July 1, 2022

Real Estate Update - Week of 7/1/2022

Last week’s news offer more evidence that Year 2022 will continue to be bumpy for the economy and the housing market as inflation remains unsettled. Consumer sentiment hit another record low as many remained concerned about their personal finance being eroded by high inflation that does not seem to retreat any time soon. Shelter costs, for example, stayed elevated as rental rates continued to rise primarily due to supply shortage. The market began to see some signs of relief in housing supply, however, as inventory - both existing and new - continued to rise as sales began to adjust to higher interest rates. New home sales showed a brief sign of resurgent in recent weeks, as buyers took advantage of a slight pullback in rates and rushed to lock in rates before they move even higher. The trend, however, will not be long lasting as rates are expected to climb further in the months ahead.  

 

Existing home sales decline in May, as the market adjusts to higher mortgage rates: Sales of existing homes in the U.S. fell 3.4% in May to an annualized pace of 5.41 million units. Higher prices and rising interest rates have reduced affordability and negatively impacted buyer demand, resulting in sales dropping to their pre-pandemic levels. The national median price of existing homes rose 14.8% over the past year to $407,600 and surpassed the $400,000 benchmark for the very first time. The number of home available for sale also started rising as housing demand slowed, which is good news for homebuyers. Meanwhile, more homes being discounted from their list prices in May suggests that further price softening in the months ahead should be anticipated. 

 

New home sales increase while inventory rises: Against expectations, sales of new homes in May surged 10.7% to an annualized pace of 696,000 units. The surge in sales - due partly to buyers rushing to the market to lock in rates before they rose higher - appears to have pulled sales forward. With rates rising in most recent weeks, home builders have also reported slowing sales trend that may not be reflected until next month when June sales numbers are released. Inventory of new homes also rose but the bulk of it was still under construction as home builders continued to struggle with supply chain issues.

 

Mortgage applications increase from previous week despite rising rates: An increase in home purchase activity drove mortgage applications higher last week. According to the Mortgage Bankers Association’s (MBA) weekly Market Composite Index, mortgage loan application volume rose 4.2% on a seasonally adjusted basis from the previous week. Purchase applications alone rose 8% from one week earlier, likely bolstered by an increase in the share of Adjustable-rate mortgage (ARM) applications. With rates surging to their highest level since November 2008, the share of ARM applications jumped back to over 10% as consumers looked for other financing alternatives to keep their cost of borrowing down. 

 

Rental prices hit another record high, but growth appears to be tapering off: According to Realtor.com, rents climbed 15.5% annually in May and hit a median of $1,849 in the nation’s largest metropolitan areas. While it was the 15th consecutive month of growth, May had the slowest annual growth pace for rents since September 2021. The annual growth rate has been steadily slowing throughout the year since after peaking at 17.3% in January. Rents have been surging as a direct result of housing supply shortage. There are simply more people looking for places to live than there are properties for them.

 

Consumer sentiment fell to a record low: Despite inflation expectations coming in at 5.3% and slightly lower than the initial readings suggested earlier this month at 5.4%, consumer sentiment across income, age, education, geographic region, political affiliation, stockholding, and homeownership status all posted large declines. The University of Michigan’s sentiment index dropped 14.4% from May’s reading of 58.4% a year ago to 41.4%. Survey results also suggest that nearly 4/5 consumers expect bad times in the year ahead for business conditions, the highest level since 2009.

 

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.

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New On The Market

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $649,000

 

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

Coming Soon

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

 

Why rent when you can own!  Great opportunity to own this 2 bedroom 2 bath home in a gated community!  Coming Soon!

Recently Sold
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819 Atlantic Ave. #1

Long Beach 90813 

2 Beds | 2 Bath | 1,219 SqFt | $565,000

 

Absolutely beautiful 2-story condo located in prime Long Beach just blocks away from downtown and the beach.

942 N. Loma Vista Dr.

Long Beach 90813 

2 Beds | 1 Bath | 1,158 SqFt | $785,000

 

Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.

4271 Petaluma Ave.

Lakewood 90713 

2 Beds | 1 Bath | 949 SqFt | $840,000

 

Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.

4034 Country Club Dr.

Lakewood 90712 

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

 

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

1210 E 11th St. 

Long Beach 90813

2 Beds | 1 Baths | 702 SqFt | $550,000 

 

Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.

421 N. Bellflower Blvd #221 

Long Beach 90814

2 Beds | 2 Baths | 1,271 SqFt | $610,000 

 

Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.

1329 E 1st St. #16 

Long Beach 90802

2 Beds | 2 Baths | 959 SqFt | $476,000 

 

Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight. 

1187 E 3rd St #111

Long Beach 90802

2 Beds | 2 Baths | 1,039 SqFt | $477,000

 

Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.

100 W 5th St #3C

Long Beach 90802 

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.

