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Southern California Weekly
Real Estate Market Update
As we move further into 2025, economic uncertainty continues to impact consumer confidence and the housing market. While job growth slowed in January, a declining unemployment rate and rising wages indicate ongoing labor market strength. However, the Federal Reserve's cautious stance on interest rates suggests that mortgage rates may remain elevated for the foreseeable future. Although housing sentiment saw a slight improvement, affordability remains a significant concern for California homebuyers.
California Housing Affordability at Historic Lows
California’s housing affordability continues to face challenges due to high mortgage rates and elevated home prices. According to the California Association of Realtors (C.A.R.), the Housing Affordability Index (HAI) dropped to 15% in Q4 2024, marking a one-point decrease from the previous quarter and remaining unchanged from a year ago. While home price growth has slowed, it remains at a historically high level, and borrowing costs continue to weigh on buyer accessibility. Looking ahead, affordability will likely remain a hurdle as mortgage rates are expected to stay elevated throughout 2025.
Housing Sentiment Sees Small Gains, But Concerns Persist
The Fannie Mae Home Purchase Sentiment Index (HPSI) inched up to 73.4 in January, reflecting a slight improvement in consumer optimism. More buyers and sellers believe market conditions are improving, yet concerns over affordability remain dominant. A growing number of consumers anticipate higher home prices, rising rents, and continued high mortgage rates over the next year. Optimism about declining interest rates fell sharply, with 65% of respondents expecting rent increases in 2025. With mortgage rates hovering above 7% for two months now, the affordability crunch is likely to continue.
Mortgage Rates Rebound Following Jobs Report
After reaching an eight-month high in mid-January, mortgage rates showed signs of stabilizing before inching back up following a stronger-than-expected wage growth report. The Federal Reserve’s decision to keep interest rates steady signals a wait-and-see approach to economic conditions, reinforcing the likelihood that rate cuts will be postponed. While the labor market remains resilient, inflation concerns and cautious Fed policies suggest that buyers hoping for significantly lower mortgage rates may need to adjust expectations.
What This Means for the Southern California Housing Market
With mortgage rates fluctuating and affordability challenges persisting, buyers and sellers in Southern California will need to remain strategic in their approach. The spring homebuying season is on the horizon, and while demand is expected to pick up, limited inventory and high borrowing costs will continue to shape market dynamics. Buyers may need to explore creative financing options, while sellers should remain competitive with pricing strategies. As always, staying informed and working with an experienced real estate professional will be key in navigating the evolving market landscape.
Need personalized advice? Reach out to discuss how these trends impact your real estate goals.
Hope everyone has a great Valentine's Day!
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3603 E Hungerford St.
Long Beach, CA 90805
2 Bed + Bonus Room | 1 Bath | 1064 SF | $830,000
Charming 2-Bedroom + Bonus Room Home in a Quiet Long Beach Neighborhood. This beautifully updated home features fresh exterior paint, a new roof, and central AC. The light-filled living room boasts wood floors, recessed lighting, and an inviting atmosphere, while the updated kitchen includes granite counters, stainless steel appliances, and modern cabinetry. A spacious bonus room with a stone fireplace offers versatility as a family room or 3rd bedroom. The expansive backyard with a patio is perfect for entertaining or adding an ADU, and the long driveway with a finished 1-car garage provides plenty of parking. Located near Lakewood Mall and local amenities, this home is a must-see!
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Saturday (2/15) & Sunday (2/16)
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223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $810,000
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!
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225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $334,999
Top-floor end unit condo in the heart of Long Beach, offering privacy and city views! This nicely 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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15147 Caravaca Rd.
La Mirada, CA 90638
3 Bed | 2 Bath | 1350 SF | $899,900
Charming 3-Bedroom Home with Pool Near La Mirada Golf Course!
This beautifully updated home features an open floor plan, a spacious kitchen with granite counters and a 5-burner gas stove, and a cozy living room with a fireplace and built-in shelving. Modern flooring, fresh paint, recessed lighting, and crown molding add style throughout. The backyard is perfect for relaxing or entertaining, with a covered patio and sparkling pool with a slide. New roof and gutters (2022), central heat & AC. Conveniently located near top schools, parks, golf, and local attractions!
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488 E. Ocean Blvd #1102
Long Beach, CA 90802
1 Bed | 1 Bath | 600 SF | $499,900
Stunning 11th-Floor Ocean View Condo in the Iconic Aqua Towers! Enjoy breathtaking ocean, marina, and city views in this stunning corner-unit high-rise. Featuring floor-to-ceiling windows, high ceilings, slate flooring, granite countertops, and a wrap-around balcony, this condo offers the ultimate in coastal living. A rare private enclosed garage near the elevator adds extra convenience. Resort-style amenities include 24-hour security, pool, spa, sauna, fitness center, and clubhouse. Just steps from the beach, shopping, dining, and entertainment—don’t miss this incredible opportunity!
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700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $850,000
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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3817 W Compton Ave.
Orange, CA 92868
4 Bed | 2 Bath | 1316 SF | $979,900
Beautiful Single-Story Pool Home with Modern Upgrades in Orange, CA! Discover this stunning 4-bedroom, 2-bathroom home situated on a spacious 7,598 sq. ft. lot in a fantastic Orange neighborhood. This thoughtfully updated home offers everything you need for comfortable living and entertaining. Located in a friendly neighborhood, this home offers unbeatable access to major freeways (I-5 and 22), top destinations like UCI Medical Center, Angels Stadium, Disneyland, Old Towne Orange, The Outlets at Orange, Chapman University, Honda Center, and GardenWalk. This is the perfect opportunity to live in a vibrant area while enjoying a tranquil and well-appointed home.
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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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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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