Jan. 27, 2022

January 28, 2022 - Weekly Real Estate Update

Canal amidst houses and palm trees in the scenic Long Beach CA neighborhood
The last week of economic and market data shows that housing continues to be the bright spot in an otherwise turbulent economy. Recently released data shows that 2021 was the best year for California's housing market since the recovery from the Great Recession began over a decade ago. REALTORS® are optimistic and the state continues to see signs of broader economic improvement. However, rising rates and their impact on buyer demand, have joined a lack of inventory as the key headwinds to home sales in 2022. 
  
2021 Marks Strongest Year for Housing in Over a Decade: Even though the pace of sales was falling last month, December solidified 2021 as the best year for existing single-family home sales in over a decade. With an annualized pace of more than 444,000 units, home sales were 7.9% ahead of 2020, which also rose by 3.5% from 2019. That marks the best year for closed transactions since 2009. Median prices also set a new record—coming in just shy of $800,000 for the year. Despite ongoing challenges with the pandemic, a labor market that has yet to fully recover, and interest rates that rose gradually throughout the year, buyer demand remains strong by pre-crisis standards although limited supply is expected to weigh on sales in 2022. 
  
CA Homeownership Rising in New Census Data: Recently released data from the 2020 American Community Survey shows that the anecdotal "renewed passion for homwownership" has been borne out by the facts. Overall, homeownership increased to 56.1% in 2020 from 54.9% in 2019. Notably, this increase was shared across all major ethnic groups with the largest gains amongst the Latino and Asian populations, though Black and white homeownership also rose. These numbers should be interpreted with some caution given the effect of the pandemic on Census data collection efforts, but the direction of the change likely remains valid nonetheless. 
  
California Continues Employment Recovery Despite COVID: A total of 50,700 net jobs were added to nonfarm payrolls in California last month, marking the 11th consecutive monthly increase—all of which have been in excess of 50,000 jobs. Job gains were broad based across most industries in California. Many lower-wage, higher-contact jobs returned in December as hotels, bars, and restaurants led the increase with 15,000 new positions last month. However, higher-wage, remotable jobs in Professional, Scientific, and Technical Services had the second fastest growth last month and also added 8,900 new jobs. Retail trade remains the standout, shedding an additional 7,300 positions as consumers continue to shop online. This appears to be one of the more persistent effects of the pandemic—even as consumers begin to dine out, vacation, and recreate, retail stores have seen a consistently slower recovery.
  
Continued Normalization Amidst Higher Rates, More Inflation, and Lower Inventory: Despite the abundance of positive news last week, the market does face significant headwinds to maintaining its current level of home sales in 2022. Interest rates rose to 3.56% in the latest Freddie Mac survey. In addition, consumer inflation, driven primarily by surging vehicle prices, continues to run hot, which will likely spur the Federal Reserve to take an aggressive stance on interest rates this year, meaning further rate increases are coming. This is already helping to subdue mortgage applications, which continue to fall from 2021 levels, though they remain robust by pre-crisis standards.
  
If you're ready to discuss today's market and whether now is a good time for you to buy or sell, give me a call at (562) 900-9430.
Looking To Sell A Property That Needs Some Work? 
Save The Time & Hassle With Our New Listing Concierge!
Does your property need some TLC or would having some improvements help you fetch top dollar? With our new listing concierge service we will coordinate getting your home all fixed up and ready to sell. We will manage the entire process of getting your home ready and all decked out with the latest trends, designs and materials. Our contractors are all licensed, bonded, and insured and do excellent work. Best of all, there is no money due up front. This saves you the time and expense of interviewing contractors, managing the work, and all the headache that goes along with fixing up a property. This enables our clients to position their property as "move in ready" to capture maximum buyer interest.
  
When we renovate homes, our clients receive on average a 150% return on investment!
  
