Nov. 22, 2022

Real Estate Update - Week of 11/22/22

The housing market remains slow as it enters the traditional holiday season. With interest rates rising to the highest level in the last 20 years, both sales and prices had a soft month in October. While last week’s increase in mortgage applications due to the recent decline in rates is encouraging news, market sentiment – including those of builders – continues to lean more towards the side of caution.

 

California home sales bear brunt of higher interest rates in October: Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 274,040. October marked the 16 consecutive month of negative year-over-year growth, and it was the third time in the last four months that sales dropped more than 30%. Homes were listed on the market for a median of 23 days before escrow opened, more than doubled from that in October of last year when the median was 11 days. Inventory inched up but remained low by historical standards. Tight supply has kept prices afloat thus far, even as demand has pulled back significantly. Nevertheless, October had the slowest year-over-year price growth in the last 29 months and prices should continue to moderate in the months ahead.

 

Mortgage applications increase as mortgage rates tumble: Following the latest inflation data release which suggests a slowdown in overall price growth in the economy, mortgage rates decreased last week as Treasury yields dropped sharply. The 30-year fixed-rate mortgage, according to Freddie Mac, averaged 6.61% as of November 17. This was down from 7.08% the week prior and was the biggest week-to-week decline in the last four decades. In response to the decline in rates, total mortgage applications recorded a weekly gain of 2.7% for the weekly ending November 11, 2022. Most of the increase in application activity was due to the seasonally adjusted increase of 4% in purchase applications from the week prior. Refinance activity, on the other hand, continued to move downward by another 2% from the previous week and was down 88% from the level observed one year ago.  

 

Builder confidence declines for 11 straight months: The index by the National Association of Home Builders (NAHB) and Wells Fargo Housing Market Index (HMI) measuring builders’ sentiment towards the housing market, dropped another 5 points to 33 in November. This was the 11th consecutive decline and was the lowest builders’ confidence reached since June 2012, outside of the onset of the pandemic. The drop in builders’ sentiment was attributed primarily to elevated interest rates, persistently high building material costs, and a growing affordability challenge that continues to dry out a once overflowing pipeline of buyer traffic. Nearly 3 in 5 builders were using incentives to attract buyers into the marketplace. One quarter of them (25%), for example, said they paid points for buyers to buy-down mortgage rate. Another one-third (37%) said they cut prices in November, a surge from 26% in September.

 

With interest rates starting to ease we are seeing some new opportunities for buyers and sellers. Lenders are offering options for home buyers to buy down their interest rate and sellers in some cases are offering credits to help buyers obtain a more affordable rate. If you would like 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.

 

Hope you have a great Thanksgiving!

 

Road in California

 

Looking To Move Out Of State? 

Save Thousands for Dollars With Our REALTOR® Referral 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 of our clients move to Arizona, Nevada, Montana, Texas, Florida, and other states by referring them to local experts to help them find their next dream home. These agents were able to save them thousands of dollars and reduce the time and hassle of finding a new home in another state.

 

If you or someone you know is looking to move out state, contact me to tap into the power of my local network of experienced agents. 

SEARCH HOMES FOR SALE

HOME SEARCH 

APP

WHAT'S MY HOME WORTH?

For Rent

605 Redondo Ave. #305 

Long Beach 90814

2 Beds | 2 Baths | 1,121 SqFt | $2,500

 

Beautiful 2 bedroom, 2 bath condo with parking and inside laundry in Bluff Heights.

In Escrow 

1215 Ohio Ave #2A, 

Long Beach 90804 

2 Beds | 2 Baths | 898 SqFt | $425,000

 

Nicely updated 2 bedroom, 2 bath, 

2 story townhome style condo with a private garage.  

Recently Sold

853 E. Helmick St 

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

 

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson. 

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $440,000

 

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

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.

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

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Nov. 18, 2022

Real Estate Update - Week of 11/18/22

Mortgage rates dropped sharply last week following a series of economic reports that indicated inflation may finally be easing. The 30-year fixed-rate mortgage averaged 6.61% in the week ending November 18, down from 7.08% the week before, according to Freddie Mac, the largest weekly drop since 1981. A year ago, the 30-year fixed rate stood at 3.10%. Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s unprecedented campaign of hiking interest rates in order to tame soaring inflation.

 

In the last week, two key inflation reports – the Consumer Price Index and Producer Price Index – showed that prices rose at a slower pace than expected in October, suggesting inflation is inching in the right direction, and has perhaps even peaked.