1310 E. Ocean Blvd #1403

Long Beach 90802 

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

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June 24, 2022

Real Estate Update - Week of 6/24/2022

Recent data suggests that inflation is becoming increasingly entrenched in the economy. High inflation is eroding real income and will weigh on consumer spending growth in coming quarters. In an attempt to keep inflation under control, the Federal Reserve has become more hawkish. The Federal Open Market Committee (FOMC) has already raised its target range for the federal funds rate to 150 basis points since March and we can expect more rate hikes this year and next year. While the underlying fundamentals remain solid so far, there is no doubt that an economic slowdown is forthcoming in the next few quarters. The question remains whether the Fed’s newfound aggressiveness will ultimately lead to a recession or just a soft landing. 

 

Fed hikes its benchmark interest rate by 0.75 percentage point, the biggest increase since 1994: In an effort to combat inflation, the Federal Open Market Committee (FOMC) raised their target federal funds rate by 75 basis points last week to a range of 1.5%-1.75%, the highest range level since just before the Covid pandemic began in March 2020. The hopes are that demand can be tamed down so that supply can catch up. The economy could experience a period of slower growth during the process, however. The financial markets have been volatile, as a result, as an increasing number of market participants have been anticipating an upcoming recession in the coming quarters.

 

Mortgage rates surge 50 basis points week-to-week, the largest one-week since 1987: Not only have the financial markets reacted unfavorably to the Fed’s latest decision to raise their benchmark interest rate, but lenders also adjusted promptly to the heightened aggressiveness of the Fed in combating the relentless inflation. According to Freddie Mac’s Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) averaged 5.78% and increased more than 50 basis points from the week prior and represented the largest one-week increase in more than 3 decades. Higher mortgage rates will lead to more moderations in housing activity while easing price growth, as the market find more balance between supply and demand. 

 

Housing starts decline sharply in May: Total housing starts dropped 14.4% during May, bringing the total housing starts to a 1.549-million-unit pace, a relatively strong pace but also the slowest since April 2021. Single-family starts declined for the third consecutive month at 9.2% but were up 3.2% year-to-date. The residential sector has been hit hard by a sharp increase in mortgage rates over the past few months. Higher borrowing cost as home prices continue to rise at a fast pace have put a major dent in new home sales, which may have caused home builders to scale back their production in the latest month. 

 

Wholesale prices rise 10.8% in May, near a record annual pace: In May, the Producer Price Index (PPI) rose 0.8% from April and was slightly off the record 11.5% annual pace registered earlier this year. As high prices remain the number one threat to the stability of the economy, the Federal Reserve will continue watching inflation numbers closely and maintain their aggressive monetary policy strategy like they announced in their latest meeting.

 

Small businesses are showing strains and resilience at the same time: The NFIB Small Business Optimism Index fell 0.1 point to 93.1 in May. The index has been running below its 48-year average of 98 every month this year, although May’s reading remained consistent with modest economic growth. While the overall index is holding up relatively well, small business owners have front row seats to price hikes and are coming under pressure from rising input and compensation costs as demand slows. This results in business owners remaining concerned about the economic outlook and their operating margins. That said, a growing number of business owners were still planning to add staff and a record number reported that they currently still have job openings yet to fill.

 

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.

June 17, 2022

Real Estate Update - Week of 6/17/2022

Modern dining room attached to outside patio area with a garden including a green lawn and vase_ the dining table set up on the wooden floor and next to an open area with candles

Headwinds have increased in recent weeks with persistent inflation driving interest rates higher and lend support for more hawkish Federal Reserve policy. Consumers continue to grapple with rising prices—increasingly relying on savings and credit cards to maintain current levels of spending, suggesting that the economy is vulnerable to a pullback—particularly in light of recent financial market volatility. Real estate is also beginning to exhibit more clear evidence of a shift with mortgage applications beginning to dip below pre-pandemic levels for the first time since the market went into overdrive in 2020. Active listings are sitting on the market longer and the share of homes selling over list price has been shrinking consistently since April. Add it all up and it means that we can expect a more balanced market during the second half of the year with slower price growth and less competition.

 

The Consumer Price Index (CPI) continues to push higher in May: The CPI rose 1.0% in May, lifting the annual rate of inflation to a fresh 40-year high of 8.6%. With little signs of any immediate relief for consumers as inflationary pressures were broad-based including everything from energy and fuel to food prices. The Fed continues to fight back with tighter policy, with a 75 basis-point rate hike this week, and with more expected increases at their upcoming sessions in July and September. 

 

Consumer credit is up, household net worth is down: Consumer credit had yet another strong month in April rising $38.1 billion, a near-record increase bested only by the prior month's unprecedented surge. Meanwhile, household balance sheets slipped in the first quarter as household net worth declined for the first time since Q1-2020, when COVID initially struck. With inflation largely outpacing wage growth, consumers have leaned on both savings and credit cards to pay for everyday essentials and discretionary purchases. According to the New York Fed, a record 537 million credit card accounts were opened in 2022Q1.

 

Consumer sentiment plunges to record low amid surging inflation: According to the University of Michigan’s consumer survey preliminary readings, the index of consumer sentiment slumped 14% between May and June. Rising inflation and record gas prices helped push down the sentiment index from 58.4 in May to 50.2 in June – the lowest recorded value since the university started collecting consumer sentiment data in November 1952. The survey also revealed that consumers’ views on the current economic conditions as well as their expectations worsened – not to mention their assessment of their own personal financial situation which dropped 20%.

