Long Beach Marina and city skyline_ Long Beach_ California.

With the jobs report coming in stronger than expected for the third month in a row, a soft landing in 2024 is looking more and more likely for the economy. However, a decent growth rate in economic activity and a higher than expected March Consumer Price Index report, are delaying the Federal Reserve’s rate-cut movements. As such, Wall Street has adjusted its expectations on the number of cuts accordingly, which might have resulted in the most recent rate increases. Despite the change in expectations, futures contracts continue to point to a 50-75 basis-point (bps) decline in Fed policy rate this year.

 

Another strong report for the job market in March: Hiring at the end of the first quarter came in much stronger than expected again, with non-farm payrolls adding a seasonally adjusted 303k jobs in March. The gain last month easily topped consensus expectations of 200k. The health care sector remained strong with an employment gain of 72k in March, followed by government (71k), leisure and hospitality (49k), and construction (39k). The unemployment rate slipped down to 3.8% as a result of strong jobs growth, despite a tick-up in labor supply. The labor force participation rate rose 0.2% to 62.7% in March, reaching a four-month high. Wage growth was mostly in line with Wall Street estimates, with average hourly earnings rising 0.3% month-over-month, but slowing to a nearly three-year low of 4.1% year-over-year. The latest jobs report continued to suggest that the labor market remained solid, which might have provided more reasons for the Fed to stick with its wait-and-see approach to cuts.

 

Futures point to doubts over Fed’s rate cut plans: The strong jobs report released last week and the higher than expected March CPI report this week cast doubts on whether the Fed can keep rate cuts on track this year. At the end of 2023, Wall Street was expecting the central bank to cut rates by 100 bps to 150 bps in 2024. Reports have shown that the economy is more resilient than previously thought and economists have adjusted their expectations downward since then. More investors are now speculating that the Fed may cut its policy rate just once or twice before the end of the year. Futures contracts tied to the federal-funds rate, indeed, indicate that the benchmark rate will finish the year around 4.75%, well below the 4% suggested by those contracts earlier this year.

 

Home purchase sentiment dips for the first time in four months: Home Purchase Sentiment released by Fannie Mae had its first decline since November 2023, as consumers lowered their expectation in the latest mortgage rate outlook. Twenty-nine percent of the survey respondents in March believed that rates will go down over the next 12 months, a sizable drop from 35% recorded in February. The share of consumers who said it would be easy to get a home mortgage today also declined 4 percentage points to 42% last month. Strong jobs report and concerns about inflation remaining sticky were likely the reasons behind the increased pessimism in rates movement and mortgage eligibility. Despite the drop in optimism towards rates, consumers continued to feel more positive about the current housing market conditions. Those who said it was a good time to buy rose 2 percentage points to 21% and those who said it was a good time to sell inched up 1 percentage points to 66%. Both measures have increased multiple months in a row, which is an encouraging sign for the spring home buying season. 

 

Homeowners concern about impact of weather on insurance premiums: A study conducted by Fannie Mae indicates that consumers are concerned about how weather-related events could have an impact on their homes and their insurance premiums. At the regional level, those who live in the West are most concerned about extreme heat (27%), drought (24%), and wildfires (22%). Many homeowner correspondents are worried because of the resulting expenses. Two-thirds of homeowners, in fact, said that weather-related damage has had an impact on their insurance premiums. Among homeowners who have homeowner’s insurance, nearly one out of ten were unsure if they would be able to afford their premiums at the next renewal date.

 

If you have any questions or would like personalized advice regarding the current market conditions, please feel free to reach out. Your success in real estate is my top priority.

 

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For Sale

700 E Ocean Blvd #607

Long Beach 90802

1 Bed | 1.5 Bath | 880 SF | $625,000

 

Amazing ocean views in this beautifully remodeled open floor plan condo at the iconic International Tower! This beautifully updated modern high-rise condo features hardwood flooring, fresh interior paint, scraped ceilings, and is light and bright with expansive ocean views. OPEN HOUSE

Saturday 1:00 - 4:00 pm & Sunday 12:00 - 3:00 pm.

