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Southern California Real Estate Market Update
Key Trends for Fall 2024
As we move into the fall, recent economic indicators suggest a positive outlook for the Southern California housing market, even amid elevated mortgage rates. While the latest jobs report shook the Treasury market, pushing mortgage rates to their highest since early August, broader economic signs point to a potential “soft landing” as inflation trends toward the Fed’s target. Despite the temporary spike in rates, California’s housing market continues to benefit from rising inventory, with more homes hitting the market and buyers taking advantage of the increased supply.
Inflation Progressing Toward Fed’s Goal The latest inflation report shows that year-over-year headline inflation has dipped to 2.4%, its lowest level since early 2021, signaling progress toward the Federal Reserve's 2% target. However, core inflation—excluding volatile food and energy prices—remains sticky due to high housing costs and wage growth. The Fed’s preferred measure, the PCE index, has shown improvement, staying below 3% for seven consecutive months. As a result, the market now expects two modest 25 basis-point rate cuts in 2024, down from previous hopes of more aggressive reductions.
Mortgage Rates Elevated, But Relief Is Coming Following the release of a stronger-than-expected jobs report, mortgage rates have climbed to 6.62% for a 30-year fixed-rate mortgage. Although rates are currently elevated, they are expected to stabilize in the coming weeks as the market adjusts to the Fed’s more gradual approach to rate cuts. While a steep decline in rates by year-end is unlikely, incremental reductions are anticipated through 2024, which should provide relief for buyers.
Inventory on the Rise as Sales Rebound California’s housing market has seen a notable increase in inventory, with nearly 49,000 homes listed for sale last week—the highest level since before the pandemic. This rise in supply includes more homes in the $400,000 to $800,000 range, offering affordable options for first-time buyers. The extra inventory is already attracting buyers, with pending sales in early October up by double digits compared to the same period last year. As mortgage rates ease, this uptick in available homes will likely drive more activity in the coming months.
Home Equity Loans Surge as Prices Climb With home prices continuing to rise, homeowners are increasingly tapping into their home equity. In the first half of 2024, more than 333,000 home equity loans were originated nationwide, totaling $23.6 billion—a 69% increase year-over-year. California led the nation, with Los Angeles, Anaheim, San Diego, and other major metros seeing the highest loan amounts. As home prices are projected to increase further in 2025, the trend of homeowners leveraging their equity is expected to continue.
The Southern California housing market remains resilient despite elevated mortgage rates, and the latest economic indicators suggest that buyers and sellers will find opportunities as we head into 2025. Keep an eye on inventory growth and mortgage rate trends as we move toward the end of the year.
If you have any questions about how these trends could affect your home buying or selling decisions, feel free to reach out!
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Looking To Sell A Property That Needs Some Work?
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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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700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $940,000
Experience luxury coastal living with breathtaking ocean views from every room in this beautifully remodeled high-rise condo at the iconic International Tower. This light-filled unit features an open floor plan, updated kitchen with sleek cabinets, marble countertops, and stainless steel appliances, and a spacious primary suite with a luxurious soaking tub. Enjoy panoramic vistas from the large wrap-around balcony, plus access to top-notch amenities, including a pool, fitness center, and 24-hour security, all just steps from the beach and vibrant local dining.
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706 E Bixby Rd
Long Beach 90807
3 Bed | 2 Bath | 1417 SF | $1,075,000
Welcome to this beautiful California Heights home, featuring over $250,000 in recent updates that blend modern luxury with timeless charm. The spacious living room invites you in with an abundance of natural light, gleaming oak wood floors, a cozy fireplace, and elegant recessed lighting. The newly updated custom kitchen is a chef’s dream, boasting top-of-the-line Café and Miele appliances. Great open floor plan with formal dining room that opens to the living room and kitchen. Both bathrooms have been beautifully remodeled with quartz countertops, custom white oak vanities, stylish tile work, modern lighting, and the primary bath features a luxurious soaking tub for ultimate relaxation. Located just 1-2 blocks from award-winning Blue-Ribbon schools (Longfellow Elementary & Hughes Middle School), and within walking distance to the vibrant shopping, restaurants, and cafes in Bixby Knolls.
