Southern California Market Update:
Holiday Spending Surges as Housing Affordability Slowly Improves
As we head into the holiday season, Southern California’s housing market is navigating a mixed economic backdrop—elevated inflation, slowing job growth, and government instability on one side, but resilient consumer spending and early signs of improved affordability on the other. With holiday sales projected to exceed $1 trillion for the first time in U.S. history and mortgage rates showing signs of softening, buyers and sellers across our region are watching closely for the shifts that could shape early 2026.
📉 Moderating Home Prices Help Improve Affordability
Housing affordability in California improved modestly in Q3, offering some relief to homebuyers who've been sidelined by rising borrowing costs. The statewide Housing Affordability Index (HAI) ticked up to 17%, a two-point increase from the previous quarter and slightly above last year’s level.
The statewide median home price cooled as competition softened and inventory improved, while mortgage rates—though still historically high—declined slightly. Monthly payments on a median-priced home fell 3.8% from Q2, though they remain 1.3% higher year-over-year.
A minimum annual income of $223,600 is now needed to afford the estimated $5,590 monthly payment on a median-priced California home.
With the market shifting into its slower winter season, price moderation is expected to continue. If rates dip further and economic uncertainty eases, affordability could improve more meaningfully in early 2026.
🛍️ Holiday Sales Expected to Hit $1 Trillion
Holiday retail spending is set to break records this year. The National Retail Federation projects November and December sales to grow 3.7% to 4.2%, surpassing the $1 trillion mark for the first time.
Consumers are expected to spend $890.49 per person on gifts and seasonal items—one of the highest totals in over two decades. Despite concerns about inflation, tariffs, and a cooling job market, spending has remained resilient, offering the broader economy important support heading into year-end.
📉 Job Cuts Reach Highest October Level Since 2003
Job cuts surged to 153,074 in October—up 175% from a year earlier—marking the highest October total since 2003. Year-to-date, over 1.09 million job cuts have been announced, a 65% increase from the same period in 2024.
California has seen 158,734 layoffs so far this year, second only to Washington, D.C. Contributing factors include increased operating costs, slower consumer and corporate spending, and the rapid adoption of AI technologies.
📍 Local Spotlight: Long Beach, CA
Long Beach continues to show steady, balanced activity as the year winds down. Inventory has improved slightly, offering more opportunities for buyers in neighborhoods like Los Altos, Bixby Knolls, and Lakewood Village. Homes priced appropriately are still selling within reasonable timeframes, but buyer pace is more deliberate as they navigate elevated borrowing costs.
Moderating price growth is helping first-time buyers re-enter the market, especially in East Long Beach and Alamitos Beach, where condos and entry-level homes offer strong relative value compared to nearby coastal communities. Sellers are still achieving solid results, though open houses are a bit less competitive than earlier this year. Expect steady but seasonally slower activity through the holidays, with good opportunities for motivated buyers.
📍 Local Spotlight: Orange County, CA
Orange County remains one of Southern California’s most competitive markets, though a gradual shift toward balance is underway. Inventory has inched up in Costa Mesa, Fountain Valley, and Mission Viejo, while coastal cities like Newport Beach, Huntington Beach, and Laguna Niguel continue to experience tight but stable supply.
Price growth has softened, giving buyers more negotiation room and reducing the frequency of bidding wars. Move-up buyers are finding more options in mid-price segments, and well-presented homes with indoor-outdoor living features are still drawing strong interest.
Should mortgage rates ease in early 2026, Orange County could see a sharp resurgence in buyer demand—especially in communities with top-tier schools.
Need guidance on the current market?
Whether you're thinking about buying, selling, or just staying informed, I’m here to help you navigate today's shifting conditions with clarity and confidence.
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7428 Bothwell Rd.
Reseda, CA 91335
5 Bed | 3 Bath | 2,420 SF | $750,000
Discover an exceptional opportunity in the heart of Reseda! This spacious 5-bedroom, 3-bath home offers approximately 2,420 sq. ft. of living space on a 5,388 sq. ft. lot, presenting the perfect blank canvas for investors, contractors, or buyers seeking a full renovation project. The home features a desirable two-story layout with generous living areas and excellent natural light potential. A main-level bedroom and full bath offer flexibility for multi-generational living, a convenient in-law suite, guest room, or a home office setup. Three spacious bedrooms upstairs with primary on-suite, walk in closet and extra shared full bathroom. With creativity and vision, this property can be transformed into a modern family retreat or a profitable investment. Located on a quiet residential street, just minutes from schools, parks, restaurants, and freeway access, this property combines a prime location with unlimited potential. Property is being sold in as-is condition with no repairs or credits. Bring your contractor and imagination to realize this home’s full potential.
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1849 Fanwood Ave.
Long Beach, CA 90815
3 Bed | 1 Bath | 1,054 SF | $949,000
Charming Remodeled Home in Highly Desirable Los Altos! Welcome to this beautifully updated 3-bedroom home, perfectly situated on a picturesque tree-lined street in one of Long Beach’s most sought-after neighborhoods. Just two blocks from the award-winning Minnie Gant Elementary School and one block from Cal State Long Beach, this home offers both charm and convenience in an unbeatable location. Step inside to find a bright and inviting interior featuring a stunning remodeled kitchen with sleek white soft-close cabinetry, granite countertops, new modern flooring, and stainless-steel appliances, including a 5-burner gas range. The updated bathroom shines with a stylish vanity and contemporary finishes. Additional highlights include dual-pane windows, modern ceiling fans in every bedroom, and original hardwood floors throughout the living areas and bedrooms.
