/great room provides an exceptional indoor/outdoor living experience with seamless tri-fold sliding doors. 

4200 Via Norte

Cypress 90630

4 Bed | 3 Bath | 2,915 SF | $1,550,000

This luxurious 4-bed/3-bath Cypress home was expertly upgraded from the inside - out! No stone was left unturned in the vigorous pursuit of redesigning and upgrading this nearly 3,000 sqft Greenbrook home.

436 N Bellflower Blvd #104

Long Beach 90814

1 Bed | 1 Bath | 693 SF | $475,000

Resort living in the heart of Long Beach. Stoneybrook is a highly desirable Gated Community. Walking distance to shopping, restaurants, Cal State Long Beach, the VA Medical Center and the Colorado Lagoon.

In Escrow

2059 W 160th St. 

Torrance 90504

2 Bed | 1 Bath | 837 SF | $779,900

Discover Your Dream Home in North Torrance! This charming 2-bedroom home is nestled on a serene residential street, offering you a remarkable opportunity to own in this sought-after neighborhood with great schools.

807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,750,000

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle. Starting at $2,750,000, based on options and interest.

1669 E 65th St.

Long Beach 90805

2 Bed | 2 Bath | 1,023 SF | $635,000

Charming Spanish style home with large living room with ample windows allowing plenty of natural Light, original hardwood floors, updated kitchen, central heat and AC, and a permitted rumpus Room with ADU potential.

781 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 2,067 SF | $1,225,000

Stunning 3-bed, 2-bath home with breathtaking ocean views in Coastal San Pedro. Experience the beauty of the ocean from the front yard, primary bedroom, and the expansive backyard. Situated on a generous 9,576 SF lot, there's plenty of space to potentially add an ADU. 

773 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 1,040 SF | $955,000

Enjoy beautiful ocean and harbor views from the front yard, living room, and the expansive backyard. This 3-bed, 2-bath home offers even more possibilities with an additional enclosed patio area currently staged as a family room and game room. The spacious 8,904 SF lot provides ample room for expansion, including the possible potential to add an ADU.

1007 Catalina Ave #108

Redondo Beach 90277

2 Bed | 2 Bath | 1,181 SF | $1,175,000

Welcome to Your Dream Beach Home! A Stunning 2 story, 2 bedroom, 2 bath condo located half a block to the beach. Beautifully updated throughout with dramatic high ceilings, gorgeous kitchen, and an abundance of natural light and open space. 

985 S. Idaho Ave. #60

La Habra 90631

2 Bed+Den | 2 Bath | 1,073 SF | $505,000

This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.

211 Saint Joseph

Long Beach 90803

3 Bed | 2 Bath | 1,057 SF | $1,299,000

Welcome to this charming Belmont Shore home located just 4 blocks to the beach! Enjoy the open concept floor plan, granite countertops, hardwood flooring, and a serene primary suite with a spa-like bathroom. Don't miss this opportunity for coastal living at its finest!

5528 Pearce Ave. 

Lakewood 90712

3 Bed | 2 Bath | 1,592 SF | $845,000

The "Honey Due" list has already been done for you; all you have to do is move in and start enjoying this 3-bedroom 2 bath Lakewood home. Open concept kitchen with newer cabinets, stainless steel appliances and granite countertops. 

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Tim Majka

(562) 900-9430

Tim@ImagineRealty.com

www.ImagineRealty.com

DRE#01399855

Home sales in California had another soft month in August as interest rates surged to the highest level in 22 years late last month before calming down slightly in the past two weeks. Home prices continue to recover, nevertheless, with the California median price gaining year-over-year for the second straight month. Tight supply remained the primary factor that prevented prices from falling, and new listings have been shrinking for more than a year already. Housing shortage also has been keeping sales down and the situation may get worse before it gets better. With retail activity staying solid and core inflation not cooling fast enough, rates are not expected to retreat meaningfully in the next couple weeks. Home sales will likely have another slow month in September but could bounce back in October and November, as signs of slower economic growth in recent weeks suggest lower mortgage rates could be forthcoming in Q4 2023.