 

Mortgage applications dropped to 22-year low: With mortgage rates continuing to climb further, after a brief decline in May, the 30-year fixed-rate mortgage rate has now reached levels not seen in over a decade. As a result, mortgage demand has dropped the lowest level in 22 years. Total mortgage application volume fell 6.5% last week compared with the week prior according to the Mortgage Bankers Association’s (MBA) seasonally adjusted index. Purchase applications fell 7% compared to the week prior and were 21% lower than the same week of last year.

 

Housing market is getting less competitive: The evidence that buyers are struggling to grapple with the twin challenges of rising home prices and mortgage interest rates is beginning to mount. Market competitiveness in last week’s MLS data point to tapering buyer demand. As a result, the average weekly inventory of existing single-family homes has grown, and the current batch of active listings has been on the market twice as long as those homes that continue to sell. More sellers are beginning to reduce their asking prices—last week, the share of active listings with price reductions was nearly 30%, up from a trough of 14.9% toward the end of March. In fact, price reductions last week were already higher than the 2021 peak of 25.8% reached late last winter. There is still a lagged effect on closed sales, which are still benefitting from an initial surge in buyer demand as rates initially started to rise, but the active listing data suggests that close sales will begin to exhibit less competitive behavior in the coming months based on the recent experience of sellers that are currently in the market.

 

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.

June 10, 2022

Real Estate Update - Week of 6/10/2022

 
Modern kitchen area attached to the living room beside a patio and dinner area near to outside entrance_ there are hanging lamps

The U.S. economy continues to show resilience despite growing challenges. Consumers have grown weary of the future, although their confidence level about their current situation was still solid by historical standards. Their expectations slipped along with their confidence in the economy though for the months ahead. Signs of momentum easing in the housing market continue to appear in recent weeks. Higher home prices and high interest rates have contributed to a fall in mortgage demand to the lowest level since the end of 2018, which if continue would be a concern for the real estate market. Existing homeowners, on the other hand, have benefited from the robust price gains and accumulated a record level of home equity collectively.

 

The Unemployment Rate Remains Unchanged at 3.6% for the Third Straight Month: Despite a slight downshift in hiring from the previous month with the labor market growing at the slowest pace in over a year, the U.S. economy still added nearly 400K jobs in May. The ongoing solid pace of hiring has been fueled by strong demand and an increase in workers returning to the labor force. The labor force participation rate rebounded a tenth to 62.3% with 330k more workers joining the labor force. The labor market remained constrained and clearly unbalanced, however, and continued to add inflationary pressures on wages, albeit at a smaller clip. There are signs of hope that the labor shortages are no longer worsening though, as job openings declined nearly half a million in April.

 

Construction Spending Rose in April but Is slowing: Total construction spending has grown 12.3% from last year and improved on a month-to-month basis by 0.2% in April. Despite the monthly increase, the pace seemed to be slowing as the growth was a tick lower than March’s 0.3% upward revision. Residential spending keeps on growing despite rising costs though. In April, residential spending grew modestly at 0.9% from 0.7% in March and single-family construction spending alone grew 0.5%. Nevertheless, the housing market continues to be underbuilt as raw building materials and construction labor remained tight. While construction job openings grew year-over-year in April to the highest measure in the history of the data according to the National Association of Home Builders (NAHB), hiring in the construction sector ticked down to a 4.6% rate, suggesting a continued labor constraint in the construction industry.

 

Consumers Are Feeling Less Confident about The Economy amid Stubborn Inflation: Consumer confidence slipped 2.2 points in May to 106.4 from an upwardly revised 108.6 in April. The Conference Board’s consumer confidence survey showed high inflation expectations and rising interest rates were cooling consumers’ optimism and spending plans. Inflation remained top of mind for consumers, as higher prices continued to hit their wallets, while additional interest rate hikes pose a combined downside risk to consumer spending in the second half of the year.

 

Mortgage Rates Stay Flat but Will Likely Inch-up in the Coming Week: The average 30-Year Fixed Rate Mortgage (FRM) recorded in the first week of June dipped slightly on a week-over-week basis to 5.09% but remained significantly higher than last year’s level. Despite rates declining in recent weeks, daily movements suggest that rates could be trending up again. In fact, rates moved quite a bit higher on Monday (June 6th), with the average conventional 30 Year FRM reaching the highest level in nearly a month according to numbers reported by Mortgage News Daily. 

 

Housing Equity Reaches New High: With home prices rising rapidly in the past two years, collective home equity hit a new record high in the U.S. According to an analysis from Black Knight, the amount of money mortgage holders could pull out of their homes while still keeping 20% equity cushion increased to an unprecedented $1.2 trillion in the first quarter of 2022. That is the largest quarter-to-quarter gain since 2005! Mortgage holders’ tappable equity was up 34% year-over-year in April, and the total tappable equity was at $11 trillion, twice the amount in the previous peak in 2006. On average, it is equivalent to $207,000 per homeowner.

 

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.