Situated on an expansive 6,828 sq. ft. lot, the backyard offers exceptional space and privacy—perfect for entertaining, gardening, or even adding an ADU. A long driveway provides ample parking, with room for a boat or RV, plus a detached 2-car garage. Conveniently located near parks, shopping, Trader Joe’s, and major freeways, this Los Altos gem combines modern updates with classic charm in a prime location!
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4700 Clair Del Ave #620
Long Beach, CA 90807
2 Bed | 1 Bath | 779 SF | $385,000
Top-Floor Condo with Pool Views and Garage Parking! Welcome to this nicely updated 2-bedroom, 1-bath top-floor corner condo, offering abundant natural light and serene views of the sparkling pool and spa. Inside, you’ll find a spacious living area with newer dual-pane windows and modern laminate flooring. The open kitchen features white cabinetry, granite counters with a stylish tile backsplash, and gas range — perfect for cooking and entertaining. This home includes two dedicated parking spaces, one in a private garage and another reserved spot. The Clair Del community offers fantastic amenities including a pool, spa, barbecue area, two community rooms (one with a pool table and ping pong, and another available for private gatherings), plus two laundry facilities. With low HOA dues that cover water, trash, gas, and community upkeep, this is an excellent opportunity for convenient and affordable living.
Ideally located near Lakewood Country Club, Bixby Knolls, and the Long Beach Exchange (LBX), you’ll enjoy easy access to shopping, dining, and entertainment.
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4340 Pixie Ave.
Lakewood, CA 90712
5 Bed | 3 Bath | 2,459 SF | $1,175,000
Beautifully updated 5-bedroom, 3-bath home on a tree lined street in the sought-after Lakewood Mutuals neighborhood! Step inside to find new modern flooring, fresh interior and exterior paint, smooth ceilings, and custom wood shutters that add timeless charm. The open layout features a welcoming living room, a large dining area, and a bright kitchen with white cabinetry, new quartz countertops, and stainless steel appliances. The main level includes three bedrooms and two full baths, including a spacious primary suite with three closets (one walk-in) and a spa-like bath with dual sinks, walk-in shower, and jetted tub. Upstairs, two additional bedrooms and a full bath with walk-in shower provide flexible living space. The backyard is a private oasis with pavers that match seamlessly with the driveway making an expansive area that is perfect for entertaining day or night with ambient lighting, turf play area, or relaxing in the swim spa under the stars. Additional features include central heat and A/C, indoor laundry, and parking for up to 6 cars with a detached 2-car garage and long driveway.
Close to Lakewood Country Club, Bixby Knolls, and Long Beach Exchange (LBX), this home offers both tranquility and prime access to shopping, dining, and entertainment.
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179 Santa Ana Ave.
Long Beach, CA 90803
3 Bed | 3 Bath | 3308 SF | $1,937,000
Modern Coastal Luxury in the Heart of Belmont Shore!
Prepare to be impressed by this stunning 3-bedroom, 3-bath, four-story contemporary home offering over 3,300 sq ft of sleek, modern living. Located just steps from the best of Belmont Shore, this light-filled residence features an open-concept living area with hardwood floors, a gourmet kitchen with quartz island and stainless steel appliances, and multiple balconies to enjoy the ocean breeze. The luxurious primary suite boasts a double-sided fireplace, spa-like bath with soaking tub, and a custom walk-in closet. Additional highlights include a ground-level entertaining space with bar, private loft, laundry room, solar panels, and a two-car garage with extra parking. Thoughtfully designed for comfort, style, and coastal living, this is a rare opportunity you don’t want to miss!
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3445 S Pacific Ave.
San Pedro, CA 90731
3 Units | 6 Beds | 3 Baths | 2,742 SF | $1,100,000
Prime Triplex Just 2 Blocks from Cabrillo Beach – Ideal for Investors or Owner-Occupants!
Located the desirable Point Fermin are of San Pedro, this well maintained triplex is just steps from Cabrillo Beach and offers an incredible opportunity for investors or owner-users. Each of the three 2-bed, 1-bath units includes in-unit laundry hookups, dual-pane windows, and two parking spaces (garage + driveway). The front unit features a spacious patio with peek-a-boo ocean views, while the top-floor owner’s unit is move-in ready with updated kitchen and bath, laminate flooring, and crown molding. The large shared backyard is perfect for entertaining. Two units are tenant-occupied at below-market rents, with the top rear unit ready for occupancy. Projected gross income is $73,476/year with pro forma potential of $96,000/year. Subject to LA City Rent Control. Enjoy close proximity to beachside amenities, dining, and recreation in this sought-after coastal location!
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1811 Tevis Ave.
Long Beach 90815
5 Bed | 2 Bath | 2018 SF | $1,420,000
Stunning Remodeled 5-Bedroom Home in Highly Desirable Los Altos! This beautifully remodeled home is nestled on a picturesque tree-lined street in one of Los Altos’ most sought-after neighborhoods. Designed for modern living and entertaining, the open floor plan features hardwood floors, beamed ceilings, and custom paint throughout. The gourmet kitchen boasts sleek white cabinetry, black quartz countertops, a spacious island, and high-end GE Profile stainless steel appliances. Enjoy seamless indoor-outdoor living with a stunning wall of glass-pane doors that open to an entertainer’s patio and a beautifully landscaped backyard. Recent upgrades include a new roof and driveway in 2024, solar system with dual batteries in 2024, and new windows in 2023. Conveniently located near shopping, parks, Trader Joe’s, Cal State Long Beach, and award-winning Minnie Gant Elementary School—this home truly has it all.
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