Southern California Real Estate Market Update
The economy continues to demonstrate resilience as consumer spending holds strong and businesses grow increasingly optimistic. Inflation remains within expectations, and the Federal Reserve is likely to lower policy rates again soon, though uncertainties surrounding inflation in the coming year persist. These factors are keeping mortgage rates elevated for now but hint at potential improvements on the horizon. Here’s a detailed look at the latest trends shaping the market:
Retail Sales Boost Holiday Momentum
Retail sales climbed 0.4% in October, exceeding expectations and showcasing a 2.8% year-over-year increase. Despite being softer than September's upwardly revised 0.8% gain, strong spending on electronics (+2.3%), auto sales (+1.6%), and dining out (+0.7%) led the way. While certain sectors, like furniture and drug stores, saw declines, resilience in consumer spending bodes well for holiday retail sales, expected to grow at a modest pace compared to previous years.
Inflation Holds Steady Amid Federal Reserve Rate Cuts
October's Consumer Price Index (CPI) rose 0.2% month-over-month and 2.6% year-over-year, aligning with expectations. Core CPI, excluding food and energy, showed a slight annual increase of 3.3%. While housing inflation spiked slightly month-to-month, its year-over-year pace has slowed significantly from early 2023 peaks. The Fed is anticipated to announce another rate cut in December, though inflation uncertainties in 2025 could temper the pace of future reductions.
Small Business Optimism on the Rise
The NFIB Small Business Optimism Index rose 2.2 points in October to 93.7, reaching its highest level in three months. Increased optimism reflects expectations for economic improvement and the Federal Reserve’s recent rate cut. However, heightened uncertainty regarding upcoming policies remains a challenge for small business owners as they await clarity on taxes and regulations.
Consumer Confidence in Jobs and Inflation Improves
The New York Fed’s Survey of Consumer Expectations revealed a dip in short-term inflation expectations, now at a four-year low of 2.9%. Job market confidence also strengthened, with only 13% of respondents fearing job loss in the next year—a decline from prior months—and the perceived likelihood of finding a new job reaching 56%, the highest since late 2023.
Foreclosure Activity Ticks Up Slightly
While foreclosure filings rose 4% month-over-month in October, they remain 11% lower than a year ago and significantly below the peaks of the 2008 housing crisis. California’s foreclosure rate was the fourth highest nationally, with Vallejo, Bakersfield, Chico, and Stockton experiencing the most activity. Stable home prices should help keep foreclosure levels manageable in the near term.
Looking Ahead
As mortgage rates hold steady at higher levels and the Fed moves cautiously on rate cuts, affordability remains a challenge for many buyers. However, consumer optimism, stable employment, and strong spending trends offer hope for a balanced market heading into the new year.
Stay tuned for more updates in next week’s newsletter! For any real estate questions or assistance, reach out—we’re here to help.
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4859 Autry Ave.
Long Beach 90808
3 Bed | 2 Bath | 1594 SF | $999,000
Charming 3-Bedroom, 2-Bath Lakewood Village Home on a Picturesque Tree-Lined Street! This beautifully maintained home blends classic appeal with modern upgrades. Step into a bright living and dining area with refinished original hardwood floors and a bay window. The spacious kitchen boasts ample storage, a custom breakfast bar, and opens to a formal dining and family room. The primary suite offers a peaceful retreat with an updated bathroom. Additional highlights include central heat and AC, dual-pane windows, bamboo flooring, and a detached 2-car garage. Conveniently located near parks, shopping, and dining, this home provides a comfortable and connected lifestyle.
OPEN HOUSE
Saturday (11/23) 12:00 - 3:00
Sunday (11/24) 12:00 - 3:00
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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.
Eligible for a $20,000 down payment grant from City National Bank!
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223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $825,000
Enjoy modern luxury living in this stunning 2019-built townhome at The Huxton in the East Village Arts District. This inviting home features an open-concept layout perfect for entertaining, with high ceilings, large windows, recessed lighting, and beautiful flooring throughout. The gourmet kitchen boasts quartz countertops, soft close cabinets, and upscale appliances by Bertazzoni and Bosch. Upstairs, two primary suites offer walk-in closets and luxurious bathrooms. Enjoy city views from the spacious rooftop deck – ideal for relaxing or BBQs. Eco-friendly features include owner-owned solar panels and a garage pre-planned for EV charging. Located in a secure, gated complex, you’ll be steps from the waterfront, dining, cafes, and nightlife. VA Approved.
Eligible for a $50,000 down payment grant from City National Bank!
OPEN HOUSE
Saturday (11/23) 12:00 - 3:00
Sunday (11/24) 12:00 - 3:00
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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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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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706 E Bixby Rd
Long Beach 90807
3 Bed | 2 Bath | 1417 SF | $1,080,000
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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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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