 

June 3, 2022

Real Estate Update - Week of 6/3/2022

 
Exterior deck with large open gas fire

The housing market shift continues as rates remain near decades-highs. There are signs that the rate increase is leveling off, however, as the average 30-Year Fixed Rate Mortgage (FRM) declined for the second week in a row. Mortgage demand also seems to be turning the corner, as applications began dipping at a more moderate pace in the past week. There are plenty of headwinds, nevertheless, as inflation is expected to further erode purchasing power in the short term, while home sales will likely be restricted by housing supply constraints in the second half of 2022. 

 

New Home Sales Plummet as Rates Climb Further: Demand for new housing units dipped again in April with new home sales plunging 16.6% from a month-to-month basis. It was the second consecutive double-digit decline and was the sharpest monthly contraction since July 2013. The 591,000-unit annual pace of new home sales was the slowest pace since April 2020 when COVID had its first pandemic lock-down. High mortgage rates played a role in the pull-back in sales, as the average 30-year FRM nearly surpassed 5% in April and remained elevated in recent weeks. New home prices were another factor for the slowdown in sales, as the median new home price rose another 19.6% from April 2021. The inventory of new homes has improved though, with the number of unsold homes that were under construction climbing to 288,000, the highest level since 2007. 

 

Mortgage Rates Dip to the Lowest in Four Weeks: Mortgage rates dipped again in the second straight week with the 30-year FRM declining to the lowest level since the end of April. With the core PCE - the Fed’s preferred inflation gauge - dropping for the second consecutive month and the Fed minutes reaffirming that the U.S. Central Bank will stay on course but not likely to be overly aggressive in rate hikes, the bond market showed little change since the mid of last week. U.S. Treasury yield, in fact, moved lower by the end of the week, despite a strong uptake in the stock market. While it is possible that the bulk of the rate increase in 2022 may have already taken place in the past few months, cost of borrowing could remain elevated for the rest of the year as the Fed tries to keep inflation under control.  

 

Mortgage Applications Continue to Decline but at a Slower Pace: Despite a slight pull-back in mortgage rates in the past couple of weeks, mortgage demand slid further by 1.2% from a week earlier. Refinance applications dropped 4% from the prior week and was 75% lower than the same week of last year, while purchased applications dipped 1% week-over-week and was 16% lower than the same week one year ago. With rates hovering at levels not seen in the past 10 years and home prices remaining near record highs, the Purchase Index stayed close to the lowest level observed in the spring of 2020, when the housing market was put on hold due to COVID uncertainties.  

 

Americans Are Saving Less: Consumers dipped further into their savings last month as cost of inflation outpaced wage growth. The personal savings rate fell to 4.4% in April, hitting the lowest level since 2008. The rate has been steadily declining since March 2021 when it hit its recent high at 26.6%. Despite decades-high inflation, consumer spending is not slowing as much as expected. American households have accumulated an estimated $2.3 trillion in excess savings throughout the pandemic, and many have been tapping into their rainy-day funds. Credit cards are also being used more often to offset the rising costs. Revolving credit – mostly credit card debit – increased by $31.4 billion in March, the largest monthly gain going back over 50 years.

 

Missing Middle Housing Development Still Missing: Constructions of medium density housing such as small multifamily properties have disappointed in the past couple of years. There were only 12,000 starts of the missing middle 2-4 apartment units in 2021, unchanged from 2020, while most other market segments expanded during the same period. For the first quarter of 2022, the construction starts of 4,000 2-4 unit were flat compared to the first quarter of 2021. As a share of all multifamily production, these medium density units made up 3.2% of the total, significantly lower than the average of nearly 11% between 2000 to 2010. Without more missing middle housing production, supply will remain tight in the near future. 

 

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.

May 27, 2022

Real Estate Update - Week of 5/27/2022

Beautiful Kitchen in New Luxury Home with Large Island_ Hardwood Floors_...

The U.S. economy has faced a series of strong headwinds this spring, but the economic data released this week showed that economic activity was off to a decent start in the second quarter. While inflation isn’t helping consumers feel particularly flush, U.S. retail sales strengthen despite wilting confidence in April. Data on housing starts, home sales and homebuilder sentiment, on the other hand, showed tentative signs of cooling. Purchase applications fell 12% from the week prior, as prospective homebuyers have been put off by higher rates and deteriorating housing affordability. Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may have caused some households to delay their home search. While the latest employment numbers show that California and the U.S. are still marching on solid footing in April, the terrain might be a bit rocky in the upcoming months.

 

Rising interest rates and climbing home prices moderate California home sales as statewide median price sets another peak. Sales of existing single-family homes in April were slightly below the month prior, in line with the month-to-month drop from March to April historically. However, the year-over-year drop in sales of 7.4% in April was the biggest decline in the last four months and sales at the national level in April also represented the third consecutive month of yearly decline. Moreover, April pending sales suggest that a more substantial decline is likely to come in May. The year-over-year decline in pending sales implies that we could see a drop of 15% or more in closed sales in California in May, when compared to the same month of last year. Meanwhile, the statewide median price could also set another record high in May, which when combined with higher interest rates, could hinder market demand further in the months to come.