 

Inflation appears to be easing: Investors saw last week’s lower-than-expected CPI data as an indication that the Federal Reserve may make smaller interest rate hikes in the months ahead, said George Ratiu, Realtor.com’s manager of economic research. 

 

“The 10-year Treasury dropped from 4.15% last Wednesday to 3.68%, as capital markets seemed to cheer the slowdown in inflation as a sign that the Federal Reserve’s monetary tightening is having its intended effect,” Ratiu said. Even though inflation data is moving in the right direction, the Fed has said it does not expect to back off of raising rates until inflation gets closer to the desired target of 2%. Still, the downshift in mortgage rates over the past week has brought a sliver of relief to buyers, said Ratiu. 

 

Mortgage applications increase: Mortgage applications increased for the first time in seven weeks, according to the Mortgage Bankers Association, with both purchase and refinance applications up. “Signs of slowing inflation pushed mortgage rates below 7% for the first time since mid-October, but with rates still relatively high and affordability correspondingly reduced, the average loan amount is now at its lowest level in nearly two years,” said Bob Broeksmit, president and CEO of the MBA.

 

More prospective buyers are actively searching for a home: According to the latest Housing Trends report by the National Association of Home Builders (NAHB), in Q322 59% of prospective buyers had moved beyond the planning phase and had become fully engaged in the buying process. This was up from 46% in Q122 and 49% in Q222. The share of prospective buyers actively searching for a home rose in every region between the second and third quarter of 2022, with the West having the largest share at 68%. Less competition and more inventory were the driving force for the share increase in the recent quarter.

 

With interest rates starting to ease we are seeing some new opportunities for buyers and sellers. Lenders are offering options for home buyers to buy down their interest rate and sellers in some cases are offering credits to help buyers obtain a more affordable rate. If you would like 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.

 

Road in California

 

Looking To Move Out Of State? 

Save Thousands for Dollars With Our REALTOR® Referral 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 of our clients move to Arizona, Nevada, Montana, Texas, Florida, and other states by referring them to local experts to help them find their next dream home. These agents were able to save them thousands of dollars and reduce the time and hassle of finding a new home in another state.

 

If you or someone you know is looking to move out state, contact me to tap into the power of my local network of experienced agents. 

SEARCH HOMES FOR SALE

HOME SEARCH 

APP

WHAT'S MY HOME WORTH?

For Rent

605 Redondo Ave. #305 

Long Beach 90814

2 Beds | 2 Baths | 1,121 SqFt | $2,500

 

Beautiful 2 bedroom, 2 bath condo with parking and inside laundry in Bluff Heights.

In Escrow 

1215 Ohio Ave #2A, 

Long Beach 90804 

2 Beds | 2 Baths | 898 SqFt | $425,000

 

Nicely updated 2 bedroom, 2 bath, 2 story townhome style condo with a private garage.  

Recently Sold

853 E. Helmick St 

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

 

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson. 

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $440,000

 

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

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.

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

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Nov. 11, 2022

Real Estate Update - Week of 11/11/22

Thank You Veteran s Text with American Flag Blowing in the Wind

Last week there was more evidence of an economy that continues to slow. The economy added more jobs, but it was the slowest pace of growth in the past two years. Construction jobs remained relatively flat and single-family construction continued trending down declining for the 4th consecutive month. On the bright side, the Consumer Price Index came in better than expected yesterday, and the rates on the 30 year fixed rate mortgage have come down about .5% since then. 

 

U.S. employment grows at slowest pace since December 2020: According to the nonfarm payrolls survey, the U.S. economy added 261k jobs as hiring remained strong in October. However, despite the broad-based gains, this was the slowest pace in job growth in nearly 2 years. Construction employment was roughly flat. In addition, the household survey showed sings of deterioration in the labor market – actually declining by 328k jobs for the same month. The survey also showed labor force participation rate dipping back to where it was at the start of the year, which nudged the unemployment rate slightly higher to 3.7% from 3.5% the month prior. Although demand for labor remains elevated, the very first cracks are starting to show in diverging messages between the employer and household labor market surveys conducted by the Bureau of Labor Statistics each month.

 

Consumer Price Index comes in better than expected: Yesterday's consumer price index showed prices were up 7.7% from a year ago, down from September's 8.2% rate and below expectations for an 8% rise. Prices were up 0.3% from a month ago, when excluding volatile food and energy prices, below an expected gain of 0.5%. The surprising data spurred hopes that inflation has, finally, peaked.  This good news has caused 30 year fixed rate mortgage rates to drop about .5%, which is welcome news for many home buyers. 