We have negotiated great terms with our contractors and they don't get paid until the work is done and the home is sold.
Recently Sold
3 Beds | 2 Baths | 2,147 SqFt | $955,000
Amazing loft at the Kress Lofts in Downtown Long Beach. This was the architect's home and features the largest floor plan in the building.
2 Beds | 3 Baths | 2,014 SqFt | $1,575,000
Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club
2 Beds | 2 Baths | 1,328 SqFt | $637,000
Beautiful top floor 2 bedroom, 2 bath end unit condo located just 6 blocks to the beach. Light and bright with high vaulted ceilings.
1 Bed | 1 Bath | 492 SqFt | $425,000
Beautifully remodeled Victorian style single family home in the Willmore Historic District in downtown Long Beach
2 Beds | 2 Baths | 930 SqFt | $415,000
Nicely updated 2 bedroom, 2 bath condo in Alamitos Beach. Inside laundry and 2 side by side parking spaces.
0 Beds | 1 Baths | 370 SqFt | $185,000
Enjoy the beautiful views of the California sunset and the new Gerald Desmond bridge in this nicely updated top floor studio.
4 Beds | 2 Baths | 2,378 SqFt | $1,025,000
Beautiful and rare on a lot property in Historic California Heights. You will love the Spanish charm of this home featuring wood floors, coved ceilings, and arched entryways.
3 Beds | 2 Baths | 1,073 SqFt | $480,000
3 bedroom / 2 bathroom upper condo located in Woodlake Villas of La Habra.
3 Beds | 2 Baths | 1,451 SqFt | $710,000
Great 3 bedroom, 2 bath home in the heart of Anaheim! This home has tons of potential.
1 Beds | 1 Baths | 547 SqFt | $280,000 
This unique renovated unit gives you all the personal space and privacy to feel at home.
1318 E 37 St
Long Beach 90807
2 Bed | 2 Bath | 953 SqFt | $855,000
Beautiful Spanish style 2 bedroom, 2 bath home in one of Long Beach's most sought after neighborhoods, California Heights.
Jan. 20, 2022

Weekly Real Estate Update For Los Angeles & Orange County

Relaxation holiday vacation of businessman take it easy happily resting on beach chair at swimming pool poolside beachfront resort hotel peacefully with sea or ocean view and summer sunny sky outdoor
The recent surge in COVID cases and high inflation have been dominating the news in the past few weeks. Consumers remain concerned and their decline in optimism have had an impact on the economy. The softening in retail sales at the end of last year and the repositioning of investors in the bond market that prompted rates – at least partially - to increase are reflections of the current setback in consumer sentiment. Despite these latest concerns, an increase in mortgage applications in the first week of 2022 suggests that housing demand is still strong and the market should remain solid as we kick off the new year.
  
Interest Rates Continue to Rise: The average 30-year fixed rate mortgage reported weekly by Freddie Mac jumped to the highest level since March 2020 in the second week of 2022, and the daily average tracked by Mortgage News Daily suggest that further increase will follow in the coming week. Rates have been rising sharply since the end of last year and were just about to come back down until the latest inflation news pushed them back up. The prospect of a faster than anticipated tightening of monetary policy triggered by inflation that remains stubbornly high could keep rates elevated in the short term. Despite the current rising trend, mortgage rates are still low by historical standards, and the average 30-Year FRM will likely remain near or below 4% by the end of the year.
  
Mortgage Applications Inch Up: Mortgage applications recorded in the week ending January 7, 2022, increased 1.4% from the prior week, according to the latest survey released by the Mortgage Bankers Association (MBA). Purchased applications increased 2% from a week earlier, and the unadjusted purchased application number was 17% lower than a year ago. Despite recent increases in rates, both conventional and government purchase applications showed increases, with FHA purchase applications increasing almost 9%. While it is too soon to tell the effect of the current surge in rates, housing demand is expected to be solid as demographic drivers and the ongoing economic recovery will continue to provide support to the market.
  
