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.

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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 

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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!

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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.

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.

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