 

Despite the slowing market, there are opportunities for buyers and sellers. Lenders are offering options for home buyers to buy down their interest rate and sellers in some cases are offering credits to help buyers obtain a more affordable rate. If you would like 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.

Road in California

 

Looking To Move Out Of State? 

Save Thousands for Dollars With Our REALTOR® Referral 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 of our clients move to Arizona, Nevada, Montana, Texas, Florida, and other states by referring them to local experts to help them find their next dream home. These agents were able to save them thousands of dollars and reduce the time and hassle of finding a new home in another state.

 

If you or someone you know is looking to move out state, contact me to tap into the power of my local network of experienced agents. 

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Nov. 4, 2022

Real Estate Update - Week of 11/4/22

Autumn kitchen interior. Red and yellow leaves and flowers in the vase and pumpkin on light background

While the U.S. reported its first gain in economic activity in the past three quarters, consumer confidence was less upbeat in October compared to September. Inflation is still a problem and despite growing nominal incomes, households continue to deplete their savings and rely more on their credit cards. With rates above 7% and the Federal Reserve remaining aggressive in raising rates, potential homebuyers will continue to face affordability headwinds in the coming months. Housing demand continues to pull back as evidenced by a decline in new home sales and the lowest mortgage application pace in the last 25 years.

 

New home sales fall back, resuming downward trend: Sales of newly built homes declined 10.9% to a 603K unit pace during September. This monthly decline in sales pushed 17.6% behind last year’s level and below pre-pandemic levels. The National Association of Home Builders also reported cancelations being double what they were a year ago. Demand for homes - both existing and new - have been severely impacted by the affordability challenge that potential buyers are facing as interest rates have risen for most of the year. New houses for sale stayed on the market longer as demand continued to slow and inventory rose from 8.1 months in August to 9.2 months in September.

 

Mortgage applications dip to the slowest pace since 1997: Mortgage rates continued climbing last week for the 10th week in a row. According to Freddie Mac’s weekly survey results, 30-year fixed-rate mortgages (FRM) averaged 7.08% as of October 27 – up from 6.94% the week prior and 3.14% a year ago. It was the first time since April 2022 that the 30-year FRM surpassed 7%. Meanwhile, mortgage applications for the week ending October 21 decreased 1.7% from the week prior, dropping to the lowest level in 25 years. The seasonally adjusted purchase application index declined 2% to the slowest pace since 2015 and the unadjusted figure was 42% behind last year’s level. With costs of borrowing remaining high, housing demand will continue to be weak as the holiday season approaches. 

 

Net exports boost U.S. GDP in 2002-Q3: The U.S. economy expanded in Q3-2022 as GDP grew by a 2.6% annualized rate after contracting in the first two quarters of the year. Although the latest headline GDP reading is more positive relative to the numbers in Q1-2022 and Q2-2022, the current growth pace is considerably slower than what the economy experienced in the second half of 2021. The underlying sectors contributing to the U.S. GDP measure showed a surge in net exports that boosted an otherwise slowing economy in the last three months. Total consumer spending and fixed investment spending, in fact, were virtually unchanged on a quarter-to-quarter basis. With the Fed raising rates another 75 basis points this past Wednesday, a slowdown in the U.S. economy is expected in the next few months. 

 

Spending continues to grow faster than income for 8th time in 9 months: Consumer spending rose 0.6% in September, outpacing personal income growth of 0.4% registered in the same month. Households have been spending more than what they have earned for most of the year when inflation is taken into consideration. Consumers continue to draw down from the savings that they accumulated in the past two years and increasingly rely on their credit cards. With the saving rate dipping to pre-2008 low of 3.1%, the spending trend is not sustainable and a pull-back in consumer spending is expected in the coming months. 

 

Consumer confidence pulls back as present situation becomes less upbeat: The Consumer Confidence Index by the Conference Board, decreased in October after back-to-back monthly gains. The index fell to 102.5 from a downward revised 107.8 the month prior. The dip was due primarily to a deterioration in the assessment of their present situation, which declined sharply from 150.2 last month to 138.9 in October – the lowest since April 2021. Inflation, which started picking up again in recent weeks, remains the main concern for consumers. The intention to purchase homes surprisingly rose from the prior month, despite rates rising above 7%.