Foreclosure Activity Reaches the Lowest Level since 2005: Foreclosure filings made on 151,153 U.S. properties during 2021 were 29% fewer than in 2020 and were down 95% from the peak of nearly 2.9 million in 2010, according to ATTOM. Foreclosure activity last year was at the lowest level since the company began tracking it 17 years ago. The filings only impacted 0.11% of all housing units, compared to 0.16% in 2020 and 2.23% in 2010 during the Great Recession. With prices increasing by double-digits for many homes across the U.S. last year, over 87% of homeowners in foreclosure have positive equity, which means most borrowers could sell their house at a profit and will not need to go through the foreclosure auction process.  
  
Retail Sales Sink amid Record Inflation and Surge in COVID Cases: Retail sales dropped 1.9% in December as COVID cases started rising and inflation surged to a recent high at the yearend. The decline at the end of the year was partly due to early shopping and demand being pulled forward as consumers were concerned about supply constraints. In fact, December’s decline followed record-level retail sales that began with a 1.8% gain in October from the prior month. Despite the monthly moderation, retail sales continued to improve from the past year by 16.9%. It was the tenth consecutive month with double-digit growth since March 2021. The December drop resembles a similar decline in 2018 when retail sales fell 2.0% in that month. If retail sales follow the same trend this time around, we should see a strong bounce back in the first quarter of 2022 once omicron wave subsides.
  
Consumer Sentiment Dips to Second-Lowest Reading in a Decade: The Consumer Sentiment Index reported by the University of Michigan dropped 2.5% in early January 2022 from its level in December 2021 and was down 12.9% from a year ago. The preliminary value of 68.8 was the second lowest in a decade and was below the 6-month average of 70.3. Accelerating inflation was a key contributor to the dip in the index, as 75% of survey respondents ranked it as a more serious problem than unemployment. The decline in sentiment was most acute among households earning less than $100,00 a year, presumably because they are the ones most hurt by high inflation.
  
If you're ready to discuss today's market and whether now is a good time for you to buy or sell, give me a call at (562) 900-9430.
Looking To Sell A Property That Needs Some Work? 
Save The Time & Hassle With Our New Listing Concierge!
Does your property need some TLC or would having some improvements help you fetch top dollar? With our new listing concierge service we will coordinate getting your home all fixed up and ready to sell. We will manage the entire process of getting your home ready and all decked out with the latest trends, designs and materials. Our contractors are all licensed, bonded, and insured and do excellent work. Best of all, there is no money due up front. This saves you the time and expense of interviewing contractors, managing the work, and all the headache that goes along with fixing up a property. This enables our clients to position their property as "move in ready" to capture maximum buyer interest.  
  
When we renovate homes, our clients receive on average a 150% return on investment!
  
We have negotiated great terms with our contractors and they don't get paid until the work is done and the home is sold.
Recently Sold
3 Beds | 2 Baths | 2,147 SqFt | $955,000
Amazing loft at the Kress Lofts in Downtown Long Beach. This was the architect's home and features the largest floor plan in the building.
2 Beds | 3 Baths | 2,014 SqFt | $1,575,000
Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club
2 Beds | 2 Baths | 1,328 SqFt | $637,000
Beautiful top floor 2 bedroom, 2 bath end unit condo located just 6 blocks to the beach. Light and bright with high vaulted ceilings.
1 Bed | 1 Bath | 492 SqFt | $425,000
Beautifully remodeled Victorian style single family home in the Willmore Historic District in downtown Long Beach
2 Beds | 2 Baths | 930 SqFt | $415,000
Nicely updated 2 bedroom, 2 bath condo in Alamitos Beach. Inside laundry and 2 side by side parking spaces.
0 Beds | 1 Baths | 370 SqFt | $185,000
Enjoy the beautiful views of the California sunset and the new Gerald Desmond bridge in this nicely updated top floor studio.
4 Beds | 2 Baths | 2,378 SqFt | $1,025,000
Beautiful and rare on a lot property in Historic California Heights. You will love the Spanish charm of this home featuring wood floors, coved ceilings, and arched entryways.
3 Beds | 2 Baths | 1,073 SqFt | $480,000
3 bedroom / 2 bathroom upper condo located in Woodlake Villas of La Habra.
3 Beds | 2 Baths | 1,451 SqFt | $710,000
Great 3 bedroom, 2 bath home in the heart of Anaheim! This home has tons of potential.
1 Beds | 1 Baths | 547 SqFt | $280,000 
This unique renovated unit gives you all the personal space and privacy to feel at home.
1318 E 37 St
Long Beach 90807
2 Bed | 2 Bath | 953 SqFt | $855,000
Beautiful Spanish style 2 bedroom, 2 bath home in one of Long Beach's most sought after neighborhoods, California Heights.
March 16, 2021

California Opens State Rental Assistance Portal

Rental housing providers and residents can now begin applying for Covid-19-related rental assistance through the State of California.