 

Builder confidence hits lowest level since June 2020. A decline in buyer demand amid rising interest rates, increases in materials costs and home price growth has led builder confidence to drop 8 points to 69 in May, according to the National Association of Home Builders (NAHB). The steep drop in builder confidence in May represents the fifth consecutive month of decline as the housing market continues to face growing challenges. Their lack of confidence is beginning to show in housing starts, which slowed its pace to 1.724 million annual rate in April, a dip of 0.2% from the revised numbers in March. Building permits also dropped from the prior month at a 3.2% clip after revision.

 

Weekly mortgage demand from homebuyers tumbles, as higher interest rates curb sales. Despite the average 30-year fixed-rate mortgage interest rate dipping slightly to 5.25% from the week prior according to Freddie Mac weekly survey, the mortgage payment for a median-priced home in California continued to rise and was 37% more expensive than the same time of last year. Consequently, overall mortgage applications decreased 11% from one week earlier, while purchase applications dropped 15% from the same week of last year, according to the Mortgage Bankers Association (MBA).

 

California’s job growth moderates in April, as unemployment rate dips to 4.6%. California employers added 41,400 nonfarm payroll jobs to the economy according to the California Employment Development Department (EDD). The golden state has now regained more than 91% of the nonfarm jobs lost during the first two months of the pandemic and April was the 14th of the last 15 months with a month-over-month gain in nonfarm jobs. California had the largest absolute year-over-year seasonally-adjusted job increase in the nation and accounted for 9.7% of the U.S. total nonfarm jobs gained.

 

Retail sales climb in April as consumers continue to spend despite high levels of inflation. Americans continued to pump money into the U.S. economy in April, as retail sales showed an increase both on a month-to-month and year-over-year basis amidst high inflation eating away at their purchasing power. Though the smallest in the last four months, retail sales in April were up 0.9% from March and 8.2% from last year showing consumers’ resilience to the growing challenges they continue facing in the current economy. Retail sales figures, however, are not inflation adjusted. Accounted for price growth adjustment, real retail sales were down 4.2% from last April.

 

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.

SEARCH HOMES FOR SALE
HOME SEARCH APP
WHAT'S MY HOME WORTH?
Recently Sold
Photo.jpg

819 Atlantic Ave. #1

Long Beach 90813 

2 Beds | 2 Bath | 1,219 SqFt | $565,000

 

Absolutely beautiful 2-story condo located in prime Long Beach just blocks away from downtown and the beach.

942 N. Loma Vista Dr.

Long Beach 90813 

2 Beds | 1 Bath | 1,158 SqFt | $785,000

 

Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.

4271 Petaluma Ave.

Lakewood 90713 

2 Beds | 1 Bath | 949 SqFt | $840,000

 

Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.

4034 Country Club Dr.

Lakewood 90712 

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

 

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

1210 E 11th St. 

Long Beach 90813

2 Beds | 1 Baths | 702 SqFt | $550,000 

 

Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.

421 N. Bellflower Blvd #221 

Long Beach 90814

2 Beds | 2 Baths | 1,271 SqFt | $610,000 

 

Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.

1329 E 1st St. #16 

Long Beach 90802

2 Beds | 2 Baths | 959 SqFt | $476,000 

 

Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight. 

1187 E 3rd St #111

Long Beach 90802

2 Beds | 2 Baths | 1,039 SqFt | $477,000

 

Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.

100 W 5th St #3C

Long Beach 90802 

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.

1310 E. Ocean Blvd #1403

Long Beach 90802 

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

1765 E Broadway Ave #305

Long Beach 90802 

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.

542 Magnolia Ave. 

Long Beach, CA 90802

1 Bed | 1 Bath | 492 SqFt | $425,000

 

Beautifully remodeled Victorian style single family home in the Willmore Historic District in downtown Long Beach

841 Gardenia Ave #207

Long Beach 90802 

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.

3580 Gundry Ave

Long Beach 90807

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.

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May 20, 2022

Real Estate Update - Week of 5/20/2022

Interior and exterior design of luxury pool villa_ house_ home feature s...

A glass half-full optimists can point to the increasing likelihood that inflation has at least stopped getting worse in the latest report released last week. While it is encouraging, it is also doubtful that the news on “mild” deceleration in price growth will be enough for the Federal Reserve to signal a shift in tone. With rates likely to remain elevated in the short term, we expect the ongoing monetary policy to weaken consumer demand, slow down economic activity, and cool off home price growth in the second half of the year.

 

Weekly average active listings near last year’s peak – but at what cost: Active listings have been heading into the right direction since the beginning of the year. Seeing more listings available for sale is encouraging since supply has been super-tight in the last two years. While this can mean more options for homebuyers, growth in active listings on the market can either come from an increase in newly added listings, or more homes staying on the market due to a drop in housing demand. The most recent weekly MLS data suggests that the latest improvement in housing supply was attributed by a bit of both. Average weekly new listings dropped from the week prior and while they remained above 6K, average new listings were slightly behind last year’s level. On the other hand, the weekly average daily sales have dropped for the last two consecutive weeks, and pending sales experienced the biggest drop off since the beginning of the year. These are likely in response to the mounting constraints to affordability as mortgage rates and home prices continue to rise, pushing potential buyers out of the market.