 

Despite all of the negative news, there are opportunities for buyers and sellers. Lenders are offering options for home buyers to buy down their interest rate and sellers in some cases are offering credits to help buyers obtain a more affordable rate.  If you would like 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.

Road in California

 

Looking To Move Out Of State? 

Save Thousands for Dollars With Our REALTOR® Referral 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 of our clients move to Arizona, Nevada, Montana, Texas, Florida, and other states by referring them to local experts to help them find their next dream home. These agents were able to save them thousands of dollars and reduce the time and hassle of finding a new home in another state.

 

If you or someone you know is looking to move out state, contact me to tap into the power of my local network of experienced agents. 

SEARCH HOMES FOR SALE

HOME SEARCH 

APP

WHAT'S MY HOME WORTH?

For Rent

605 Redondo Ave. #305 

Long Beach 90814

2 Beds | 2 Baths | 1,121 SqFt | $2,700

 

Beautiful 2 bedroom, 2 bath condo with parking and inside laundry in Bluff Heights.

In Escrow 

1215 Ohio Ave #2A, 

Long Beach 90804 

2 Beds | 2 Baths | 898 SqFt | $425,000

 

Nicely updated 2 bedroom, 2 bath, 

2 story townhome style condo with a private garage.  

Recently Sold

853 E. Helmick St 

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

 

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson. 

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $440,000

 

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

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.

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

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Oct. 28, 2022

Real Estate Update - Week of 10/28/22

Cute dog in room decorated for Halloween

Despite slowing its upward trajectory last week, the average 30-year fixed rate mortgage has been increasing at the fastest rate in four decades causing acute affordability challenges and forestalling many consumers from buying homes. As a result, mortgage applications fell to the lowest level in 25 years and homebuilders’ confidence dropped to half of what it was six months ago. Meanwhile, the state’s labor market showed resilience by expanding modestly in September, although it was the smallest growth in 12 months. Retail sales were flat and inflation continues to erode purchasing power, so another rate hike from the Fed is very likely.

 

Rising interest rates depress California home sales and prices: Following a brief sales bounce back in August, rapidly rising mortgage rates slowed California home sales in September and resumed the month-to-month declining trend that began in the spring. Existing, single-family home sales totaled 305,680 in September on a seasonally adjusted annualized rate, down 2.5% from previous month and down 30.2% a year ago. September’s statewide median home price was, $821,680 down 2.1% from August and held above last year by a slim 1.6%. With borrowing costs remaining high in the months to come, the pull-back in sales and a downward adjustment in home prices is expected to continue.

 

Home builders struggle with rising rates, elevated costs, and waning demand:  The homebuilder sentiment index in October fell to 38, dropping 8 points from the month prior. The sharp increase in mortgage interest rates have slowed buyer traffic significantly and with high construction costs persisting, builders’ confidence in the housing market reached the lowest level since May 2020. The number of housing starts resumed their downward trend in September by falling 8.1% from the month prior and are now down 20.3% from their recent peak in April. Single-family starts fell 4.7% over the month and permits for the same fell for the 7th straight month, so we can expect further weakening in the construction of single-family homes.  

 

Mortgage applications slow as mortgage rates approach 7%: Total volume for mortgage loan applications decreased 4.5% from the week prior continuing its four-month downward trend as demand for mortgages fades in the wake of rising interest rates. Purchase applications specifically decreased 4% from the week prior and are 38% below the same time from last year. Mortgage applications have now slid to their lowest level since 1997 as the 30-year fixed-rate mortgage (FRM) nears 7%. As of October 20, the mortgage interest rate for a 30-year FRM averaged 6.94% when only a year ago at this time it averaged 3.09%, according to Freddie-Mac.

 

U.S. retail sales stall as Americans face high inflation and rising interest rates: Americans’ spending at U.S. retailers was flat in September when compared to August but rose from a year ago by 8.2% despite persistent inflation. While the gains for the month were muted, they are not adjusted for inflation and thus continue to highlight that real spending across a wide range of sectors is retreating. In addition, incomes are not nearly keeping up with inflation, and Americans are increasingly tapping into their savings and opting to use credit cards to make ends meet. As long as inflation persists, interest rates will remain elevated eroding purchasing power and begin to weigh on overall economic growth.