 

The program, administered by the California Department of Housing and Community Development, will pay landlords 80% of the past due rent owed by eligible households.

 

https://housing.ca.gov/covid_rr/index.html

Posted in Covid-19 Relief
July 29, 2020

Update on Coronavirus Market Impacts

Update on Coronavirus Market Impacts:

The CALIFORNIA ASSOCIATION OF REALTORS® released its June housing market report last week and it showed an unprecedented rebound in closed sales and the state also set a new all-time high price of more than $623,000. Additionally, the economy has enjoyed a variety of positive reports in the past week on interest rates and the labor market. And yet, even as we continue to make solid progress, some of our pre-crisis structural issues have reasserted themselves and the near-term economic uncertainty has increased significantly as well. 

 

Things continue to slowly improve, but it is clear that a full recovery is still a long way off.

California’s housing market recovers significant lost ground in June: After a record 41.4% decline in closed transactions in May 2020 due to coronavirus-related shelter in place orders, California saw the number of home sales rebound sharply in June. Home sales increased by more than 40% on a month to month basis. And although California is still below 2019 levels by 12.8%, it is a marked improvement from the sub-300,000 levels of April and May.

California’s unemployment falls amidst record job growth in June: California’s unemployment rate edged down from 16.4% in May to 14.9% in June as nonfarm payrolls swelled by more than 500,000. This marks the second consecutive monthly gain and means that California has already recovered nearly 700,000 of the roughly 2.6 million jobs lost in March and April.

More REALTORS® closed a transaction last week: The percentage of California REALTORS® that had a transaction close escrow last week increased slightly from 24% two weeks ago to 26% last week. Low rates have been translating into increased demand for home showings and a trend of rising mortgage applications since mid-April and although supply remains tight, California has seen many of those pending sales from April and May eventually close.

Pending sales increased for first time in 4 weeks: C.A.R.’s latest weekly analysis of MLS data across California reveals that pending sales increased for the first time in 4 weeks to an average of nearly 1,100 homes entering escrow per day last week. Prior to last week, home sales had been declining since late June. However, pending sales in California have now been above their pre-coronavirus levels for 11 weeks in a row.

Closed sales decline for first time in 10 weeks: Despite the solid June report on California’s housing market, the weekly MLS data shows that closed transactions declined for the first time since the week of May 9th. Previously, we have reported on flat or declining pending sales and this result is largely consistent with the slowdown in homes entering the escrow process we have observed over the past month.

Pending sales suggest a slow August: Although pending sales increased last week for the first time in nearly a month, the level of pending sales has been essentially flat for much of the past month. This suggests that although July may see closed sales shoot back into positive territory, more robust growth in August and September remains very much in question as the pace of new escrows subsides.

Inventory remains a significant challenge for California’s housing recovery: One key reason the recent rebound is losing momentum in recent weeks is that there is not enough inventory on the market for buyers to purchase. A myriad of indicators from jobs to spending to requests for home showings or new mortgage applications show that consumers continue to want to purchase a home, but the 43% decline in active listings across the state in June compared with last year have prevented many of these buyers from being able to do so.

More transactions are falling out of escrow, fewer members getting into escrow last week: The economy has made significant progress since mid-April, but a recent survey of California REALTORS® suggests that the recent increase in uncertainty has had a modest impact on their business. In the survey conducted over the weekend, the percentage of REALTORS® that had a transaction fall out of escrow during the week remained at 6%--slightly elevated from 5% three weeks ago. In addition, the percentage of respondents that entered escrow on a new transaction fell to 26% last week from 30% the previous week. This was the second consecutive decline.