 

Mortgage rates climb on: The average 30-year fixed-rate mortgage inched up from last week to 5.30% according to Freddie Mac’s weekly survey. This is more than 200 basis points from the same time last year when the rate was 2.94%. With rates remaining high for the rest of the year as the Fed continues its aggressive approach to battle inflation, homebuyers’ purchasing power will likely be squeezed further as the cost of borrowing increases. 

 

Mortgage applications are holding up despite rate hikes: Prospective buyers are showing some resiliency to higher rates as mortgage applications increased for second consecutive week despite interest rates rising to their highest level since 2009, according to Mortgage Bakers Association. Their survey results, however, also showed that more borrowers seemed to be using adjustable-rate mortgages (ARM), which typically have lower rates than fixed-rate mortgages, to lower their costs of borrowing. The share of ARMs increased to 10% of overall loans from just 3% at the beginning of the year.

 

Inflation eases from March’s peak but remains near 40-year high: Despite Consumer Price Index (CPI) decelerating both on a month-to-month and a year-over-year basis, inflation remained elevated with prices up 8.3% from a year ago for all goods and 6.2% for core goods excluding energy and food. While the directional improvement is encouraging, more households are feeling the squeeze from higher prices. The share of consumers who feel their household finances have gotten worse relative to a year ago increased nearly 10 percentage points to 47% according to the University of Michigan’s consumer sentiment survey. 

 

Consumer sentiment toward housing hits lowest level in two years: The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 4.7 points to 68.5 in April, reaching its lowest level since May 2020 as consumers surveyed continued to report difficult homebuying conditions amid budget-tightening constraints due to inflation, higher cost of borrowing, and record-high home prices. 

 

NFIB Small Business Index was unchanged in April at 93.2: While the drop was not much of a surprise, the index has remained under its historic 48-year average for the past four months. With the Producer Price Index (PPI) rising 11% in April as input prices keep accelerating, a record 32% of small business owners stated that inflation was their single most important problem in operating their business as they felt squeezed by rising costs and were unsure if they could continue to pass on higher costs to consumers.

 

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.
SEARCH HOMES FOR SALE
HOME SEARCH APP
WHAT'S MY HOME WORTH?
Recently Sold
2 Beds | 1 Bath | 1,158 SqFt | $785,000
 
Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.
2 Beds | 1 Bath | 949 SqFt | $840,000
 
Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.
3 Beds | 4 Baths | 3,358 SqFt | $1,819,798
 
Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.
2 Beds | 1 Baths | 702 SqFt | $550,000 
 
Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.
2 Beds | 2 Baths | 1,271 SqFt | $610,000 
 
Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.
2 Beds | 2 Baths | 959 SqFt | $476,000 
 
Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight. 
2 Beds | 2 Baths | 1,039 SqFt | $477,000
 
Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.
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.
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.
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May 13, 2022

Real Estate Update - Week of 5/13/2022

luxury Swimming pool in luxury pool villa

Interest rates continue their upward march, but the housing market in California remains competitive with few signs of buyers pulling back despite another rate hike by the Federal Reserve last week. The latest jobs report showed continued expansion in the macro economy, but the ongoing labor shortage arising from a depressed labor force will mean that the Fed is likely to remain aggressive in their approach to inflation, meaning that longer-term rates will likely rise further as well. Fortunately, listings continue to rise across the state, which should help buyers eager to find a home before rates climb any higher.

 

Closed sales fall in April, but pending holding up well: California’s housing market continues to moderate from the 12-year high levels we saw in 2021, but given the tremendous rise in interest rates recently, the relative stability of pending sales is encouraging. On a month-to-month basis, closed sales likely fell further from 2021 levels. In addition, almost 72 out of every 100 homes is still selling above asking price.

 

Active listings rise by double-digits for 2nd consecutive week: At the onset of the coronavirus pandemic, active listings in California began to contract rapidly. The California Association of Realtors ("C.A.R.") began pulling weekly data from the MLS the second week of March 2020, which means that we can begin calculating annual growth in active listings on March 14, 2021. Every singly week from then to February 12, 2022, the number of homes available for sale fell the same week one year earlier—for 49 consecutive weeks of year-to-year contraction. Last week, active listings rose by 12.4% from the first week of May 2021 following a 12.5% increase the week before. There are now more than 31,000 homes listed for sale across the state, which is the first time buyers have had this many options to choose from since Halloween.

 

Mortgage delinquencies continue to fall: Despite the myriad challenges facing the economy, housing market, and individual households, the ongoing decline in mortgage delinquencies suggests that foreclosures are likely to remain very low even as they rise in the wake of many federal and state protections expire. Not only were these mortgages underwritten to very high standards, most homebuyers put significant savings into their homes as down payments, and the overwhelming majority of homeowners have built significant home equity over the past few years. California, in particular, stands out with one of the highest shares of current mortgages compared with other states.

 

Job growth continues, but at a slower clip: The U.S. economic recovery from the pandemic continued in April with the latest jobs report showing 428,000 in net job creation. This marks the 16th consecutive monthly increase, which has helped to push the unemployment rate nationwide to just 3.6%--the lowest level since the start of the pandemic in March 2020. Initial claims for unemployment did rise by 19,000 last week to 200,000, but remain well below historical averages suggesting that the economy continues to improve. 