 

California sees job growth, albeit at a slower pace: Despite seeing solid growth in private payrolls, the public sector posted a decline causing overall job gains to have the smallest increase since September of last year when jobs fell. This resulted in a modest overall increase of 6,500 net new jobs for the Golden State economy in September. The state’s unemployment rate fell to 3.9% during the same month, mostly as a result of a steep decline in the labor force participation for the state, but the household survey also showed household employment contracting during the same time period. The state labor market is showing resilience, but growth is decelerating as more macroeconomic challenges mount.

 

Despite all of the negative news, there are opportunities for buyers and sellers.  Lenders are offering options for home buyers to buy down their interest rate and sellers in some cases are offering credits to help buyers obtain a more affordable rate.  If you would like 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.

Road in California

 

Looking To Move Out Of State? 

Save Thousands for Dollars With Our REALTOR® Referral 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 of our clients move to Arizona, Nevada, Montana, Texas, Florida, and other states by referring them to local experts to help them find their next dream home. These agents were able to save them thousands of dollars and reduce the time and hassle of finding a new home in another state.

 

If you or someone you know is looking to move out state, contact me to tap into the power of my local network of experienced agents. 

SEARCH HOMES FOR SALE

HOME SEARCH 

APP

WHAT'S MY HOME WORTH?

For Sale

1215 Ohio Ave #2A, 

Long Beach 90804 

2 Beds | 2 Baths | 898 SqFt | $425,000

 

Nicely updated 2 bedroom, 2 bath, 

2 story townhome style condo with a private garage.  

For Rent

605 Redondo Ave. #305 

Long Beach 90814

2 Beds | 2 Baths | 1,121 SqFt | $2,700

 

Beautiful 2 bedroom, 2 bath condo with parking and inside laundry in Bluff Heights.

Recently Sold

853 E. Helmick St 

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

 

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson. 

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $440,000

 

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

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.

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

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Oct. 21, 2022

Real Estate Update - Week of 10/21/22

Beautiful flowers in vase on table in room_ closeup. Cozy interior inspired by autumn colors

Buyer demand continues to dwindle as rising mortgage rates erode consumer purchasing power. With the latest inflation reading coming in hot, we can expect further increases from the Fed at their upcoming meeting. With the market becoming less competitive, buyers and sellers are starting to adapt to the new market environment. More sellers are willing to negotiate and offer buyer incentives.  Despite a modest recession forecast for 2023, the long-term prospects for continued price growth in California may continue to draw buyers who still qualify at higher rates but have been sidelined during the past two years of frenzied conditions. 

 

The California Association of REALTORS® (C.A.R.) projects mild recession and higher interest rates in latest forecast: A modest recession caused by an ongoing battle against inflation will keep interest rates elevated to suppress buyer demand in 2023. Existing, single-family home sales are forecast to total 333,450 units in 2023, a decline of 7.2 percent from 2022’s projected pace of 359,220. California’s median home price is forecast to decline 8.8 percent to $758,600 in 2023, following a projected 5.7 percent increase to $831,460 in 2022. Part of the price decline will result from less growth in sales of higher-priced properties, with the remainder owing to rebalancing supply and demand in the face of higher rates.

 

Sellers reluctant to dump properties in uncertain environment: C.A.R.’s latest monthly REALTOR® survey found that the percentage of agents experiencing sellers holding back from listing their property has been trending upwards since May and recorded its second highest level this year at 36% in October. In addition, 25% of REALTORS® surveyed also reported having a client remove their home from the market altogether in October – the highest share since the beginning of the survey more than two years ago. For the sellers that kept their home on the market, more REALTORS® are reporting price reductions after climbing consecutively from it’s low-point in April of just 5%. However, the share of respondents whose clients lower their asking price in October dipped to 39% from the peak of 43% recorded in September.

 

Despite CPI easing overall, core inflation remains near 40-year high: Although the Consumer Price Index (CPI) improved from 8.3% in August to 8.2% in September, core inflation (which excludes food and energy prices) rose 6.6.% from last year to a new 40-year high. Rising prices for core services like medical care, transportation, and shelter were the primary reason for the jump in core inflation, which recorded a 0.8% increase from the previous month – the strongest monthly gain since 1982. This persistent inflation suggests that we can expect another 75 basis-point increase at the upcoming Fed meeting in a few weeks.

 

Rates near 7% as Treasuries suffer: The average rate on a 30-year fixed-rate mortgage reach 6.92% in the latest reading from Freddie Mac last week. That is the highest weekly mortgage rate in more than 20 years going all the way back to April of 2002. Inflation expectations have begun to weigh on the bond market as the rate for 10-year Treasuries rose to 3.94% last week, which was at its highest level since April of 2010. Given the impact to purchasing power, mortgage applications have started to accelerate downward with last week seeing new purchase applications dip by 39%--the largest year-to-year decline since 2010.