California home sales dip again as rates soar to a 22-year high: Sales of existing homes in California dipped on a year-over-year basis as costs of borrowing continued to climb while supply remained tight. The dip extended the months of annual declines to 26 in a row, and the sales pace in August reached the lowest level in seven months. Despite the continuing decline, sales remained above the recent bottom of 237,000 recorded in November of last year when mortgage rates surpassed 7% for the first time in over two decades. With rates staying elevated and above 7% in recent weeks, sales are expected to be muted in the coming months. Pending sales, in fact, declined nearly 25% in August, which suggests that closed sales in California will likely slip again in September before bouncing back in October.

Home prices continue to recover with the statewide median price gaining the most in 14 months: Home prices rose again from the year-ago level for the second straight months, with the statewide median having its biggest year-over-year gain in fourteen months. August’s median price was the highest in 15 months and was the highest since California reached its peak in May of last year. Despite the average 30-year fixed rate remaining about 200 bps above the same time last year, tight housing supply and a highly competitive housing environment continued to provide support to home prices. The share of sales with sold price above asking price, in fact, remained elevated at 47.4% and was above last year’s level by 15 percentage points. Upward pressure on home prices will ease in coming months as the market moves towards the year-end, but positive year-over-year gain should persist throughout the rest of the year as rates begin to come down in Q4 2023.

Lock-in effect keeps inventory low throughout the summer: Housing supply in California continued to decline from last year in August as mortgage rates remained elevated. Active listings at the state level have fallen from a year ago for five months in a row, and the decline in each of the last four months all registered more than 20% year-over-year. Newly added for-sale properties shrank again last month but the annual pace of decline continued to decelerate, after reaching -30.1% in April earlier this year. The statewide new active listings for existing single-family homes in August increased month-to-month by 6.1% and dropped 17.5% year-over-year. As the market enters the last quarter of the year, the number of new listings should shrink month-over-month if it follows the normal seasonal trend. The rate of decline could be reduced, however, if rates begin to moderate in the coming months.   

If you have any real estate questions or would like to discuss if now is a good time for you to buy, sell, or invest in a home or investment property, please feel free to contact me.

Looking To Move Out Of State? 

Save Thousands for Dollars With Our 

Relocation Program

As a top agent with the #1 brokerage in North America, I have relationships with some of the top agents all over the country. I have recently helped some clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.

If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America. 

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For Sale

2059 W 160th St. 

Torrance 90504

2 Bed | 1 Bath | 837 SF | $779,900

Discover Your Dream Home in North Torrance! This charming 2-bedroom home is nestled on a serene residential street, offering you a remarkable opportunity to own in this sought-after neighborhood with great schools.

4200 Via Norte

Cypress 90630

4 Bed | 3 Bath | 2,915 SF | $1,550,000

This luxurious 4-bed/3-bath Cypress home was expertly upgraded from the inside - out! No stone was left unturned in the vigorous pursuit of redesigning and upgrading this nearly 3,000 sqft Greenbrook home.

436 N Bellflower Blvd #104

Long Beach 90814

1 Bed | 1 Bath | 693 SF | $475,000

Resort living in the heart of Long Beach. Stoneybrook is a highly desirable Gated Community. Walking distance to shopping, restaurants, Cal State Long Beach, the VA Medical Center and the Colorado Lagoon.

1669 E 65th St.

Long Beach 90805

2 Bed | 2 Bath | 1,023 SF | $635,000

Charming Spanish style home with large living room with ample windows allowing plenty of natural Light, original hardwood floors, updated kitchen, central heat and AC, and a permitted rumpus Room with ADU potential.

807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,750,000

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle. Starting at $2,750,000, based on options and interest.

781 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 2,067 SF | $1,225,000

Stunning 3-bed, 2-bath home with breathtaking ocean views in Coastal San Pedro. Experience the beauty of the ocean from the front yard, primary bedroom, and the expansive backyard. Situated on a generous 9,576 SF lot, there's plenty of space to potentially add an ADU. 

