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Moderately higher interest rates held California home sales essentially flat in March, totaling over 280,000 on a seasonally adjusted annualized rate for the second consecutive month. The competitiveness in the housing market, however, continues to heat up as homes are selling faster and the sales-to-list-price ratio is improving. As a result, the statewide median home price recorded a healthy increase of 7% on a month-to-month basis after six months of straight declines. That said, the number of homes available for sale continues to tighten as fewer new listings are failing to replenish inventory. All signs point to a market with solid demand, which should help bolster sales through the homebuying season, but tight inventory will prevent a rapid rebound.
Increase in mortgage rates prompted a pullback in mortgage application activity: Mortgage applications decreased 8.8% from one week earlier for the week ending April 14,2023 as mortgage interest rates inched up. Demand continues to demonstrate sensitivity to rate changes with purchase applications declining from the week prior and the same time a year ago, just as mortgage interest rates moved up for the first time in over a month. Refinance activity also fell on a week-to-week and a year ago basis. According to Freddie Mac, the average 30-year fixed rate mortgage bumped up to 6.39% as of Thursday, April 20,2023 – 116 basis points higher than the same time from last year. Although home prices have softened somewhat, rates are stuck above 6%. As such, affordability continues to be a serious issue for many potential homebuyers and with limited inventory of homes, buyers will be more selective about when to act.
Single-family construction picks up, though multifamily drags overall construction down: Total housing starts fell 0.8% to a 1.42-million-unit pace during March while February's strong gain was revised slightly lower to a 1.432-million-unit pace. The monthly dip from February was mainly driven by a decline in multifamily construction which overshadowed the progress made in single-family construction. Although multifamily starts recorded a decline, it continues to advance at a robust clip having an annual unit pace higher than 2022 as a whole. Single-family construction on the other hand despite having its third monthly improvement over the last four months, it remained behind last year by 27.7%. By region, the West was the only one with a decline over the previous month and recorded the greatest pullback over the year at -53.4%. That said, builder sentiment improved for a fourth consecutive month and building permits along with it, which rose 4.1% in March, suggesting an uptick in new construction in the months ahead.
The typical homeowner gained six figures in wealth over the last decade: A new housing report by the National Association of Realtors®(NAR) revealed that middle-income homeowners accumulated $122,100 in wealth as their homes appreciated by 68% in the last 10 years. While the report also highlighted the existence of disparities between different income levels as well as race/ethnic background, no one was exempt from accruing a minimum of $98,900 in wealth from home price appreciation over the last decade. What’s more, homeowners saw their debt drop by 21% and many more were able to refinance and lock-in a rate lower than 4% in the months following the onset of the pandemic, which helped save thousands of dollars in interest rates over the life of the loan. The top 10 areas with the largest wealth gains for low-income owners were all located in California and exceeded $290,000.
If you would like to discuss today's market and whether now is a good time for you to buy or sell, give me a call at (562) 900-9430.
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256 Hermosa Ave
Long Beach 90802
2 Bed | 1 Bath | 780 SF | $479,000
Nicely updated 2 bedroom condo in Alamitos Beach, close to Bluff Park, and just a short walk to the beach, Bixby Park, cafes, nightlife, and great restaurants.
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985 S. Idaho Ave. #60
La Habra 90631
2 Bed+Den | 2 Bath | 1,073 SF | $489,000
New on the market! This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.
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2217 Westwind Way
Signal Hill 90755
4 Bed | 4 Bath | 3,516 SF | $2,595,000
Stunning panoramic views from this custom hilltop home, nestled at the end of the cul-de-sac on a double corner lot. Amazing city and ocean views from Newport Beach to the skyscrapers of downtown LA.
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7887 Lampson Ave #54
Garden Grove 92841
2 Bed | 2 Bath | 800 SF | $110,000
Beautifully updated 2 bedroom, 2 bath home in Garden Terrace Estates.
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100 W. Louise St.
Long Beach 90805
3 Bed | 2 Bath | 1,031 SF | $500,000
Great opportunity to own this 3 bedroom, 2 bath single family home on a corner lot. Bring your imagination as this fixer has so much potential.
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5250 E. Lomita Ave.,
Orange 92869
32,924 SF of Residential Land | $650,000
Located on a private street with custom homes, this 32,924 SqFt lot comes with plans for a 5000+ SqFt custom home featuring amazing views.
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199 Prospect Ave
Long Beach 90803
5 Bed | 3 Bath | 2,557 SF | $1,895,000
Stunning 4 bedroom, 2 bathroom Belmont Heights Tudor with a nicely-sized Guest Quarters/Rental Unit/Home Office above the 2-car garage!
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939 Appletone Ave #3
Long Beach 90802
1 Bed | 1 Bath | 640 SF | $349,900
Nicely updated top floor end unit 1 bedroom 1 bath condo in the heart of Alamitos Beach just a short walk to the beach.
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5221 E Patterson St.,
Long Beach 90815
4 Bed | 2 Bath | 1,627 SF | $850,000
Wonderful home in the Stratford Square area of Long Beach. Lovely neighborhood known for its award winning schools.
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64 Corona Ave.,
Long Beach 90803
3 Bed | 3 Bath | 1,532 SF | $1,550,000
Amazing single-story bungalow on an oversized lot located less than a block to the ocean in the heart of Belmont Shore!
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2204 Conquista Ave.,
Long Beach 90815
4 Bed | 3 Bath | 2,629 SF | $1,075,000
Beautifully upgraded 4 bedroom, 3 bathroom home in the highly desirable Los Altos area of Long Beach. This spacious two-story pool home is perfect for entertaining.
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6490 E Saddle Dr
Long Beach 90815
3 Bed | 3 Bath | 2,845 SF | $1,720,000
Presenting this Amazing turnkey opportunity to live in Bixby Hill's 24 hr gated community. An entertainers paradise with your own oversized pool w/ beautiful waterfall.
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17141 Harvest Ave.,
Cerritos 90703
5 Bed | 3 Bath | 2,739 SF | $1,275,000
Welcome Home! Located in the highly sought-after area of Cerritos, this impeccable two-story home occupies is move-in ready
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5763 Eckleson St.,
Lakewood 90713
3 Bed | 2 Bath | 1,694 SF | $831,000
Beautifully updated 3 bedroom, 2 bath home in the heart of Lakewood on a tree lined street only minutes from great parks, schools, and nearby freeways.
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