 

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.

Road in California

 

Looking To Move Out Of State? 

Save Thousands for Dollars With Our REALTOR® Referral 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 of our clients move to Arizona, Nevada, Montana, Texas, Florida, and other states by referring them to local experts to help them find their next dream home. These agents were able to save them thousands of dollars and reduce the time and hassle of finding a new home in another state.

 

If you or someone you know is looking to move out state, contact me to tap into the power of my local network of experienced agents. 

SEARCH HOMES FOR SALE

HOME SEARCH 

APP

WHAT'S MY HOME WORTH?

Active For Sale

1215 Ohio Ave #2A, 

Long Beach 90804

2 Beds | 2 Baths | 898 SqFt | $425,000

 

Nicely updated 2 bedroom, 2 bath, 2 story townhome style condo with a private garage.  OPEN HOUSE 

SUNDAY 10/23, 12:00 - 4:00pm 

Recently Sold

853 E. Helmick St 

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

 

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson. 

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $440,000

 

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

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.

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

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Oct. 14, 2022

Real Estate Update - Week of 10/14/2022

Two Red Chairs in the Front House Entrance in Autumn

The U.S. economy once again showed resilience despite mounting headwinds. The labor market remains remarkably tight and continued expanding at a solid pace. That said, prices at the pump are flaring back up and likely will keep inflation elevated, which will only reinforce the Fed’s battle to get inflation under control. Mortgage interest rates remain very volatile and are well above last year’s reducing purchasing power for buyers at all levels. This has caused demand to pull back and, as a result, builders are scaling back production and lowering their spending budgets – especially in residential.

 

U.S. employment expands at a solid clip, but growth eases in September: While the U.S. economy added 263K jobs in September, the monthly improvement reflects a slowing pace of job growth – the second consecutive. The unemployment rate slipped back down to 3.5% on par with its 50-year low level and the household survey showed a solid rise in employment, but a slight dip in the labor participation rate – to 62.3% – just below pre-pandemic averages. The deceleration in job growth will help to alleviate some of the inflationary pressures, but the labor market remains tight.

 

Construction spending slips in August: While still running ahead of last year by 10.9% year-to-date, total construction spending decreased 0.7% in August and was revised down slightly for July as well. Growing economic uncertainty, persistent inflation, and higher interest rates continue to weigh on construction and builders across the board have begun scaling back. Both residential and nonresidential construction spending fell in August, by 1.0% and 0.4% respectively. Although, single-family construction posted the largest declines in the residential sector, falling 2.9% from the previous month. However, construction spending for multi-family continues to grow (0.4%).

 

Mortgage applications fall back to slowest pace since 1997: According to the latest data from Freddie Mac, the average rate on a 30-year, fixed-rate mortgage dipped slightly to 6.66%. Despite the modest decline from 6.70% the previous week, rates are up from last year’s level by more than 300 basis points and have climbed almost 130 basis points just in the last 7 weeks. The steep increase in rates has caused overall mortgage applications to dip to the slowest pace in over two decades. Refinance activity has ground to a near halt and purchase applications have fallen more than 33% behind last year’s pace. 

 

Pending sales decline as rates rise again: After a brief respite, rates during July and early August that caused home sales to rise from the decade-low hit in the summer, pending sales have resumed their downtrend. In September, existing single-family pending sales dipped almost 30% from last year’s levels. That is down 15% from August, which had bounced back 14% from July putting the state close to that previous low hit a few months ago. The Bay Area saw the largest pullback in pendings last month, falling 33% from last year. Southern California followed with a 31% decline in pending sales. Every price segment saw a decline in pending sales in September as well. The top end continues to outperform the bottom end of the market with homes priced $5M and above falling by 21%, while homes priced under $300,000 fall by roughly 33% from last 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.

Oct. 7, 2022

Real Estate Update - Week of 10/7/2022

Fall Decoration Adorns Beautiful Entry Way To Home.

Americans’ confidence rose to the highest level in six months in September and their spending remained steady despite higher prices. Wage growth, however, is not keeping pace with inflation and thus consumers are increasingly relying on their savings to offset the higher cost of living. As households’ savings dwindle while higher interest rates push up credit card debt, consumer confidence could dip in coming months as economic activity slows. As for the housing market, higher mortgage rates continue to worsen affordability and remain the major factor that holds back demand. Despite a slight improvement in sales in August, home buying activity is expected to be sluggish in the months ahead as rates remain high.