773 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 1,040 SF | $955,000

Enjoy beautiful ocean and harbor views from the front yard, living room, and the expansive backyard. This 3-bed, 2-bath home offers even more possibilities with an additional enclosed patio area currently staged as a family room and game room. The spacious 8,904 SF lot provides ample room for expansion, including the possible potential to add an ADU.

1007 Catalina Ave #108

Redondo Beach 90277

2 Bed | 2 Bath | 1,181 SF | $1,175,000

Welcome to Your Dream Beach Home! A Stunning 2 story, 2 bedroom, 2 bath condo located half a block to the beach. Beautifully updated throughout with dramatic high ceilings, gorgeous kitchen, and an abundance of natural light and open space. 

985 S. Idaho Ave. #60

La Habra 90631

2 Bed+Den | 2 Bath | 1,073 SF | $505,000

This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.

211 Saint Joseph

Long Beach 90803

3 Bed | 2 Bath | 1,057 SF | $1,299,000

Welcome to this charming Belmont Shore home located just 4 blocks to the beach! Enjoy the open concept floor plan, granite countertops, hardwood flooring, and a serene primary suite with a spa-like bathroom. Don't miss this opportunity for coastal living at its finest!

5528 Pearce Ave. 

Lakewood 90712

3 Bed | 2 Bath | 1,592 SF | $845,000

The "Honey Due" list has already been done for you; all you have to do is move in and start enjoying this 3-bedroom 2 bath Lakewood home. Open concept kitchen with newer cabinets, stainless steel appliances and granite countertops. 

199 Prospect Ave

Long Beach 90803

5 Bed | 3 Bath | 2,557 SF | $1,878,000

Stunning 4 bedroom, 2 bathroom Belmont Heights Tudor with a nicely-sized Guest Quarters/Rental Unit/Home Office above the 2-car garage! 

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Tim Majka

(562) 900-9430

www.ImagineRealty.com

DRE #01399855

Mortgage rates stay close to their recent high nearly two weeks after the Fed announced another rate hike in late July. Elevated rates have been affecting buyers and sellers’ sentiment and the market will continue to observe low sales in July and August as a result. While the labor market is easing, wages continue to grow well above pre-pandemic levels, and it will take some time before the Fed is convinced that the economy is truly cooling. As such, rates could remain elevated and volatile throughout the rest of the third quarter before gradually coming down in the winter season. With the economy slowing but showing signs of mild growth, home sales could pick up in the fourth quarter as rates begin to show a more consistent declining trend.

Slowdown in July employment could take heat off the Fed: The labor market continues to show signs of easing as nonfarm job growth recorded the second straight month of sub 200,000 payroll gain in July. The jump of 187,000 jobs in the U.S. economy last month was still a solid increase by historical standard but was down sharply from the average employment growth of about 400,000 a month in 2022. With fewer job openings and workers quitting at a slower pace, upward pressures on wages are moderating as the labor market find a better balance. The July wage growth of 4.4% from last year was down from 5.4% recorded a year earlier but remained well above the pre-pandemic level. The Fed will need more evidence to prove that the economy is cooling, but the slowdown in hiring this summer could ease pressure for the Central Bank to raise rate in its next meeting. 

Home Purchase Sentiment remains low, as rates climb in recent weeks: Despite consumer confidence steadily rising in the past few months, low housing affordability and tight supply continue to take a toll on homebuyers, and the percentage of those who believe it’s a good time to buy a home dipped to the lowest in six months. High home prices and unfavorable mortgage rates remained the main contributing factors for the downbeat homebuying sentiment. Buyers’ expectation of higher home prices in the short term might also have affected their perceptions of the market, as 41% anticipated home prices to be up in the next 12 months. Those who believed it’s a good time to sell remained unchanged at 64%, which is an indication that tight supply conditions could remain the norm in the near term. 