 

The Federal Reserve raises rates by 50 basis points: As expected, the Federal Reserve raised their target interest rate by 50 basis points last week in their ongoing battle to tame consumer inflation that has risen to its highest level in more than 40 years. As a result, mortgage interest rates, which have already risen from roughly 3% at the beginning of the year to 5.27% in the latest Freddie Mac survey, are expected to continue their upward climb. In addition, mortgage rate spreads with 10-year treasuries may widen in coming months as the Fed will also begin reducing the size of its balance sheet, providing more supply of mortgage backed securities to the market—a move that could cause prices on MBS to fall in order to attract investors, leading to higher rates on mortgages originating.

 

Mortgage applications falling by double-digits consistently now: Last week, mortgage purchase applications continued to fall below pre-pandemic levels with another double-digit decline from 2021 levels. This marks the 3rd consecutive weekly decline that was greater than 10% on a year-to-year basis and the 5th such decline in the past 7 weeks. Given that mortgage applications typically peak in April, closed sales will likely benefit from better mortgage applications for the next month, but the trajectory of applications suggests that sales will fall short of 2021 levels, which is in line with C.A.R.’s current forecast.

 

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.

SEARCH HOMES FOR SALE
HOME SEARCH APP
WHAT'S MY HOME WORTH?
In Escrow
2 Beds | 1 Bath | 1,158 SqFt | $785,000

 

Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.
Recently Sold
2 Beds | 1 Bath | 949 SqFt | $840,000

 

Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.
3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

 

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.
2 Beds | 1 Baths | 702 SqFt | $550,000 
  
Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.
2 Beds | 2 Baths | 1,271 SqFt | $610,000 

 

Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.
2 Beds | 2 Baths | 959 SqFt | $476,000 

 

Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight. 
2 Beds | 2 Baths | 1,039 SqFt | $477,000
  
Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.
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.
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.
Facebook  Twitter  Instagram  Linkedin  Youtube   

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WHAT'S MY HOME WORTH?

May 6, 2022

Real Estate Update - Week of 5/6/2022

Beautiful kitchen in luxury modern contemporary home interior with islan...

In the context of ongoing geopolitical tension, record inflation, and rising interest rates, current indicators of the broader economy and the housing market continue to outperform. However, there are rising signs that the second half of 2022 and 2023 may be more challenging. 

 

California housing market shrugging off challenges thus far: Despite a significant jump in mortgage rates, there are myriad signs of robust buyer demand in the latest weekly data. Some buyers may be feeling a sense of urgency to complete their transactions before rates rise further next year. The percentage of homes closing above asking price remains elevated at 72% of transactions last week. In addition, the median days on market for homes sold last week held steady at just 11 days. That means that the market was more competitive during the final week of April 2022 than it was during the summer of 2021. 

 

Genuine improvement in inventory during past few weeks: Although California has been experiencing a seasonal uptick in inventory for the past few months, growth in active listings over the past few weeks has become much more meaningful. California ended April with nearly 30,000 homes available for sale across the MLS, collectively. That represents more than a 12% increase in inventory—the largest gain since before the pandemic began. That still leaves the state well behind pre-pandemic levels of available listings, but the acceleration in the pace of inventory coming online means that buyers will begin to have more options to choose from than they’ve seen in several years.

 

Economic growth dipped negative for the first time since the recovery began: In the first sign of cracks in the broader economy, real gross domestic product (GDP)—the primary measure of economic activity—fell for the first time since the recovery began in the second half of 2020. Overall, the economy shrank by a relatively modest 1.4% on an annualized basis, mostly from a larger international trade gap between imports and exports. Impressively, real consumer spending offset some of this decline despite rising inflation and ongoing supply chain challenges. Still, as government support wanes, consumers have had to rely more heavily on savings to maintain current spending levels, which suggests that we may not be able to sustain current levels of household spending indefinitely.

 

Job openings remain elevated, and businesses are still having difficulty filling them: Unemployment has dipped into the low single-digits, and the labor market remains tight. Last month, there was still more than 5 million more job openings than there are unemployed workers looking for work. This has led to ongoing wage growth (average hourly wages grew by an additional 5% last month from the year before—adding to already-increased pressure on inflation, which jumped to another 40-year high last month. Core inflation did stabilize somewhat, but with an already-hawkish stance by the Fed, a very tight labor market suggests that the rate environment will continue to trend up as they try to get consumer prices under control. 

 

The Federal Reserve remains poised for several more interest rate hikes: The Federal Reserve met this week and announced a 50 basis point increase. Given that the Fed had been relatively transparent about this move and that the market had already priced in roughly 200 basis points of Federal Reserve rate increases into 2- and 10-year treasuries, the announcement did not have a dire impact on the market. However, it does signal that the Fed remains committed to fighting inflation and that rates are likely to trend higher as they continue to tighten.

 

Mortgage applications have peaked and will likely weigh on home sales in the future: Mortgage applications have been falling from the 12-year highs reaches in 2021 for some time. However, in recent weeks, the decline in buyer demand has accelerated in the face of interest rates that have climbed as high as 5.41% according to daily quotes. As a result, new purchase applications have dipped, not just below 2020 and 2021, but also below pre-pandemic levels for the first time since the initial shelter in place orders were issued more than two years ago. This suggests that, although the current closed and pending sales figures remain robust, higher rates and slower economic growth will likely catch up to home sales later this year.