 

Mortgage demand declines as interest rates keep climbing: Applications for both purchase and refinance loans decreased last week as mortgage rates moved up to multi-year highs following another aggressive policy measure from the Fed to bring down inflation. Additionally, ongoing uncertainty about the impact of the Fed’s reduction of its MBS and Treasury holdings is adding upward pressure on mortgage rates. The 30-year fixed-rate mortgage averaged 6.70% as of September 29, the highest level since mid-2007 and was more than a percentage point higher than six weeks ago. With higher rates and economic uncertainty weighing on the decisions to buy, more buyers have opted to finance their home purchases with adjustable-rate mortgages (ARM), which generally have lower rates. The market share of ARM has grown to 10% of applications and reached nearly 20% of dollar volume last week.

 

Consumers gain confidence in September, though it may be short-lived: Both the consumer confidence index and the consumer sentiment survey showed improvement in consumers’ views towards their present situation as well as their inflation expectations. The near five-point gain in consumer confidence in September lifted the index to 108, the highest in five months. However, their views on inflation were likely influenced by declining gas prices and strong labor market during the time each respective survey was taken. With prices flaring up at the pump again in recent weeks and the Fed’s monetary policy tightening likely to have an impact on the economy soon, the confidence level could retreat in the next couple months.

 

Consumer spending rebounds, but high prices are chipping away at savings: Americans increased their spending by 0.4% in August, but stubbornly high inflation and a recent rebound in prices at the gas pump could stifle overall demand in the months ahead. With inflation outpacing wage growth, consumers continue to tap into their excess savings to offset the higher cost of living. The saving rate was as high as 26.3% in March 2021, but has since declined to 3.5% in August 2022, near levels seen during the 2007-09 Great Recession.

 

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

853 E. Helmick St 

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

 

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson. 

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $440,000

 

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

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.

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

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Sept. 30, 2022

Real Estate Update - Week of 9/30/2022

Beautiful flowers in vase on table in room_ closeup. Cozy interior inspired by autumn colors

The housing market continues to soften under the pressure of higher mortgage rates. While home prices have eased over the last couple of months, they are still holding up above last year’s level. Combined with the highest interest rates in nearly a decade and a half, affordability challenges continue to mount. The Fed’s renewed commitment to combat inflation by raising rates will only dampen home sales further in the coming months. Homebuilders sentiment has dipped in recent months and more developers are providing incentives, including price reductions, in order to attract buyers back into the market.

 

The FOMC makes fifth-straight increase to the federal funds rate: As expected, the Fed raised the target range for the federal funds rate by 75 bps on Wednesday of last week. The jump marked the third consecutive increase of this magnitude and pushed the benchmark range to 3%-3.25%—the highest since early 2008. The FOMC also announced that they foresee increasing their target rate as high as 4.6% in 2023 to combat inflation, which means the series of big rate hikes are expected to continue for the remainder or the year and into early next year. 

 

Mortgage demand rises despite sharply higher interest rates: According to the Mortgage Bankers Association (MBA), mortgage application volume increased last week for the first time in six weeks but remained well below last year’s levels with purchase applications running 30% behind 2021 and refinance activity down 83%. The latest gain on mortgage applications, however, was largely the result of weak Labor Day applications the previous week. Overall, applications remain below pre-pandemic levels and are expected to remain soft as buyers adjust to higher rates. According to Freddie Mac’s weekly survey, the 30-year fixed-rate mortgage averaged 6.29% as of September 22, when only the week prior it had averaged 6.02%.

 

Homebuilder sentiment dips further – especially in the West: The measurement of homebuilder sentiment (HMI), slid for the ninth consecutive month in September by dipping three points to 46 – slid 10 points in the West to 41. Builders blame elevated constructions costs, in addition to rising rates for their increased pessimism. As mortgage rates have risen, an already pricey housing market has become even less affordable and has resulted in less buyer traffic. Consequently, a greater share of builders have been forced to provide incentives like mortgage rate buydowns, free amenities, and price reductions to bolster sales. In fact, nearly a quarter of them reported lowering prices in the most recent data.