Foreign buyer residential purchases pull back in the U.S.: Higher borrowing costs and lower housing inventory continued to put a dent in international home sale transactions in the U.S. Between April 2022 and March 2023, dollar volume of existing home sales purchased by foreign buyers declined 9.6% to $53.3 billion from $59.0 billion in 2022, according to a new report from the National Association of REALTORS®. Total number of properties purchased by foreign buyers dropped 14.2% from the prior year to 84,600 units and was the fewest number of homes bought since 2009. The median price of all foreign buyer existing-home purchases was 8.3% higher than that in 2022 and was the highest ever recorded. California remained one of the top three destinations where foreign buyers purchased their properties. With market conditions expected to improve next year and international travels recovering further in coming months, foreign transactions will hopefully bounce back in 2024. 

Business leaders feel more optimistic about the short-term economic outlook: The Conference Board’s CEO Confidence index, a measure on CEO’s perceptions of business and industry conditions, improved modestly in Q3 2023. While business leaders were still cautious about the future of the economy, 28% of them believed economic conditions were better when compared to six months ago, an increase from 17% in Q2 2023. More than four out of five CEO’s (84%) were still preparing for a recession over the next 12-18 months in Q3 2023, but the number was an improvement from nine out of ten (93%) recorded in Q2 2023. With the short-term outlook slightly more upbeat, 40% of respondents planned to hire more people over the next 12 months, an increase from 33% in Q2 2023. Three quarters of CEOs expected to increase wages by 3% or more, slightly below the 75% registered in the prior quarter. The tick-up in confidence of business leaders is a good sign for the economy and could help lower the odds of a recession for the U.S.

If you have any real estate questions or would like to discuss if now is a good time to buy or sell, please feel free to contact me.

Looking To Move Out Of State? 

Save Thousands for Dollars With Our 

Relocation Program

As a top agent with the #1 brokerage in North America, I have relationships with some of the top agents all over the country. I have recently helped some clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.

If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America. 

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For Sale

781 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 2,067 SF | $1,200,000

Stunning 3-bed, 2-bath home with breathtaking ocean views in Coastal San Pedro. Experience the beauty of the ocean from the front yard, primary bedroom, and the expansive backyard. Situated on a generous 9,576 SF lot, there's plenty of space to potentially add an ADU. 

OPEN HOUSE

SATURDAY 1 - 4 pm & 

SUNDAY 12 - 3 

807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,950,000

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle. Starting at $2,950,000, based on options and interest.

For Rent

6 N Alboni Pl #4 

Long Beach 90802

2 Bed | 2 Bath | 1,161 SF | $3,500 For Rent 

Fully Furnished 2-bed, 2-bath condo just steps away from the beach! As you step inside, you'll be greeted by the elegance of a baby grand piano and modern décor and furnishings. The property offers flexible leasing options, with a minimum 6-month lease available. Live the beachside lifestyle you've always dreamed of with this exquisite condo.

In Escrow

525 E Seaside Way #402

Long Beach 90802

1 Bed | 1 Bath | 622 SF | $2,500 For Rent

Beautiful luxury high-rise condo at Harbor Place Tower in the heart of downtown Long Beach. Walking distance to the beach, Aquarium, convention center, the Pike, Pine Ave restaurants, nightlife and so much more!

773 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 1,040 SF | $955,000

Enjoy beautiful ocean and harbor views from the front yard, living room, and the expansive backyard. This 3-bed, 2-bath home offers even more possibilities with an additional enclosed patio area currently staged as a family room and game room. The spacious 8,904 SF lot provides ample room for expansion, including the possible potential to add an ADU.

1007 Catalina Ave #108

Redondo Beach 90277

2 Bed | 2 Bath | 1,181 SF | $1,175,000

Welcome to Your Dream Beach Home! A Stunning 2 story, 2 bedroom, 2 bath condo located half a block to the beach. Beautifully updated throughout with dramatic high ceilings, gorgeous kitchen, and an abundance of natural light and open space. 

985 S. Idaho Ave. #60

La Habra 90631

2 Bed+Den | 2 Bath | 1,073 SF | $505,000

This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.

211 Saint Joseph

Long Beach 90803

3 Bed | 2 Bath | 1,057 SF | $1,299,000

Welcome to this charming Belmont Shore home located just 4 blocks to the beach! Enjoy the open concept floor plan, granite countertops, hardwood flooring, and a serene primary suite with a spa-like bathroom. Don't miss this opportunity for coastal living at its finest!

