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Southern California Real Estate Market Update:
Wrapping Up 2024 with Optimism and Momentum
As 2024 draws to a close, Southern California’s housing market continues to show encouraging signs of recovery and resilience, even amidst elevated mortgage rates and persistent inflation. Here’s a breakdown of the latest trends impacting buyers, sellers, and the broader real estate landscape:
California Home Sales See Largest Growth Since 2021
In November, California experienced its most significant annual increase in existing home sales since mid-2021. Although sales remain below pre-pandemic levels, the year-to-date growth of 3.1% highlights the market’s gradual recovery. This impressive year-over-year increase is partly due to a low comparison base from last year when sales dipped to historic lows.
While the market has yet to return to its pre-COVID activity of 400,000 units sold annually, the steady month-to-month and year-to-year gains are promising indicators for 2025.
Moderate Home Price Growth Continues
The statewide median home price rose for the 17th consecutive month in November, though at a slower pace than earlier in the year. Seasonal factors and market adjustments are likely to moderate home prices further in the coming months. However, low single-digit year-over-year growth is expected to persist through early 2025, providing stability for buyers and sellers alike.
Housing Sentiment on the Rise
Consumer optimism toward the housing market is gaining traction. Fannie Mae’s Home Purchase Sentiment Index reached its highest level since early 2022, with 45% of respondents expecting mortgage rates to drop within the next 12 months. Additionally:
- 23% believe now is a good time to buy, up 3 percentage points from October.
- 64% think it’s a good time to sell, holding steady from the previous month.
This growing confidence could bring more buyers off the sidelines, boosting market activity in the new year.
Inflation Remains Sticky but Manageable
November’s Consumer Price Index (CPI) reflected a 0.3% monthly increase and a 2.7% annual rise, aligning with expectations. Housing-related costs, including rent and owners’ equivalent rent, saw the smallest monthly increase in 3.5 years, hinting at a possible easing of housing inflation pressures in 2025.
Mortgage Rates and Federal Reserve Outlook
After a brief dip in late November, mortgage rates have trended upward in December due to inflation concerns and uncertainty about the Federal Reserve’s rate-cutting plans. While the Fed cut rates last week by 25 basis points at the December meeting, they also predict a slower pace of cuts throughout 2025.
Post-Election Optimism Boosts Small Business Sentiment
Small business confidence surged in November, reaching its highest level since mid-2021. The NFIB Index climbed to 101.7, driven by optimism about economic growth, tax changes, and regulatory clarity following the election. This renewed confidence, coupled with easing lending conditions, bodes well for local economies and the real estate market.
What Does This Mean for You?
The combination of growing consumer confidence, steady home price trends, and potential rate cuts signals a promising environment for buyers and sellers in 2025. Whether you’re planning to buy, sell, or invest, understanding these trends is crucial for making informed decisions in the coming year.
Looking for personalized insights into the Southern California housing market?
Contact us today for expert advice and tailored strategies to help you achieve your real estate goals.
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Looking To Move Out Of State?
Save Thousands for Dollars With Our
Relocation 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 clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.
If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America.
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Looking To Sell A Property That Needs Some Work?
Save The Time & Hassle With Our 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.
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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.
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700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $899,900
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 | $810,000 **Just Reduced**
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!
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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 | $792,500
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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