Consumer sentiment declines in July as some businesses reclose: After recovering slightly in May and June, the University of Michigan’s preliminary estimate of consumer sentiment reversed course last week amidst re-shelter-in-place orders and general economic uncertainty. This is significant because consumer spending is still responsible for roughly 70% of the U.S. economy, which means a v-shaped recovery and much harder to achieve when consumers aren’t increasing their spending.

Last week was another week of contrasts: record job growth, record increases in home sales, new all-time high levels of home prices, and all-time low levels of interest rates contrasted against new closures in the state, rising initial claims for unemployment insurance, declining consumer confidence, and increasing difficulties in addressing the pandemic. It is hard to look at the data and not be optimistic about the progress we’ve made in the past three months, but it is equally hard to look ahead and not see increased economic uncertainty as well.

July 1, 2020

Everyone Is Working From Home — Here’s How to Do It Effectively

June 11, 2020

Add Value To Your Home With These Outdoor Improvements

 

 

 

 

 

 

 

 

June 11, 2020

Is Now the Time for a Luxury Market Resurgence?

 

 

 

 

 

 

 

 

June 4, 2020

7 Steps to Take Now to Prepare to Sell Post Quarantine

 

 

 

 

 

 

 

April 16, 2020

Message About Covid19: We Are Here To Help

 
Home sweet home. Handmade home symbol with heart shape on wooden background with copy space
We are here to help
I just want you to know that we are here to help.
Our hearts goes out to our families with children with schools shut down, our seniors in assisted living, our neighbors at the hospitals, our local businesses struggling and anyone impacted by this pandemic.
I've been selling real estate for 15 years here in Southern California. I'm fortunate to know people you may be able to help you out for a trip to the grocery store, watching children, or even getting bills paid.
You'll be surprised how many good people are happy to help you.
Call me, again, if you need anything. My number is 562-900-9430 . It does not need to be about real estate. It can be a personal issue. I'll see if I can assist in some way.
Of course, I've been asked, "How's the real estate market?"
Homes are still selling. Interest rates are super low and there are home buyers trying to take advantage on these low rates. We have increased the use of virtual tours and other tools to help buyers and sellers stay safe during the home buying process.
March 5, 2020

What Does Our Housing Shortage Mean for Buyers & Sellers?

 

There’s a housing shortage in our market, and it means we’re in for a strong summer.

The supply of homes for sale in the Greater Orange County and Los Angeles area is very low. In my 15 years as a Realtor, this is one of the lowest levels I’ve ever seen. 

Specifically, there are about 2.1 months of inventory. As a reminder, this means if no one else put their homes on the market, it would take 2.1 months to sell all available homes. To put this into perspective, there were about 3.5 months of inventory during this time of year in 2019 and 2018. We saw really strong appreciation in the summer months of both of those years. 

A “normal” market (i.e., one that’s balanced between buyers and sellers) has between five and six months of inventory. Anything below that mark is considered a seller’s market, so at 2.1 months of inventory, you can see that we’re deep into a seller’s market. There aren’t enough homes for sale for all the buyers out there.

“As we approach the spring and summer, this lack of inventory means prices will likely rise quite a bit.”

What does this mean for you? It means our market is in for a strong summer. The summer is when we typically see the most buyers enter the market—the weather is nicer, the days are longer, families want to get settled in before the school year starts, etc. In general, summer is when we see the most homes bought and sold. It’s also the season where we see the greatest increase in home values. 

The bottom line is that as we approach the spring and summer, this lack of inventory means prices will likely rise quite a bit. 

If you’re thinking of buying or selling soon, be sure to check out our website. There, you can search for homes or request an online home valuation. If you’d like to start looking at homes in person or would like a more exact calculation of your home’s worth, feel free to call or email me. I can put together a customized home search and discuss our strategies to find homes that aren’t on the market. 

As always, if you have any other real estate questions, feel free to reach out to me as well. Make it a great day!