|
California Housing Market Rebounds as
Mortgage Rates Ease
After a sluggish start to the year, California’s housing market made a strong comeback in February, driven by declining mortgage rates and increased buyer activity. While home sales remain below historical norms, this uptick marks a positive shift in momentum. Meanwhile, the Federal Reserve opted to keep interest rates steady but revised its economic growth projections downward, citing uncertainties related to trade policy. Despite ongoing economic and policy concerns, expectations remain that rates will moderate later this year, supporting continued market improvement through Q2 and Q3 of 2025.
Home Sales Reach Highest Level in Over Two Years
California’s housing market saw a significant boost in February, with closed sales of existing single-family homes surging 12% month-over-month, reaching the highest level in 28 months. The statewide median home price rose 2.8% year-over-year, marking the 20th consecutive month of price gains, although at a more moderate pace. However, pending sales dipped for the third straight month, reflecting lingering caution among buyers. Inventory levels also saw a mixed trend—new active listings grew year-over-year for the second consecutive month but recorded a rare January-to-February decline, possibly due to financial market fluctuations or broader economic concerns.
Federal Reserve Holds Rates Steady, Lowers Growth Outlook
At its March meeting, the Federal Reserve maintained its key interest rate but signaled two rate cuts later this year. The Fed acknowledged increased economic uncertainty, particularly regarding the impact of trade policies. Chairman Jerome Powell noted inflation progress has been slower than anticipated, partly due to tariffs, prompting the central bank to revise its GDP growth projections downward. However, the announcement that the Fed will slow the pace of quantitative tightening in April was met with a positive response from financial markets, with 10-year Treasury yields stabilizing in the days following the announcement.
Housing Starts Recover as Weather Conditions Improve
Following a challenging January, U.S. housing starts rebounded 11.2% month-over-month, with single-family starts reaching their highest level in a year. Regional trends varied—construction activity surged in the Northeast and South as weather-related disruptions eased, while the Midwest continued to struggle with winter storms. The West saw a 5.9% monthly increase and a 26.2% annual jump, indicating stronger recovery momentum. However, building permits fell 1.2% month-over-month and 6.8% year-over-year, signaling potential challenges ahead for new residential construction.
Looking Forward
With mortgage rates anticipated to stabilize and buyer confidence improving, California’s housing market is on track for gradual recovery. The coming months will be crucial as we enter the spring homebuying season, with inventory levels, interest rates, and economic conditions shaping market activity. Buyers and sellers should stay informed and be prepared to act in response to changing conditions.
Stay tuned for next week’s update as we continue to track key trends shaping the Southern California real estate market.
|
|
|
Buy Before You Sell
Move into your new home now - and sell your current home with peace of mind.
Many homeowners need to tap into the equity of their current home to purchase their next home. With our Buy Before You Sell program, you can do just that — and have the best possible outcome on your transaction.
Ask me how.
|
|
|
1535 E Ocean Blvd #3
Long Beach, CA 90802
2 Bed | 1.5 Bath | 943 SF | $599,900
Top-Floor Corner Condo with Peek-a-Boo Ocean View! Enjoy beachside living in this beautiful 2-bedroom, 1.5-bath condo offering views of Ocean Blvd from its prime top-floor corner location. Just steps from the sand with easy beach access, this home features a spacious living room with gorgeous wood floors and recessed lighting, while the updated kitchen offers granite countertops, white cabinetry, and stainless steel appliances. Located right across the street from the beach with beach access. Rare private garage with remote. Conveniently located close to all of the great restaurants, cafes, and entertainment in downtown Long Beach and Belmont Shore. Don’t miss this chance to live just moments from the beach, bike paths, and ocean breezes!
Eligible for a $20,000 down payment grant from City National Bank!
OPEN HOUSES
Saturday (3/29) & Sunday (3/30)
1:00 - 4:00pm
|
|
|
3603 E Hungerford St.
Long Beach, CA 90805
2 Bed + Bonus Room | 1 Bath | 1064 SF | $799,900
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!
Eligible for a $50,000 down payment grant from City National Bank!
OPEN HOUSES
Saturday (3/29) & Sunday (3/30)
1:00 - 4:00pm
|
|
|
225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $299,900
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.
|
|
|
223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $799,900
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!
|
|
|
3817 W Compton Ave.
Orange, CA 92868
4 Bed | 2 Bath | 1316 SF | $985,000
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.
|
|
|
488 E. Ocean Blvd #1102
Long Beach, CA 90802
1 Bed | 1 Bath | 600 SF | $545,000
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!
|
|
|
3824 Pacific Ave.
Long Beach 90807
4 Bed | 3.5 Bath | 2646 SF | $1,710,000
This stunning, custom-built single story Mediterranean style pool home was completely rebuilt in 2007 and features 4 bedrooms and 3 1/2 baths. Set amidst towering palms on one of the city's most prestigious avenues. A Saltillo-tiled walk leads to custom-made iron doors entering into the grand reception foyer beneath soaring cathedral ceilings. Exquisite 3/4 solid oak hardwood flooring flows throughout. The awe-inspiring great room boasts a 12' high cathedral ceiling, crown moldings and a gas fireplace. Custom designed gourmet kitchen features classic cherry wood cabinetry, granite counters, walk-in pantry, 5 burner gas cooktop, Stainless dual ovens, Built-in ref/freezer, dishwasher, a large island with seating for 4 and a separate dining area. Outside the kitchen is a fabulous raised lighted deck leading to the newly built pool area. A unique roofed but open-air lounge perfect for indoor/outdoor living and entertaining. There is also a full pool bath located next to the open family room and pool.
|
|
|
700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $840,000
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.
|
|
|
4859 Autry Ave.
Long Beach 90808
3 Bed | 2 Bath | 1594 SF | $985,000
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.
|
|
|
|
