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Economic Uncertainty Grows -
Here’s What It Means for Real Estate
As we move through April, growing signs of economic uncertainty are beginning to ripple through the markets—and the housing sector is no exception. From small business sentiment to jobless claims and inflation trends, the overall economic picture is becoming increasingly complex. Here’s what it all means for Southern California real estate.
🔻 Small Business Sentiment Drops Below Average
In March, small business optimism took a sharp turn, with the NFIB Small Business Optimism Index falling to 97.4—below its 51-year average for the first time in recent memory. Concerns over taxes and future business conditions were key drivers of this dip. Notably, this survey was conducted before the Trump administration’s sweeping new global tariffs were announced on April 2nd, suggesting that confidence could decline even further in the coming months.
Why this matters: Local economic confidence can influence everything from hiring to wage growth, both of which directly impact homebuying power and real estate activity.
💡 Inflation Cools—For Now
There was a glimmer of relief in March as inflation eased more than expected. The Consumer Price Index (CPI) dropped 0.1%, bringing the annual rate down to 2.4%. A 6.3% drop in gas prices helped offset rising grocery bills and other living expenses. Core inflation, which strips out food and energy, also saw its smallest annual increase in four years.
But don’t get too comfortable—many analysts expect global tariffs to apply new pressure on consumer prices in the coming months, especially on imported goods and construction materials.
📈 Jobless Claims Tick Up as Labor Market Shifts
Initial jobless claims rose slightly in early April to 223,000, signaling potential early signs of stress in the labor market. While continuing claims dropped, indicating people are still finding work, the overall trajectory could shift if businesses adjust operations in response to the new tariff landscape.
For the housing market, a weakening labor outlook often means more cautious buyers—and more sellers waiting on the sidelines.
🏗️ Housing Faces New Questions Amid Tariff Uncertainty
President Trump’s recent pivot to a universal 10% tariff rate (excluding a steep 145% rate on China) has raised questions for the real estate industry, particularly around construction costs. While materials like lumber, aluminum, copper, and steel are currently exempt from tariffs, uncertainty remains.
Why it matters here in Southern California: Higher material costs could slow new construction or drive prices up—especially in a market already facing affordability challenges.
💭 Consumer Sentiment Sinks on Recession Fears
The University of Michigan’s Consumer Sentiment Index showed another decline in April—marking the fourth straight monthly drop and a more than 30% plunge since late 2024. Rising concerns around inflation, job security, and broader economic conditions are fueling this trend.
With inflation expectations jumping to 6.7%—the highest since 1981—it’s clear many consumers are preparing for tighter financial conditions ahead. This sentiment could impact homebuyer behavior, especially in the mid-to-luxury price points.
📍 Southern California Outlook: What to Watch
In a climate marked by inflation jitters, job market shifts, and policy uncertainty, staying informed is more important than ever. Mortgage rates remain volatile, moving above 7% late last week before trending downward again this week. This tug-of-war in the market may continue as trade and economic headlines evolve.
As always, whether you're considering buying, selling, or investing, I’m here to help you navigate the market with confidence and clarity.
Want to chat about what these changes mean for your real estate goals?
Let’s connect.
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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.
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1811 Tevis Ave.
Long Beach 90815
5 Bed | 2 Bath | 2018 SF | $1,395,000
Stunning Remodeled 5-Bedroom Home in Highly Desirable Los Altos! This beautifully remodeled home is nestled on a picturesque tree-lined street in one of Los Altos’ most sought-after neighborhoods. Designed for modern living and entertaining, the open floor plan features hardwood floors, beamed ceilings, and custom paint throughout. The gourmet kitchen boasts sleek white cabinetry, black quartz countertops, a spacious island, and high-end GE Profile stainless steel appliances. Enjoy seamless indoor-outdoor living with a stunning wall of glass-pane doors that open to an entertainer’s patio and a beautifully landscaped backyard. Recent upgrades include a new roof and driveway in 2024, solar system with dual batteries in 2024, and new windows in 2023. Conveniently located near shopping, parks, Trader Joe’s, Cal State Long Beach, and award-winning Minnie Gant Elementary School—this home truly has it all!
OPEN HOUSE
Saturday (4/19) 1:00 - 4:00 pm
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1535 E Ocean Blvd #3
Long Beach, CA 90802
2 Bed | 1.5 Bath | 943 SF | $599,900
Beautiful 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!
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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!
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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.
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223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $785,000
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.
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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.
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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!
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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.
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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.
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