5528 Pearce Ave. 

Lakewood 90712

3 Bed | 2 Bath | 1,592 SF | $845,000

The "Honey Due" list has already been done for you; all you have to do is move in and start enjoying this 3-bedroom 2 bath Lakewood home. Open concept kitchen with newer cabinets, stainless steel appliances and granite countertops. 

256 Hermosa Ave

Long Beach 90802

2 Bed | 1 Bath | 780 SF | $475,000

Nicely updated 2 bedroom condo in Alamitos Beach, close to Bluff Park, and just a short walk to the beach, Bixby Park, cafes, nightlife, and great restaurants. 

199 Prospect Ave

Long Beach 90803

5 Bed | 3 Bath | 2,557 SF | $1,878,000

Stunning 4 bedroom, 2 bathroom Belmont Heights Tudor with a nicely-sized Guest Quarters/Rental Unit/Home Office above the 2-car garage! 

200 S. La Fayette Park Pl. #1

Los Angeles 90057

1 Bed | 2 Bath | 1,990 SF | $775,000

Great corner unit 1 bedroom, plus den and loft townhome located close to Korea town, DTLA, and Silverlake.

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June home sales came in below the 300,000-benchmark for the ninth consecutive month, as rates remained elevated in the past couple of months. The year-over-year decline, however, moderated further with the annual dip dropping below 20% for the first time in 12 months. Meanwhile, the statewide median price remained above $800,000 for the third straight month, as tight supply continued to provide upward support. Monthly price dips in the coming months are anticipated, however, as the market goes through its typical seasonal pattern and rates remain elevated for most if not the entire third quarter. As for the economy, consumers appear to be more resilient than predicted six months ago, and economists are lowering the odds of a recession for the U.S. That’s good news, except a solid economy could mean a delay in the Fed loosening its monetary policy, which could be translated as mortgage rates staying high for a little longer.

Elevated rates and limited supply continue to suppress California home sales: Sales of existing homes in California continued to decline on a year-over-year basis for the 24th straight month in June but registered the smallest yearly drop since May 2022. Short supply and high mortgage rates continued to suppress home sales, while heated market competition remained the driving force that put upward pressure on home prices. As the market moves closer and closer to the end of the home buying season, the statewide median price is near its peak and will level off in July or August. If interest rates start coming down in the next couple of months, the market will see some improvement in affordability, which could help push sales up in the second half of the year.

Supply remains stuck and may not improve any time soon: Housing inventory in California inched up in June from the prior month but dipped again from the same month of last year, as tight supply continued to be the norm. The statewide unsold inventory index in June 2023 dropped 8.3% from a year ago and increased 4.8% on a month-over-month basis. Active listings at the state level fell sharply by 34% from last year and registered the largest year-over-year decline since May 2021. With mortgage rates expected to be high in the next couple of months, California may not see any meaningful improvement in its supply condition for the rest of the third quarter. 

Retail sales continue to climb but at a slower pace: Consumers continued to spend in June and pushed up retail sales activity for the third straight month. The pace of growth in the latest month was softer than that observed in May and April, which suggests a stalling in momentum on consumer spending despite easing inflation. After accounted for price growth adjustment, real retail sales were up 0.1% from May and were up 2.4% from June 2022. While the overall growth was slowing, ecommerce remained a bright spot, topping all categories with a gain of 9.4% on a year-over-year basis. With Amazon claiming the first 24 hour of its Prime Day promotion in July as the “single largest sales day in the company history”, next month’s report could be even more impressive for ecommerce, and could help maintain a positive month-to-month growth rate for retail sales overall. 

Single-Family rent growth back to pre-pandemic levels: U.S. single-family rent continued to grow year-over-year in May with a gain of 3.4% from last year. The annual increase, however, continued to slow and was back to the rate recorded in the decade before the pandemic. The decelerating trend in rent growth is consistent with the pattern shown in the June’s consumer price index report, where shelter inflation also began to show signs of easing. The mid-single digit increase on rent was a relief for many renters who had to pay a double-digit growth rate on rent in May 2022. At the national level, rent growth for the lowest price tier was more than double that of the highest price tier, which suggest a bigger imbalance between supply and demand in the more affordable segment. Rent growth has been slowing throughout the year and could see further softening before the end of the year, as more multifamily supply continues to come on board.