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225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $339,000
Charming top-floor end unit condo in the heart of Long Beach, offering privacy and city views. This updated home features an open living area with a private balcony, a stylish kitchen with butcher block countertops, and a bright bedroom with two mirrored closets. Located near top attractions like the Long Beach Convention Center and Shoreline Village, with easy access to dining, shopping, and transportation.
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1187 E 3rd St #111
Long Beach 90802
2 Bed | 2 Bath | 1039 SF | $2,650
Looking for the perfect beachside home? Look no further than this beautiful two-bedroom, two-bathroom condo located in Alamitos Beach! Just six blocks to the beach, this home is perfectly situated for those seeking a coastal lifestyle.
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939 E Appletong St #8
Long Beach 90802
2 Bed | 2 Bath | 900 SF | $2,500
Discover this delightful top floor condo in the heart of Alamitos Beach. Just steps from the beach, East Village, Retro Row, and Shoreline Village, this two-bedroom, two-bathroom gem offers a cozy and inviting living space.
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488 E Ocean Blvd #P9
Long Beach 90802
1 Bed + Bonus Room | 1.5 Bath | 1447 SF | $799,900
Experience Luxury Living with Breathtaking Panoramic Views in this Rare Two-Story Penthouse! AMAZING VIEWS!! Discover unparalleled luxury in this stunning 18th & 19th-floor penthouse in the prestigious Aqua high-rise building in downtown Long Beach.
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3503 Marber Ave.
Long Beach 90808
3 Bed | 2 Bath | 1553 SF | $1,120,000
Impeccable South of Conant Home on a Beautiful Tree-Lined Street! This charming 3-bedroom, 2-bath home in a highly sought-after neighborhood exudes curb appeal with designer touches throughout.
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2101 E 2nd St #205
Long Beach 90803
2 Bed | 2 Bath | 1064 SF | $679,900
Enjoy the ocean breeze in this beautiful condo located just 2 blocks to the beach and across from Bixby Park. Walking distance to the beach, Retro Row, Broadway Ave, dog park, Farmer’s Market, and all the great local restaurants, cafes, and nightlife.
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6815 E Monlaco Rd
Long Beach 90815
3 Bed | 2 Bath | 1254 SF | $995,000
Welcome Home to Modern Elegance in the Heart of the Plaza Area, Long Beach! Nestled in the highly sought-after Plaza neighborhood, this newly updated 3-bedroom, 2-bathroom residence invites you to experience the perfect blend of contemporary comfort and classic charm. Step inside to discover a thoughtfully designed living space that seamlessly combines style and functionality.
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6713 E Almada St
Long Beach 90815
4 Bed | 3 Bath | 2136 SF | $1,174,900
Welcome to Your Dream Home in Los Altos! This stunning 4-bedroom, 3-bathroom, 2-story home is a rare find in the highly sought-after Los Altos community. Conveniently located near Belmont Shore, this home offers easy freeway access, making commuting a breeze. You'll be close to parks and highly rated schools, perfect for families and outdoor enthusiasts alike.
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6600 Warner Ave #182
Huntington Beach 92647
1 Bed | 1 Bath | 765 SF | $425,900
Highly sought after top floor condo at Villa Warner iin Huntington Beach! This beautiful condo offers plush carpeting, smooth ceilings, recessed lighting, large living room with sunny balcony! Villa Warner is a gated community and offers a large pool, spa, cooking area, weight room, billiards room, Extra storage, close to the Ocean, shopping & restaurants.
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525 E Seaside Way #1508
Long Beach 90802
2 Bed | 2 Bath | 1030 SF | $790,000
Enjoy breathtaking ocean views from the living room, bedrooms and the patio in this modern luxury 2 bed, 2 bath highrise condo. Short distance to the beach, harbor, Shoreline Village, Terrace Theater, restaurants, nightlife, and so much more!
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