 

Housing starts rebound in August but permits decline sharply: Total housing starts surprised to the upside in August by increasing 12.2% over the month to a 1.575-million-unit pace. Single-family starts rose 3.4% while multifamily starts increased 28%. Improvements in supply chain conditions likely increased building material availability during the month, allowing builders to move forward with projects already in the pipeline. However, the skid in builder sentiment mirrors the trend decline in new home construction as building permits, a forward-looking indicator that leads housing starts by a couple of months, also plummeted 10% in August. The drop in permits reflects builders tapping the brakes on new construction in response to weaker demand and rising financing costs.

 

Rent for single-family homes grows, albeit at slower pace: The monthly cost of rent for single-family homes in July according to CoreLogic’s latest report, are still 12.6% higher than they were a year ago but increases are slowing down. July marked the third consecutive month were gains continued to shrink from the record high seen in April. However, recent hikes in mortgage interest rates have increased the mortgage payments for new loans and potential homebuyers may choose to continue to rent rather than buy. In addition, vacancy rates, continue to be extremely low across most major markets causing supply to be outweighed by demand.

 

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.

 

Modern kitchen with brown kitchen cabinets_ oversized kitchen island with bar stools_ granite countertops_ huge refrigerator and beige backsplash. Northwest_ USA

 

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.

Facebook  Twitter  Instagram  Linkedin  Youtube   

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Sept. 22, 2022

Real Estate Update - Week of 9/23/2022

Portrait Of Excited Family Standing Outside New Home

Last week, several encouraging indicators were released that suggest the economy continues to move forward despite various challenges. However, headwinds continue to emerge and although growth continues, it is downshifting. Inflation surprised to the upside, led by core goods showing little signs of slowing. At the same time, consumers have yet to meaningfully pull back on goods spending with real retail sales rising 2.1% in August. With the Fed announcing a .75% increase this week, mortgage rates have continued to increase. Home sales perked back up in August, but affordability will continue to suffer as rates are rising again after a brief reprieve in late July and August.

 

California existing single-family home sales bounce back amid temporary rate reprieve: August home sales rising back above 300,000 units is significant. Although we do not expect a rapid bounce back due to the Fed continuing to raise rates, the monthly increase in closed and pending sales suggests that the market may have priced in some of the rate increases. Still, buyers will continue to grapple with rising costs of borrowing, which will keep home sales below 350,000 for the remainder of the year.

 

Retail sales rise above inflation as consumers keep spending: Americans increased spending at stores and restaurants last month, showing persistent demand despite rising prices. The 0.3% gain in retail sales in August outpaced inflation and marked a reversal from July’s 0.4% decline revision. However, most of the recent gains in nominal retail sales is the result of higher consumer prices, and real spending has fallen in the 3 consecutive months preceding August’s slight gain. Looking ahead, savings rates are dwindling, and rising consumer credit suggest that we could see more moderation from this important engine of growth as we enter 2023. 

 

Core inflation still running hot despite lower gas prices: Consumer prices in August grew just 0.1% from July, helping the headline inflation dip to 8.3% above last year. However, this number includes gas prices sliding 10.6% from the previous month. Core inflation, which is used by the Fed because it excludes more volatile energy and food prices, advanced by another 0.6% in August pushing the year-over-year pace upwards to 6.3% - more than triple the Fed’s 2% inflation target. As such, the Fed reaffirmed its commitment to an aggressive policy stance at the FOMC meeting this week. 

 

Mortgage rates surpass 6% mark for first time since 2008: After easing slightly towards the end of July and August, mortgage rates jumped significantly higher last week. The recent CPI release have restoked fears that the Fed will continue to hike rates even beyond the .75% increase announced this weak. According to Freddie Mac’s weekly survey the 30-year fixed-rate mortgage averaged 6.29% as of September 22. That is more than 343 basis points higher than what it was a year ago at this time when it averaged 2.86% - more than double. The increase in rates will continue to weigh on homebuyer demand in coming months, as evidenced by the most recent decline in mortgage applications.

 

Signs of labor market slack begin to emerge: Although nonfarm payrolls grew modestly in 37 states during August, several states in the nation reported net losses. California was one of the states that continued to expand as employers report adding nearly 20K net new jobs in August across most major industries. However, this increase was significantly lower than the 91.4K jobs added in July and most of the pullback was reported in manufacturing, construction, and information. In the monthly survey of households, a slight contraction in employment combined with a rebound of 32.4K workers re-entering the labor force increased the state’s unemployment rate from 3.9% to 4.1% in August – the first increase in California’s unemployment rate since June 2021.

 

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.