Builders remain confident as residential construction falls back: Residential construction took a step back last month, with total housing starts falling 8% during June, partially offsetting the robust gain in May. The sizable drop was broad-based with single-family dipping 7.0% from May to June, while multi-family sliding 9.9% over the same period. Despite a pullback in starts, the outlook for single-family constructions remained positive, as single-family permits continued to rise modestly by 2.2% on a month-over-month basis. With solid demand and a lack of supply in the resale market, developers continue to shift their focus to single-family housing units. Builder confidence remained on the rise for the seventh straight month, with the NAHB/Wells Fargo Housing Market Index gaining 25 points since the December 2022 low.

If you have any real estate questions or would like to discuss if now is a good time to buy or sell, please feel free to contact me.

Looking To Move Out Of State? 

Save Thousands for Dollars With Our 

Relocation Program

As a top agent with the #1 brokerage in North America, I have relationships with some of the top agents all over the country. I have recently helped some clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.

If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America. 

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For Sale

781 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 2,067 SF | $1,200,000

Stunning 3-bed, 2-bath home with breathtaking ocean views in Coastal San Pedro. Experience the beauty of the ocean from the front yard, primary bedroom, and the expansive backyard. Situated on a generous 9,576 SF lot, there's plenty of space to potentially add an ADU. 

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807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,950,000

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle. Starting at $2,950,000, based on options and interest.

For Rent

6 N Alboni Pl #4 

Long Beach 90802

2 Bed | 2 Bath | 1,161 SF | $3,500

Experience coastal luxury in this fully furnished 2-bed, 2-bath condo just steps away from the beach! As you step inside, you'll be greeted by the elegance of a baby grand piano and modern décor and furnishings. The property offers flexible leasing options, with a minimum 6-month lease available. Live the beachside lifestyle you've always dreamed of with this exquisite condo.

525 E Seaside Way #402

Long Beach 90802

1 Bed | 1 Bath | 622 SF | $2,650

Beautiful luxury high-rise condo at Harbor Place Tower in the heart of downtown Long Beach. Walking distance to the beach, Aquarium, convention center, the Pike, Pine Ave restaurants, nightlife and so much more!

In Escrow

773 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 1,040 SF | $875,000

Enjoy beautiful ocean and harbor views from the front yard, living room, and the expansive backyard. This 3-bed, 2-bath home offers even more possibilities with an additional enclosed patio area currently staged as a family room and game room. The spacious 8,904 SF lot provides ample room for expansion, including the possible potential to add an ADU.

1007 Catalina Ave #108

Redondo Beach 90277

2 Bed | 2 Bath | 1,181 SF | $1,200,000

Welcome to Your Dream Beach Home! A Stunning 2 story, 2 bedroom, 2 bath condo located half a block to the beach. Beautifully updated throughout with dramatic high ceilings, gorgeous kitchen, and an abundance of natural light and open space. 

985 S. Idaho Ave. #60

La Habra 90631

2 Bed+Den | 2 Bath | 1,073 SF | $505,000

This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.

211 Saint Joseph

Long Beach 90803

3 Bed | 2 Bath | 1,057 SF | $1,299,000

Welcome to this charming Belmont Shore home located just 4 blocks to the beach! Enjoy the open concept floor plan, granite countertops, hardwood flooring, and a serene primary suite with a spa-like bathroom. Don't miss this opportunity for coastal living at its finest!

5528 Pearce Ave. 

Lakewood 90712

3 Bed | 2 Bath | 1,592 SF | $845,000

The "Honey Due" list has already been done for you; all you have to do is move in and start enjoying this 3-bedroom 2 bath Lakewood home. Open concept kitchen with newer cabinets, stainless steel appliances and granite countertops. 