 

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.

SEARCH HOMES FOR SALE
HOME SEARCH APP
WHAT'S MY HOME WORTH?
In Escrow
2 Beds | 1 Bath | 1,158 SqFt | $785,000
Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.
Recently Sold
2 Beds | 1 Bath | 949 SqFt | $840,000
Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.
3 Beds | 4 Baths | 3,358 SqFt | $1,819,798
Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.
2 Beds | 1 Baths | 702 SqFt | $550,000 
Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.
2 Beds | 2 Baths | 1,271 SqFt | $610,000 
Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.
2 Beds | 2 Baths | 959 SqFt | $476,000 
Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight. 
2 Beds | 2 Baths | 1,039 SqFt | $477,000
Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.
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.
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.
Facebook  Twitter  Instagram  Linkedin  Youtube   
April 29, 2022

Real Estate Update - Week of 4/29/2022

Luxury interior design in living room of pool villas. Airy and bright space with high raised ceiling_ sofa_ middle table_ dining table and open kitchen home_ house_ building _ resort
 
New records continue to be set for both home prices and rental rates. While housing demand will eventually slow as interest rates continue to climb and remain elevated, tight supply is the key to higher housing costs in the short term and the long term. With more homes being listed onto the market in the next few months while home building momentum continues to push forward in the second quarter, housing costs will likely ease later this year but may not start leveling off until after the spring home-buying season. 
 
California Median Price Sets a New Record: The statewide median home price surpassed $800k for the first time in six months and recorded a new high of $849,080 in March. California existing single-family home sales increased in their median price by 11.9% from a year ago and began to accelerate again as the market prepared to enter the home-buying season. The month-to-month percent change in median price also soared to the highest level since March 2013 and the 10.1% increase was the first time in nine years that the growth rate reached a double-digit pace. March’s month-to-month increase was also more than twice the long run average of 4.5% recorded between a February and a March in the last 44 years. With the market competitiveness likely to remain heated, the statewide median price could increase further in the next few months during the traditional home buying season.
 
Rents Continue to Surge: Along with home prices, cost of renting also jumped rapidly at the national level with single-family rent prices up 13.1% year-over-year in February. U.S. rent prices extended its 11th straight month of record-level gains and reached another new high as another double-digit increase was recorded. Supply shortage in available rentals has contributed to the prolonged run-up in price growth, while robust home price increases most likely have played a role in the high rent growth as well. San Diego-Carlsbad had one of the highest year-over-year increase in California at 17.1%, while Los Angeles-Long Beach-Glendale also experienced double-digit growth. 
 
Fewer Buyers Searching for a Home: While sales remained solid in the latest sales and price report, there are signs that imply a market slowdown could be forth coming in the second half of 2022. A quarterly report released by National Association of Home Builders suggests that fewer buyers were trying to find a home to buy in the first quarter of this year. The share of prospective buyers who were actively searching declined to 46% in Q122, back to pre-pandemic levels after reaching a recent peak of 61% in Q221. For those who had not been successful in finding a home, the share who plan to give up their home search until next year or later rose for the third straight quarter to 25% in Q122, after bottoming out at 20% in Q221. Higher mortgage rates and double-digit growth in home prices are slowing down the housing demand momentum and the effect may become evident in a couple of months. 
 
Mortgage Applications Dip as Rates Climb Further: With interest rates remaining on the rise, mortgage applications continued to decline since they started slowing in early February. The Market Composite Index, a measure of mortgage loan application volume, dropped 5% on a week-over-week basis (seasonally adjusted). The decrease was attributed primarily to the fall in refinancing activities, with the corresponding index down 8% from the prior week and was 68% lower than the same week a year ago. Purchase applications also weakened but at a more moderate pace of -3% week-to-week and -14% year-over-year. 
 
Homebuilding Momentum Continues: Building activities was the pleasant surprise this week, as overall housing starts increased 0.3% from the prior month, while building permits also rose solidly on a month-to-month basis. Much of the upward adjustment came from multifamily units, however, as single-family starts actually declined 1.7% in March and permits fell 4.8%. Despite the pullback, single-family construction remained exceptionally strong year-over-year, with starts totaled 1.2 million units this year compared to 1.13 million units in 2021. The strong start in home building in Q122 reflects some easing in supply constraints, as builders may have found workarounds while construction employment continues to improve.
 
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.
In Escrow
2 Beds | 1 Bath | 1,158 SqFt | $785,000
Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.
Recently Sold
2 Beds | 1 Bath | 949 SqFt | $840,000
Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.
3 Beds | 4 Baths | 3,358 SqFt | $1,819,798
Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.
2 Beds | 1 Baths | 702 SqFt | $550,000 
Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.
2 Beds | 2 Baths | 1,271 SqFt | $610,000 
Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.
2 Beds | 2 Baths | 959 SqFt | $476,000 
Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight. 
2 Beds | 2 Baths | 1,039 SqFt | $477,000
Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.
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.
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.