6544 Cerritos Ave.

Long Beach 90805

2 Bed | 1 Bath | 1,198 SF | $699,000

 

Welcome to 6544 Cerritos Ave, a charming slice of Spanish-inspired architecture nestled in the heart of North Long Beach. This classic 2-bedroom, 1-bathroom home boasts timeless elegance coupled with modern upgrades, offering comfort and style.

837 Chestnut Ave. #12

Long Beach 90813

1 Bed | 1 Bath | 611 SF | $320,000

 

Step into this wonderful top-floor unit boasting an open floor plan in a mid-century style building. This property presents a unique opportunity to own a fantastic rental or a charming coastal condo just moments away from the beach.

In Escrow

1985 San Francisco Ave.

Long Beach 90806

3 Bed | 2 Bath | 1,509 SF | $1,020,000

 

This historic gem awaits you in the charming Wrigley neighborhood of Long Beach! This gorgeous Spanish home, built in 1928, is full of charming curb appeal with its gated courtyard, porte cochere, red-tiled roof and front steps leading to the turret entry!

Recently Sold

16136 Cornuta Ave. #117

Bellflower 90706

3 Bed | 2.5 Bath | 1336 SF | $590,000

 

Beautifully remodeled townhome with newly updated kitchen, baths, flooring, lighting, etc. Private 2 car attached garage.

14715 Bellflower Blvd.

Bellflower 90706

2 Bed | 1 Bath | 805 SF | $655,000

 

Welcome to your ideal starter home located in the heart of Bellflower! With its proximity to local amenities and welcoming neighborhood, this home is a must-see on your home-buying journey.

8738 Belmont St.

Bellflower 90706

3 Bed | 2 Bath | 1,276 SF | $720,000

 

An incredible opportunity awaits with this charming 3-bed, 2-bath single family home. Set on a spacious 7,004 sq ft lot, that beckons with endless possibilities for entertaining or even possibly adding an ADU. 

8230 Santa InezBuena Park 90602

4 Bed | 2 Bath | 1,194 SF | $625,000

 

Beautifully remodeled end unit townhouse in Buena Park! 4 bedrooms, 2 baths with open floor plan, modern kitchen, and private backyard.

3825 Linden Ave. 

Long Beach 90807

3 Bed | 2 Bath | 2,142 SF | $1,350,000

 

Charming 1933 Spanish Stucco with many original features. This single story home is situated on one of the prettiest streets, walking distance to to both Atlantic Avenue and Long Beach Blvd. 

2512 W Beachy Pl 

Anaheim 92804

3 Bed | 2 Bath | 1,695 SF | $875,000

 

Embrace the charm of this lovingly maintained single-story home, cherished by the same family for over 50 years. Nestled on an expansive 10,948 sq ft lot, this property beckons with endless possibilities – from adding an ADU, a pool, more living space, or just simply reveling in the serene, park-like ambiance.

2174 Stanbridge Ave

Long Beach 90815

3 Bed | 2 Bath | 1,489 SF | $905,000

 

Nestled in coveted Los Altos... known for being pet & people friendly with awesome schools, parks, walkability & more! This immaculate & inviting 3 bedroom/2 bath home with its upgraded kitchen, baths, living room as well as spacious family room will go fast!

807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,605,000

 

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle.

5417 Bonfair Ave

Lakewood 90712

4 Bed | 2 Bath | 1,746 SF | $950,000

 

Welcome to this recently updated 4 bedroom, 2 bath two story home located in the heart of Lakewood.

251 Elm Ave. 

Long Beach 90802

2 Bed+Den | 3.5 Bath | 1,750 SF | $915,000

 

This exceptional modern townhome at The Huxton built in 2018 boasts 2 bedrooms, a den/great room, and 4 baths spanning 1,750 square feet. The large rooftop deck off the top-floor den/great room provides an exceptional indoor/outdoor living experience.

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Tim Majka

(562) 900-9430

www.ImagineRealty.com

 

DRE #01399855