256 Hermosa Ave

Long Beach 90802

2 Bed | 1 Bath | 780 SF | $475,000

Nicely updated 2 bedroom condo in Alamitos Beach, close to Bluff Park, and just a short walk to the beach, Bixby Park, cafes, nightlife, and great restaurants. 

199 Prospect Ave

Long Beach 90803

5 Bed | 3 Bath | 2,557 SF | $1,878,000

Stunning 4 bedroom, 2 bathroom Belmont Heights Tudor with a nicely-sized Guest Quarters/Rental Unit/Home Office above the 2-car garage! 

200 S. La Fayette Park Pl. #1

Los Angeles 90057

1 Bed | 2 Bath | 1,990 SF | $775,000

Great corner unit 1 bedroom, plus den and loft townhome located close to Korea town, DTLA, and Silverlake.

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Despite interest rates that remain near 7%, the economy continues to perform well. Last week’s inflation report generated some confidence that things are improving more quickly in the Fed’s effort to tame rising prices. Consumers remain relatively optimistic and even new MBS issuances rose for the first time in over a year. The Federal Open Market Committee is set to meet next week and are expected to raise their benchmark rate 25 basis points, so mortgage rates may remain elevated over the short term. Thus far, buyers seemed to have rebounded modestly from the initial shock of rising rates and the market has grown more competitive as demand continues to outstrip supply.

Inflation continues to cool, but Fed will still probably raise rates: Markets were pleasantly surprised last week when inflation cooled to just 3% on an annual basis, which is the lowest level in over two years. Last year, inflation was approaching the double-digits as costs rose on goods and services alike. Of note was a cooling in service sector prices, which is the source of much of the economic growth we’ve enjoyed over the past few years, despite ongoing job and wage growth in this sector. Some are hopeful that this may provide support for the Fed to begin dialing back their aggressive monetary policy, but many expect the Fed to raise interest rates at least one more time—starting with their FOMC meeting next week. That would put the Fed Funds Rate at 5.5%, and may seem unnecessary given the better-than-expected improvement in inflation last month, but it may help to avoid a second rate hike at the next FOMC meeting in September.

Consumer sentiment ramps up in July alongside businesses: The University of Michigan’s index of consumer sentiment rose to its highest level in almost two years as fears about a recession fade and the labor markets remain strong. Although consumers are still weary of inflation, they were more enthusiastic about their current economic situation, where they will be in a year economically, and nearly one-third of respondents expected their finances to have improved by next year. Part of this is due to a labor market where jobs remain relatively abundant—despite recent high-profile, specific layoffs, the aggregate numbers show and ongoing labor shortage. Business optimism also improved last month, driven mostly by reduced fears about a pending recession as economic data remains relatively upbeat.

California labor markets remain resilient: A few high-profile California financial firms faced several crises during the beginning of the year and shed jobs alongside some notable tech companies based in the Bay Area. However, California continued to add jobs in the aggregate as the service sector remained in growth mode as consumers continued to spend at bars, hotels, restaurants, and entertainment venues. There was an increase in new unemployment insurance claims at the beginning of April, when more that 50,000 new unemployment insurance claims were filed. This is small relative to even 2021, when new UI claims were reaching 6-figures per week, and certainly well below the numbers we saw in 2020. However, since April, new unemployment claims have been below 50,000 per week for the past 13 weeks, consecutively. In addition, continuing claims, which measures new filings and ongoing claims, dipped to 374,000 last week. This is the smallest number of workers on unemployment insurance since November of 2022. 

Freddie Mac reports highest rates since November: The weekly Freddie Mac estimates for the average 30-year fixed rate mortgage rose to 6.96% last week, but this was prior to the latest inflation data. Since then, 10-year and 2-year Treasury Prices have increased as fears of more persistent price growth (and thus, a more aggressive Fed) ease. The yield curve remains inverted, but markets could be betting on a faster return to less aggressive monetary policy or even rate cuts next year. This has likely helped keep 10-year prices, in particular, relatively high and rates lower than normal spreads would suggest given a 5.25% Fed Funds Rate.

Mortgage applications suggest seasonal peak is behind us: Last week, the index of new mortgage purchase applications dipped to 145. That is a 26% decline from the same period last year and an 18% decline from the previous week. Mortgage applications typically peak in the spring (April-June), which pushes closed sales up in the subsequent months as buyers find and close on properties giving way to our typical homebuying season. Aggregating the weekly data shows that new purchase applications peaked in April this year and fell in May and June in addition to last week’s dip. However, California’s homebuying seasons have been running deeper into the fall in recent years and we may continue to see stable or even rising home sales as we get near the 4th quarter.

If you have any real estate questions or would like to discuss if now is a good time to buy or sell, please feel free to contact me.

Looking To Move Out Of State? 

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Relocation Program

As a top agent with the #1 brokerage in North America, I have relationships with some of the top agents all over the country. I have recently helped some clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.

If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America. 

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For Sale

807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,950,000

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle. Starting at $2,950,000, based on options and interest.

For Rent

525 E Seaside Way #402

Long Beach 90802

1 Bed | 1 Bath | 622 SF | $2,650

Beautiful luxury high-rise condo at Harbor Place Tower in the heart of downtown Long Beach. Walking distance to the beach, Aquarium, convention center, the Pike, Pine Ave restaurants, nightlife and so much more!

In Escrow

781 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 2,067 SF | $1,200,000

Stunning 3-bed, 2-bath home with breathtaking ocean views in Coastal San Pedro. Experience the beauty of the ocean from the front yard, primary bedroom, and the expansive backyard. Situated on a generous 9,576 SF lot, there's plenty of space to potentially add an ADU. 

773 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 1,040 SF | $875,000

Enjoy beautiful ocean and harbor views from the front yard, living room, and the expansive backyard. This 3-bed, 2-bath home offers even more possibilities with an additional enclosed patio area currently staged as a family room and game room. The spacious 8,904 SF lot provides ample room for expansion, including the possible potential to add an ADU.

1007 Catalina Ave #108

Redondo Beach 90277

2 Bed | 2 Bath | 1,181 SF | $1,200,000

Welcome to Your Dream Beach Home! A Stunning 2 story, 2 bedroom, 2 bath condo located half a block to the beach. Beautifully updated throughout with dramatic high ceilings, gorgeous kitchen, and an abundance of natural light and open space. 

985 S. Idaho Ave. #60

La Habra 90631

2 Bed+Den | 2 Bath | 1,073 SF | $489,000

This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.

211 Saint Joseph

Long Beach 90803

3 Bed | 2 Bath | 1,057 SF | $1,299,000

Welcome to this charming Belmont Shore home located just 4 blocks to the beach! Enjoy the open concept floor plan, granite countertops, hardwood flooring, and a serene primary suite with a spa-like bathroom. Don't miss this opportunity for coastal living at its finest!

5528 Pearce Ave. 

Lakewood 90712

3 Bed | 2 Bath | 1,592 SF | $845,000

The "Honey Due" list has already been done for you; all you have to do is move in and start enjoying this 3-bedroom 2 bath Lakewood home. Open concept kitchen with newer cabinets, stainless steel appliances and granite countertops. 

256 Hermosa Ave

Long Beach 90802

2 Bed | 1 Bath | 780 SF | $475,000

Nicely updated 2 bedroom condo in Alamitos Beach, close to Bluff Park, and just a short walk to the beach, Bixby Park, cafes, nightlife, and great restaurants. 

199 Prospect Ave

Long Beach 90803

5 Bed | 3 Bath | 2,557 SF | $1,878,000

Stunning 4 bedroom, 2 bathroom Belmont Heights Tudor with a nicely-sized Guest Quarters/Rental Unit/Home Office above the 2-car garage! 

200 S. La Fayette Park Pl. #1

Los Angeles 90057

1 Bed | 2 Bath | 1,990 SF | $775,000

Great corner unit 1 bedroom, plus den and loft townhome located close to Korea town, DTLA, and Silverlake.

64 Corona Ave., 

Long Beach 90803

3 Bed | 3 Bath | 1,532 SF | $1,550,000

Amazing single-story bungalow on an oversized lot located less than a block to the ocean in the heart of Belmont Shore!

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